Circular No. 01/2005/TT-BLDTBXH guiding the transition from old salary grades to new salaries for General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants, and workers, officials, and staff in state-owned companies pursuant to Government Decree No. 205/2004/NĐ-CP dated December 14, 2004.

CIRCULAR

Guidelines for transferring old salary grades to new salaries for General Directors, Directors,

Deputy General Directors, Deputy Directors, Chief Accountants, and workers, officials, and employees

in state-owned companies pursuant to Decree No. 205/2004/NĐ-CP

dated December 14, 2004 of the Government

To implement Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the salary scale, wage table, and allowance system in state-owned companies, the Ministry of Labor - Invalids and Social Affairs provides guidelines for transferring old salary grades to new salaries as follows:

I. SCOPE AND APPLICABLE SUBJECTS

The scope and subjects applying the transfer from old salary grades to new salaries under Article 1, Clause 1, 3, and Clause 4 of Article 2 of Decree No. 205/2004/NĐ-CP are specified as follows:

1. The scope of application includes state-owned companies operating under the Law on State-Owned Enterprises, including:

a) State-owned companies:

- State-owned corporations:

+ State-owned corporations established under the Law on State-Owned Enterprises in 1995 and State-owned corporations established by the State's decision to invest and establish under the Law on State-Owned Enterprises in 2003;

+ State-owned corporations established by companies themselves (corporations under the holding company model);

+ State-owned investment and business corporations;

- Independent state-owned companies;

b) Independent accounting subsidiaries of State Corporations established by the State's decision to invest.

The above-mentioned state-owned corporations shall be referred to as enterprises.

2. The subjects applying include:

a) General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants (excluding those working under contracts);

b) Workers, employees directly involved in production and business, specialized officials, and administrative staff working under labor contracts as stipulated in Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code regarding labor contracts.

II. PRINCIPLES FOR TRANSFERRING OLD SALARY GRADES TO NEW ONES

1. The transfer from old salary grades to new ones must be based on the current job assignments and positions held.

The basis for transferring old salary grades to new ones for workers and employees directly involved in production and business is the technical grade standard; for officials and employees, it is the professional standard; for General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants, it is the company rank currently assigned.

2. Based on the current salary grade and level in the existing salary scale and table to transfer to the corresponding grade and level in the new salary scale and table.

3. When transferring from old salary grades to new ones, there shall be no combination with promotion of official ranks, no combination with promotion of salary levels, and no assignment to a higher company rank.

4. The plan for transferring new salary grades must be decided by the competent authority before implementation.

III. TRANSFER FROM OLD SALARY GRADES TO NEW ONES

1. For workers and employees directly involved in production and business who are currently assigned salaries according to the salary scale, the current salary level will be transferred horizontally to the corresponding level in the new salary scale.

2. For workers and employees directly involved in production and business who are currently assigned salaries according to the wage table, the transfer to new salaries will be made as follows:

a) For positions where the number of old salary levels equals the number of levels in the new wage table, they will be transferred horizontally to the new salary level;

b) For positions where the number of old salary levels is less than the number of levels in the new wage table, they will be transferred horizontally to the new salary level. In cases where the current level has been held for three years or more, the company may consider transferring to a higher adjacent level in the new wage table;

c) For positions according to the wage table for pilots, the transfer will be made as follows:

- Pilots of old levels 1 and 2 will be transferred to pilot category III: old level 1 to new level 1; old level 2 to new level 2;

- Pilots of old levels 3 and 4 will be transferred to pilot category II: old level 3 to new level 1; old level 4 to new level 2;

- Pilot chiefs will be transferred to pilot category I: old level 1 to new level 1; old level 2 to new level 2;

- Pilots in category I, if they meet the standards for outstanding pilots through examinations, will be assigned to the outstanding pilot category.

d) Positions of culinary experts currently assigned salaries according to the old expert and artisan wage table will now be transferred to the corresponding level of culinary expert in the new wage table for tourism and service workers.

Artisans will be transferred to the corresponding level of artisan in the new high-level expert and artisan wage table.

3. For positions currently assigned salaries according to the old commercial salary scale, the transfer will be made as follows:

a) Positions in the oil industry will be transferred to the new 6-level commercial salary scale as provided in Point 1, Section III of this Circular;

b) Other positions will be transferred to the position of buyer and seller of goods in the new wage table for commerce workers and porters: old levels 1 and 2 to new level 1; old level 3 to new level 2; old level 4 to new level 3; old level 5 to new level 4; old level 6 to new level 5.

