Circular No. 15/2006/TT-BLDTBXH guiding the implementation of Decision No. 181/2006/QD-TTg dated August 9, 2006 of the Prime Minister on salary regulations for the State Capital Investment Corporation.

CIRCULAR

GUIDELINES FOR IMPLEMENTATION OF DECISION NO. 181/2006/QD-TTg DATED AUGUST 9, 2006 OF THE GOVERNMENT ON SALARY REGIME FOR THE STATE CAPITAL INVESTMENT AND BUSINESS CORPORATION

09/08/2006 of the Prime Minister on salary regulations for

State Capital Investment Corporation

______________________ 

Pursuant to Decision No. 181/2006/QD-TTg dated August 9, 2006 of the Government on salary regime for the State Capital Investment and Business Corporation, the Ministry of Labor, Invalids and Social Affairs hereby provides guidelines for implementation as follows:

I. APPLICABLE SUBJECTS.

The applicable subjects are management officials and employees working at the State Capital Investment and Business Corporation, including:

1. Members of the Board of Directors, members of the Supervisory Board of the Corporation;

2. General Director, Deputy General Director, and Chief Accountant of the Corporation (excluding those working under contracts);

3. Heads and deputy heads of departments of the Corporation; Directors, Deputy Directors, and Chief Accountants of member companies; Heads and deputy heads of branches and representative offices directly under the Corporation;

4. Employees working under labor contracts as prescribed 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 regarding labor contracts.

II. SALARY GRADUATION.

The process of salary graduation according to the wage scale and pay grade specified in Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government shall be as follows:

1. The Chairman of the Board of Directors, specialized members of the Board of Directors, General Director, Deputy General Director, and Chief Accountant of the Corporation shall be assigned to the pay grade of specialized members of the Board of Directors and the pay grade of General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant of state-owned corporations of special category.

For specialized members of the Board of Directors who hold the position of Deputy Chairman of the Board of Directors, they shall be assigned to the second level of the Board of Directors' pay grade and when meeting the conditions for salary increase, they may be reassigned to the first half level of the Chairman's position of the Corporation.

2. Directors, Deputy Directors, and Chief Accountants of member companies (both independent accounting and dependent accounting) shall be assigned to the pay grade according to the company's category (from Category I to Category III).

During the period when standards for classification have not been established, temporarily assign them to the pay grade of state-owned corporations of Category II or Category III as stipulated in point a, clause 1, section II of Circular No. 23/2005/TTLT-BLDTBXH-BTC dated August 31, 2005 of the Joint Circular of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance.

3. The process of salary graduation for positions specified in clauses 1 and 2, section II of this Circular shall be implemented according to the provisions in section III of Circular No. 23/2005/TTLT-BLDTBXH-BTC mentioned above.

4. Non-specialized members of the Board of Directors, members of the Supervisory Board (excluding the Head of the Supervisory Board) shall enjoy job responsibility allowances as prescribed in Circular No. 03/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs.

5. Heads and deputy heads of departments; members of the Supervisory Board (excluding the Head of the Supervisory Board); Heads and deputy heads of branches and representative offices directly under the Corporation; professional and technical staff, administrative and service personnel shall be assigned to the appropriate rank and grade based on the tasks assigned, professional and technical standards of staff, and administrative and service personnel according to the pay grade for professional and technical staff and the pay grade for administrative and service personnel.

Heads and deputy heads of departments; Heads and deputy heads of branches and representative offices directly under the Corporation shall also enjoy department head position allowance of state-owned corporations of special category.

6. Workers and employees directly involved in production and business operations shall be assigned to the appropriate grade of the wage scale and pay grade based on the tasks assigned and technical grade standards for workers.

7. For employees working in other areas transferring to work at the Corporation, the process of salary graduation shall follow the guidelines at point b, clause 2, section II of Circular No. 19/2000/TT-BLDTBXH dated August 7, 2000 of the Ministry of Labor, Invalids and Social Affairs.

