JOINT CIRCULAR No. 21/TT-LB IMPLEMENTING DECREE No. 26/CP dated May 23, 1993 of the Government on the temporary wage system in enterprises, issued by the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance to guide the classification of enterprises.

CIRCULAR

JOINT MINISTRIES OF LABOUR - INVALIDS AND SOCIAL AFFAIRS - FINANCE
d.1. Amount of taxable income in Vietnam:Implementing Decree No. 26/CP dated May 23, 1993 of the Government on the temporary regulations regarding the new wage system in enterprises, the Joint Ministries of Labour - Invalids and Social Affairs - Finance guide the implementation of enterprise ranking
分级处理上述文本可以确保准确翻译。继续翻译剩余部分：

I. OBJECTIVES AND REQUIREMENTS

- To rank salary positions for managerial staff in enterprises;

- To determine the level of position allowances for staff holding positions such as department heads, deputy department heads, and equivalent positions or lower.

- To reasonably allocate and utilize specialized and vocational staff based on the state-prescribed salary scale.

II. SCOPE AND APPLICABLE ENTITIES

Enterprises and units established by competent authorities of the State with permission to operate or temporarily operate, including:

1. State-owned enterprises established under Decree No. 388/HĐBT dated November 20, 1991 on the issuance of regulations on the establishment and dissolution of State-owned enterprises.

2. Economic service units operating under economic accounting mechanisms.

3. Enterprises belonging to other forms of ownership.

III. PRINCIPLES FOR RANKING

1. Enterprise ranking is determined based on two groups of criteria: the complexity of management and the effectiveness of production and business operations, regardless of the economic and technical sector, type of production and business, and organizational level.

2. The ranking of enterprises includes one special category and four categories numbered from I to IV. Within the same Ministry, industry, or locality, it is not necessary to have all categories of enterprises.

3. Enterprises ranked in the special category do not need to establish ranking criteria. The principal ministry proposes to the Ministry of Labour - Invalids and Social Affairs - Ministry of Finance to submit to the Prime Minister for decision.

4. For enterprises ranked in Category I, the principal ministry proposes, after reaching agreement with the Ministry of Finance, the Ministry of Labour - Invalids and Social Affairs makes the decision.

5. Other enterprises (from Category II downwards) are decided by the principal ministry or provincial People's Committee.

Subordinate units of enterprises, if necessary to be ranked, will be guided by the principal ministry to apply the enterprise's ranking from Category II downwards and must be lower than the enterprise's ranking. 6. The period for reviewing changes in enterprise rankings is three years, and the分级处理上述文本可以确保准确翻译。继续翻译剩余部分：

The division of authority for reviewing and resolving changes in enterprise rankings is stipulated in points 3, 4, and 5 above.

IV. CRITERIA FOR RANKING

The criteria for ranking (Categories I to IV) and the weight of each group of criteria are specified as follows:

1. Management complexity accounts for 40%-45% of the total score, which includes specific criteria:

a. Business capital: This criterion must ensure at least 20% of the total score, determined according to two standards:

- Total capital assigned up to December 31, 1992, which is the current capital belonging to budgetary sources and self-supplemented sources. In cases where the enterprise has not been assigned capital by the State, the audited figures of 1992 are taken.

- The proportion of capital participating in the production and business process.

b. Production technology level is evaluated at three levels: Manual, mechanical, semi-automatic; for business, it is the variety of goods traded.

c. Scope of operation is divided into three levels:

- Narrow (operating within the province, region).

- Medium (operating nationwide).

- Wide (operating both domestically and internationally).

Or consider the management hierarchy based on the number of subordinate units.

d. Number of employees calculated based on the number of regular employees listed for payment throughout the enterprise (excluding contractual employees).

2. Effectiveness of production and business operations accounts for 55%-60% of the total score, which includes specific criteria:

a. Revenue from product sales and main and auxiliary services, calculated in Vietnamese currency as defined in the Law on Income Tax and Decree No. 351/HĐBT dated October 2, 1990 detailing the implementation of the Law on Income Tax.

b. Fulfillment of obligations to the State: This criterion must ensure at least 20% of the total score, including tax payments and other contributions as prescribed by the State.

c. Profit realized: This is the profit earned by the enterprise after fulfilling its obligations to the State (excluding income tax).

d. Profit realization rate over assigned capital.

