JOINT CIRCULAR No. 06/1998/TTLT/TCCP-BLDTBXH-BTC GUIDING THE IMPLEMENTATION OF DECISION No. 83/1998/QD-TTg dated April 15, 1998 of the Prime Minister on salary and allowances for members of the Board of Directors and Supervisory Board of State-owned Corporations and large independent state enterprises

Members of the Board of Directors and members of the Supervisory Board of State-owned Corporations established pursuant to Decision No. 90/TTg and Decision No. 91/TTg dated March 7, 1994 of the Prime Minister and large independent state enterprises that have established a Board of Directors include:

Chairman of the Board of Directors;

Full-time member of the Board of Directors (excluding General Manager);

Concurrent member of the Board of Directors;

Member of the Supervisory Board.

1. Principle of salary transfer:

The Chairman of the Board of Directors, full-time members of the Board of Directors (excluding General Manager) and members of the Supervisory Board of State-owned Corporations and large independent state enterprises currently classified under the wage scale, position-based wage table, election-based wage table, civil service grade wage table, administrative and public service staff grade wage table, and military personnel grade wage table shall be uniformly transferred to the grades under the administrative wage table (01) issued together with Decree No. 25/CP dated May 23, 1993 of the Government temporarily regulating the new wage system for civil servants, administrative and public service staff, and military personnel;

The transfer from current grade, level, and wage coefficient to new grade and level must be based on the position held in the Board of Directors and the professional standards of civil servant grades issued by the Government Organizational Structure - Civil Servants Department. The current leadership position wage coefficient shall not be transferred to the new grade and level;

Those who have held their current grade for three years or more will be promoted one level every three years (36 months), and the remaining time will be retained for the next promotion;

Those receiving seniority re-election allowance will have their seniority re-election allowance calculated as three years (36 months) per level to be transferred to the new grade and level;

For the Chairman of the Board of Directors, after being classified according to the professional grade and level, if the combined wage coefficient plus leadership position allowance according to the classification of the Board of Directors is still lower than the wage coefficient of Grade 2/2 of the General Manager (or Director) of the same enterprise, they will be granted additional coefficient to equal the wage coefficient of Grade 2/2 of the General Manager (or Director);

For full-time members of the Board of Directors, after being classified according to the professional grade and level, if the combined wage coefficient plus leadership position allowance according to the classification of the Board of Directors is still lower than the wage coefficient of Grade 2/2 of the Deputy General Manager (or Deputy Director) of the same enterprise, they will be granted additional coefficient to equal the wage coefficient of Grade 2/2 of the Deputy General Manager (or Deputy Director);

Those currently receiving a wage coefficient of 8.2 who are appointed as Chairman of the Board of Directors of State-owned Corporations will retain their wage coefficient of 8.2 and seniority re-election allowance (if applicable), without enjoying the leadership position allowance of the Chairman of the Board of Directors according to Decision No. 83/1998/QD-TTg dated April 15, 1998 of the Prime Minister;

2. Method of salary transfer:

a) Civil servants before being appointed as full-time members of the Board of Directors (excluding General Manager) and members of the Supervisory Board of State-owned Corporations and large independent state enterprises currently classified under the election-based wage table as 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, and Decree No. 25/CP dated May 23, 1993 of the Government, prior to transferring, deduct the leadership position allowance coefficient designed within the leadership position wage coefficient from the current wage coefficient, and transfer the remaining wage coefficient to the nearest grade with an equivalent wage coefficient under the administrative wage table (01).

Example 1: Mr. Nguyen Van A, Chairman of the People's Committee of a province, is currently classified at a wage coefficient of 7.3 as stipulated in Decree No. 25/CP dated May 23, 1993 of the Government since October 1994, and has been appointed as Chairman of the Board of Directors of a special-class enterprise. The salary transfer for Mr. A will be carried out as follows:

Deduct the leadership position allowance coefficient of 1.1 designed within the election-based position wage coefficient from the current wage coefficient of 7.3:

7,3 - 1,1 = 6,2

The remaining wage coefficient of 6.2 will be transferred to Grade 5, with a wage coefficient of 6.26 under the Senior Specialist Officer grade (01001), administrative wage table (01).

From October 1994 to October 1997, having completed three years, Mr. A will be promoted to Grade 6, with a wage coefficient of 6.67.

