Circular No. 11-LD/TT guiding the classification of salary grades for workers and civil servants in the state sector

CIRCULAR

MINISTRY OF LABOR, INVALIDS AND SOCIAL AFFAIRS

Circular No. 11-LD/TT on the classification of salary grades for workers and civil servants in the state sector

September 18, 1985

Implementing Decree No. 235/HDBT dated September 18, 1985 of the Council of Ministers on improving the wage system for workers and civil servants in the state sector.

The Ministry of Labor provides guidance on the classification of salary grades for workers and civil servants into new salary scales as follows:

A. OBJECTS OF NEW WAGE CLASSIFICATION

1. Workers and civil servants in the state sector to be classified into new salary scales include:

a) Those who have been officially recruited and are currently working in state management agencies from central to district level, in public institutions, Party organizations, mass organizations, production and business units, including those transferred from military service who have completed 18 months, and contractual laborers enjoying benefits similar to officially recruited workers and civil servants.

b) Those who have been officially recruited and are currently studying at cultural, political, technical, and vocational training schools, or are undergoing treatment in hospitals, health resorts, participating in study tours, internships, or working abroad.

c) Those who have completed their probationary period and have been officially recruited.

2. Those not included in the new wage classification include:

a) Those working under short-term contracts who will cease work upon completion of the contract.

b) Those working under special contracts in enterprises or receiving wages based on local labor rates.

3. Other cases:

a) Those still in the probationary or trial period without being classified shall be paid 95% of the salary level of officially recruited workers and civil servants with the same qualifications.

b) Military personnel transferred to civilian jobs during the 18-month period before reclassification shall continue to receive military salary or living allowance.

c) Those temporarily suspended from work shall be granted 7% of the new salary level of workers and civil servants with the same qualifications.

d) Those temporarily detained shall be granted 50% of the new salary level of workers and civil servants with the same occupational qualifications. Upon completion of detention, they will be processed according to the general regulations of the State based on the conclusions of the legal authorities.

đ) For Vietnamese working for agencies, organizations, and joint ventures with foreign countries located in Vietnam, separate circulars will provide guidance.

4. The classification of village and ward cadres receiving living allowances shall be separately guided by the Government Organizational Department.

B. PRINCIPLES FOR WAGE GRADE CLASSIFICATION

To implement the principle of distribution according to labor, while encouraging everyone to continuously improve their skills to enhance productivity and work efficiency, when classifying wage grades, it is necessary to grasp the following two principles:

1. The basis for classifying wage grades for workers and directly productive and business staff is the technical grade standard or vocational standard; for enterprise managers, it is the current position and the new enterprise rank (technical grade standards will be separately guided by circulars); for leaders in state management agencies and public institutions, it is the current position, titles, and vocational standards.

2. Doing what job or holding what position, one should be classified and paid according to that job or position. When changing jobs or positions, one should be paid according to the new job or position, without retaining the old wage grade. Only in cases where there is a decision from a higher-level management agency to strengthen the lower level will the old wage be retained.

C. CLASSIFICATION OF WAGE GRADES FOR STATE WORKERS AND CIVIL SERVANTS

I. FOR STATE WORKERS AND CIVIL SERVANTS ENGAGED IN DIRECT PRODUCTION AND BUSINESS

1. For industries and trades applying new salary scales with the same number of grades as the old scales, the current grade of each person will be temporarily classified and transferred to the same grade, without unreasonable adjustment or advancement due to skill improvement. Such adjustments will be resolved later through re-examination and assessment according to the updated technical grade standards. For example, coal miners currently classified at grade 5 under the old 6-grade scale will now be classified at grade 5 under the new 6-grade scale.

Those currently classified at the highest grade of the old scale, receiving special bonus for outstanding craftsmen, or already classified above the highest grade of the new scale and receiving special bonuses outside the common regulations. For example, machinists currently classified at grade 7 under the old 7-grade scale and receiving special bonus for outstanding craftsmen will be classified at grade 7 under the new scale and will continue to receive special bonuses outside the common regulations.

2. For industries and trades applying new salary scales with more or fewer grades than the old scales, classification will be based on the current technical grade standards, also following the principle of transferring to the same grade, without upgrading to a higher grade than the old one. For example, livestock workers in agriculture applying the new 6-grade scale compared to the old 5-grade scale will only be classified up to grade 5 when transferring to the same grade.

