Joint Circular No. 01/2005/TTLT/BNV-BTC guiding the implementation of transferring old salary grades to new salaries for civil servants, public officials, and employees

JOINT CIRCULAR

Guidelines for transferring old salary grades to new salary grades

for officials, civil servants, and public employees

Implementing Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the wage system for officials, civil servants, public employees, and armed forces (hereinafter referred to as Decree No. 204/2004/NĐ-CP); after exchanging opinions with relevant ministries and agencies, the Ministry of Home Affairs and the Ministry of Finance jointly issue guidelines for transferring old salary grades to new salary grades for officials, civil servants, and public employees as follows:

I. SCOPE AND APPLICABLE SUBJECTS

Officials, civil servants, and public employees specified in Article 2 of Decree No. 204/2004/NĐ-CP who will transfer from old salary grades to new salary grades include:

1. Officials and civil servants within the state budget payroll working in central government agencies; provincial and centrally-administered city government agencies; district, town, and provincial-level city government agencies, including:

a. Officials and civil servants holding leadership positions appointed through election or appointment.

b. Senior experts.

c. Professional and technical staff (including judicial and prosecution sector professional and technical positions) and administrative and service staff working in state agencies.

2. Full-time officials and civil servants at commune, ward, and town levels.

3. Public employees holding leadership positions, professional and technical staff, and administrative and service staff within the state budget payroll and operating funds from state-run enterprises as prescribed by law working in state-run institutions.

4. Officials, civil servants, and public employees under state payroll and receiving wages according to the state-defined pay scale assigned to work at associations, non-governmental organizations, projects, and international organizations based in Vietnam.

II. TRANSITION FROM OLD SALARY GRADES TO NEW SALARY GRADES

1. For leadership positions subject to the new pay scale based on the position-based pay table (Ministers and equivalent positions and full-time officials at commune, ward, and town levels):

a. Principles:

Currently holding a leadership position, they will transition from the old salary grade to the new salary grade according to that leadership position and cease to receive the re-election seniority allowance (if applicable).

For leadership positions defined with two salary grades, if not receiving the re-election allowance, they will transition from the old salary grade to the new salary grade at the first level of the current leadership position; if currently receiving the re-election allowance (5% or more), they will transition from the old salary grade to the new salary grade at the second level of the current leadership position and cease to receive the re-election allowance.

b. Method of transitioning from old salary grades to new salary grades:

Based on the old salary coefficient and re-election allowance (if applicable) of the current leadership position, they will be transferred to the new salary coefficient of that leadership position according to Table 1 and Table 2 issued together with this Circular.

Example 1. Mr. Nguyen Van A, Minister of Department B, has been assigned an old salary coefficient of 8.20 according to the elected position pay table. From October 1, 2004, Mr. A will transition from the old salary grade to the new salary grade as follows:

If Mr. A does not receive the re-election allowance, he will be transferred to the new salary grade at the first level with a salary coefficient of 9.70 in the ministerial position pay table; if Mr. A is currently receiving the re-election allowance (5% or 10% or more), he will be transferred to the new salary grade at the second level with a salary coefficient of 10.30 in the ministerial position pay table and cease to receive the re-election allowance.

Example 2. Ms. Tran Thi B, Chairwoman of the People's Committee of Commune C, has been assigned an old salary coefficient of 1.90 (as stipulated in Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government). From October 1, 2004, Ms. B will transition from the old salary grade to the new salary grade as follows:

If Ms. B does not receive the re-election allowance, she will be transferred to the new salary grade at the first level with a salary coefficient of 2.15 in the full-time official position pay table of the commune chairperson; if Ms. B is currently receiving the re-election allowance of 5%, she will be transferred to the new salary grade at the second level with a salary coefficient of 2.65 in the full-time official position pay table of the commune chairperson and cease to receive the re-election allowance.

