Joint Circular No. 03/2003/TTLT-BNV-BTC guides the implementation of salary adjustments, allowances, and living expenses for subjects receiving salaries, allowances, and living expenses from the state budget.

JOINT CIRCULAR

Regarding guidance on implementing adjustments to salaries, allowances, and living expenses

for individuals receiving salaries, subsidies, and living expenses

from the state budget

___________________

Implementing Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government on adjusting salaries, social allowances, and reforming the salary management mechanism, following the opinions of the Ministry of Labor, Invalids and Social Affairs in Circular No. 290/LĐTBXH-TL dated January 28, 2003 and the Central Organization Committee in Circular No. 2239/CV-TCTW dated January 24, 2003, the Joint Circular of the Ministry of Home Affairs and the Ministry of Finance provides guidance on implementing adjustments to salaries, allowances, and living expenses from the state budget as follows:

I. Scope and Applicability

1. Administrative and public service officials, including those recruited and contracted within the staffing quota who are working, studying, interning, on duty, undergoing treatment, or convalescence both domestically and abroad, specifically:

- Administrative and public service officials belonging to state management agencies from central to district levels and organizations enjoying state-funded salaries;

- Officials within the staffing quota enjoying state-funded salaries belonging to party and mass organizations from central to district levels;

- Officials enjoying state-funded salaries seconded to work at communes, wards, and towns;

- State officials seconded to work at associations, projects, and international organizations located in Vietnam with salaries funded by the state budget.

2. Commune, ward, and town officials (hereinafter referred to collectively as commune officials), specifically:

- Commune officials working according to Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government;

- Deputy heads of commune police stations and commune police officers according to Decree No. 40/1999/NĐ-CP dated June 23, 1999 of the Government;

- Deputy heads of commune military services according to Decree No. 35/CP dated June 14, 1996 and Decree No. 46/2000/NĐ-CP dated September 12, 2000 of the Government;

- Commune officials who have retired due to old age and are receiving monthly allowances according to Decision No. 130/CP dated June 20, 1975 and Decision No. 111/HĐBT dated October 13, 1981 of the Council of Ministers (now the Government).

3. Kindergarten teachers within the state staffing quota according to Decision No. 161/2002/QĐ-TTg dated November 15, 2002 of the Prime Minister;

4. Health workers in 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.

5. People's Council representatives at all levels receiving living expenses according to Clause 2, Article 48 of the Operation Regulations of People's Councils at all levels issued together with Resolution No. 301 NQ/UBTVQH dated June 25, 1996 of the Standing Committee of the National Assembly.

II. Method for recalculating salary, allowances, and living expenses.

The subjects mentioned in Section I of this Circular shall recalculate their salaries, allowances, and living expenses from January 1, 2003 as follows:

1. For administrative and public service officials, party, and mass organization officials:

Based on the current salary coefficient and allowance level stipulated in Resolution No. 35/NQ-UBTVQHK9 dated May 17, 1993 of the Standing Committee of the National Assembly, Decision No. 69/QĐ-TW dated May 17, 1993 of the Central Committee Secretariat, Decree No. 25/CP dated May 23, 1993 of the Government, and the minimum wage adjusted according to Clause 1, Article 1 of Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government, the salary and allowance levels will be recalculated as follows:

1.1. Formula for recalculating salary:

1.2. Formula for recalculating allowances:

a. For allowances calculated based on the minimum wage:

b. For allowances calculated based on the grade, rank, or elected position (elected positions):

c. Special allowances for full-time elected positions in the Vietnam Veterans Association at all levels will be calculated according to the current ratio with the adjusted equivalent position allowance of the same level as stipulated in this Circular.

