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Provisions of the State Science and Technology Commission and the Ministry of Finance on Establishing Three Funds for Scientific Research Institutions
Article 1 According to the Interim Provisions of the State Science and Technology Commission and the Ministry of Finance (87)0 125, independent scientific research institutions are divided into technology development type, basic research type and social welfare research type. For different types of scientific research units, the proportion of collective welfare funds and incentive funds is linked to the reduction of scientific research funds. Article 2 Various scientific research units may establish three funds: career development fund, collective welfare fund and incentive fund from after-tax retained profits. Article 3 Various scientific research units may, according to different situations, draw three funds from after-tax retained profits according to the following proportions:

(a) scientific research institutions that have not reduced or exempted their scientific research fees may respectively extract 20% from their collective welfare funds and incentive funds and 60% from their career development funds.

(2) The collective welfare funds and incentive funds of scientific research units that reduce scientific research expenditures will be increased by 0.5%, the incentive funds will be increased by 1%, and the rest will be used as career development funds on the basis of 20%.

(three) basic research institutions, scientific research funds have been transferred to the Natural Science Fund, depending on the proportion of its transfer; Social welfare research-oriented scientific research institutions may, according to the proportion of their net income and scientific research expenses, extract three funds according to the proportion specified in Item (2) of this article. Fourth scientific research units at all levels of scientific research funds, when transferred to the centralized management of the Science and Technology Commission at the same level, according to the number of scientific research funds budget indicators.

Before the transfer, the research expenditure (including all the reduced expenses) of the reform pilot units confirmed by the Science and Technology Commission at the same level should be confirmed and included in the base. Article 5 If the bonus fund drawn according to the above-mentioned prescribed proportion is less than one month's basic salary per capita, it can be supplemented by the balance of the career development fund or the fund lump sum, but the sum of the two shall not exceed one month's basic salary at the maximum. Article 6 The proportion of withdrawal of career development funds, collective welfare funds and incentive funds of scientific research units shall be assessed by the competent department according to the third and fourth methods mentioned above. Article 7 The reduction of the proportion of funds for scientific research by various scientific research institutions shall be reviewed by the competent department according to the "Measures for the Verification of the Reduction of Funds for Scientific Research Institutions" issued by the State Science and Technology Commission (87) No.0422, and reported to the Science and Technology Commission at the same level for approval. Eighth scientific research units in accordance with the provisions of the national wage reform, at their own expense, can be included in the scientific research expenditure or related income and expenditure. If a scientific research unit reforms itself, its capital increase should be included in the incentive fund expenditure extracted by the unit. Article 9 The units to which these Provisions apply are: independent scientific research units owned by the whole people (including those whose business expenses have been completely reduced or exempted) that were and are paid by the central or local governments according to the provisions of Guo Fa [1986] 12. Article 10 The Ministry of Finance and the State Science and Technology Commission shall be responsible for the interpretation of these Provisions. Article 11 These Provisions shall come into force as of 1987 1 month 1 day.