2. For positions appointed through election subject to the new pay scale based on the civil servant rank and grade and receiving leadership position allowances:

a. Principles:

Currently holding an elected position, they will base their old salary coefficient (excluding the re-election allowance, if applicable) to transition to the new civil servant rank and grade and receive the leadership position allowance prescribed for the current elected position;

The time spent at the old salary coefficient for the current elected position will be considered for ranking into a higher grade or for enjoying the seniority allowance exceeding the standard (if applicable) in the civil servant rank according to the regular promotion and seniority allowance system for civil servants and cease to receive the re-election allowance (if applicable);

During the period of holding the old salary coefficient, if there is a year where the assigned tasks are not completed or disciplinary action (one of the forms of reprimand or warning) is taken, then for each year where the assigned tasks are not completed or disciplinary action is taken, the time required to advance to a higher grade in the rank or the time required to enjoy the seniority allowance exceeding the standard (if applicable) will be extended by one year (a full 12 months).

b. Method of transitioning from old salary grades to new salary grades:

Based on the old salary coefficient and the time spent at the old salary coefficient of the current leadership position, they will transition to the new salary grade according to Table 3 issued together with this Circular and receive the leadership position allowance for the current elected position.

Example 3. Mr. Tran Dang C, currently holding the position of Chairman of the Standing Committee of the People's Council of District D, has been assigned an old salary coefficient of 3.40 according to the elected position pay table since December 1, 1999, and is currently receiving a 5% re-election allowance (second term 2004-2009). From October 1, 2004, Mr. C will transition from the old salary grade to the new salary grade according to the civil servant rank and grade and receive the leadership position allowance for the position of Chairman of the Standing Committee of the People's Council of the district as follows:

The old salary coefficient 3.40 of Mr. C was transferred to the new salary coefficient 4.32, grade 7, specialist rank. During the time holding the old salary coefficient (3.40) from December 1, 1999 to December 1, 2002 (three years and during this period, Mr. C completed assigned tasks annually and was not disciplined), Mr. C was promoted to grade 8 with the new salary coefficient 4.65 at the specialist rank and received a position allowance for the full-time Chairman of the People's Council of the district with a coefficient of 0.30. The time for the next salary grade increase for Mr. C will be calculated from December 1, 2002, and Mr. C ceased to receive the 5% re-election allowance (old).

3. For cadres, civil servants, and public officials currently holding leadership positions who have been classified under the old salary scale according to the civil servant or public official rank and grade or professional title in the judiciary or prosecution sectors and receiving leadership position allowances:

Implement the principle and method of transferring the old salary scale to the new salary scale as for cadres, civil servants, and public officials in professional and technical positions, administrative support, and service roles according to the guidance at point 5, section II of this Circular, and enjoy the position allowance stipulated for the current leadership position held.

Example 4. Ms. Vu Thi D, Head of the Civil Affairs - Labor Department of County E, has been classified under the old salary coefficient 3.31, grade 7, specialist rank since June 1, 2002, and received a position allowance for the Head of the Department of County E with an old coefficient of 0.20. Ms. D was transferred from the old salary scale to the new salary scale from October 1, 2004, as follows:

The old salary coefficient 3.31, grade 7, specialist rank of Ms. D was transferred to the new salary coefficient 4.32 (the time for the next salary grade increase for Ms. D will be calculated from June 1, 2002) and Ms. D will receive a position allowance for the Head of the Department of County E with a new coefficient of 0.30.

4. For senior experts:

Implement the principle of transferring the old salary grade to the new salary grade across grades according to Table 4 issued together with this Circular.

Example 5. Mr. Le Van E has been classified under the old salary scale for senior expert grade 2, old salary coefficient 8.00 since May 1, 2003. Mr. E was transferred across grades to grade 2 with the new salary coefficient 9.40 for senior expert from October 1, 2004; the time for the next salary grade increase for Mr. E will be calculated from May 1, 2003.

