Circular No. 11/2007/TT-BLDTBXH guiding the implementation of salary regulations for the Vietnam Development Bank pursuant to Decision No. 44/2007/QD-TTg dated March 30, 2007 of the Prime Minister on the issuance of financial management regulations for the Vietnam Development Bank.

CIRCULAR

 Guidelines for implementing the salary system for the Vietnam Development Bank pursuant to Decision No. 44/2007/QĐ-TTg dated March 30, 2007 of the Prime Minister on the issuance of the Financial Management Regulations for the Vietnam Development Bank.

Pursuant to Article 24 of the Financial Management Regulations for the Vietnam Development Bank issued together with Decision No. 44/2007/QĐ-TTg dated March 30, 2007 of the Prime Minister, the Ministry of Labor, Invalids and Social Affairs provides guidelines for implementing the salary system for the Vietnam Development Bank as follows:

I. APPLICABLE OBJECTS.

The applicable objects are officials, workers, and employees working at the Vietnam Development Bank, including:

1. Members of the Board of Management; members of the Supervisory Board;

2. General Director, Deputy General Director, and Chief Accountant;

3. Heads of Departments, Deputy Heads of Departments, and equivalent positions at the Head Office; Directors, Deputy Directors, and Chief Accountants of Trading Departments and Branches in provinces and centrally-administered cities;

4. Professional and technical officials, administrative and service staff, and directly productive and business workers.

II. SALARY GRADING AND ALLOWANCE.

1. Salary Grading: Officials, workers, and employees of the Vietnam Development Bank shall be graded according to the salary scale and table issued together with Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the salary scale and allowance system in state-owned companies as follows:

a) Full-time members of the Board of Management (including the Chairman of the Supervisory Board), General Director, Deputy General Director, and Chief Accountant shall be graded according to the salary table of full-time members of the Board of Management and the salary table of General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant of state-owned companies of special category.

b) Directors, Deputy Directors, and Chief Accountants of Trading Departments and Branches in provinces and centrally-administered cities shall be graded according to the salary table of General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant based on their actual grade (from Grade I to Grade III) as prescribed in Circular No. 23/2005/TTLT-BLĐTBXH-BTC dated August 31, 2005 of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance guiding the grading and salary grading for full-time members of the Board of Management, General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant of state-owned companies.

In 2007, while there are no grading standards, Trading Departments and Branches may continue to apply the previously assigned grades for Branches of the Development Support Fund as per Document No. 2556/LĐTBXH-TL dated August 4, 2000 of the Ministry of Labor, Invalids and Social Affairs. From 2008 onwards, Trading Departments and Branches must re-grade according to new standards.

The Vietnam Development Bank is responsible for developing grading criteria based on the guidance provided in Circular No. 23/2005/TTLT-BLĐTBXH-BTC, and report to the Ministry of Labor, Invalids and Social Affairs for approval and implementation from 2008 for Trading Departments and Branches mentioned above.

c) Members of the Supervisory Board (excluding the Chairman of the Supervisory Board); Heads of Departments, Deputy Heads of Departments, and equivalent positions at the Head Office, and professional and technical officials, administrative and service staff shall be graded according to the job assigned, professional and technical standards for officials and employees, into the appropriate rank and level according to the salary table for professional and technical officials and the salary table for administrative and service staff.

d) Workers and employees directly involved in production and business operations shall be graded according to the job assigned, technical and employee levels, into the corresponding level of the salary scale and table suitable for the job undertaken.

đ) The transfer of salary grading for the positions specified in points a, b, c, and d, Clause 1, Section II of this Circular shall be carried out in accordance with Circular No. 01/2005/TT-BLĐTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs, Circular No. 02/2005/TTLT-BLĐTBXH-BNV dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Home Affairs, and Section III of Circular No. 23/2005/TTLT-BLĐTBXH-BTC mentioned above.

e) For workers transferred from other sectors to work at the Vietnam Development Bank, the transfer of salary grading shall follow the guidance provided in point b, Clause 2, Section II of Circular No. 19/2000/TT-BLĐTBXH dated August 7, 2000 of the Ministry of Labor, Invalids and Social Affairs guiding the salary grading for workers transferred from other sectors to work at state-owned enterprises.

