Subject to this Circular are:

- State enterprises conducting production and business activities under the Law on State Enterprises;

- State enterprises engaged in public-utility activities under the Law on State Enterprises;

- Organizations and units of administrative and public-service agencies, the Party, associations and self-financing mass organizations, which are licensed to conduct production, business and service activities.

For all products turned out and services provided by State enterprises, the labor norms and wage unit price must be worked out. The wage unit price shall be formulated on the basis of the average labor norm of the enterprises and wage parameters prescribed by the State.

Wages and incomes shall depend on the product and/or service volumes, labor productivity and quality, as well as production and business efficiency.

The State shall manage wages and incomes through the inspection and supervision of the application of wage unit price, the use of wage funds and labor norm system of enterprises.

This Circular guides in detail the steps of wage unit price formulation; and wage and income management.

For equitized enterprises, if they so wish, they may apply this Circular after such is agreed upon by their Management Boards.- (Summary)