III. MANAGEMENT OF SALARIES AND INCOME.

The management of salaries and income shall be regulated as follows:

1. The Chairman of the Board of Directors, specialized members of the Board of Directors, General Director of the Corporation; Directors of independent accounting member companies shall apply the salary and bonus system and responsibility system as prescribed in Decree No. 207/2004/NĐ-CP dated December 14, 2004 of the Government and Circular No. 08/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs.

2. Members of the Supervisory Board (excluding the Head of the Supervisory Board), Deputy General Directors, and Chief Accountants of the Corporation; Deputy Directors and Chief Accountants of independent accounting member companies; Directors, Deputy Directors, and Chief Accountants of dependent accounting member companies and Heads and Deputy Heads of branches and representative offices directly under the Corporation and employees working under labor contracts shall apply the labor management, salary, and income management system as prescribed in Decree No. 206/2004/NĐ-CP dated December 14, 2004 of the Government and Circular No. 07/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids and Social Affairs.

3. In the two-year period from 2006 to 2007, the annual salary fund shall be defined as follows:

a) The salary fund for positions under Clause 2, Section III of this Circular shall not be based on a unit price of salary, but shall be determined based on the number of workers (the planned salary fund is determined according to the planned number of workers, the actual salary fund is determined according to the average actual number of workers used), salary coefficient and average wage allowance, the general minimum wage level, and the additional adjustment factor before October 1, 2006 shall not exceed twice the general minimum wage level prescribed in Article 4 of Decree No. 206/2004/NĐ-CP mentioned above, from October 1, 2006 onwards it shall not exceed 1.34 times the general minimum wage level prescribed in Article 4 of Decree No. 94/2006/NĐ-CP dated September 7, 2006 of the Government.

The planned number of workers and the average actual number of workers used shall be determined in accordance with the guidance provided in Circular No. 06/2005/TT-BLDTBXH dated January 5, 2005 and Circular No. 08/1998/TT-BLDTBXH dated May 5, 1998 of the Ministry of Labor, War Invalids and Social Affairs.

b) The salary fund for positions under Clause 1, Section III of this Circular shall be determined in accordance with the provisions of Decree No. 207/2004/NĐ-CP and Circular No. 08/2005/TT-BLDTBXH mentioned above.

c) When applying the additional adjustment factor to calculate the salary fund for the year 2006 and 2007, the conditions regarding labor productivity and profit as prescribed in Article 4 of Decree No. 206/2004/NĐ-CP mentioned above shall not be taken into account.

IV. IMPLEMENTATION:

1. The State Capital Investment Corporation shall be responsible for:

a) Deciding on the transfer of salary grade for the General Director, Deputy General Director, Chief Accountant, members of the Supervisory Board of the Corporation (excluding the Chairman of the Supervisory Board), Directors, Deputy Directors, and Chief Accountants of member companies, and workers employed under labor contracts;

b) Proposing the Ministry of Finance to decide on the salary grade for the Chairman of the Board of Management, and specialized members of the Board of Management of the Corporation;

c) Building the planned salary fund in accordance with Clause 3, Section III of this Circular, submitting it to the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance for review before implementation;

d) Building the unit price of salary and the salary fund for the Chairman of the Board of Management, specialized members of the Board of Management, General Director of the Corporation, and Directors of independent accounting member companies, reporting to the Joint Ministries of Labor, War Invalids and Social Affairs and Finance for review from 2008 onwards;

đ) Building the criteria for ranking in accordance with the guidance provided in Circular No. 23/2005/TTLT-BLDTTBXH-BTC mentioned above and proposing the Joint Ministries to issue for official ranking of member companies;

e) Implementing the reporting system on labor situation, salary, and income in accordance with the regulations of the Government for state-owned enterprises.

2. The Ministry of Finance shall be responsible for:

a) Considering and deciding on the transfer of salary grade for the Chairman of the Board of Management and specialized members of the Board of Management of the Corporation;

b) Cooperating with the Ministry of Labor, War Invalids and Social Affairs to review the unit price of salary and approve the planned salary fund of the Corporation from 2008 onwards.

3. This Circular shall take effect fifteen days after its publication in the Official Gazette.

Any difficulties encountered during implementation should be reported by the Ministry of Finance and the State Capital Investment Corporation to the Ministry of Labor, War Invalids and Social Affairs for consideration and resolution./.