JOINT CIRCULAR No. 03/2009/TTLT-BNV-BTC guiding the implementation of the general minimum wage from May 1, 2009 for state agencies, political organizations, political-social organizations, and public service units.

JOINT CIRCULAR

Guidelines for implementing the general minimum wage from May 1, 2009 for state agencies, political organizations, political-social organizations, and public service units

On the basis of Decree No. 48/2008/NĐ-CP dated April 17, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Home Affairs;

On the basis of Clause 2, Article 6 of Decree No. 33/2009/NĐ-CP dated April 6, 2009 of the Government stipulating the general minimum wage (hereinafter referred to as Decree No. 33/2009/NĐ-CP);

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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 May 1, 2009 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 and employees 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. Public service employees within the state budget payroll and other sources of income as prescribed by law working in state public service units, political organizations, and political-social organizations (hereinafter collectively referred to as public service units).

Article 1. Scope and Applicability

3. Civil servants, employees within the state payroll and receiving salaries according to the salary scale prescribed by the State who are appointed by competent authorities to work at 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 of 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 payroll and kindergarten teachers under contracts as stipulated in Decision No. 161/2002/QĐ-TTg dated November 15, 2002 of

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

7. Workers employed under contractual systems (employment contracts or labor contracts) in non-public service units established and operating in accordance with the provisions of the law.

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

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

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

d) Cadres, civil servants, and employees currently suspended from duty, currently detained or arrested;

đ) Individuals 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 on the salary system for cadres, civil servants, employees, and armed forces. Political organizations and political-social organizations mentioned in this 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 salary system for cadres, civil servants, and employees in Party agencies, mass organizations, and trade unions. Agencies, units, and organizations mentioned in Article 1 of this Circular shall hereinafter be collectively referred to as agencies and units.

d) Officials, civil servants, and public employees who are currently suspended from work, or 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 on 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 on salary systems for officials, civil servants, and public employees of Party agencies, People's Front, and mass organizations. Agencies, units, and organizations referred to in Article 1 of this 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 Circular from May 1, 2009 shall be calculated as follows:

1. For Cadres, Civil Servants, and Public Officials

For cadres, civil servants, and public officials specified in Clauses 1, 2, 3, 4, 5, and 6 of Article 1 of this Circular, the salary level and allowance shall be based on the salary coefficient and current allowances prescribed 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 general minimum wage stipulated in Article 1 of Decree No. 33/2009/NĐ-CP to calculate the salary level, allowance level, and amount of the 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:

- 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 retention difference coefficient (if applicable): The amount of the retention difference coefficient implemented from May 1, 2009 = General minimum wage 650,000 VND/month x Current retention difference coefficient (if applicable)

2. For Workers in Non-Public Service Units

Workers in non-public service units specified in Clause 7 of Article 1 of this Circular shall base their salary level recorded in the labor contract, social insurance contributions and benefits, health insurance contributions and benefits, daily wages for holidays and annual leave, and other benefits according to the provisions of the law on the general minimum wage stipulated in Article 1 of Decree No. 33/2009/NĐ-CP.

3. For Deputies of All Levels of People's Councils

Deputies of all levels of People's Councils specified in Clause 8 of Article 1 of this Circular shall base their activity fee level on the activity fee coefficient for deputies of all levels of People's Councils prescribed 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, using the following formula:

4. For Personnel Engaged in Confidential Work in Confidential Organizations Specified in Clause 9 of Article 1 of this Circular

a) Personnel engaged in confidential work who are military personnel or public security officers 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 personnel or public security officers and other personnel in confidential organizations shall implement the calculation of salary, allowance level, and amount of the retention difference coefficient (if applicable) as for cadres, civil servants, and public officials according to the calculation method prescribed in Clause 1 of Article 2 of this Circular.

Article 3. Implementation Organization

1. The head of the agency or unit directly managing the subjects receiving salaries, allowances, and activity fees specified in Article 1 of this Circular shall base the calculation of salary levels, allowance levels, amounts of the retention difference coefficient (if applicable), and activity fees on the number of subjects as of May 1, 2009, according to the guidance provided in this Circular.

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

3. Funding for implementing the general minimum wage for workers specified in Clause 7 of Article 1 of this Circular shall be self-funded by the non-profit organization from its revenue as prescribed by law.

4. This Circular shall take effect 45 days from the date of issuance.

The salary levels, allowances (including retention difference coefficients, if applicable), and activity fees for the subjects specified in Article 1 of this Circular shall be calculated based on the general minimum wage of 650,000 VND/month from May 1, 2009.

Repeal Circular Jointly Issued No. 05/2007/TTLT-BNV-BTC dated December 10, 2007 of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the general minimum wage from January 1, 2008 for state agencies, political organizations, political-social organizations, and non-profit organizations.

5. Contributions and benefits calculated based on the general minimum wage shall be recalculated accordingly from May 1, 2009.

6. The Ministry of Defense and the Ministry of Public Security shall coordinate with the Ministry of Home Affairs and the Ministry of Finance to guide the implementation of the general minimum wage from May 1, 2009 for subjects under their management.

During the implementation process, if there are any difficulties, ministries, sectors, and localities should report to the Ministry of Home Affairs and the Ministry of Finance for research and resolution.