JOINT CIRCULAR No. 06/1998/TTLT-TCCP-BLDTBXH-BTC OF THE GOVERNMENT ORGANIZATION-CIVIL SERVICE AGENCY - MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS - MINISTRY OF FINANCE GUIDING THE IMPLEMENTATION OF DECISION No. 83/1998/QD-TTg dated April 15, 1998 OF THE GOVERNMENT PRIME MINISTER ON SALARY AND ALLOWANCES FOR MEMBERS OF MANAGEMENT BOARDS AND SUPERVISION BOARDS OF STATE ENTERPRISES AND LARGE INDEPENDENT STATE ENTERPRISES

JOINT CIRCULAR

Issued by the Organizational Committee - Civil Servant Affairs - Ministry of Labor, Invalids and Social Affairs - Ministry of Finance Decision No. 06/1998/TTLT-TCCP-BLDTBXH-BTC dated October 20, 1998 guiding the implementation of Prime Minister's Decision No. 83/1998/QD-TTg dated April 15, 1998 on salary and allowances for members of the Board of Directors, Supervisory Board of State-owned Corporations and large independent state-owned enterprises.

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Implementing Prime Minister's Decision No. 83/1998/QD-TTg dated April 15, 1998 on salary and allowances for members of the Board of Directors, Supervisory Board of State-owned Corporations and large independent state-owned enterprises, the Joint Circular of the Organizational Committee - Civil Servant Affairs of the Government, Ministry of Labor, Invalids and Social Affairs, and Ministry of Finance provides guidance as follows:

I. APPLICABLE OBJECTS:

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

- Chairman of the Board of Directors;

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

- Part-time member of the Board of Directors;

- Member of the Supervisory Board.

II. SALARY TRANSFER

1. Principle of Salary Reassignment:

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-owned enterprises currently assigned salaries according to wage scales applicable in enterprises, election-based position wage scales, civil servant grade wage scales, administrative and public service staff grade wage scales, and military personnel grade wage scales shall be uniformly reassigned to grades under the Administrative Wage Scale (01) issued together with Government Decree No. 25/CP dated May 23, 1993 on temporary regulations for new wage systems for civil servants, administrative and public service staff, and military personnel;

- The reassignment from current grade, level, and salary coefficient to new grade and level must be based on the position held within the Board of Directors and the professional standards of civil servant grades issued by the Organizational Committee of the Government. The current leadership position salary coefficient shall not be transferred to the new grade and level;

- Those who have held their current grade for three years or more shall be reassigned to the next higher grade every three years (36 months), with the remaining time being carried forward for the next reassignment;

- Those receiving seniority allowance for re-election shall have their seniority allowance calculated and transferred to the new grade and level at a rate of 3 years (36 months) per grade;

For the Chairman of the Board of Directors, after being reassigned to a specialized grade and level according to civil servant grades, if the combined salary coefficient plus position allowance according to the classification of the Board of Directors is still lower than the salary coefficient of Grade 2/2 of the General Manager (or Director) of the same enterprise, then the difference shall be added to equalize it with the salary coefficient of Grade 2/2 of the General Manager (or Director).

For full-time members of the Board of Directors, after being reassigned to a specialized grade and level according to civil servant grades, if the combined salary coefficient plus position allowance according to the classification of the Board of Directors is still lower than the salary coefficient of Grade 2/2 of the Deputy General Manager (or Deputy Director) of the same enterprise, then the difference shall be added to equalize it with the salary coefficient of Grade 2/2 of the Deputy General Manager (or Deputy Director).

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

2. Method of Salary Reassignment:

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-owned enterprises currently assigned election-based position salaries according to the wage scale 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 Party Secretariat, and Government Decree No. 25/CP dated May 23, 1993, prior to reassignment, the current salary coefficient shall be reduced by the leadership position allowance coefficient designed within the leadership position salary coefficient according to the annex attached to this Circular, the remaining salary coefficient shall be reassigned to the nearest grade with an equivalent salary coefficient among the grades under the Administrative Wage Scale (01).

Example 1: Mr. Nguyen Van A, Chairman of the People's Committee of a province, has been assigned a salary coefficient of 7.3 according to Government Decree No. 25/CP dated May 23, 1993 since October 1994, and was appointed as Chairman of the Board of Directors of a special-class enterprise. The salary reassignment for Mr. A will be implemented as follows:

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

7,3 - 1,1 = 6,2

The remaining salary coefficient of 6.2 is reassigned to Grade 5, with a coefficient of 6.26 of the Senior Specialist Grade (01001), under the Administrative Wage Scale (01).

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

The time for the next promotion of Mr. A 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-owned enterprises currently assigned management position salaries according to the wage scale for enterprise management staff issued together with Government Decree No. 26/CP dated May 23, 1993, prior to reassignment, the current salary coefficient shall be reduced by the leadership position allowance coefficient designed within the management position salary according to the annex attached to this Circular. The remaining salary coefficient shall be reassigned to the nearest grade with an equivalent salary coefficient among the grades under the Administrative Wage Scale (01).