2. Allowance: Officials, workers, and employees working at the Vietnam Development Bank shall enjoy the allowance system as stipulated in Decree No. 205/2004/NĐ-CP as follows:

a) Non-full-time members of the Board of Management, members of the Supervisory Board (excluding the Chairman of the Supervisory Board) shall enjoy responsibility allowances for members of the Board of Management and members of the Supervisory Board of state-owned companies of special category as prescribed in Circular No. 03/2005/TT-BLĐTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of the responsibility allowance system in state-owned companies under Decree No. 205/2004/NĐ-CP.

b) Heads of Departments, Deputy Heads of Departments, and equivalent positions at the Head Office shall enjoy department head and deputy department head allowances of state-owned companies of special category. Department heads, deputy department heads, and equivalent positions at Trading Departments and Branches in provinces and centrally-administered cities shall enjoy allowances according to their assigned grade.

c) Allowances for job responsibility; allowances for hazardous and dangerous conditions; allowances for mobility; allowances for attraction and regional allowances for officials, workers, and staff working at the Vietnam Development Bank shall be implemented in accordance with Circulars No. 03/2005/TT-BLDTBXH, Circular No. 04/2005/TT-BLDTBXH, Circular No. 05/2005/TT-BLDTBXH dated January 5, 2005 issued by the Ministry of Labor, Invalids, and Social Affairs, Joint Circular No. 10/2005/TTLT-BNV-BLDTBXH-BTC dated January 5, 2005 issued by the Ministry of Home Affairs, the Ministry of Labor, Invalids, and Social Affairs, the Ministry of Finance, and Joint Circular No. 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT dated January 5, 2005 issued by the Ministry of Home Affairs, the Ministry of Labor, Invalids, and Social Affairs, the Ministry of Finance, and the Committee for Ethnic Minorities.

III. MANAGEMENT OF SALARIES AND INCOME.

The management of salaries and income for the Vietnam Development Bank shall be carried out as follows:

1. Members of the Management Board (including the Chairman of the Supervisory Board), General Directors shall apply salary systems as prescribed in Decree No. 207/2004/NĐ-CP dated December 14, 2004 of the Government on salary systems, bonuses, and responsibilities for members of the Board of Directors, General Directors, Directors of state-owned companies, and Circular No. 08/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decree No. 207/2004/NĐ-CP mentioned above.

2. Members of the Supervisory Board (excluding the Chairman of the Supervisory Board), Deputy General Directors, Chief Accountants; Directors, Deputy Directors, Chief Accountants of Trading Departments, Branches in provinces and centrally governed cities, and specialized and technical officials, administrative and service staff, and directly productive and business workers shall apply labor management, salary, and income systems as prescribed in Decree No. 206/2004/NĐ-CP dated December 14, 2004 of the Government on labor management, salaries, and income in state-owned companies, Decree No. 94/2006/NĐ-CP dated September 7, 2006 on adjusting the minimum wage, Circular No. 07/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decree No. 206/2004/NĐ-CP, and point b, Clause 1, Section II of Circular No. 12/2006/TT-BLDTBXH dated September 14, 2006 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of wage adjustments and wage allowances in enterprises according to Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government.

3. When applying the maximum adjustment factor not exceeding 1.34 times the general minimum wage level to calculate the unit price of wages as prescribed in point b, Clause 1, Section II of Circular No. 12/2006/TT-BLDTBXH, and applying the maximum adjustment factor not exceeding 2 times to calculate the planned wage fund for members of the Management Board (including the Chairman of the Supervisory Board), General Directors as prescribed in point 1, Section III of Circular No. 08/2005/TT-BLDTBXH, the Vietnam Development Bank must ensure the following conditions:

a) The rate of increase in average wages must be lower than the rate of increase in average labor productivity;

b) It must not increase the management costs specified in Article 10 of the Financial Management Regulations for the Vietnam Development Bank issued together with Decision No. 44/2007/QĐ-TTg dated March 30, 2007 of the Prime Minister.

IV. IMPLEMENTATION.

1. The Vietnam Development Bank is responsible for:

a) Determining the salary grades for members of the Supervisory Board, Deputy General Directors, Chief Accountants; Directors, Deputy Directors, Chief Accountants of Trading Departments, Branches in provinces and centrally governed cities, and officials, workers, and staff currently working at the Vietnam Development Bank;

b) Proposing the Ministry of Home Affairs to determine the salary grades for the Chairman of the Management Board, dedicated members of the Management Board, and General Directors;

c) Developing standards for ranking Trading Departments and Branches in provinces and centrally governed cities, reporting to the Ministry of Labor, Invalids, and Social Affairs for consideration and issuance in accordance with point b, Clause 1, Section II of this Circular;

d) Developing the unit price of wages and the wage fund for members of the Management Board and General Directors, reporting to the Ministry of Labor, Invalids, and Social Affairs, and the Ministry of Finance for review before implementation;

đ) Implementing the reporting system on labor, wages, and income as prescribed by the Government for state-owned companies.

2. The Ministry of Finance is responsible for coordinating with the Ministry of Labor, Invalids, and Social Affairs to review the unit price of wages and the planned wage fund for members of the Management Board and General Directors of the Vietnam Development Bank as prescribed.

3. This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

Any difficulties encountered during implementation should be reported by the Vietnam Development Bank to the Ministry of Labor, Invalids, and Social Affairs for consideration and resolution./.