5. For cadres, civil servants (including village-level civil servants), public officials in professional and technical positions from the senior specialist rank and equivalent downwards, and administrative support and service staff (those not holding leadership positions):

a. Principles:

Currently classified under which civil servant or public official rank (hereinafter referred to as rank) or professional title in the judiciary or prosecution sectors (hereinafter referred to as title), then based on the old salary coefficient to transfer to the new salary coefficient according to that rank or title;

If already transferred to the highest grade in the rank or title, then depending on the time holding the old grade to calculate the enjoyment of the seniority allowance exceeding the ceiling according to regulations; during the time holding the old grade, if there is a year without completing assigned tasks or being disciplined (one of the forms of reprimand, warning, removal from office), then for each year without completing assigned tasks or being disciplined, the time for enjoying the seniority allowance exceeding the ceiling will be extended by one year (full 12 months);

Transferring the old salary to the new salary does not combine with the promotion of the civil servant or public official rank. Those who were classified under the old salary scale incorrectly according to the requirements of the current job (except in cases where there is a decision by the competent authority to retain the old rank or title when changing jobs) must be transferred to the salary according to the correct rank or title required for that job. The rank or title according to the requirements of the current job and the rank or title retained when changing jobs hereafter is called the current rank or title held.

b. Method of transitioning from old salary grades to new salary grades:

Based on the old salary coefficient and the time holding the old grade, transfer to the new salary according to the current rank or title held and enjoy the seniority allowance exceeding the ceiling (if applicable) according to Table 5 issued together with this Circular.

Example 6. Ms. Dinh Thi H, a specialist at the Office of the Provincial People's Committee K, has been classified under the old salary coefficient 4.06, grade 10 (the highest grade in the specialist rank) since September 1, 1998. Ms. H was transferred from the old salary to the new salary from October 1, 2004, as follows:

Since the new salary system provides that the specialist rank has nine grades, Ms. H was transferred to the new salary at grade 9 with a new salary coefficient of 4.98 at the specialist rank and received a 5% seniority allowance exceeding the ceiling (grade 10 in the old specialist rank was entitled to a 5% seniority allowance exceeding the ceiling). The time holding grade 10 (old) in the specialist rank of Ms. H from September 1, 1998 to September 1, 2004 (six years and during this period, Ms. H completed assigned tasks annually and was not disciplined), Ms. H was entitled to an additional 6% seniority allowance exceeding the ceiling (1%/year). Therefore, Ms. H was transferred to the new salary from October 1, 2004, at a salary coefficient of 4.98, grade 9, specialist rank, and received 11% (5% + 6%) seniority allowance exceeding the ceiling compared to the new salary coefficient 4.98 (the highest grade in the specialist rank); the time for the next enjoyment of the seniority allowance exceeding the ceiling for Ms. H will be calculated from September 1, 2004.

Example 7. Mr. Dao Van K, a civil servant at the Office of the People's Committee of County M, has been classified under the old salary coefficient 3.07, grade 14, civil servant rank since April 1, 2003. Mr. K was transferred from the old salary to the new salary from October 1, 2004, as follows:

Due to the new salary system, the cadre rank has 12 levels, therefore Mr. K was transferred to level 12 with a new salary coefficient of 4.06 for the cadre rank and enjoys a 7% seniority allowance exceeding the ceiling (the old level 13 in the cadre rank received a 5% seniority allowance exceeding the ceiling; the old level 14 in the cadre rank received an additional 2% seniority allowance exceeding the ceiling). The time Mr. K held the old level 14 in the cadre rank from April 1, 2003 to April 1, 2004 (one year during which Mr. K completed assigned tasks and was not disciplined), Mr. K is entitled to an additional 1% seniority allowance exceeding the ceiling. Thus, Mr. K was transferred to the new salary system on October 1, 2004 at a coefficient of 4.06, level 12, cadre rank, and enjoys an 8% (7% + 1%) seniority allowance exceeding the ceiling compared to the new coefficient of 4.06 (the highest new level in the cadre rank); the next period for calculating the seniority allowance exceeding the ceiling for Mr. K will be counted from April 1, 2004.