4. For company security personnel, the transfer will be made as follows:

a) If currently assigned salaries according to the old wage table for ticket sellers and public order guards at cultural public venues, bus stations, railway stations, ports, or the old wage table for logistics workers, they will be transferred to the position of security guard in the new wage table for ticket sellers, public order guards at cultural public venues, bus stations, railway stations, ports, and security guards as provided in Point 2, Section III of this Circular;

b) If currently assigned salaries according to the old wage table for clerical staff in the specialized, administrative, and support staff wage table, they will be transferred to the position of security guard in the new wage table for ticket sellers, public order guards at cultural public venues, bus stations, railway stations, ports, and security guards: old levels 1, 2, and 3 to new level 1; old levels 4, 5, and 6 to new level 2; old levels 7 and 8 to new level 3; old levels 9 and 10 to new level 4; old levels 11 and 12 to new level 5.

5. For meter readers and water bill collectors currently assigned salaries according to the old wage table for clerical staff in the specialized, administrative, and support staff wage table, they will be transferred to Group I, urban construction sector in the new 7-level salary scale: old levels 1 and 2 to new level 1; old levels 3 and 4 to new level 2; old levels 5 and 6 to new level 3; old levels 7 and 8 to new level 4; old levels 9 and 10 to new level 5; old levels 11 and 12 to new level 6.

6. For General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants currently assigned salaries according to company rank, the transfer will be made as follows:

a) For State Corporations and companies currently ranked as special, old level 1 will be transferred to new level 1, and old level 2 will be transferred to new level 2 according to the special State Corporation rank.

b) For State-owned corporations established pursuant to Decision No. 90/TTg dated March 7, 1994 of the Prime Minister, which are currently classified under Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government, the old Grade 1 shall be converted to new Grade 1, and old Grade 2 shall be converted to new Grade 2 according to the corporation's classification.

c) For companies currently classified as Class I, Class II, and Class III, the old Grade 1 shall be converted to new Grade 1, and old Grade 2 shall be converted to new Grade 2 according to the company's classification as Class I, Class II, and Class III.

Specifically, for General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants of companies currently classified under Circular No. 394/CP-VX dated April 4, 2003 of the Government, the old Grade 1 shall be converted to new Grade 1, and old Grade 2 shall be converted to new Grade 2 according to the company's classification as Class I. In cases where they are currently classified under Grade 1 according to Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government, they shall be converted to new Grade 1 according to the corporation's classification and equivalent.

The time for the next salary grade increase (if any remaining grades) for the cases specified in sub-item a, sub-item b, and sub-item c, point 6, Section III of this Circular shall be calculated from the date of the old salary grade assignment.

d) For companies currently classified as Class IV, temporarily convert old Grade 1 and Grade 2 to new Grade 1 according to the company's classification as Class III until the new company classification is determined.

7. For civil servants and employees currently classified under the civil servant and administrative staff salary scale, the conversion shall be as follows:

a) For civil servants and administrative staff, based on the current rank and grade, they shall be converted to the new rank and grade according to the civil servant and administrative staff salary scales set forth in Appendix 1 and Appendix 2 attached to this Circular. The time for the next salary grade increase shall be calculated from the date of the old salary grade assignment.

Specifically, civil servants with a college degree newly recruited to work in the positions of administrative staff or technical officers, or those currently classified at Grade 1 of the administrative staff or technical officer ranks, shall be converted to Grade 2 of the administrative staff or technical officer ranks according to the new civil servant and administrative staff salary scale.

b) For civil servants holding the position of Department Head, Deputy Department Head, and equivalent positions, their salaries shall be converted according to the civil servant and administrative staff salary scale as specified in sub-item a, point 7, Section III of this Circular, and they shall enjoy the position allowance for Department Head and Deputy Department Head according to the company's classification.

Specifically, for civil servants holding the position of Department Head, Deputy Department Head, and equivalent positions in companies currently classified under Circular No. 394/CP-VX dated April 4, 2003 of the Government, they shall enjoy the position allowance for Department Head and Deputy Department Head according to the corporation's classification and equivalent.

