Joint Circular No. 02/2006/TTLT-BNV-BTC guiding the implementation of the general minimum wage from October 1, 2006 for cadres, civil servants, and public officials in state agencies, state-owned enterprises, political organizations, and socio-political organizations.

JOINT CIRCULAR

Guidelines for implementing the general minimum wage from October 1, 2006

for officials, civil servants, and public employees in state agencies and state-owned enterprises

of the State, political organizations, and socio-political organizations

_________________________________

Pursuant to Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government adjusting the general minimum wage; after exchanging opinions with the Central Organization Committee and relevant agencies, the Ministry of Home Affairs and the Ministry of Finance provide guidelines for implementing the general minimum wage from October 1, 2006 for officials, civil servants, and public employees in state agencies, state-owned enterprises, political organizations, and socio-political organizations as follows:

I. SCOPE AND APPLICABLE OBJECTS

1. Officials and civil servants within the establishment receiving salaries from the state budget working in Party and state agencies, mass organizations at the central level; at provincial and centrally-administered city levels; at district, town, and provincial city levels.

2. Public employees within the establishment receiving salaries from the state budget and other sources of income for public services as prescribed by law working in Party and state agencies, mass organizations.

3. Officials, civil servants, and public employees under state establishment and receiving salaries according to the salary scale prescribed by the State who are assigned to work in associations, non-governmental organizations, projects, and international organizations located in Vietnam.

4. Full-time cadres and civil servants at communes, wards, and towns as stipulated in Clause 1 and Clause 2 Article 2 of Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government on the system of benefits and policies for cadres and civil servants at communes, wards, and towns.

5. Kindergarten teachers within the establishment and kindergarten teachers under contracts as stipulated in Decision No. 161/2002/QĐ-TTg dated November 15, 2002 of the Prime Minister.

6. Health workers at communes, wards, and towns receiving salaries according to Decision No. 58/TTg dated February 3, 1994 and Decision No. 131/TTg dated March 4, 1995 of the Prime Minister.

7. National Audit Office staff classified according to the salary scales and position allowances issued together with Resolution No. 1003/2006/NQ-UBTVQH11 dated March 3, 2006 of the Standing Committee of the National Assembly.

8. 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.

9. Personnel engaged in confidential work in confidential organizations.

10. The following subjects also fall within the scope of application of this Circular for calculating contributions and entitlements to social insurance and resolving related salary-based benefits as prescribed by law:

a) Officials, civil servants, and public employees whose classification is applied according to Decree No. 205/2004/NĐ-CP dated December 14, 2004 on the salary scale and allowance system in state-owned companies;

b) Cases of study, internship, work, treatment, and recuperation both domestically and abroad within the salary establishment of the agency or unit;

c) Civil service candidates, those currently in probationary periods in state agencies (including village-level civil service probationary periods) and those currently in trial periods in state-owned enterprise units;

d) Cases currently suspended from work, currently detained, or arrested;

đ) Subjects who have signed labor contracts and have been classified according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 on the salary system for officials, civil servants, public employees, and armed forces personnel.

II. CALCULATION OF SALARY, ALLOWANCES

AND ACTIVITY FEES

The salary, allowances (including any differential retention coefficient, if applicable), and activity fees of the subjects specified in Section I of this Circular from October 1, 2006 shall be calculated as follows:

1. For officials, civil servants, and public employees

Officials, civil servants, and public employees specified in Clause 1, 2, 3, 4, 5, 6, and 7 of Section I of this Circular shall base their calculation on the current salary coefficient and allowance provisions 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, Decision No. 128/QĐ-TW dated December 14, 2004 of the Central Committee of the Communist Party, Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, and the adjusted general minimum wage as prescribed in Article 1 of Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government to calculate the salary, allowance, and amount of the differential retention 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:

- 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 specified in specific monetary amounts, maintain them according to the current regulations.

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

2. For People's Council representatives at all levels

People's Council representatives at all levels specified in Clause 8 of Section I of this Circular shall base their calculation on the activity fee coefficient for People's Council representatives at all levels 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 to calculate the activity fee according to the following formula:

3. For personnel engaged in confidential work in confidential organizations

a) Personnel engaged in confidential work who are military or police personnel shall apply the method of calculating salary and allowances as guided by the Ministry of Defense and the Ministry of Public Security;

b) Personnel engaged in confidential work who are not military or police personnel and other personnel engaged in other work in confidential organizations shall implement the calculation of salary, allowance, and the amount of the differential retention coefficient (if applicable) as for officials, civil servants, and public employees according to the calculation method stipulated in Clause 1 of Section II of this Circular.

III. IMPLEMENTATION

1. The head of the agency or unit directly managing the subjects receiving salaries, allowances, and activity fees as stipulated in Section I of this Circular shall base the calculation of salary levels, allowance levels, the amount of the retention differential coefficient (if any), and activity fees on the actual number of persons present as of October 1, 2006, following the guidance provided in this Circular.

2. The determination of the wage fund, allowance, activity fee, and the determination of additional fund requirements and funding sources shall be carried out in accordance with the guidelines of the Ministry of Finance.

3. This Circular shall take effect fifteen days from the date of publication in the Official Gazette. The Joint Circular No. 105/2005/TTLT-BNV-BTC dated October 3, 2005, issued by the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the minimum wage for civil servants, public officials, and employees in state agencies, state-run organizations, political organizations, and political-social organizations, is hereby abolished.

4. The provisions of this Circular shall be implemented as of October 1, 2006.

Deductions and benefits calculated based on the general minimum wage shall be recalculated accordingly from October 1, 2006.

Any difficulties encountered during the implementation should be reported to the Ministry of Home Affairs and the Ministry of Finance for study and resolution./.