Joint Circular No. 04/2011/TTLT-BNV-BTC guiding the implementation of the general minimum wage from May 1, 2011 for state agencies, political organizations, political-social organizations, and public service units.

JOINT CIRCULAR

Guidelines for implementing the general minimum wage from May 1, 2011 for state agencies 2011 for the agency

political organizations, political-social organizations, and public service units

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Pursuant to 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;

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;

Pursuant to Clause 2, Article 6 of Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government stipulating 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 May 1, 2011 for state agencies, political organizations, political-social organizations, and public service units as follows:

Article 1. Scope of application

1. Civil servants and officials within the state payroll receiving salaries from the state budget working in central state agencies, political organizations, and political-social organizations; provincial-level city agencies, political organizations, and political-social organizations; district-level city agencies, political organizations, and political-social organizations.

2. Civil servants in leadership and management positions and staff within the state payroll and receiving salaries from the state budget and other sources of income for public service units of the State, political organizations, and political-social organizations (hereinafter referred to collectively as public service units).

3. Officials, civil servants, and staff within the state payroll and receiving salaries according to the salary scale prescribed by the State who are assigned by competent authorities to work at associations, non-governmental organizations, projects, and international organizations located in Vietnam.

4. Specialized officials and civil servants at communes, towns, and wards as stipulated in Clause 1 and Clause 2, Article 2 of Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government on the titles, number, and certain benefits and policies for officials and civil servants at communes, towns, and wards and those engaged in non-specialized work at the commune level.

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

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

7. Deputies of People's Councils at all levels receiving activity fees as stipulated in Clause 2, Article 75 of the Regulations on the Operation 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.

8. Personnel engaged in confidential work in confidential organizations.

The following subjects also fall within the scope of application of this Circular to calculate contributions and enjoy social insurance benefits and resolve related salary issues as prescribed by law:

a) Officials, civil servants, and staff 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, salary table, and salary allowances in state-owned companies;

b) Officials, civil servants, and staff 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) Personnel currently in their probationary period or trial period (including probationary civil servants at the commune level) in state agencies, political organizations, political-social organizations, and public service units;

d) Officials, civil servants, and staff currently suspended from duty, detained, or imprisoned;

đ) Subjects who have entered into labor contracts already graded according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the salary system for officials, civil servants, staff, and armed forces personnel.

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 officials, civil servants, and staff in Party agencies, the United Front, and mass organizations.

Agencies, units, and organizations mentioned in Article 1 of this Circular hereinafter referred to collectively 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 Joint Circular shall be calculated as follows from May 1, 2011:

1. For cadres, civil servants, and public officials

Cadres, civil servants, and public officials specified in Clauses 1, 2, 3, 4, 5, and 6 of Article 1 of this Joint Circular shall base their calculations on the salary grade and allowance currently enjoyed 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, Resolution No. 794/2009/NQ-UBTVQH12 dated June 22, 2009 of the Standing Committee of the National Assembly, Resolution No. 823/2009/UBTVQH12 dated October 3, 2009 of the Standing Committee of the National Assembly, Decision No. 128-QĐ/TW dated December 14, 2004 of the Central Committee Secretariat, Decision No. 275-QĐ/TW dated December 4, 2009 of the Central Committee Secretariat, Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, Decree No. 76/2009/NĐ-CP dated September 15, 2009 of the Government, Decree No. 92/2009/NĐ-CP dated October 22, 2009 of the Government, Decree No. 116/2010/NĐ-CP dated December 24, 2010 of the Government, and the general minimum wage level as prescribed in Article 1 of Decree No. 22/2011/NĐ-CP dated April 4, 2011 of the Government regarding the general minimum wage level (hereinafter referred to as Decree No. 22/2011/NĐ-CP) to calculate the salary level, allowance level, and amount of 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 level:

- 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 differential coefficient (if applicable):

2. For People's Council Deputies at all levels

People's Council Deputies at all levels specified in Clause 7 of Article 1 of this Joint Circular shall base their calculations on the activity fee coefficient for People's Council Deputies at all levels as stipulated 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 to calculate the activity fee according to the following formula:

3. For personnel engaged in confidential work in confidential organizations specified in Clause 8 of Article 1 of this Joint Circular

a) Personnel engaged in confidential work who are military personnel or public security officers shall apply the salary and allowance calculation methods 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 working in confidential organizations shall implement the salary, allowance, and retention difference coefficient amount (if applicable) calculation methods for cadres, civil servants, and public officials as stipulated in Clause 1 of Article 2 of this Joint 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 Joint Circular shall base their calculations on the number of subjects as of May 1, 2011 to calculate the salary level, allowance level, retention difference coefficient amount (if applicable), and activity fee according to the guidance provided in this Joint Circular.

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

3. Workers employed under contracts in non-public institutions established and operating in accordance with the law, if applying the salary classification according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government and Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government, shall base their calculations on the general minimum wage level as stipulated in Article 1 of Decree No. 22/2011/NĐ-CP to calculate the salary recorded in the contract; contributions and benefits under social insurance and health insurance; daily wage during holidays and annual leave; and other benefits as prescribed by law. The funds for implementing the general minimum wage level shall be self-funded by the institution according to the law.

4. This Joint Circular shall take effect from May 19, 2011.

The salary levels, allowances (including retention difference coefficients, if applicable), and activity fees for the subjects specified in Article 1 of this Joint Circular shall be calculated based on the general minimum wage level of 830,000 VND/month from May 1, 2011.

Repeal Joint Circular No. 01/2010/TTLT-BNV-BTC dated April 26, 2010 of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the general minimum wage level from May 1, 2010 for state agencies, political organizations, political-social organizations, and public institutions.

5. Deductions and benefits calculated based on the general minimum wage level shall be recalculated accordingly from May 1, 2011.

During the implementation process, if there are any difficulties, ministries, sectors, and localities shall report to the Ministry of Home Affairs for coordination with the Ministry of Finance to study and resolve them./.