JOINT CIRCULAR No. 105/2005/TTLT-BNV-BTC GUIDING THE IMPLEMENTATION OF THE MINIMUM WAGE FOR OFFICIALS, CIVIL SERVANTS, AND PUBLIC OFFICERS IN STATE ADMINISTRATIVE ORGANIZATIONS, STATE-OWNED ENTERPRISES, AND POLITICAL ORGANIZATIONS

CIRCULAR

Guidelines for implementing the general minimum wage for cadres,

civil servants, and public officials in state agencies, state-owned enterprises,

political organizations, and socio-political organizations

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Pursuant to Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government on adjusting the general 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 general minimum wage for cadres, civil servants, and public officials in state agencies, state-owned enterprises, political organizations, and socio-political organizations as follows:

I. SCOPE AND APPLICABLE SUBJECTS

1. Cadres and civil servants 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; at district, town, and urban district levels.

2. Public officials within the establishment who receive salaries from the state budget and income from state-run enterprises as prescribed by law working in Party, state, and mass organizations.

3. Cadres, civil servants, and public officials belonging to the state establishment and receiving salaries according to the salary scale prescribed by the state assigned to work in associations, non-governmental organizations, projects, and international organizations based in Vietnam.

4. Full-time cadres and civil servants at communes, wards, and towns as stipulated in Clause 1 and Clause 2 of 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, wards, and towns.

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, wards, and towns 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 of 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 categories also fall within the scope of this Circular for calculating contributions and entitlements to social insurance and resolving other benefits related to wages as prescribed by law;

a) Cadres, civil servants, and public officials whose salary grading is applied pursuant to Decree No. 205/2004/NĐ-CP dated December 14, 2005 on the salary scale and allowance system in state-owned companies.

b) Cases studying, training, working, treating, and recuperating both domestically and abroad within the establishment and receiving salaries from the agency or unit.

c) Civil servant trainees, those currently undergoing probation in state agencies (including village-level civil servant probation) and those currently undergoing trial periods in state-owned enterprises.

d) Cases currently suspended from work, currently detained, or arrested.

đ) Individuals who have signed labor contracts and have been graded according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 on the salary system for cadres, civil servants, public officials, and armed forces personnel.

II. CALCULATION OF WAGES, ALLOWANCES, AND ACTIVITY FEES

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

1. For cadres, civil servants, and public officials

Cadres, civil servants, and public officials specified in Clause 1, 2, 3, 4, 5, and 6 of Section 1 of this Circular shall base their calculation on the current salary coefficient and allowance as prescribed in Resolution No. 730/2004/NQ-UBTVQH11 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 general minimum wage as stipulated in Article 1 of Decree No. 118/2005/NĐ-CP dated September 15, 2005 of the Government to calculate the wage and allowance as follows:

a) Formula for calculating the salary level:

b) Formula for calculating the allowance level:

- For allowances calculated based on the general 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:

d) For allowances specified by a specific amount, they remain unchanged as per the current regulations

2. For representatives of People's Councils at all levels

Representatives of People's Councils at all levels specified in Clause 7 of Section I of this Circular shall base their calculation on the activity fee coefficient for representatives of People's Councils at all levels as stipulated in Clause 2 of 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) Personnel engaged in confidential work who are military or police officers apply the method of calculating wages and allowances as guided by the Ministry of Defense and the Ministry of Public Security

b) Personnel engaged in confidential work who are not military or police officers and other personnel in confidential organizations shall implement the calculation of wages and allowances as for cadres, civil servants, and public officials according to the calculation method prescribed in Clause 1 of Section II of this Circular.

III. IMPLEMENTATION

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

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

3. The Ministry of Home Affairs and the Ministry of Finance shall unify their opinions as the basis for the Ministry of Defense and the Ministry of Public Security to guide the implementation of the calculation of wages, allowances, and subsidies for individuals under their management.

This Circular shall take effect fifteen 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.

The deductions and benefits calculated based on the general minimum wage 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./.