ENCOURAGE PMUS TO INCREASE STATE CAPITAL AND REDUCE THEIR EMPLOYEES
On July 17, 2017, the Ministry of Finance issued the Circular No. 72/2017/TT-BTC prescribing the management and use of revenues from project management activities of owners and management units of state budget-funded projects.
In according to this Circular, the State shall encourage PMUs to increase revenues and save expenses and reduce their employees, thereby increasing income for their employees and fulfilling assigned tasks after fulfilling obligations toward the state budget. Depending on results of financial activities in a year, a PMU may decide on total additional income to be paid in the year to its employees which must not exceed 3 times the rank-, grade- and position-based salary fund and salary allowances for its officials, civil servants and public employees under the State’s regulations.
The payment of income to employees in a unit must adhere to the following principle: Persons with higher working efficacy and greater contributions to increasing revenues and saving expenses shall be paid higher income. In their internal spending regulations, PMUs shall prescribe the payment of additional income based on assigned work volume and jobs and performance quality, ensuring attraction of highly qualified employees and reasonable compatibility with salary levels of officials, civil servants and public employees in the same unit. The additional income of a leading position holder must not exceed two times the average additional income payable to an employee in the same unit and shall also be paid on the basis of work volume, quality and efficiency. Incomes of a PMU’s directors shall be paid according to the unit’s internal spending regulations.
This Circular takes effect on September 15, 2017, and replaces the Ministry of Finance’s Circular No. 05/2014/TT-BTC of January 06, 2014.
