Joint Circular No. 01/2012/TTLT-BNV-BTC guiding the implementation of the general minimum wage from May 1, 2012 for state agencies, political organizations, socio-political organizations, and public service units.

JOINT CIRCULAR

Guidelines for implementing the general minimum wage from May 1, 2012 for

state agencies, political organizations, political-social organizations, and public service units. Pursuant to Decree No. 48/2008/NĐ-CP dated April 17, 2008 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Home Affairs;

Pursuant to Clause 2, Article 5 of Decree No. 31/2012/NĐ-CP dated April 12, 2012 of the Government on the general minimum wage;

After exchanging opinions with the Central Organization Committee and relevant agencies, the Minister of Home Affairs and the Minister of Finance issue this Joint Circular guiding the implementation of the general minimum wage from May 1, 2012 for state agencies, political organizations, political-social organizations, and public service units as follows.

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

1. Civil servants within the state budget payroll working in central state agencies, political organizations, and political-social organizations; provincial-level city state agencies, political organizations, and political-social organizations; district-level city state agencies, political organizations, and political-social organizations.

2. Civil servants in leadership and management positions and staff within the state budget payroll and other income sources for public services as prescribed by law working in public service units of the State, political organizations, and political-social organizations (hereinafter referred to as public service units).

Article 1. Scope of application

3. Cadres, civil servants, and staff within the state payroll and receiving salaries according to the salary scale prescribed by the State who are authorized by competent authorities to work at associations, non-governmental organizations, projects, and international organizations located in Vietnam.

4. Cadres and civil servants at commune, ward, and town levels as stipulated in Clause 1 and Clause 2, Article 2 of Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government on cadre and civil servant titles, number, and some policies for cadres and civil servants at commune, ward, and town levels and those engaged in part-time activities at the commune level.

5. Kindergarten teachers within the payroll and kindergarten teachers under contract as stipulated in Decision No. 60/2011/QĐ-TTg dated October 26, 2011 of

6. Health workers at commune, ward, and town levels receiving salaries according to Decision No. 58/TTg dated February 3, 1994 and Decision No. 131/TTg dated March 4, 1995 of

7. People's Council representatives at all levels receiving activity fees as stipulated in Clause 2, Article 75 of the Operation Regulations of People's Councils at all levels issued together with Resolution No. 753/2005/NQ-UBTVQH11 dated April 2, 2005 of the Standing Committee of the National Assembly.

8. Personnel engaged in confidential work and other personnel in confidential organizations. The Prime Minister.

9. The following subjects also fall within the scope of application of this Joint Circular to calculate contributions and enjoy social insurance benefits and resolve related wage issues as prescribed by law:

a) Cadres, civil servants, and staff within the payroll of state agencies, political organizations, political-social organizations, and public service units permitted by competent authorities to apply the salary system according to Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government on the salary scale and salary system and allowance system in state-owned companies;

b) Cadres, civil servants, and staff studying, interning, working, or undergoing treatment and recuperation both domestically and abroad within the payroll of state agencies, political organizations, political-social organizations, and public service units;

c) Individuals currently in the probationary period or trial period (including probationary civil servants at the commune level) in state agencies, political organizations, political-social organizations, and public service units;

d) Cadres, civil servants, and staff currently suspended from duty, detained, or imprisoned;

đ) Subjects who have entered into labor contracts already classified according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the wage system for cadres, civil servants, staff, and armed forces. Political organizations and political-social organizations mentioned in this Joint Circular are those organizations prescribed in Article 1 of Decision No. 128-QĐ/TW dated December 14, 2004 of the Central Committee of the Communist Party of Vietnam on the wage system for cadres, civil servants, and staff in Party agencies, the People's Front, and mass organizations. Agencies, units, and organizations mentioned in Article 1 of this Joint Circular hereinafter are collectively referred to as agencies and units.

d) Officials, civil servants, and public employees who are currently on temporary suspension from work, under temporary detention, or arrest;

đ) The subjects who have signed labor contracts and have been assigned salaries according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government regarding salary systems for officials, civil servants, public employees, and armed forces. Political organizations and political-social organizations mentioned in this Circular are those organizations defined in Article 1 of Decision No. 128-QĐ/TW dated December 14, 2004 of the Central Committee of the Communist Party of Vietnam concerning salary systems for officials, civil servants, public employees of Party agencies, the United Front, and mass organizations. Agencies, units, and organizations referred to in Article 1 of this Joint Circular hereinafter shall be collectively referred to as agencies and units.