6. Other cases:

a. Cadres, civil servants, and public officials who have a decision from the competent authority to retain their position salary or grade salary or title salary when changing jobs shall be transferred to the new salary system from October 1, 2004 based on the retained salary coefficient according to this Circular and cease to enjoy the retained differential coefficient (if any).

Example 8. Mr. Vu Van M, Chairman of the People's Committee of District N, former Head of the Standing Committee of the People's Council of Province P (ranked with a coefficient of 5.20 since May 1, 2002). According to the provisions of Decree No. 25/CP dated May 23, 1993, Mr. M would be ranked with a coefficient of 4.90 for the position of Chairman of the People's Committee of District, but Mr. M has a decision from the competent authority allowing him to enjoy a differential retention coefficient of 0.30 to equal the old salary (4.90 + 0.30 = 5.20), Mr. M will be transferred to the new salary system and cease to enjoy the differential retention coefficient of 0.30 from October 1, 2004 as follows:

The retained coefficient of 5.20 of Mr. M will be transferred to the new coefficient of 5.76, level 5, Senior Specialist Rank (the time for the next promotion will be calculated from May 1, 2002) and enjoy the position allowance for the position of Chairman of the People's Committee of District with a new coefficient of 0.70.

Example 9. Ms. Nguyen Thi N, former Director of the Office of District P, ranked with a coefficient of 2.82, level 5, Specialist Rank since November 1, 2003 and enjoyed a position allowance for the position of Director of the Office of District with a coefficient of 0.20. In accordance with job requirements, Ms. N was transferred to hold the position of Chairman of the People's Committee of Commune Q and had a decision from the competent authority retaining her salary at the Specialist Rank and position allowance, Ms. N will be transferred to the new salary system from October 1, 2004 as follows:

The old coefficient of 2.82, level 5, Specialist Rank will be transferred to the new coefficient of 3.66 (the time for the next promotion will be calculated from November 1, 2003) and enjoy the retained position allowance for the position of Director of the Office of District with a new coefficient of 0.30.

Example 10. Mr. Nguyen Xuan P, former Judge of the Supreme People's Court, ranked with a coefficient of 5.36, level 2 since September 1, 2002. In accordance with job requirements, Mr. P was transferred to hold the position of President of the People's Court of Province T and had a decision from the competent authority retaining his salary at the position of Judge of the Supreme People's Court and enjoying a position allowance for the position of President of the People's Court of Province with a coefficient of 0.80. Mr. P will be transferred to the new salary system from October 1, 2004 as follows:

The old coefficient of 5.36, level 2 will be transferred to the new coefficient in the position of Judge of the Supreme People's Court of 6.56 (the time for the next promotion will be calculated from September 1, 2002) and enjoy the position allowance for the position of President of the People's Court of Province with a new coefficient of 0.95.

b. Cadres, civil servants, and public officials who were formerly officers of the Vietnam People's Army and are currently enjoying a differential retention coefficient, shall recalculate the differential retention coefficient according to the new salary coefficient. During the period of salary retention as prescribed, the differential retention coefficient will decrease correspondingly by the amount of the salary increase due to promotion or due to enjoying a seniority allowance exceeding the ceiling (if any).

Example 11. Mr. Nguyen Van Q, former Major of the Vietnam People's Army (old coefficient of 4.15 ranked since April 1, 2002) was transferred to work and appointed to the position of Deputy Director of the Office of the Provincial People's Committee of Province T since August 1, 2004. Based on the professional standards of the civil servant grade that Mr. Q holds, Mr. Q was appointed and ranked at the Specialist Rank, level 6, old coefficient of 3.06 (the time for the next promotion will be calculated from April 1, 2002) and enjoys a position allowance for the position of Deputy Director of the Office of the Provincial People's Committee with a coefficient of 0.20, the total old coefficient (including position allowance) of Mr. Q is 3.26 (3.06 + 0.20). According to the Law on Officers of the Vietnam People's Army, Mr. Q is entitled to a differential retention coefficient from August 1, 2004 (the day he transferred to work) of 0.89 (4.15 - 3.26). The old differential retention coefficient of 0.89 of Mr. Q will be recalculated according to the new salary from October 1, 2004 as follows:

The rank of major is transferred to a new coefficient of 5.40.