Example 2: Mr. Tran Van B, General Director of a Class I enterprise, who has been classified at a salary coefficient of 6.03 since November 1995, was appointed as a full-time member of the Board of Directors of a special-class enterprise. The salary classification adjustment for Mr. B shall be carried out as follows:

- Subtract the position allowance coefficient of 0.8 from the position salary coefficient of 6.03.

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

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

The time for the next salary increase for Mr. B will be calculated from November 1995.

c) Civil servants before being appointed as full-time members of the Board of Directors (except for General Directors) and members of the Supervisory Board of State-owned Corporations and independent large-scale state enterprises, who were classified according to the administrative pay scale (01), shall retain their current salary coefficients.

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

Example 3: Mr. Hoang Van C, a principal engineer, rank code 13094, grade 7, salary 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 classification adjustment for Mr. C shall be carried out as follows:

Reassigned to the corresponding rank and grade as a principal officer (01002), grade 7, salary coefficient 5.03.

The time for the next salary increase for Mr. C will be calculated from December 1995.

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

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

Reassigned to the corresponding rank and grade as a principal officer (01002), grade 4, salary coefficient 4.19.

The time for the next salary increase for Ms. Ng will be calculated from March 1996.

e) Civil servants before being appointed as full-time members of the Board of Directors (except for General Directors) and members of the Supervisory Board of State-owned Corporations and independent large-scale state enterprises, who were classified according to the military pay scale issued together with Decree No. 25/CP dated May 23, 1993 of the Government, shall divide their current salary coefficient by the difference between military pay and administrative and public service pay as stipulated in the annex attached to this Circular. The resulting salary coefficient shall be reassigned to the nearest grade with a similar salary coefficient among the ranks under the administrative pay scale (01).

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

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

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

The time for the next salary increase for Mr. T will be calculated from April 1996.

3. For staff assisting members of the Board of Directors within the Board's establishment, their salaries shall be reassigned to ranks and grades under the administrative pay scale (01) issued together with Decree No. 25/CP dated May 23, 1993 of the Government.

III. POSITION ALLOWANCE AND RESPONSIBILITY ALLOWANCE:

1. Classification of the Board of Directors:

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

- Type II: The Board of Directors of State Corporations established pursuant to Decision No. 90/TTg dated March 7, 1994 of the Prime Minister, but not meeting the conditions for special ranking;

- Type III: The Board of Directors of independent large-scale state enterprises that have established a Board of Directors, but not meeting the conditions for special ranking.

2. Level of position allowance compared to the minimum wage according to the classification of the Board of Directors is specified as follows:

3. Level of responsibility allowance:

Members of the Board of Directors serving concurrently shall enjoy responsibility allowances as prescribed in Decree No. 25/CP dated May 23, 1993 of the Government, with a unified rate of 0.3 compared to the minimum wage.

4. Cases where additional differential coefficients are added:

- For the Chairman of the Board of Directors, after reclassifying salaries according to the guidance in Point 2, Section II and adding position allowances as prescribed in Section III above, if the total salary coefficient plus position allowance is still lower than the salary coefficient grade 2/2 of the General Director (or Director) of the same enterprise, they shall be granted additional differential coefficients to equal the salary coefficient grade 2/2 of the General Director (or Director).

Example 6: Mr. Dao Xuan X, former Deputy General Director of a State 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 State Corporation ranked as special class. Based on his current salary coefficient, Mr. X was reassigned to grade 2, coefficient 5.23, senior officer rank as guided above and enjoys a position allowance for the Chairman of the Board of Directors of 1.1.

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

- For other members of the Board of Directors (excluding the General Director or Director) after being reclassified according to the guidelines set out in Point 2, Section II and receiving position allowances as stipulated in Section III above, if their total salary coefficient plus position allowance is still lower than the salary coefficient level 2/2 of the Deputy General Director (or Deputy Director) of the same enterprise, they shall be granted an additional difference coefficient to match the salary coefficient level 2/2 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 State Corporation established by Decision No. 90/TTg dated March 7, 1994 of the Prime Minister. Based on her current salary coefficient and the classification guidelines provided in this Circular, Ms. H is classified at Level 6 with a coefficient of 4.75 for the Senior Specialist rank (01002) and receives a position allowance for a full-time member of the Board of Directors of the State Corporation 90/TTg of 0.6.

The total salary coefficient plus position allowance of Ms. H is: 5.35 (4.75 + 0.6), which is lower than the salary coefficient level 2/2 of the Deputy General Director of the State Corporation 90/TTg (6.03). Therefore, Ms. H is entitled to an additional difference coefficient of 6.03 - 5.35 = 0.68.

- In cases where an additional difference coefficient is granted as mentioned above, the subsequent process of increasing the salary grade will gradually deduct from the difference coefficient until it is fully deducted.

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

IV. IMPLEMENTATION ORGANIZATION:

1. State-owned corporations and large independent state-owned enterprises shall base themselves on the guidelines provided in this Circular to prepare a list (attached model) for reclassifying salaries for full-time members and the Audit Committee of the Board of Directors, and submit it to the Ministry in charge (for enterprises under the Ministry's jurisdiction) 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 issuing a decision on salary classification.

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

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

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

The date of entitlement to salary and position allowance shall be calculated from the date of appointment as a member of the Board of Directors or the Audit Committee.

For appointments made prior to April 30, 1998, there is no question 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.