Article 2. Calculation of Salary Levels, Allowances, and Activity Fees

The salary levels, allowances (including retention difference coefficients, if applicable) and activity fees for the subjects specified in Article 1 of this Joint Circular from May 1, 2012 shall be calculated as follows:

1. For cadres, civil servants, and public officials

Cadres, civil servants, and public officials specified in Clauses 1, 2, 3, 4, 5, and 6 of Article 1 of this Joint Circular shall base their calculation on the salary coefficient and allowance currently enjoyed as stipulated in Resolution No. 730/2004/NQ-UBTVQH11 dated September 30, 2004 of the Standing Committee of the National Assembly, Resolution No. 1003/2006/NQ-UBTVQH11 dated March 3, 2006 of the Standing Committee of the National Assembly, Resolution No. 794/2009/NQ-UBTVQH12 dated June 22, 2009 of the Standing Committee of the National Assembly, Resolution No. 823/2009/UBTVQH12 dated October 3, 2009 of the Standing Committee of the National Assembly, Resolution No. 888NQ/2010/UBTVQH12 dated March 5, 2010 of the Standing Committee of the National Assembly, Decision No. 128-QĐ/TW dated December 14, 2004 of the Central Committee Secretariat, Decision No. 275-QĐ/TW dated December 4, 2009 of the Central Committee Secretariat, Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, Decree No. 76/2009/NĐ-CP dated September 15, 2009 of the Government, Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government, Decree No. 116/2010/NĐ-CP dated December 24, 2010 of the Government, Decree No. 14/2012/NĐ-CP dated March 7, 2012 of the Government, and the general minimum wage level as prescribed in Article 1 of Decree No. 31/2012/NĐ-CP dated April 12, 2012 of the Government (hereinafter referred to as Decree No. 31/2012/NĐ-CP) to calculate the salary level, allowance level, and amount of retention difference coefficient (if applicable) as follows:

a) Formula for calculating the salary level:

b) Formula for calculating the allowance level:

- For allowances calculated based on the general minimum wage level:

- For allowances calculated based on the percentage of the current salary plus leadership position allowance and seniority allowance exceeding the ceiling (if applicable):

- For allowances defined by specific monetary amounts, they remain unchanged according to current regulations.

c) Formula for calculating the amount of the retention differential coefficient (if applicable):

2. For People's Council Deputies at all levels

People's Council Deputies at all levels specified in Clause 7 of Article 1 of this Joint Circular shall base their calculation on the activity fee coefficient for People's Council Deputies at all levels as stipulated in Clause 2 of Article 75 of the Operation Regulations of People's Councils at all levels issued together with Resolution No. 753/2005/NQ-UBTVQH11 dated April 2, 2005 of the Standing Committee of the National Assembly to calculate the activity fee using the following formula:

3. For personnel engaged in confidential work and other personnel in confidential organizations specified in Clause 8 of Article 1 of this Joint Circular

a) Personnel engaged in confidential work and other personnel in confidential organizations under the management of the Ministry of Defense and the Ministry of Public Security shall follow the guidance of the Ministry of Defense and the Ministry of Public Security;

b) Personnel engaged in confidential work and other personnel in confidential organizations within Party agencies, State agencies, and political-social organizations (not under the management of the Ministry of Defense and the Ministry of Public Security) shall calculate the salary level, allowance level, and amount of retention difference coefficient (if applicable) according to the calculation method prescribed in Clause 1 of Article 2 of this Joint Circular.

Article 3. Implementation Organization

1. The head of the agency or unit directly managing the subjects receiving salaries, allowances, and activity fees as specified in Article 1 of this Joint Circular shall base the calculation of salary levels, allowance levels, retention difference coefficient amounts (if applicable), and activity fees on the number of subjects as of May 1, 2012, following the guidance provided in this Joint Circular.

2. The determination of the salary fund, allowance fund, activity fee fund, and additional fund requirements and funding sources for subjects receiving salaries from the State budget shall be carried out according to the guidance of the Ministry of Finance.

3. Workers employed under contracts in non-profit public institutions established and operating in accordance with the law, if applying the salary classification according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government and Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government, shall base their calculation of the contractually agreed salary, social insurance contributions and benefits, health insurance contributions and benefits, and actual salary on the general minimum wage level as stipulated in Article 1 of Decree No. 31/2012/NĐ-CP. The funds to implement the general minimum wage level shall be self-funded by the public institution from its operational revenue as prescribed by law.

4. This Joint Circular takes effect from June 1, 2012. The salary levels, allowances (including retention difference coefficients, if applicable) and activity fees for the subjects specified in Article 1 of this Joint Circular shall be calculated based on the general minimum wage level of 1,050,000 VND/month from May 1, 2012.

Abolish Joint Circular No. 04/2011/TTLT-BNV-BTC dated May 6, 2011 of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the general minimum wage level from May 1, 2011 for state agencies, political organizations, political-social organizations, and public institutions.

5. Deductions and benefit entitlements calculated based on the general minimum wage level shall be recalculated accordingly from May 1, 2012. During the implementation process, if there are difficulties, ministries, sectors, and localities shall report to the Ministry of Home Affairs for coordination with the Ministry of Finance to study and resolve them.

During the implementation process, if there are difficulties, ministries, sectors, and localities shall report to the Ministry of Home Affairs for coordination with the Ministry of Finance to study and resolve them./.