Circular No. 02/2017/TT-BNV guiding the implementation of the minimum wage for individuals receiving salaries and allowances in state-owned public institutions of the Party, State, political-social organizations, and associations.

CIRCULAR

GUIDELINES FOR IMPLEMENTING THE BASIC WAGE FOR PERSONS RECEIVING SALARIES AND ALLOWANCES IN PUBLICLY ESTABLISHED STATE ORGANIZATIONS, PARTIES, GOVERNMENT, POLITICAL AND SOCIAL ORGANIZATIONS, AND ASSOCIATIONS

Pursuant to Decree No. 34/2017/NĐ-CP dated April 3, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Home Affairs;

Pursuant to Clause 1, Article 6 of Decree No. 47/2017/NĐ-CP dated April 24, 2017 of the Government on the basic wage for cadres, civil servants, public officials, and armed forces personnel;

At the proposal of the Director of the Salary Department;

The Minister of Home Affairs issues this Circular guiding the implementation of the basic wage for persons receiving salaries and allowances in publicly established state organizations, parties, government, political and social organizations, and associations.

Article 1. Scope of application

1. Cadres and civil servants receiving salaries from the state budget working in central-level Party, State, and political-social organizations; at provincial and centrally-administered city levels; at district, town, and town-city levels under provinces and centrally-administered cities; and at special administrative-economic units.

2. Civil servants in leadership and management positions and public officials receiving salaries from the payroll fund of publicly established state organizations in accordance with the law.

3. Cadres, civil servants, and public officials dispatched or seconded to work at associations, non-governmental organizations, projects, and international agencies located in Vietnam according to decisions of competent authorities.

4. Cadres and civil servants at communes, towns, and wards, and those engaged in non-professional activities at commune level and village and neighborhood people's groups as stipulated in Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government on cadre and civil servant positions, number, and certain policies for cadres and civil servants at communes, towns, and wards and those engaged in non-professional activities at commune level (amended and supplemented by Decree No. 29/2013/NĐ-CP dated April 8, 2013 of the Government).

5. People's Council representatives at all levels receiving activity fees in accordance with current laws.

6. Personnel working in confidential organizations.

7. The following subjects also fall within the scope of application of this Circular when calculating contributions and benefits under social insurance laws and resolving other salary-related benefits:

a) Cadres, civil servants, and public officials studying, training, working, treating, and recuperating domestically and abroad listed in the payroll of Party, State, political-social organizations, publicly established state organizations, and associations supported by the state budget;

b) Persons undergoing probation or trial period (including commune-level civil servant probation) in Party, State, political-social organizations, publicly established state organizations, and associations supported by the state budget;

c) Cadres, civil servants, and public officials currently suspended from duty, detained, or imprisoned;

d) Cases working in Party, State, political-social organizations, publicly established state organizations, and associations supported by the state budget who have signed labor contracts based on the wage scale issued with Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on wage systems for cadres, civil servants, public officials, and armed forces personnel.

Article 2. Interpretation of Terms

1. Political and social organizations referred to in this Circular are those specified in Article 1 of Decision No. 128-QĐ/TW dated December 14, 2004 of the Secretariat of the Central Committee of the Communist Party of Vietnam on wage systems for cadres, civil servants, public officials in Party organizations, the People's Front, and mass organizations.

2. Associations supported by the state budget as referred to in this Circular are those specified in Article 33 of Decree No. 45/2010/NĐ-CP dated April 21, 2010 of the Government on organization, operation, and management of associations and Decision No. 68/2010/QĐ-TTg dated November 1, 2010 of the Prime Minister on specifying associations with special characteristics.

3. Organizations, units, and associations as defined in this Circular are collectively referred to as organizations and units.

Article 3. Calculation of Salary Levels, Allowances, and Activity Fees

1. For cadres, civil servants, public officials, and workers specified in Clauses 1, 2, 3, and 4 of Article 1 of this Circular:

Based on the wage coefficient and allowance currently enjoyed as prescribed in the relevant documents of authorized agencies of the Party and State on wage systems for cadres, civil servants, public officials, and armed forces personnel, the basic wage prescribed in Decree No. 47/2017/NĐ-CP dated April 24, 2017 of the Government on the basic wage for cadres, civil servants, public officials, and armed forces personnel (hereinafter referred to as Decree No. 47/2017/NĐ-CP) shall be used to calculate the wage, allowance, and amount of the retention coefficient difference (if any) as follows:

a) Formula for calculating the salary level:

b) Formula for calculating the allowance level:

- For allowances calculated based on the basic wage level:

- For allowances calculated as a percentage of the current wage plus leadership position allowance and seniority allowance exceeding the ceiling (if any):

- For allowances specified by a specific monetary amount, they remain unchanged according to the current regulations.

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

2. For representatives of People's Councils at all levels as stipulated in Clause 5, Article 1 of this Circular:

Based on the activity fee coefficient for representatives of People's Councils at all levels as prescribed by current laws, calculate the activity fee level using the following formula:

3. For those engaged in non-professional activities at commune level and village and neighborhood people's groups as stipulated in Clause 4, Article 1 of this Circular:

From July 1, 2017, the subsidy fund allocated by the central budget for each commune, village, and neighborhood people's group as stipulated in Clause 3 and Clause 4, Article 1 of Decree No. 29/2013/NĐ-CP dated April 8, 2013 of the Government shall be calculated based on the basic wage of 1,300,000 VND/month. The specific allowance amounts for these subjects shall be implemented according to Clause 5, Article 1 of Decree No. 29/2013/NĐ-CP.

4. For personnel working in confidential organizations specified in Clause 6 of Article 1 of this Circular:

a) Personnel working in confidential organizations under the management of the Ministry of National Defense and the Ministry of Public Security shall follow the guidance of the Minister of National Defense and the Minister of Public Security;

b) Personnel working in confidential organizations in Party, State, and political-social organizations (excluding those under the management of the Ministry of National Defense and the Ministry of Public Security) shall calculate their wages, allowances, and retention coefficient amount (if any) according to the calculation method prescribed in Clause 1, Article 3 of this Circular.

Article 4. Effective date

1. This Circular takes effect from July 1, 2017.

2. The wages, allowances (including retention coefficient, if any) and activity fees of the subjects stipulated in Article 1 of this Circular shall be calculated based on the basic wage of 1,300,000 VND/month from July 1, 2017.

3. Repeal Circular No. 05/2016/TT-BNV dated June 10, 2016 of the Ministry of Home Affairs guiding the implementation of the basic wage for persons receiving salaries and allowances in publicly established state organizations, parties, government, political and social organizations, and associations.

4. The deductions and benefits calculated based on the minimum wage level shall be recalculated accordingly from July 1, 2017.

Article 5. Responsibilities for Implementation

1. The head of the agency or unit directly managing the subjects receiving salaries, allowances, and activity fees as stipulated in Article 1 of this Circular shall base the calculation of the salary levels, allowance levels, differential retention coefficient amounts (if any), and activity fees according to the guidelines set forth in this Circular on the number of subjects as of July 1, 2017.

2. The determination of requirements, sources, and methods for disbursing the basic salary level in accordance with Decree No. 47/2017/NĐ-CP shall be carried out in accordance with the guidelines of the Minister of Finance.

In the course of implementation, if there are any difficulties, the relevant ministries, sectors, and localities are requested to report to the Ministry of Home Affairs for study and resolution.