The time for Mr. A's next promotion will be counted from October 1997.

b) Civil servants before being appointed as full-time members of the Board of Directors (excluding General Manager) and members of the Supervisory Board of State-owned Corporations and large independent state enterprises currently classified under the management staff wage table for enterprises issued together with Decree No. 26/CP dated May 23, 1993 of the Government, prior to transferring, deduct the leadership position allowance coefficient designed within the position wage coefficient from the current wage coefficient. Transfer the remaining wage coefficient to the nearest grade with an equivalent wage coefficient under the administrative wage table (01).

Example 2: Mr. Tran Van B, Director of a Class I enterprise, is currently classified at a wage coefficient of 6.03 since November 1995, and has been appointed as a full-time member of the Board of Directors of a special-class enterprise. The salary transfer for Mr. B will be carried out as follows:

Deduct the position allowance coefficient of 0.8 from the position design coefficient within the salary grade coefficient of 6.03.

6,03 - 0,8 = 5,23.

The remaining salary grade coefficient is 5.23, which is transferred to level 2 with a coefficient of 5.23 for the senior specialist rank (01001).

The time for the next salary increment for Mr. B is calculated from November 1995.

c) Officials and civil servants before being appointed as full-time members of the Board of Directors (excluding General Director) and members of the Supervisory Board of State-owned Corporations and large independent state enterprises who are currently classified according to the administrative salary scale (01) shall retain their current salary grade coefficients.

d) Officials and civil servants before being appointed as full-time members of the Board of Directors (excluding General Director) and members of the Supervisory Board of State-owned Corporations and large independent state enterprises who are currently classified under the administrative and public service salary scales but not under the administrative salary scale (01) issued together with Decree No. 25/CP dated May 23, 1993 of the Government, shall be transferred to corresponding ranks and levels under the administrative salary scale (01) based on their current ranks and salary grades.

Example 3: Mr. Hoang Van C, a principal engineer, rank code 13094, level 7, salary grade coefficient 4.94 since December 1995, was appointed as a full-time member of the Board of Directors of a special-class state enterprise. The salary transfer for Mr. C will be carried out as follows:

Transferred to the corresponding rank and level is principal officer (01002), level 7, salary grade coefficient 5.03.

The time for the next salary increment for Mr. C is calculated from December 1995.

đ) Officials and civil servants before being appointed as full-time members of the Board of Directors (excluding General Director) and members of the Supervisory Board of State-owned Corporations and large independent state enterprises who are currently classified according to the professional and technical salary scales of enterprises issued together with Decree No. 26/CP dated May 23, 1993 of the Government, shall be transferred to corresponding ranks and levels under the administrative salary scale (01) based on their current ranks and salary grades.

Example 4: Ms. Tran Le Ng, a principal economic officer, level 4, salary grade coefficient 4.10 since March 1996, was appointed as a full-time member of the Board of Directors of a corporation established pursuant to Decision No. 90/TTg. The salary transfer for Ms. Ng will be carried out as follows:

Transferred to the corresponding rank and level is principal officer (01002), level 4, salary grade coefficient 4.19.

The time for the next salary increment for Ms. Ng is calculated from March 1996.

e) Officials and civil servants before being appointed as full-time members of the Board of Directors (excluding General Director) and members of the Supervisory Board of State-owned Corporations and large independent state enterprises who are currently classified according to the military salary scale issued together with Decree No. 25/CP dated May 23, 1993 of the Government, shall divide their current salary grade coefficient by the difference between the military salary and the administrative and public service salary according to the appendix attached to this Circular. The resulting salary grade coefficient shall be transferred to the nearest level with a corresponding salary grade coefficient among the ranks under the administrative salary scale (01).

Example 5: Mr. Le Van T, a military officer, colonel rank since April 1996, salary grade coefficient 5.9, was appointed as a full-time member of the Board of Directors of a corporation established pursuant to Decision No. 90/TTg. The salary transfer for Mr. T will be carried out as follows:

Divide the salary grade coefficient of the colonel rank by the difference between the military salary and the administrative and public service salary, which is 5.9 : 1.2 = 4.91.

Transfer the resulting salary grade coefficient of 4.91 to level 1 with a coefficient of 4.92, senior officer rank (01001).

The time for the next salary increment for Mr. T is calculated from April 1996.

3. For officers assisting the Board of Directors who are part of the Board's establishment, their salaries shall be transferred to ranks and levels according to the administrative salary scale (01) issued together with Decree No. 25/CP dated May 23, 1993 of the Government.

1. Classification of the Board of Directors:

Class I: The Board of Directors of enterprises ranked as special according to Decision No. 185/TTg dated March 28, 1996 of the Prime Minister;

Class II: The Board of Directors of corporations established pursuant to Decision No. 90/TTg dated March 7, 1994 of the Prime Minister, but not meeting the criteria for special ranking;

Class III: The Board of Directors of large independent state enterprises that have established a Board of Directors, but do not meet the criteria for special ranking.