The old coefficient of 3.06, level 6, Specialist Rank will be transferred to a new coefficient of 3.99; the position allowance for the position of Deputy Director of the Office of the Provincial People's Committee has a new coefficient of 0.30, the total new coefficient (including position allowance) of Mr. Q is 4.29 (3.99 + 0.30). Therefore, Mr. Q will enjoy a differential retention coefficient according to the new salary from October 1, 2004 of 1.11 (5.40 - 4.29). On April 1, 2005 (after three years holding the level and during which Mr. Q completed annual assigned tasks and was not disciplined), Mr. Q will be promoted to level 7 with a new coefficient of 4.32 (increased by 0.33 compared to level 6), then the differential retention coefficient of Mr. Q will decrease correspondingly from 1.11 to 0.78 (1.11 - 0.33).

c) The positions of Head of Delegation, Deputy Head of Delegation of full-time National Assembly deputies, full-time National Assembly deputies, Chairperson, Deputy Chairperson of Committees under the Standing Committee of the National Assembly shall implement the transfer from old salary to new salary according to the regulations of the Standing Committee of the National Assembly.

d) The position of full-time member of the People's Council at provincial level and centrally governed cities (provincial level), district, county, town, city under province (district level) shall implement the transfer from old salary to new salary into the rank and grade of administrative civil servants and enjoy the position allowance of the current held position. Based on the relative position of the full-time member of the People's Council at provincial and district levels as stipulated in Resolution No. 730/2004/NQ-UBTVQH11 dated September 20, 2004 of the Standing Committee of the National Assembly regarding the approval of the position salary table, position allowance table for state leaders; the specialized and vocational salary table for the judiciary and prosecution sectors to implement the transfer from old salary to new salary into the rank and grade of administrative civil servants and enjoy the leadership position allowance according to the transfer table number 6 (6a and 6b) issued together with this Circular.

đ) For newly added or changed classification of cadres, civil servants, public officials in the ranks or positions of specialized and vocational sectors of the judiciary and supervision, and cases not meeting the required educational standards for the ranks or positions, the relevant Ministries and sectors managing these specialized ranks or positions shall build plans for transferring from old salary to new salary, propose to the Ministry of Home Affairs - Ministry of Finance for agreement and application, and be entitled to receive the new salary according to the effective date of this Circular.

III. IMPLEMENTATION

Implementing the new salary system in 2004 and subsequent years continues the process of reforming the salary policy in accordance with the spirit of the Seventh Plenary Session of the Central Committee of the Communist Party of Vietnam during the Eighth Congress, the Ninth National Congress of the Communist Party of Vietnam, and the conclusions of the Eighth Plenary Session of the Central Committee of the Communist Party of Vietnam during the Ninth Congress. Therefore, Ministries, sectors, localities, agencies, and units need to disseminate the new salary policy documents of the Party and State to all cadres, civil servants, public officials, and those receiving salaries, making everyone understand that the salary policy reform must be a process over many years; it must be based on increasing labor productivity, national income, and economic development; at the same time, this round of salary reform focuses on increasing the salary levels for those with average and low salaries; partially eliminating overlaps and complexities in the salary tables, creating favorable conditions for salary grading when transferring cadres and civil servants within the political system; clearly separating the salary tables for civil servants, public officials, wage scales, and salary tables in state-owned companies; contributing to improving the quality of the cadre, civil servant, and public official corps, promoting administrative reform.

To effectively implement the transfer from old salary to new salary, ensuring uniformity nationwide, motivating cadres, civil servants, and public officials to improve work efficiency, Ministries, sectors, localities, agencies, and units need to implement:

1. Heads of agencies and units directly managing cadres, civil servants, and public officials (at the grassroots level) are responsible for exchanging with the same-level Party committee and the same-level Trade Union Committee to implement:

a) Review and arrange the staffing of the agency or unit, clearly define the functions, tasks, and workload of each department, and accordingly allocate cadres, civil servants, and public officials in accordance with job requirements.

b) Based on the guidance in this Circular, prepare reports on the results of transferring from old salary to new salary for each cadre, civil servant, and public official under their management according to Model 1a and Model 1b (for government agencies) and Model 2 (for public service units) issued together with this Circular; simultaneously compile cases of difficulties and send them to the higher-level management agency for inspection and consolidation.