For civil servants holding the position of Department Head, Deputy Department Head, and equivalent positions in companies currently classified as Class IV, they shall temporarily enjoy the position allowance for Department Head and Deputy Department Head according to the company's classification as Class III until the new company classification is determined.

8. For senior experts and artisans according to the senior expert and artisan salary scale, the conversion shall be as follows:

Senior experts shall only apply to individuals with high professional qualifications, excellent technical skills, and who make important decisions regarding technology or professional matters in the company.

The determination of the senior expert salary scale shall be decided by the representative of the owner based on standards issued by the Ministry managing the industry, the People's Committee of provinces and centrally governed cities, after consultation with the Ministry of Labor, Invalids, and Social Affairs.

9. Other cases:

a) For certain positions working in state-owned enterprises in the cultural and artistic fields but not classified under the state-owned enterprise salary scale according to the agreement of the Ministry of Labor, Invalids, and Social Affairs, they shall continue to apply according to that agreement and convert to the new salary scale in accordance with the implementation guidelines of Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government;

b) For researchers, health personnel, and teachers in public institutions of the company (research institutes, hospitals, educational and training schools established and operating according to regulations of the Ministry of Science and Technology, the Ministry of Health, the Ministry of Education and Training, and the Ministry of Labor, Invalids, and Social Affairs), currently classified under the scientific and technical, health, education, and training salary scales issued together with Decree No. 25/CP dated May 23, 1993 of the Government, they shall convert to the new salary scale for professional and technical staff in public institutions according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government and the implementation guidelines thereof.

IV. IMPLEMENTATION

1. The Chairman of the Board of Directors, General Director, and Director of the company are responsible for:

a) The Chairman of the Board of Directors of the company:

- Directing the company to implement the conversion from the old salary scale to the new salary scale as prescribed by the State;

- Proposing the Ministry, agency equivalent to a ministry, or agency under the Government (hereinafter referred to as the ministry or sector) or the People's Committee of provinces and centrally governed cities to decide on the new salary scale for the General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant of the company according to the management hierarchy (according to Model No. 2).

- Deciding on the new salary scale for the General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and other positions in the company according to the management hierarchy.

- Reporting to the Ministry of Labor, Invalids, and Social Affairs the list and results of the conversion from the old salary scale to the new salary scale for the General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant of the corporation and special-class companies (according to Model No. 2);

b) The General Director and Director of the company:

- Establishing a Salary Conversion Council chaired by the General Director or Director, with members being representatives of the party committee, trade union at the same level, and the Head or Deputy Head of the labor and salary department. The Council is responsible for:

+ Publicizing the State's regulations on the new salary system within the company;

+ Reviewing and evaluating the current job and position-based classification of ranks and grades as the basis for converting to the new salary scale;

+ Developing a plan for converting from the old salary scale to the new salary scale (according to Model No. 1) and publicly announcing it within the company;

- Decision on new salary grading for workers, officials, and staff within the company according to the management hierarchy after the new salary grading plan has been approved by the Council; decision on new salary grading for General Directors, Deputy General Directors, Chief Accountants of companies and member units according to the management hierarchy;

- Propose the Board of Directors (for companies with a Board of Directors) or Ministries, sectors, People's Committees of provinces and centrally-run cities (for companies without a Board of Directors) to decide on new salary grading for General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants of the company (according to Model No. 2);

- Report the results of transferring from old salary grading to new salary grading of the company to Ministries, sectors, People's Committees of provinces and centrally-run cities. For State-owned corporations and special-class companies, report simultaneously to the Ministry of Labor - Invalids and Social Affairs;

The content of the report includes:

+ Overall assessment of the results of transferring from old salary grading to new salary grading of the company;

+ Summary of the results of transferring from old salary grading to new salary grading of the company (according to Model No. 3);

+ Recommendations for issues that need to be resolved during the process of transferring from old salary grading to new salary grading.

2. Ministries, sectors, People's Committees of provinces and centrally-run cities are responsible for:

a) Directing and guiding companies under their management to implement the transfer from old salary grading to new salary grading according to the regulations of the State; inspecting and handling difficulties within their authority during the process of transferring from old salary grading to new salary grading;

b) Deciding on new salary grading for General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants in companies under their management;

c) Reporting to the Ministry of Labor - Invalids and Social Affairs:

- List and results of transferring from old salary grading to new salary grading for General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants of State-owned corporations and special-class companies under their management (according to Model No. 2);

- Results of transferring from old salary grading to new salary grading of companies under their management (according to Model No. 3).