Specifically, workers classified at grade 5, the highest grade of the old scale, who have held grade 5 for five years or more, or are receiving special bonus for outstanding craftsmen, will be classified at grade 6 under the new scale and if they meet the conditions, they can continue to receive special bonuses outside the common regulations. For example, a livestock worker classified at grade 5 and receiving special bonus for outstanding craftsmen will be classified at grade 6 under the new scale.

For cooks under the old 8-grade scale, which has been reduced to a 7-grade scale in the new system, classification will follow the principle of transferring the old grade to the new grade. Those currently classified at grade 8 under the old scale, or those classified above grade 8 or receiving special bonus for outstanding craftsmen, will be classified at grade 7 under the new scale and will continue to receive special bonuses outside the common regulations.

3\. For workers in industries currently applying salary scales who will now switch to using salary grades such as postal services, commerce, and services; or for workers in industries currently applying salary grades who will switch to salary scales such as electricity production, electric train drivers, etc., must promptly classify occupational titles, rebuild technical grade standards, and vocational standards to serve as the basis for ranking workers. In the absence of new technical grade standards, they should rely on current technical grade standards, combined with the assessment of each individual's actual level and capability, to arrange salaries according to the principle of transferring old salary levels to corresponding new salary levels, without increasing salary grades due to switching from salary grades to salary scales or vice versa, which would create difficulties for future salary arrangements, staffing, and labor utilization.

The process of transferring old salary levels to corresponding new salary levels means comparing the current salary (according to the salary grade scale of 1960) with the corresponding salary group of administrative and public service professionals when transitioning from old to new salary levels. For example, a sales clerk currently earning 58 dong approximately matches the 56 dong level of an administrative professional. The 56 dong salary is transferred to the new salary level of 272 dong/month. Corresponding to the 272 dong level, the sales clerk is temporarily ranked at grade 4 (273 dong/month) under the new six-grade salary scale.

4\. For certain cases where, due to various reasons in the past, workers were ranked beyond the occupational salary range or other salary levels were applied without basing it on job titles, occupational qualifications, production requirements, and prescribed salary grades, causing unreasonable disparities, they must be re-ranked according to the correct salary range of the new salary grade based on their current occupation. Based on the newly assigned salary level, if conditions are met, the excess salary allowance can be applied according to general regulations.

5\. Cases where the worker's rank exceeds the job rank or vice versa, where the worker's rank is lower than the job rank, are tasks for management organizations. They need to be addressed by adjusting the workforce of technical workers or training, supplementing, and enhancing the skills of workers to meet the technical production requirements of each unit, not within the scope of this salary ranking.

II\. RANKING SALARIES FOR ENTERPRISE MANAGEMENT STAFF.

In this improvement, the position salaries of enterprise management staff are rearranged according to six salary scales, and each position within the same category has two salary grades (previously three salary grades). Additionally, due to the current situation of ranking management staff in various industries and units having many cases that do not match positions, are not commensurate with enterprise categories, or exceed the salary range by one or two levels, the first step is to correctly categorize enterprises based on their production and business positions. On this basis, the salary ranking needs to be resolved according to the following cases:

1\. In the case where the new enterprise category is equal to or higher than the old category, positions are ranked into the new salary grades of the salary scale as follows:

a) Currently ranked at grade 1 or grade 2 of the old enterprise category, will be ranked at grade 1 of the new enterprise category. If they have held grade 2 for three years or more and consistently completed their work tasks during that time, they will be ranked at grade 2 of the new category.

b) Currently receiving grade 3 of the old enterprise category will be ranked at grade 2 of the new enterprise category. If they have held grade 3 for over five years or have been ranked above the range, they will receive the excess salary allowance according to general regulations.

2\. In the case where the new enterprise category is lower than the old category, positions are ranked into the new salary grades 1 and 2 of the enterprise category according to the ranking methods specified in point 1 of Section II. Additionally, if conditions are met, they will receive the excess salary allowance according to general regulations.

3\. In the case where enterprise management staff are currently ranked according to other professional, technical, or vocational salary scales instead of the enterprise management salary scale, or where the enterprise has not yet been categorized, they must now be ranked into the new enterprise management position salary levels according to the new enterprise category. Additionally, if conditions are met, they will receive the excess salary allowance according to general regulations.