2. Heads of higher-level management agencies of the grassroots level are responsible for:

Inspecting, preparing reports (according to Model 1a, Model 1b, and Model 2), and consolidating difficult cases in subordinate agencies and units and sending them to the Ministry or sector (if under central management) or the People's Committee of the province or centrally governed city (if under local management) for approval and resolution.

3. Ministers, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chief Justice of the Supreme People's Court, Chief Procurator of the Supreme People's Procuracy (hereinafter referred to collectively as Heads of Central Ministries and Sectors), Chairpersons of the People's Committees of provinces and centrally governed cities have the responsibility to:

a) Establish a Steering Committee to implement the new salary system (hereinafter referred to as the Steering Committee).

a1) The composition of the Steering Committee consists of 05 to 07 members as follows:

At the central level:

The Chairman of the Steering Committee is the Head or Deputy Head of a Central Ministry or Sector;

The Deputy Chairman of the Steering Committee is the Director of the Department (or Bureau) of Organization and Cadre Management, Labor, and Salary of the Central Ministry or Sector;

Members of the Steering Committee include the person in charge of the finance department, representatives of the trade union at the same level, and other members proposed by the Chairman of the Steering Committee.

At the local level:

The Chairman of the Steering Committee is the Chairperson or Vice-Chairperson of the People's Committee of the province or centrally governed city;

The Deputy Chairman of the Steering Committee is the Director of the Department of Home Affairs;

Members of the Steering Committee include the Director of the Department of Finance, representatives of the Provincial Federation of Trade Unions, and other members proposed by the Chairman of the Steering Committee.

a2) The Steering Committee has the responsibility to assist the Heads of Central Ministries and Sectors and the Chairpersons of the People's Committees of provinces and centrally governed cities in implementing:

Directing units under their management to implement the transfer from old salary to new salary according to the guidance in this Circular; reviewing and consolidating the results of the transfer from old salary to new salary; resolving issues within their authority during the transfer from old salary to new salary, and proposing to the Ministry of Home Affairs - Ministry of Finance for consideration and decision on matters exceeding their authority.

Determine the additional salary fund requirements and funding sources for implementing the new salary system in accordance with the guidance of the Ministry of Finance for units under its management.

b) Based on the results of the review to transfer from old to new salaries proposed by the Steering Committee, the authorized person at the Ministry, sector, and provincial level shall issue decisions or propose the competent authority at the current level to issue decisions to transfer from old to new salaries for cadres, civil servants, and public officials within the payroll establishment of the Ministry, sector, and locality.

c) For Deputy Chairpersons of People's Councils and Deputy Chairpersons of People's Committees at provincial and central city levels, senior specialist-grade cadres and equivalent positions (excluding Chairpersons of People's Councils and People's Committees at provincial and central city levels, Deputy Ministers, and equivalent leadership positions) within the payroll establishment of Ministries, sectors, and localities, the heads of Ministries and sectors at the central level, and Chairpersons of People's Committees at provincial and central city levels shall submit written requests (attached with copies of the most recent salary grade decision) to the Ministry of Home Affairs for consideration and issuance of decisions to transfer from old to new salaries. During the period before the Minister of Home Affairs issues a decision to transfer from old to new salaries, the new salary can be temporarily paid according to the guidance provided in this Circular.

The decision of the Minister of Home Affairs regarding the transfer from old to new salaries for the aforementioned positions shall serve as the basis for the heads of Ministries and sectors at the central level and Chairpersons of People's Committees at provincial and central city levels to issue decisions to increase salary grades for the aforementioned positions.