1.3. Formula for recalculating the amount of the salary retention coefficient:

1.4. For allowances specified in specific monetary amounts, they remain unchanged according to the current regulations.

2. Living expense levels for People's Council representatives at all levels and commune officials currently working and those who have retired and are receiving allowances from the state budget are calculated as follows:

2.1. Living expense level for People's Council representatives at all levels.

Based on the current living expense coefficient for People's Council representatives at all levels stipulated in Clause 2, Article 48 of the Operation Regulations of People's Councils at all levels issued together with Resolution No. 301 NQ/UBTVQH dated June 25, 1996 of the Standing Committee of the National Assembly, the living expense level will be recalculated using the following formula:

2.2. Living expense level for commune officials currently working.

a. For elected positions during the term and other positions in the People's Council, the living expense level will be adjusted as follows:

- Secretary of the Party Committee of the commune or Secretary of the branch committee where there is no Party Committee, from 393,800 VND/month to 543,800 VND/month;

- Deputy Secretary of the Party Committee of the commune, Chairman of the People's Council of the commune, Chairman of the People's Committee of the commune, from 379,200 VND/month to 523,700 VND/month;

- Deputy Chairman of the People's Council of the commune, Deputy Chairman of the People's Committee of the commune, Permanent Member of the Party Committee of the commune (where the Secretary or Deputy Secretary concurrently holds the position of Chairman or Deputy Chairman of the People's Council or Deputy Chairman of the People's Committee of the commune), Chairman of the People's Front, head of people's mass organizations in the commune (Women's Union, Farmers' Association, Vietnam Veterans Association, Communist Youth League), commander-in-chief of the commune military service, Chief of the commune police station, from 350,000 VND/month to 483,300 VND/month.

- Member of the People's Committee of the commune, from 335,400 VND/month to 463,200 VND/month;

- Other positions in the People's Committee of the commune, from 306,300 VND/month to 423,000 VND/month.

For election positions and other positions under the People's Committee of communes mentioned above when re-elected or continued in service (starting from the sixth year onwards), they shall enjoy a subsistence allowance increase of 5% based on the adjusted subsistence fee as stipulated in this Circular.

b. For specialized staff:

- Staff belonging to four specialized positions (Legal - Civil Registration; Land Administration; Finance - Accounting; Office of the People's Committee of Communes) who have been classified with subsistence fees according to the salary grade and level of civil servants as prescribed in Decree No. 25/CP dated May 23, 1993 of the Government, shall apply the formula for recalculating the subsistence fee as follows:

The adjustment of the subsistence fee corresponding to the level and salary coefficient of civil servants for these four specialized positions shall be implemented according to the provisions at item 1.2 point 1 section II of the Joint Circular No. 99/1998/TTLT-TCCP-BTC-BLDTBXH dated May 19, 1998 of the Government Organizational and Cadre Affairs Agency (now the Ministry of Home Affairs) - Ministry of Finance - Ministry of Labor, Invalids and Social Affairs.

- Specialized staff without a professional qualification certificate issued by the State, not classified with subsistence fees according to the salary grade and level of civil servants, shall apply the formula for recalculating the subsistence fee as follows:

c. When commune cadres are assigned multiple positions, they shall enjoy the subsistence fee and allowance (if any) of the position with the highest subsistence fee and allowance. When not concurrently holding a position, they shall enjoy the subsistence fee and allowance (if any) according to the position held.

2.3. The monthly allowance for Deputy Chief of Public Security and Deputy Commander of Militia of commune shall be adjusted to the subsistence fee of other positions under the People's Committee of commune; the monthly allowance for Public Security Officer in commune shall be one third (1/3) of the subsistence fee of Chief of Public Security of commune.

2.4. The subsidy for commune cadres who are old and weak and retired according to Decision No. 130/CP dated June 20, 1975 and Decision No. 111/HĐBT dated October 13, 1981 of the Council of Ministers (now the Government) funded by the state budget shall be adjusted as follows:

- The subsidy for former Secretary of the Party Committee, Chairman of the People's Committee of commune, from 197,000 dong/month to 272,000 dong/month;

- The subsidy for former Deputy Secretary, Deputy Chairman, Permanent Member of the Party Committee, Member of the Secretariat of the People's Council, Secretary of the People's Council of commune, Head of Militia of commune, Chief of Public Security of commune, from 189,600 dong/month to 261,800 dong/month;

- The subsidy for the remaining positions, from 175,000 dong/month to 241,700 dong/month.

2.5. For commune health workers and kindergarten teachers within the state establishment who are paid according to Decision No. 58/TTg dated February 3, 1994 and Decision No. 131/TTg dated March 4, 1995 of the Prime Minister, the adjustment of salary and allowance shall be carried out according to the calculation method specified in point 1 section II of this Circular.