4\. In cases where, due to various reasons in the past, the salaries of enterprise management staff were significantly higher than the position and responsibility scope they hold, they must now be re-ranked according to the new enterprise category determined. For example, a factory director previously earning 150 dong, 160 dong (new salary 550 - 559 dong), or exceptionally 170 dong (new salary 644 dong) but the new enterprise category only corresponds to category 3 of mechanical factories at 438 - 474 dong, should be ranked at category 3. This is a complex issue generally not resolvable solely through salary ranking but requires organizational and personnel solutions to reasonably utilize the capabilities and qualifications of cadres. Staff appointed by superiors to strengthen lower-level positions may retain their original salaries.

III\. RANKING SALARIES FOR STAFF AND PROFESSIONALS IN PUBLIC SERVICE ORGANIZATIONS AND STATE ADMINISTRATIVE AGENCIES.

1\. For managers of public service organizations in scientific research, education, health, culture, arts, broadcasting, television, meteorology, hydrology, etc., after the classification criteria are agreed upon by the Ministry of Labor, the relevant ministries, municipal and provincial people's committees, and centrally administered special zones, the category of subordinate units will be decided. Based on the new category of the organization, the old salary grades will be transferred to the corresponding new salary grades of the new salary scale according to Salary Scale D.

2\. For staff engaged in scientific, technical, political, economic, educational, cultural, artistic, legal, international relations work, and technical and vocational staff in state administrative agencies, public service organizations, and production and business units applying Salary Scale D, the salary ranking will be conducted according to specific cases.

a) Units that have established and implemented vocational standards according to the new salary scale positions shall base on the vocational standards to rank the salary grades. Generally, they will be ranked at the same grade level from the old scale to the corresponding new scale. If the cadre's qualifications meet the vocational standards of their current position, they will be ranked at a lower-level position. In this case, they will be ranked at the highest grade of the lower-level category and if they meet the conditions, they will enjoy the extra allowance outside the range as stipulated generally.

Example: A reporter currently receiving a salary of 119 dong, if meeting the vocational standards of a Level 2 reporter, will be ranked at the new Grade 3 (425 dong). If not meeting the vocational standards of a Level 2 reporter, they will be ranked at Grade 6 of a Level 1 reporter (350 dong) and if they meet the conditions, they will enjoy the extra allowance outside the range as stipulated generally.

b) For units that have not yet established and implemented vocational standards according to the new salary scale positions, they shall temporarily base on the actual qualifications and capabilities of each cadre to rank the old salary grades to the corresponding new scale, or adjust appropriately to the overall qualifications and capabilities of cadres within the unit. However, it is not allowed to rank the new salary grades higher than the cadre's qualifications and capabilities due to the lack of vocational standards, which would hinder future ranking and cadre arrangement. Subsequently, Ministries and localities need to urgently establish vocational standards for positions to correctly rank the salary grades.

3- For cadres holding leadership positions in state management agencies from central to district levels, apply the E salary scale.

a) If the new salary range has the same number of grades as the old salary range, then base on the current grade of each person to rank at the same corresponding grade.

b) If the new salary range has more grades than the old salary range (such as Deputy Chairmen of People's Committees of centrally-administered cities, provinces, etc...), then rank the salary grades according to the principle of ranking at the same corresponding grade. Old Grade 1 and Grade 2 will be ranked at New Grade 1. If having held Old Grade 2 for over 3 years and consistently completed tasks during that time, they will be ranked at New Grade 2. For cadres with heavier responsibilities such as Permanent Deputy Chairmen, they will be ranked at New Grade 3 (the highest grade of the new salary range). For example, Permanent Deputy Chairmen of People's Committees of Hanoi and Ho Chi Minh City will be ranked at 718 dong, while those of Hai Phong city and other provinces will be ranked at 644 dong.

c) If the new salary range has fewer grades than the old salary range but the grades of the new salary range are adjusted higher to fit the new organizational position, then rank the salary grades as follows:

- The grades of the old salary range will be ranked at New Grade 1, but if having held the maximum grade of the old salary range for over 3 years and consistently completed tasks during that time, they will be ranked at New Grade 2.

- Exceeding the first old range will be ranked at New Grade 2, exceeding the second old range will be ranked at New Grade 3, and if meeting the conditions, they will enjoy the extra allowance outside the range as stipulated generally.