3. Departments of Labor - Invalids and Social Affairs are responsible for assisting People's Committees of provinces and centrally-run cities in performing the following tasks:

a) Coordinating with relevant departments and agencies to urge and inspect companies under their management to implement the transfer from old salary grading to new salary grading according to the regulations of the State; coordinating with local mass media organizations to publicize and explain about the new wage system in state-owned enterprises;

b) Reviewing the plans for transferring to new salary grading for General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants of companies under their management before the People's Committee of the province or centrally-run city decides; receiving and compiling lists and results of transferring from old salary grading to new salary grading for General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants of State-owned corporations and special-class companies (according to Model No. 2) for the People's Committee of the province or centrally-run city to report to the Ministry of Labor - Invalids and Social Affairs;

c) Monitoring, supervising, collecting difficulties encountered during the implementation of the transfer from old salary grading to new salary grading in companies under their management, reporting to the People's Committee of the province or centrally-run city for resolution or proposing the Ministry of Labor - Invalids and Social Affairs to resolve according to their authority;

d) Compiling results of transferring from old salary grading to new salary grading of companies under their management to report to the Ministry of Labor - Invalids and Social Affairs (according to Model No. 3).

4. The Ministry of Labor, Invalids, and Social Affairs is responsible for:

a) Organizing guidance and training on the provisions of the State regarding the new wage system in state-owned enterprises;

b) Handling difficulties according to their authority during the process of transferring from old salary grading to new salary grading in companies upon request of Ministries, sectors, People's Committees of provinces and centrally-run cities, and companies;

c) Compiling and reporting to the Prime Minister the results of transferring from old salary grading to new salary grading in companies.

V. EFFECTIVE DATE

1. This Circular shall take effect fifteen days after its publication in the Official Gazette.

Repeal Circular No. 12/LB-TT dated June 2, 1993 of the Joint Ministry of Labor - Invalids and Social Affairs - Finance on guiding the transfer from old salary grading to new salary grading in enterprises, Circular No. 28/LB-TT dated December 2, 1993 of the Joint Ministry of Labor - Invalids and Social Affairs - Finance on supplementary guidance on implementing the new wage system for workers and staff in state-owned enterprises, and Circular No. 23/1997/TTLT-BLĐTBXH-BTC dated December 30, 1997 of the Joint Ministry of Labor - Invalids and Social Affairs - Finance on salary grading for managerial and leadership personnel of enterprises established pursuant to Decision No. 90/TTg dated March 7, 1994 of the Prime Minister.

2. These provisions of this Circular shall take effect from October 1, 2004.

In cases where there is a change in the old salary coefficient after October 1, 2004, the transfer from old salary grading to new salary grading shall be implemented as follows:

- From October 1, 2004 to the date of the change in the old salary coefficient, the old salary coefficient prior to the change shall be transferred to the new salary coefficient according to the guidelines in this Circular as the basis for retroactively paying social insurance from October 1, 2004 to the date of the change in the old salary coefficient;

- From the date of the change in the old salary coefficient until the date of the transfer from old salary grading to new salary grading, the old salary coefficient after the change (current salary coefficient) shall be transferred to the new salary coefficient and benefits shall be calculated from the date of the change in the old salary coefficient.

3. For General Managers, Deputy General Managers, and Chief Accountants of the Development Support Fund and Vietnam Deposit Insurance Corporation who are currently applying the wage system as stipulated in Decision No. 17/2000/QĐ-TTg dated February 3, 2000 and Decision No. 88/2001/QĐ-TTg dated June 5, 2001 of the Prime Minister, the transfer from old salary grading to new salary grading shall be applied according to the provisions of this Circular.

4. State-owned enterprises operating under the Enterprise Law and other economic entities if they are currently applying the wage scale and pay table of state-owned enterprises prescribed by the Government shall apply the provisions of this Circular.

During implementation, if any difficulties arise, the relevant ministries, provincial/municipal people's committees under the central government, and state-owned enterprises are requested to report to the Ministry of Labor - Invalids and Social Affairs for study and resolution./.