Joint Circular No. 02/2005/TTLT/BLDTBXH-BNV guiding the transfer from old salary grades to new salaries for full-time members of the Board of Directors, members of the Supervisory Board, and staff assisting the Board of Directors in state-owned companies pursuant to Government Decree No. 205/2004/NĐ-CP dated December 14, 2004.

JOINT CIRCULAR

Guidelines for transferring old salary grades to new salaries for full-time members

of the Board of Directors, members of the Supervisory Board, and staff assisting the Board of Directors

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

dated December 14, 2004 of the Government

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

1. This Circular guides on plans and budgets for national reserve funds; import and export of goods in national reserves; handling losses and damages to goods in national reserves due to deterioration, reduced quality, or loss; establishing, issuing, and implementing economic-technical norms, procedures, and regulations for storing goods in national reserves; signing general contracts, storing goods, warehouse storage, planning the national reserve warehouse system; financial management and budget allocation for national reserves; procedures and steps for exporting national reserves in cash; setting up, managing, and using welfare and incentive funds; protecting state secrets, inspecting, and auditing national reserves.

The scope and subjects applying the transfer from old salary grades to new salaries under Clause 1, Article 1 and Clause 2, 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 corporations:

- State-owned corporations established under the Law on State-Owned Enterprises in 1995 and those state-owned corporations decided to be invested in and established under the Law on State-Owned Enterprises in 2003;

- State-owned corporations formed by enterprises investing and establishing themselves (corporations under the parent company-subcompany model);

- State-owned capital investment and business corporations.

b) Independent state-owned companies.

These state-owned corporations mentioned above are referred to as corporations.

2. The subjects applying include:

a) Full-time members of the Board of Directors (excluding General Managers and Directors);

b) Members of the Supervisory Board and staff assisting the Board of Directors.

II. PRINCIPLES FOR TRANSFERRING OLD SALARY GRADES TO NEW SALARIES

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

The basis for transferring old salary grades to new salaries for full-time members of the Board of Directors is the corporation's current classification; for members of the Supervisory Board and staff assisting the Board of Directors, it is the professional standards of the civil servant grade.

2. Based on the current grade, level, and salary coefficient to transfer to the new position level or the grade, level, and professional salary coefficient of the new salary table.

3. When transferring from old salary grades to new salaries, there shall be no combination with promotion of civil servant grade, no combination with promotion of salary level, and no assignment to a higher classification than that of the corporation.

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

III. TRANSFER FROM OLD SALARY GRADES TO NEW SALARIES

1. For the Chairman of the Board of Directors:

Based on the current corporation classification to transfer old salary grades into the new salary table of full-time members of the Board of Directors according to the corresponding classification as follows:

a) In cases where the competent authority has already decided to assign salary according to the civil service grade and level plus leadership position allowance as stipulated in Decision No. 83/1998/QĐ-TTg dated April 15, 1998 of the Prime Minister regarding the salary system and allowances for members of the Board of Directors, Supervisory Board of state-owned corporations and large independent state-owned enterprises (hereinafter referred to as Decision No. 83/1998/QĐ-TTg);

- If the current salary coefficient according to the civil service grade and level plus leadership position allowance is less than the old salary coefficient of Level 2 for the Director of the same classification company, then transfer to Level 1 of the new Chairman of the Board of Directors position and cease receiving the retained differential coefficient according to Decision No. 83/1998/QĐ-TTg, the time for the next salary increase will be calculated from the date of receiving the new salary according to this Circular.

- If the current salary coefficient according to the civil service grade and level plus leadership position allowance is equal to or greater than the old salary coefficient of Level 2 for the Director of the same classification company, then transfer to Level 2 of the new Chairman of the Board of Directors position.

