Joint Circular No. 105/2005/TTLT/BNV-BTC guiding the implementation of the general minimum wage for cadres, civil servants, and public officials in state agencies, state-owned enterprises, political organizations, and socio-political organizations.

JOINT CIRCULAR

GUIDELINES FOR IMPLEMENTING THE NATIONAL MINIMUM WAGE FOR STATE EMPLOYEES AND OFFICIALS IN STATE ORGANIZATIONS, PUBLIC SERVICE UNITS, POLITICAL ORGANIZATIONS, AND SOCIAL-POLITICAL ORGANIZATIONS

Pursuant to Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government on adjusting the national minimum wage; after exchanging opinions with the Central Organization Committee and relevant agencies; the Ministry of Home Affairs and the Ministry of Finance provide guidelines for implementing the national minimum wage for state employees and officials in state organizations, public service units, political organizations, and social-political organizations as follows:

I. SCOPE AND APPLICABLE SUBJECTS

1. State employees within the establishment who receive salaries from the state budget working in Party, state, and mass organizations at the central level; at provincial and centrally-administered city levels; and at district, town, and provincial-level city levels.

2. Officials within the establishment who receive salaries from the state budget and other sources of income from public services as prescribed by law working in public service units of the Party, state, and mass organizations.

3. State employees and officials assigned to work in associations, non-governmental organizations, projects, and international organizations located in Vietnam.

4. Full-time cadres and civil servants at communes, towns, and wards as stipulated in Clause 1 and Clause 2, Article 2 of Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government on the system of benefits and policies for cadres and civil servants at communes, towns, and wards.

5. Kindergarten teachers within the establishment and kindergarten teachers under contracts as stipulated in Decision No. 161/2002/QĐ-TTg dated November 15, 2002 of the Prime Minister.

6. Health workers at communes, towns, and wards receiving salaries according to Decision No. 58/TTg dated February 3, 1994 and Decision No. 131/TTg dated March 4, 1995 of the Prime Minister.

7. People's Council representatives at all levels receiving activity fees as stipulated in Clause 2, Article 75 of the Operation 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.

8. Personnel engaged in confidential work in confidential organizations.

9. The following individuals also fall within the scope of this Circular for calculating contributions to social insurance and resolving related salary-based benefits as prescribed by law:

a) Cadres, civil servants, and officials whose salaries are determined according to Decree No. 205/2004/NĐ-CP dated December 14, 2004 on the salary scale and allowance system in state-owned companies.

b) Cases of study, internship, work, treatment, and recuperation both domestically and abroad within the salary establishment of the organization or unit.

c) Probationary civil servants, those currently in probation periods in state agencies (including probationary civil servants at commune level) and those currently in trial periods in public service units of the state.

d) Cases of suspension of work, temporary detention, or arrest.

đ) Individuals 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, officials, and armed forces personnel.

II. CALCULATION METHODS FOR SALARIES, ALLOWANCES, AND ACTIVITY FEES

The salaries, allowances, and activity fees of the subjects specified in Section I of this Circular shall be calculated as follows from October 1, 2005:

1. For cadres, civil servants, and officials

Cadres, civil servants, and officials specified in Clauses 1, 2, 3, 4, 5, and 6 of Section I of this Circular shall base their calculations on the salary coefficient and allowance provisions set forth in Resolution No. 730/2004/NQ-UBTVQHK11 dated September 30, 2004 of the Standing Committee of the National Assembly, Decision No. 128/QĐ-TW dated December 14, 2004 of the Central Committee Secretariat, Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, and the adjusted national minimum wage as stipulated in Article 1 of Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government to calculate the salary and allowance as follows:

a) Formula for calculating the salary level:

b) Formula for calculating the allowance level:

- For allowances calculated based on the national 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):

c) Formula for calculating the amount of the retention coefficient:

2. For People's Council representatives at all levels

People's Council representatives at all levels specified in Clause 7 of Section I of this Circular shall base their calculations on the activity fee coefficient for People's Council representatives at all levels as stipulated in Clause 2, Article 75 of the Operation 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 to calculate the activity fee according to the following formula:

3. For personnel engaged in confidential work in confidential organizations

a) Confidential personnel who are military or police apply the method of calculating salary and allowance as guided by the Ministry of Defense and the Ministry of Public Security.

b) Confidential personnel who are not military or police and other personnel in confidential organizations shall implement the calculation of salary and allowance as for cadres, civil servants, and officials according to the method prescribed in Clause 1 of Section II of this Circular.

III. IMPLEMENTATION

1. Heads of agencies and units directly managing the subjects receiving salaries, allowances, and activity fees specified in Section I of this Circular shall base their calculations on the actual number of people present as of September 30, 2005 to calculate salaries, allowances, and activity fees according to the guidance provided in this Circular.

2. Determining the salary fund, allowance, activity fee, and additional fund requirements and funding sources shall be carried out according to the guidance of the Ministry of Finance.

3. The Ministry of Home Affairs and the Ministry of Finance agree on the basis for the Ministry of Defense and the Ministry of Public Security to guide the implementation of the calculation of salary, allowance, and subsidy for the subjects under their management.

4. This Circular takes effect 15 days after its publication in the Official Gazette.

The salary, allowances, and activity fees for the subjects within the scope of application of this Circular shall be implemented from October 1, 2005.

5. The deductions and benefits calculated based on the general minimum wage level shall be recalculated accordingly.

In the course of implementation, if there are any difficulties, the ministries, sectors, and localities shall report to the Ministry of Home Affairs and the Ministry of Finance for study and resolution./.

Place of Receipt:
- President's Office;
- National Assembly's Office;
- Government Office;
- Central Office;
Central Party Committees;
- Supreme People's Court;
- Supreme People's Procuracy;
- Ministries, agencies equivalent to ministries,
Government agencies;
- Central bodies of mass organizations;
- Provincial People's Councils and People's Committees under central jurisdiction;
- Publish in the Official Gazette;
- Ministry of Justice (Legal Documents Inspection Department);
- File: VT, Department of Personnel (Ministry of Home Affairs), VT (Ministry of Finance).