Example: Directors of Departments in Hanoi and Ho Chi Minh City, if currently receiving salaries up to 140 dong, will be ranked at New Grade 1. If having received a salary of 140 dong for over 3 years and consistently completed tasks during that time, they will be ranked at New Grade 2. If currently receiving the first excess (150 dong), they will be ranked at New Grade 2. If currently receiving the second excess (160 dong), they will be ranked at New Grade 3, and if meeting the conditions, they will enjoy the extra allowance outside the range as stipulated generally.

d) If the new salary range has fewer grades than the old salary range (such as Department Heads, Deputy Department Heads, Section Chiefs, etc.), then rank the salary grades as follows:

- Those currently receiving Old Grade 1 and Old Grade 2 will be ranked at New Grade 1. If having held Old Grade 2 for over 3 years and consistently completed tasks during that time, they will be ranked at New Grade 2.

- Those currently receiving Old Grade 3 will be ranked at New Grade 2. If having held Old Grade 3 for over 3 years and consistently completed tasks during that time, they will be ranked at New Grade 3.

- Those currently receiving Old Grade 4 or currently receiving salaries exceeding the range will be ranked at New Grade 3, and if meeting the conditions, they will enjoy the extra allowance outside the range as stipulated generally.

4- In cases where, due to various reasons, some leadership positions in state management agencies and public institutions were previously ranked according to non-leadership salary scales or using higher leadership grades for lower leadership positions, now must be ranked according to the appropriate leadership salary grades based on their positions and scope of responsibility as specified above. At the same time, personnel arrangements must be reasonably adjusted to utilize the abilities and qualifications of cadres properly. Cadres assigned by superiors to reinforce lower levels will retain their original salary.

5- From September 1, 1985 onwards, newly recruited workers and staff members officially joining state agencies and enterprises will be ranked according to their positions and professions as follows:

a) Graduates of regular training schools, after completing their probationary period, will be ranked at the starting grade of their trained profession.

b) For employees performing simple work without formal training or short-term training, they will be ranked at Grade 220 or Grade 230 depending on the nature of the work.

D- IMPLEMENTATION ORGANIZATION:

Pursuant to the spirit of the Resolution of the Eighth Plenary Session of the Central Committee (Fifth Term) on prices - wages - money, this improvement in the wage system marks a significant political, economic, and social step. With the new wage system, wages become an important economic lever for managing labor and financial management, encouraging workers, enhancing work enthusiasm, increasing labor productivity, ensuring quality and efficiency. It creates high consensus to ensure the unified and effective implementation of the Party and State's policies on wages, and fosters a strong momentum to promote production and gradually improve the living standards of workers. Ministries, localities need to implement the following tasks:

1- Ministries, sectors, localities, enterprises, and agencies must thoroughly disseminate central Party documents, Council of Ministers' resolutions, and guidance circulars from the Ministry of Labor to workers and officials. They must make everyone understand that although the country's economic situation remains difficult, the new wage system represents a great effort by the Party and State to care for the material and cultural life of workers. The improved wage system offers some improvements compared to the current one, but the wage levels and differences remain moderate, necessitating self-discipline in adhering to labor discipline, fully utilizing collective ownership rights, and maximizing individual creative labor capacity to continuously enhance labor productivity and work efficiency. A new spirit and movement for socialist labor competition should be fostered to elevate national production to a new level of development. On this basis, stabilize and gradually improve the material and cultural life of all people.

Furthermore, to truly make the new wage system a driving force for production and living standards, it is necessary to further implement the principle of distribution according to labor. Leaders of ministries, sectors, and localities must strictly enforce the new wage system.

2- Ministers of ministries and Chairmen of Provincial People's Committees and municipalities directly under the Central Government are responsible for organizing the implementation of the new wage system throughout their respective sectors and provinces/cities, guiding and checking the determination of the new wage fund for units under their ministries or localities, reporting and discussing with the Ministry of Labor and the State Planning Commission about the new wage fund plan for the last four months of 1985 and the whole year of 1985.

