Joint Circular No. 05/2007/TTLT-BNV-BTC guiding the implementation of the general minimum wage from January 1, 2008 for state agencies, political organizations, political-social organizations, and public service units.

JOINT CIRCULAR

Guidelines for implementing the general minimum wage from January 1, 2008, for state agencies, political organizations, socio-political organizations, and public service units.

State agencies, political organizations, socio-political organizations, and public service units.

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Pursuant to Clause 2, Article 6 of Decree No. 166/2007/NĐ-CP dated November 16, 2007, issued by the Government, stipulating the general minimum wage; after consulting with the Central Organization Committee and relevant agencies, the Ministry of Home Affairs and the Ministry of Finance issue guidelines for implementing the general minimum wage from January 1, 2008, for state agencies, political organizations, socio-political organizations, and public service units as follows:

I. SCOPE AND APPLICABLE OBJECTS

1. Civil servants and officials within the state budget payroll working in central state agencies, political organizations, and socio-political organizations; provincial-level state agencies, political organizations, and socio-political organizations; district-level state agencies, political organizations, and socio-political organizations; town-level state agencies, political organizations, and socio-political organizations; and township-level state agencies, political organizations, and socio-political organizations.

2. Public servants within the state budget payroll and other sources of income as prescribed by law working in public service units of the state, political organizations, and socio-political organizations (hereinafter referred to as public service units).

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

4. Specialized 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, issued by 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, issued by 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, issued by the Prime Minister.

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

8. People's Council representatives at all levels receiving activity fees as stipulated in Clause 2 of 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, issued by 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 under social insurance and resolving other salary-related benefits as prescribed by law:

a) Cadres, civil servants, and public servants within the payroll of state agencies, political organizations, socio-political organizations, and public service units permitted by competent authorities to apply the salary system pursuant to Decree No. 205/2004/NĐ-CP dated December 14, 2004, on the salary scale and allowance system in state-owned companies;

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

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

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

đ) Subjects who have signed labor contracts and have been assigned salaries according to Decree No. 204/2004/NĐ-CP dated December 14, 2004, on salary systems for cadres, civil servants, public servants, and armed forces.

Political organizations and socio-political organizations mentioned in this Circular are those organizations as defined in Article 1 of Decision No. 128-QĐ/TW dated December 14, 2004, issued by the Central Committee of the Communist Party of Vietnam on the salary system for cadres, civil servants, public servants in party agencies, mass organizations, and trade unions.

Agencies, units, and organizations listed in Section I of this Circular shall be collectively referred to as agencies and units.

II. CALCULATION OF SALARIES, ALLOWANCES, AND ACTIVITY FEES

The salaries, allowances (including any differential retention coefficient, if applicable), and activity fees of the subjects specified in Section I of this Circular from January 1, 2008, shall be calculated as follows:

1. For cadres, civil servants, and public servants

Cadres, civil servants, and public servants as stipulated in Clauses 1, 2, 3, 4, 5, and 6 of Section I of this Circular shall base their calculations on the salary coefficients and allowances currently enjoyed as 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 of Vietnam, Decree No. 204/2004/NĐ-CP dated December 14, 2004, of the Government, and the general minimum wage as stipulated in Article 1 of Decree No. 166/2007/NĐ-CP 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 retention differential coefficient (if applicable):

2. For workers in non-public public service units

Workers in non-public public service units as stipulated in Clause 7 of Section I of this Circular shall base their calculations on the general minimum wage as stipulated in Article 1 of Decree No. 166/2007/NĐ-CP to calculate the salary recorded in the contract; contributions and entitlements under social insurance and health insurance; daily wages for holidays and annual leave; and other benefits as prescribed by law.

3. For People's Council representatives at all levels

Representatives of People's Councils at all levels as specified in Clause 8, Section I of this Circular shall base their calculation of activity fees on the activity fee coefficient for representatives of People's Councils at all levels as stipulated in Clause 2, Article 75 of the Operational 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 organizations designated as confidential as specified in Clause 9, Section I of this Circular

a) Personnel engaged in confidential work who are military personnel or public security officers shall have their salary and allowances calculated according to the guidelines of the Ministry of National 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 have their salaries, allowances, and differential retention factor amounts (if applicable) calculated in accordance with the method prescribed in Clause 1, Section II of this Circular for civil servants, officials, and employees.

III. IMPLEMENTATION

1. The head of the agency or unit directly managing individuals receiving salaries, allowances, and activity fees as specified in Section I of this Circular shall base calculations of salaries, allowances, differential retention factor amounts (if applicable), and activity fees on the number of individuals as of January 1, 2008, following the guidance provided in this Circular.

2. Determination of the wage fund, allowances, activity fees, and additional fund requirements and sources of funding for individuals receiving state budget salaries shall be carried out in accordance with the guidance of the Ministry of Finance.

3. Funding for the general minimum wage for workers as specified in Clause 7, Section I of this Circular shall be self-funded by the entity from its operating revenue as prescribed by law.

4. This Circular shall take effect from January 1, 2008.

The Circular Jointly Issued No. 02/2006/TTLT-BNV-BTC dated September 15, 2006, of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the general minimum wage from October 1, 2006, for civil servants, officials, and employees in state agencies, state-run entities, political organizations, and political-social organizations is hereby abolished.

5. Deductions and benefits calculated based on the general minimum wage shall be recalculated accordingly from January 1, 2008.

6. The Ministry of National Defense and the Ministry of Public Security shall, after reaching consensus with the Ministry of Home Affairs and the Ministry of Finance, issue guidelines for implementing the general minimum wage from January 1, 2008, for individuals under their management.

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