JOINT CIRCULAR No. 10/2005/TTLT-BNV-BLDTBXH-BTC of the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance guiding the implementation of the attraction allowance system

CIRCULAR

Joint Circular No. 10/2005/TTLT-BNV-BLDTBXH-BTC dated January 5, 2005 of the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance guiding the implementation of the attraction allowance system

Implementing Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the salary system for civil servants, public officials, and military personnel and Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the monthly wage system, pay scale, and wage allowances in state-owned companies; after exchanging opinions with relevant ministries and sectors, the joint circular of the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance guides the implementation of the attraction allowance system as follows:

I. SCOPE, OBJECTS, AND CONDITIONS FOR APPLICATION

1. Scope and Applicability:

a. Civil servants (including probationary civil servants), public officials, those who are in the probationary period, trial period, and contractual laborers who have been assigned salaries according to the pay scale prescribed by the State working in state agencies and state-run units established by competent authorities.

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

       c. Those working in state-owned enterprises operating under the Law on State-Owned Enterprises, the Development Support Fund, and the Deposit Insurance Corporation of Vietnam, 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 on labor contracts.

2. Conditions for application:

The objects mentioned in Point 1, Section I of this Circular shall be entitled to the attraction allowance when they first 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.  LEVELS OF ALLOWANCE AND CALCULATION METHOD

1. Level and duration of allowance:

a. The attraction allowance includes four levels: 20%, 30%, 50%, and 70% of the current salary (based on rank, grade, position, specialty, and profession) plus leadership position allowance and seniority allowance 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, the attraction allowance is covered by the state budget according to the current budget allocation hierarchy within the annual budget allocated to the agency or unit.

b.2. For agencies implementing personnel quotas and administrative management costs and state-run units implementing financial autonomy, the attraction allowance is paid from the allocated personnel quota and financial resources granted for autonomous operation.

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. Ministers, Heads of Ministries equivalent to Ministers, and Heads of Central Agencies (hereinafter referred to collectively as Heads of Ministries and Central Agencies), Chairpersons of Provincial People's Committees directly under the Central Government, and representatives of state-owned enterprise owners shall base their recommendations for the attraction allowance on the application conditions stipulated in this Circular and the actual situation of new economic zones, economic bases, and remote islands under their jurisdiction, and submit these recommendations to the Joint Ministries for consideration and decision.

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. An estimate of the number of beneficiaries and the fund for paying the attraction allowance, including the portion to be covered by the state budget (if applicable).

2. Based on the recommendations from the Heads of Ministries or Central Agencies, the Chairpersons of Provincial People's Committees directly under the Central Government, and the representatives of state-owned enterprise owners, the Joint Ministries will issue a document agreeing to apply the attraction allowance according to the following hierarchical levels:

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' opinion, the Heads of Ministries or Central Agencies, the Chairpersons of Provincial People's Committees directly under the Central Government, and the representatives of state-owned enterprise owners shall guide the units under their jurisdiction with beneficiaries of the attraction allowance to implement it.

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 the competent authority has agreed to apply retention allowances that are still valid, such allowances shall continue to be enjoyed until the agreed term expires; however, the amount of the retention allowance enjoyed from October 1, 2004 onwards shall be recalculated according to the provisions of this Circular. The Ministries, sectors, and localities are responsible for compiling reports to the Joint Ministry for monitoring and management.

3. Cadres, civil servants, and public officials working in agencies and units of the Party, the People's Front, and mass organizations shall implement the retention allowance system in accordance with the guidelines of the Central Organization Committee. If there are any difficulties during implementation, the Ministries, sectors, and localities shall report them to the Joint Ministry for study and resolution.

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