Regarding the classification of wage grades for workers and officials, it must be based on technical grade standards, job standards, enterprise classification, and organizational categories to properly arrange wage grades for each worker and official, reflecting the principle of distribution according to labor, accurately reflecting the talent, virtue, and contributions of each person. Ensure principles, policies, and wage systems. Ensure fairness and rationality, not arbitrarily lowering technical grade standards or job standards, or arbitrarily arranging higher wage levels than those currently enjoyed, etc. Ensure proper relationships among cadres and staff, strengthen labor discipline, enhance unity and morale, consolidate trust among all people, and improve enthusiasm in work and duties.

Heads of agencies and units need to grasp the labor and wage situation within their agencies and units, the structure, level, and capabilities of cadres and workers, correctly apply the new wage policy and system, monitor and analyze changes in wages for workers and officials and the total new wage fund of the unit.

The responsibility for economic accounting of enterprises with a full wage fund together with increased costs for materials, raw materials, energy, etc., needs to be ensured, enhancing the autonomy and initiative of enterprises in organizing and managing labor, paying due attention to labor standardization work and applying advanced labor standards, correct unit prices, strict accounting and inspection of labor results and income of each person and day, encouraging through appropriate wages and bonuses, combined with enhancing the sense of responsibility and collective ownership spirit of all people, improving labor productivity, quality, and overall enterprise efficiency.

3- Labor Departments of provinces, cities, and special zones directly under the Central Government have the task of directly advising People's Committees at all levels on implementing the Council of Ministers' Decree and guidance circulars from the Ministry of Labor for production and business units and sectors; administrative and public service agencies, monitoring and inspecting enterprise classification, organizational categorization, and new wage grade arrangements for workers and officials in units under their jurisdiction, while working with local Planning Commissions and heads of relevant departments to determine the new wage fund for units under their jurisdiction.

Heads of production and business units, sectors, and administrative and public service agencies are responsible for implementing the new wage system in their units. They need to establish a Wage Classification Board chaired by the unit head and members including the Party Secretary, Trade Union Secretary, and Youth League Secretary.

The task of the Board is to set up internal wage classification groups so that grassroots leaders and all workers and officials can genuinely participate in democratic discussions on wage grade arrangements closely aligned with the objective reality of the unit. At the same time, the Board must review technical grade standards, enterprise classification standards, organizational categorization, qualifications, capabilities, and wage grades of each worker and official. From there, they will proceed to arrange new wage grades for each worker and official in accordance with their qualifications, capabilities, profession, position, and new wage scales and tables in a serious and meticulous manner.

Along with the above measures, production and business establishments, industries, administrative and service agencies need to organize and rearrange production and work, clearly defining the functions, tasks, and organizational structure in each industry, locality, and establishment. In particular, for production and business units, from now on, the wage fund will depend on the results of the unit's business activities. Therefore, leaders at all levels of Ministries, industries, and units must link wage payment organization with production reorganization, reasonable labor organization, applying scientifically based labor norms, and effectively utilizing various wage forms and systems. For administrative and service units, it is necessary to promptly establish and apply professional standards for civil servants to create new quality in the cadre corps and fully utilize their responsibilities.

4- After arranging wage grades for workers and officials, Ministries, industries, and localities need to promptly submit reports on the results of wage grade arrangements for workers and officials according to the prescribed form, interim evaluations of the implementation of the new wage system, and reports on existing issues arising from the new wage arrangement, proposing supplementary measures.

5- To ensure that wages play their role in production and social life, People's Committees at all levels, production management sectors, and distribution and circulation agencies in each region need to strive to develop production to create a goods fund corresponding to the new wage fund, while expanding the socialist trade and service network, strengthening market management, and gradually stabilizing prices to ensure the actual wages of workers and officials. Along with doing well in political ideological education, class interest perspectives, state interests, long-term interests, and reasonable collective and individual worker interests under current national economic, social, and political conditions, there should be confidence, enthusiasm, determination, and efforts to exceed the State's 1985 plan.

6- By October 1985, all Ministries, industries, localities, and grassroots units must complete the wage grade arrangement to pay new wages to workers and officials and backpay the new September wages. If the wage fund of an agency or unit has not been officially announced by the beginning of October, then the first October wage period will be temporarily paid at 40% of the new wage fund to pay new wages to workers and officials.

This Circular takes effect from September 1, 1985, and previous regulations contrary to this Circular are abolished.

During the implementation process, if there are difficulties, it is requested that Ministries, industries, and localities report them to the Ministry of Labor for study and resolution.