III. DETERMINATION OF THE NEED FOR THE INCREASED WAGE, ALLOWANCE, SUBSIDY AND ADJUSTED SUBSISTENCE FEE FUND IN 2003

1. Agencies and units directly managing the beneficiaries of wages, allowances, subsidies and adjusted subsistence fees, based on the guidance on the object and the recalculation of wages, allowances, subsidies and adjusted subsistence fees as stipulated in sections I and II of this Circular and the actual number of beneficiaries present as of December 31, 2002, shall be responsible for:

- Determining the wage, allowance, subsidy and adjusted subsistence fee fund that has been adjusted according to the provisions of this Circular;

- Determining the need for the increased wage, allowance, subsidy and adjusted subsistence fee fund;

- Based on the guidance of the Ministry of Finance, determining the capacity to ensure the increased wage, allowance, subsidy and adjusted subsistence fee fund, and sending it to the superior management agency (using form number 1 for administrative and public service agencies, forms number 3 and number 4 for commune, ward, town units), so that the superior management agency can aggregate and send it to the Ministry or the central agency directly managing it according to form number 2a or the People's Committee of province or centrally-administered city according to form number 2b for the administrative and public service sector, party and mass organizations, form number 3 for commune, ward, town units currently working, and form number 4 for commune, ward cadres who have retired and are receiving monthly subsidies from the state budget.

2. Ministries, central agencies, People's Committees of provinces and centrally-administered cities shall be responsible for organizing, inspecting, reviewing and aggregating the need for the increased wage, allowance, subsidy and adjusted subsistence fee fund; calculating, determining, and aggregating the capacity to ensure the source of the increased wage, allowance, subsidy and adjusted subsistence fee fund according to form number 2a and form number 6 (for ministries and sectors at the central level); according to form number 2b, number 3, number 4 and number 5 (for provinces and centrally-administered cities) and report to the Ministry of Home Affairs and the Ministry of Finance (one copy each) before March 15, 2003.

3. The Ministry of Finance shall inspect and evaluate the capacity to ensure the source of the wage, allowance, subsidy and adjusted subsistence fee fund to determine the need for additional sources in 2003 for ministries, sectors, and localities, and submit to the Prime Minister for decision to supplement sources for ministries, sectors, and localities according to clause 5 Article 2 of Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government. After the Prime Minister's decision, the Ministry of Finance shall implement the allocation of the remaining supplementary sources to ministries, sectors, and localities according to sub-clause b clause 3 Article 4 of Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government.

IV. IMPLEMENTATION

1. The Ministry of Home Affairs - Ministry of Finance requests the Prime Minister, Ministries equivalent to Ministries, Government Agencies, Chairmen of Provincial People's Committees, and Chairmen of Municipal People's Committees directly under the Central Government to instruct subordinate agencies and units to promptly implement in accordance with the provisions of this Circular. The Ministry will organize inspections of the implementation of this Circular and the results of the implementation of Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government in some ministries, sectors, and localities.

2. For workers under contractual employment, if the salary stipulated in the labor contract is based on the salary coefficient system prescribed by the State, such salary shall also be adjusted according to the guidelines set forth in this Circular; however, the funding sources for paying salaries and allowances to these subjects shall be implemented as follows:

2.1. For workers under contracts as prescribed in Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government, the funding source for paying salaries and allowances shall be carried out according to current regulations, not included in the salary fund of the agency or unit;

2.2. For workers under contracts outside the authorized establishment quota, the funding source for paying salaries and allowances shall be derived from non-budgetary revenue sources, not included in the salary fund of the agency or unit.

3. When paying adjusted salaries, allowances, subsidies, and living expenses for the subjects specified in this Circular, social insurance premiums, health insurance premiums, and union dues (if applicable) must be immediately collected and remitted according to the State's regulations based on the recalculated salary, allowance, and living expense amounts as guided in this Circular.

4. The inter-ministerial team assisting the Steering Committee for State Salary Policy Reform shall assist the Steering Committee in researching and analyzing the implementation results of this Circular and the implementation results of Decree No. 03/2003/NĐ-CP to perfect the Project on Reforming the State Salary Policy, Social Insurance, and Preferential Allowances for Meritorious Persons.

5. This Circular shall take effect concurrently with the effectiveness of Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government.

Salaries, allowances, subsidies, and living expenses of the subjects within the scope regulated by this Circular shall be effective from January 1, 2003.

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