2. Position allowance rates relative to the minimum wage according to the classification of the Board of Directors are stipulated as follows:

3. Responsibility allowance rate:

Part-time members of the Board of Directors shall enjoy responsibility allowances as prescribed in Decree No. 25/CP dated May 23, 1993 of the Government at a unified rate of 0.3 relative to the minimum wage.

4. Cases where additional adjustment coefficients are added:

For the Chairman of the Board of Directors, after transferring the salary according to the guidance in point 2, Section II and adding the position allowance as prescribed in Section III above, if the total salary grade coefficient plus position allowance is still lower than the salary grade coefficient of level 2/2 of the General Director (or Director) of the same enterprise, an additional adjustment coefficient shall be added to equalize it with the salary grade coefficient of level 2/2 of the General Director (or Director).

Example 6: Mr. Dao Xuan X, former Deputy General Director of a corporation established pursuant to Decision No. 91/TTg dated March 7, 1994 of the Prime Minister, was appointed as the Chairman of the Board of Directors of a corporation ranked as special. Based on his current salary grade coefficient, Mr. X has been classified at level 2 with a coefficient of 5.23, senior officer rank according to the above guidance and enjoys a position allowance for the Chairman of the Board of Directors of 1.1.

The total salary grade coefficient plus position allowance of Mr. X is: 6.33 (5.23 + 1.1), which is lower than the salary grade coefficient of level 2/2 of the General Director of a special-class enterprise (7.06). Therefore, Mr. X is entitled to an additional adjustment coefficient of retention of: 7.06 - 6.33 = 0.73.

For other members of the Board of Directors (excluding the General Director or Director) who have been reclassified according to the guidance at Point 2, Section II and added position allowances as prescribed in Section III above, if the total coefficient of salary plus position allowance is still lower than the coefficient of level 2/2 salary of the Deputy General Director (or Deputy Director) of the same enterprise, they shall be additionally granted the difference coefficient to equalize it with the coefficient of level 2/2 salary of the Deputy General Director (or Deputy Director).

Example 7: Ms. Nguyen Thi H, Director of a Class II enterprise, was appointed as a Member of the Board of Directors of the Corporation established by Decision No. 90/TTg dated March 7, 1994 of the Prime Minister. Based on her current salary coefficient and the classification guidance in this Circular, Ms. H is classified at level 6, coefficient 4.75 for the Senior Specialist rank (01002) and receives position allowance for a full-time member of the Board of Directors of the 90/TTg Corporation as classified at 0.6.

The total coefficient of Ms. H's salary plus position allowance is 5.35 (4.75 + 0.6), which is lower than the coefficient of level 2/2 salary of the Deputy General Director of the 90/TTg Corporation (6.03). Therefore, Ms. H will be additionally granted a difference coefficient of 6.03 - 5.35 = 0.68.

In cases where the additional difference coefficient is granted as mentioned above, the subsequent salary increment process will gradually deduct from the difference coefficient until there is no more difference coefficient left.

Example 8: In the case of Ms. Nguyen Thi H mentioned in Example 7, if she is promoted to a coefficient of 5.03, the difference coefficient will only be 0.4 because: 6.03 - (5.03 + 0.6) = 0.4.

1. State-owned Corporations and large independent state enterprises shall base on the guidance in this Circular to prepare a list (attached model) to reclassify salaries for full-time members and the Supervisory Board of the Board of Directors, and submit it to the Ministry managing the sector (for enterprises under the Ministry's management) or the People's Committee of the province or centrally-administered city (for enterprises under local management), and send it to the Joint Ministries for review and agreement before making a decision on salary classification.

2. The expenses for paying salaries and position allowances to members of the Board of Directors and the Supervisory Board shall be included in the enterprise's management fees.

3. The position allowance and difference coefficient stipulated in Points 2 and 4, Section II of this Circular (except for responsibility allowance for concurrently serving members of the Board of Directors) shall be used to calculate social insurance, health insurance benefits.

4. This Circular takes effect from April 30, 1998.

The date of receiving salary and position allowance is calculated from the date of appointment as a member of the Board of Directors or the Supervisory Board.

For appointments made before April 30, 1998, there is no issue of backpaying salary or backpaying social insurance and health insurance contributions.

Any difficulties encountered during implementation should be reported in writing to the Joint Ministries for study and resolution.

 Date January 1998