Joint Circular No. 10/2005/TTLT/BNV-BLDTBXH-BTC guiding the implementation of the attraction allowance system

CIRCULAR

Guidelines for Implementing Attraction Allowance Schemes

Pursuant to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on salary systems for civil servants, public officials, and military personnel, and Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the wage scale, salary table, and allowance system in state-owned companies; after exchanging opinions with relevant ministries and agencies, the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance hereby provide guidelines for implementing attraction allowances as follows:

I. SCOPE, OBJECTS, AND CONDITIONS FOR APPLICATION

1. Scope and Applicability:

a. Civil servants (including probationary civil servants), public officials, individuals currently undergoing internship, trial period, and contractual laborers who have been assigned salaries according to the salary tables prescribed by the State work in state agencies and public service units established by competent authorities.

b. Full-time cadres and civil servants at communes, wards, and towns.

c. Individuals working in companies operating under the Law on State-Owned Enterprises, the Vietnam Development Fund, and the Vietnam Deposit Insurance Corporation, including:

Full-time members of the Board of Directors; members of the Supervisory Board;

General Director, Director, Deputy General Director, Deputy Director, Chief Accountant (excluding those working under contracts);

Production and business workers; professional and technical staff and administrative and service employees working under labor contracts as specified in Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code regarding labor contracts.

2. Conditions for application:

The subjects mentioned in Point 1, Section I of this Circular shall be entitled to attraction allowances when they start working in new economic zones, economic bases, and remote islands far from the mainland with particularly difficult living conditions such as remoteness, isolation, distance from residential areas; lacking transportation networks, making travel difficult; lacking electricity and water supply systems; having insufficient housing; lacking schools, kindergartens, and hospitals.

II. AMOUNT OF ALLOWANCE AND METHOD OF PAYMENT

1. Level and duration of allowance:

a. Attraction allowances include four levels: 20%, 30%, 50%, and 70% of the current salary (based on rank, grade, position, specialty, and profession) plus leadership position allowances and seniority allowances exceeding the standard range (if applicable).

b. The duration of the attraction allowance is determined within a timeframe of three to five years starting from when the objects specified in Point 1, Section I of this Circular begin working in places where they are entitled to the attraction allowance.

c. The level and duration of the attraction allowance depend on the actual length of time that the new economic zones, economic bases, and remote islands have difficult living conditions.

2. Calculation method:

The amount of the attraction allowance is calculated using the following formula:

3. Method of payment:

a. The attraction allowance is paid together with the monthly salary and is not used to calculate contributions or benefits under social insurance.

b. Source of funds for paying the attraction allowance

b.1. For agencies and units fully funded by the state budget, attraction allowances shall be covered by the state budget according to the current budget allocation level within the annual budget allocated to the agency or unit.

b.2. For agencies implementing quota staffing and administrative management expenses and public service units practicing self-financing, attraction allowances shall be paid from the quota funds and self-financed resources allocated to the agency or unit.

b.3. For state-owned enterprises, the attraction allowance is included in the wage rate and recorded in production costs or business expenses.

III. IMPLEMENTATION

1. The Minister, Head of a ministry equivalent to a minister, Head of a government agency (hereinafter collectively referred to as the Head of a Central Ministry or Agency), Chairman of the People's Committee of a province or centrally-administered city, and representative of the owner of a state-owned company shall base their recommendations on the application conditions for attraction allowances stipulated in this Circular and the actual situation of new economic zones, economic bases, and remote islands within their jurisdiction, and propose to the Joint Ministries for consideration and decision on attraction allowances.

The application dossier for the attraction allowance includes:

a. A recommendation letter from the Head of a Ministry or Central Agency, the Chairperson of a Provincial People's Committee directly under the Central Government, or the representative of a state-owned enterprise owner.

b. An explanation of the conditions for determining the attraction allowance, the proposed level of the attraction allowance, and the duration of its application.

c. Estimate the number of eligible recipients and the funding required for attraction allowances, including the portion to be covered by the state budget (if applicable).

2. Based on the proposals of the Heads of Central Ministries or Agencies, Chairmen of the People's Committees of provinces or centrally-administered cities, and representatives of the owners of state-owned companies, the Joint Ministries will issue agreements on the implementation of attraction allowances according to the following levels of authority:

a. For civil servants, public officials, and staff in state agencies and state-run units, the Ministry of Home Affairs will take the lead in coordinating with the Ministry of Finance to review and resolve the matter.

b. For those in state-owned enterprises, the Ministry of Labor, Invalids and Social Affairs will take the lead in coordinating with the Ministry of Finance to review and resolve the matter.

3. After receiving the Joint Ministries' opinions, the Heads of Central Ministries or Agencies, Chairmen of the People's Committees of provinces or centrally-administered cities, and representatives of the owners of state-owned companies shall guide the units under their jurisdiction with eligible recipients to implement attraction allowances.

IV. EFFECTIVE DATE OF IMPLEMENTATION

1. This Circular shall take effect fifteen days after its publication in the Official Gazette.

Repeal Circular No. 16/LĐTBXH-TT dated June 2, 1993 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of the attraction allowance system.

2. The attraction allowance system stipulated in this Circular shall be effective from October 1, 2004.

In cases where attraction allowances have already been agreed upon by authorized agencies and remain valid, they shall continue to be enjoyed until the agreed-upon term expires; however, the amount of attraction allowances received starting from October 1, 2004, shall be recalculated according to the provisions of this Circular; relevant ministries, sectors, and localities are responsible for compiling reports to the Joint Ministries for monitoring and management.

3. Civil servants, public officials, and staff working in Party agencies, the People's Council, and mass organizations shall implement attraction allowances according to the guidelines provided by the Central Organization Department.

If there are any difficulties during implementation, the Ministries, sectors, and localities shall report them to the Joint Ministry for study and resolution./.