Example 1. Mr. Nguyen Van A, Chairman of the Board of Directors of a special-class corporation, currently assigned to the high-level administrative civil service grade, Level 5, old salary coefficient 6.26 and receiving leadership position allowance 1.1; the current salary coefficient according to the high-level administrative civil service grade plus leadership position allowance is 7.36 (6.26 + 1.1), which is higher than the old salary coefficient of Level 2 for the Director of a special-class corporation (7.06). Therefore, Mr. A is transferred to the new salary at Level 2 with a salary coefficient of 8.5 for the Chairman of the Board of Directors of a special-class corporation.

b) In cases where the competent authority has not yet decided to assign salary according to Decision No. 83/1998/QĐ-TTg, then assign salary and leadership position allowance according to Decision No. 83/1998/QĐ-TTg, then transfer to the new salary according to the provisions in point a, item 1, section III of this Circular.

c) In cases where transferred to Level 2 of the new salary according to the provisions in point a and point b, item 1, section III of this Circular, if the new salary coefficient of Level 2 is lower than the current salary coefficient according to the civil service grade and level plus leadership position allowance, then retain the differential coefficient during the period serving as Chairman of the Board of Directors.

2. For full-time members of the Board of Directors (including the Head of the Supervisory Board):

Based on the current corporation classification to transfer old salary grades into the new salary table of full-time members of the Board of Directors according to the corresponding classification as follows:

a) In cases where the competent authority has already decided to assign salary according to the civil service grade and level plus leadership position allowance as stipulated in Decision No. 83/1998/QĐ-TTg:

- If the current salary coefficient according to the civil service grade and level plus leadership position allowance is less than the old salary coefficient of Level 2 for the Deputy Director of the same classification company and has served as a full-time member for less than three years (36 months), then transfer to Level 1 of the new full-time member of the Board of Directors position and cease receiving the retained differential coefficient according to Decision No. 83/1998/QĐ-TTg, the time for the next salary increase will be calculated from the date of receiving the new salary according to this Circular.

- If the current salary coefficient according to the civil service grade and level plus leadership position allowance is less than the old salary coefficient of Level 2 for the Deputy Director of the same classification company and has served as a full-time member for three years (36 months) or more, or if the current salary coefficient according to the civil service grade and level plus leadership position allowance is equal to or greater than the old salary coefficient of Level 2 for the Deputy Director of the same classification company, then transfer to Level 2 of the new full-time member of the Board of Directors position.

Example 2. Mr. Nguyen Quoc B, a dedicated member of the Board of Directors of a Special Class State-Owned Enterprise since May 2000, currently holds a Senior Administrative Officer rank with grade 2 and old salary coefficient of 5.23, and receives a leadership position allowance of 0.8; the combined salary coefficient of the Senior Administrative Officer rank plus the leadership position allowance is 6.03 (5.23 + 0.8), which is lower than the old salary coefficient for Deputy General Director of a Special Class State-Owned Enterprise at grade 2 (6.34) but has served more than three years as a dedicated member of the Board of Directors. Therefore, Mr. B will be reassigned to grade 2 of the new salary scale with a salary coefficient of 7.66 for the position of dedicated member of the Board of Directors of a Special Class State-Owned Enterprise.

b) In cases where the competent authority has not yet decided on the assignment of salary according to Decision No. 83/1998/QD-TTg, subsequently reassigning to the new salary scale according to paragraph a, point 2, Section III of this Circular.

c) In cases where they have been reassigned to grade 2 of the new salary scale according to paragraph a, paragraph b of point 2, Section III of this Circular, and the new salary coefficient at grade 2 is lower than the current combined salary coefficient of the administrative civil servant rank plus the leadership position allowance, they shall continue to enjoy the retained difference coefficient during their tenure as a dedicated member of the Board of Directors.

Example 3. Mr. Hoang Tien C, a dedicated member of the Board of Directors of a Special Class State-Owned Enterprise, currently holds a Senior Administrative Officer rank with grade 7 and old salary coefficient of 7.1, and receives a leadership position allowance of 0.8; the combined salary coefficient of the Senior Administrative Officer rank plus the leadership position allowance is 7.9 (7.1 + 0.8), which is higher than the old salary coefficient at grade 2 for Deputy General Director of a Special Class State-Owned Enterprise (6.34). Therefore, Mr. C will be reassigned to the new salary scale at grade 2 with a salary coefficient of 7.66 for the position of dedicated member of the Board of Directors of a Special Class State-Owned Enterprise and will continue to enjoy the retained difference coefficient of 0.24 (7.9 - 7.66) during his tenure as a dedicated member of the Board of Directors.