4. The General Director of the Vietnam Social Security shall instruct social security agencies at provincial and central city levels to collect social insurance contributions based on the new salaries of cadres, civil servants, and public officials. If violations in transferring from old to new salaries are discovered, the Director of the Social Security Agency at provincial and central city levels shall submit written requests to the authorized personnel managing cadres, civil servants, and public officials to re-transfer salaries in accordance with state regulations (with a copy sent to the Ministry of Home Affairs for monitoring and inspection).

5. The Ministry of Home Affairs shall take the lead in coordinating with the Ministry of Finance to resolve difficulties in the process of transferring from old to new salaries at Ministries, sectors, and localities; report to the Steering Committee for Researching State Salary Policy Reform, the Government, and the Standing Committee of the National Assembly on matters exceeding their jurisdiction.

IV. EFFECTIVE DATE OF IMPLEMENTATION

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

Repeal all guiding documents implementing Decree No. 25/CP dated May 23, 1993 of the Government on the transfer from old to new salaries and term-of-office seniority allowances for cadres, civil servants, and public officials working in state agencies and state-affiliated organizations.

2. The old salary coefficient, re-election allowance, position allowance, and old retention differential coefficient (if any) used to transfer to the new salary according to the guidance in this Circular shall be the current rate as of October 1, 2004, and shall be back-paid for salary differences and back-paid for social insurance contributions between the new salary (including position allowance, seniority allowance exceeding the ceiling, and retention differential coefficient, if any) and the old salary from October 1, 2004.

a) In cases where there is a change in the old salary coefficient after October 1, 2004, the transfer from old to new salaries shall be carried out 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 guidance in this Circular to serve as the basis for back-paying salary and back-paying social insurance contributions from October 1, 2004, until the date of the change in the old salary coefficient;

From the date of the change in the old salary coefficient to the date of the transfer from old to new salaries, the old salary coefficient after the change (the current salary coefficient) shall be transferred to the new salary coefficient, and the new salary shall be enjoyed from the date of the change in the old salary coefficient.

The decision to transfer from old to new salaries must clearly reflect the changes in the old salary after October 1, 2004, as mentioned above.

b) In cases where cadres, civil servants, and public officials have met the time and standard requirements for increasing salary grades according to regulations during the period from October 1, 2004, to the date of the transfer from old to new salaries but have not yet received a decision to increase the old salary grade from the competent authority, they shall also follow the procedure for transferring from old to new salaries as described above for cases where there was a change in the old salary coefficient after October 1, 2004.

3. The following subjects shall apply the transfer from old to new salaries from October 1, 2004, according to the guidance in this Circular to calculate contributions and benefits under the social insurance scheme and resolve related salary issues as prescribed by law:

a) Cases studying, interning, working, or receiving treatment and rehabilitation both domestically and abroad within the payroll establishment of the agency or unit.

b) Probationary civil servants, individuals in the probationary period in state agencies (including probationary civil servants at commune level) and individuals in the trial period in state-affiliated organizations.

c) Cases suspended from work, detained, or imprisoned.

d. Subjects who have signed labor contracts and been assigned old salary grades according to the administrative and public service salary scale issued together with Decree No. 25/CP dated May 23, 1993 of the Government providing temporary regulations on new salary systems for administrative and public service civil servants and armed forces personnel.

4. Cases recruited, elected, transferred, or reassigned to work in state agencies or state-affiliated organizations after the transfer from old to new salaries shall follow the salary assignment and leadership position allowance (if applicable) principles stipulated in Article 3 of Decree No. 204/2004/NĐ-CP.

5. Subjects belonging to the armed forces and those working in confidential organizations receiving salaries from the state budget shall have separate guidelines.

6. Cadres, civil servants, and public officials working in Party, Mass Organizations, and other entities' agencies and organizations shall transfer from old to new salaries according to the guidance of the Central Organization Department.

During the implementation process, if there are any difficulties, ministries, sectors, and localities shall report to the Ministry of Home Affairs and the Ministry of Finance for study and resolution.