3. For members of the Supervisory Board (excluding the Chairman of the Supervisory Board) and staff assisting the Board of Directors:

Based on the current administrative salary grade and level to transfer horizontally to the new salary grade and level according to the salary table for professional and technical staff in state-owned enterprises, the time for the next salary increase will be calculated from the date of the old salary coefficient. If the number of levels in the current salary grade is greater than the number of levels in the new salary grade, the higher level will be transferred to the highest level of the new salary grade. If the new salary coefficient is lower than the current salary coefficient, they will continue to enjoy the retained difference coefficient during their tenure as a member of the Supervisory Board.

IV. IMPLEMENTATION

1. The Chairman of the Board of Directors of the company is responsible for:

- Preparing the plan to transfer from the old salary to the new salary for dedicated members of the Board of Directors according to the model issued together with this Circular and sending it to the Ministry, agency equivalent to a ministry, or agency under the Government (for companies under the management of a ministry, agency equivalent to a ministry, or agency under the Government) or People's Committee of provinces and centrally governed cities (for companies under the management of People's Committees of provinces and centrally governed cities) for review and decision or to propose the competent authority to decide on the new salary;

- Deciding on the new salary for members of the Supervisory Board (excluding the Chairman of the Supervisory Board) and staff assisting the Board of Directors;

- Publicizing within the company the transfer from the old salary to the new salary for dedicated members of the Board of Directors after receiving approval from the competent authority.

2. The Ministry, agency equivalent to a ministry, or agency under the Government (hereinafter referred to as the Ministry or sector), People's Committee of provinces and centrally governed cities are responsible for:

- Deciding on the new salary for dedicated members of the Board of Directors of State-Owned Enterprises appointed by the Ministry, sector, People's Committee of provinces and centrally governed cities;

- Proposing the Ministry of Home Affairs to decide on the new salary for dedicated members of the Board of Directors of State-Owned Enterprises appointed by the Prime Minister;

- Reporting to the Joint Ministry of Labor, Invalids and Social Affairs and the Ministry of Home Affairs the list and results of transferring from the old salary to the new salary for dedicated members of the Board of Directors of State-Owned Enterprises appointed by the Ministry, sector, People's Committee of provinces and centrally governed cities according to the model issued together with this Circular for the Joint Ministry to compile and check.

3. The Ministry of Labor, Invalids and Social Affairs, in coordination with the Ministry of Home Affairs, is responsible for:

- Handling any difficulties within its jurisdiction during the process of transferring from the old salary to the new salary for dedicated members of the Board of Directors, members of the Supervisory Board, and staff assisting the Board of Directors based on the proposals of the Ministry, sector, People's Committee of provinces and centrally governed cities, and companies;

- Compiling and checking the results of the new salary for dedicated members of the Board of Directors of State-Owned Enterprises and reporting to the Prime Minister.

V. EFFECTIVE DATE

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

Abolish Circular No. 06/1998/TTLT-TCCP-BLDTBXH-BTC dated October 20, 1998, issued by the Joint Ministry of Civil Service Administration (now the Ministry of Home Affairs), Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance guiding the implementation of Decision No. 83/1998/QD-TTg dated April 15, 1998, of the Prime Minister regarding the salary system and allowances for members of the Board of Directors and the Supervisory Board of large-scale independent state-owned enterprises.

2. The 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 the old salary to the new salary 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 before the change shall be reassigned to the new salary coefficient according to the guidance in this Circular to serve as the basis for back payment of 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 the old salary to the new salary, the old salary coefficient after the change (current salary coefficient) shall be reassigned to the new salary coefficient and the benefit shall be calculated from the date of the change in the old salary coefficient.

3. For the Development Support Fund and the Vietnam Deposit Insurance Corporation, which are currently applying the salary system for state-owned enterprises 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 Government, shall apply the transition from old to new salaries as provided in this Circular, including that the Chairman of the Development Support Fund's Supervisory Board shall be assigned the new salary according to the position of a dedicated member of the Board of Directors.

4. For state-owned enterprises operating under the Enterprise Law and other economic entities if they apply the salary scale for members of the Board of Directors and Supervisory Board of state-owned enterprises regulated by the Government, they may apply the provisions of this Circular.

During implementation, if there are any difficulties, it is requested that ministries, sectoral agencies, provincial People's Committees, centrally governed cities, and state-owned enterprises report them to the relevant ministries for study and resolution./.