The criteria for the effectiveness of production and business operations are based on the audited figures of the reporting year and the actual performance of the planning year, up to the time of requesting enterprise ranking, with reference to the results of the previous two years.

For the interim in 1993, the figures are based on the audited figures of 1992 and the actual performance of the 1993 plan up to the time of enterprise ranking, with reference to the situation in 1990 and 1991.

Based on the above two groups of criteria, ministries and industries managing economic and technical sectors develop ranking standards for their respective sectors to be uniformly applied nationwide, and may adjust some criteria as appropriate based on specific conditions.

V. STEPS TO CONSTRUCT
RANKING STANDARDS

1. Classify and select criteria

- Ministries and industries conduct statistics and classify enterprises under their management by economic and technical sectors.

- Based on their regulatory functions by sector, they select appropriate criteria for enterprises in the economic and technical sector to build ranking standards.

Example: The Machinery Industry selects the following criteria:

- Capital;

- Level of production technology;

- Management hierarchy.

The Commerce Industry selects the following criteria:

- Capital;

- Types of goods traded;

- Scope of operation;

- Statistics corresponding to the ranking criteria for enterprises.

2. Determine the weight and score of each criterion.

- The determination of the weight and score of each criterion is regulated by the principal ministry in accordance with the characteristics of the economic and technical sector, ensuring a reasonable correlation in enterprise ranking.

- The maximum total score for the two groups of criteria is set at 100 points.

- For criteria that need to be divided into multiple levels (such as the level of production technology - business), the weight and score of each specific level must be determined.

Example: Determining the weight and points of each criterion for enterprises in the mechanical industry may be as follows:

3. Determining the scale of points for each specific criterion and the standard scoring table for ranking.

a. Determining the scale of points for each specific criterion: The point scale for four categories is determined based on the maximum of each criterion.

Example: Point scale according to the criteria for enterprises in the Mechanical Industry:

b. Standard Scoring Table for Ranking Enterprises

This table is compiled based on the point scales of the specific criteria established above.

Example: Standard Scoring Table for Ranking Enterprises in the Mechanical Industry:

According to the above scoring table, enterprises that do not reach 20 points will not be ranked. Depending on specific conditions, ministries and sectors in charge will determine salaries for General Directors according to the principle of not exceeding the salary level of Deputy General Directors of Grade IV.

VI. IMPLEMENTATION

1. The Minister managing the economic and technical sector shall uniformly issue enterprise ranking standards after reaching an agreement with the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance.

2. Based on the issued enterprise ranking standards, ministries and local sectors shall rank enterprises under their management and compile the ranking results of enterprises by economic and technical sector to report to the relevant ministries at the end of the year.

- For Class I enterprises, they are proposed by the competent ministries, sectors, and localities, and after reaching an agreement with the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs, the decision is made.

- For Class I enterprises, they are proposed by the competent ministries, sectors, and localities, and submitted to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance for review, then reported to the Prime Minister for decision.

The content of the proposal for ranking Class I enterprises and special class enterprises includes:

- Analysis of the characteristics and business operation situation of the enterprise (data from three years).

- Evaluation of ranking criteria, clearly stating the position of the enterprise and the specific points of each criterion. Special class does not require evaluation of ranking criteria.

- The enterprise category being proposed.

3. While waiting for the enterprise ranking, management officials of the enterprise (including the chief accountant) temporarily receive salaries according to the 1/4/1993 system. For department heads and equivalent positions, temporary leadership position allowances are not received. After the enterprise ranking, the difference in leadership position salary and allowance compared to the received salary will be backpaid from 1/4/1993.

After the ranking, for the chief accountant who has been appointed in accordance with Circular No. 64 TT/LB dated December 12, 1990 of the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs, the salary will be equivalent to that of a Deputy General Director. In cases where the appointment does not comply with the provisions of the aforementioned circular, the salary will be for professional duties and leadership position allowance according to the enterprise category like a Department Head.

4. For higher levels of enterprises that do not implement ranking, the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance, together with the competent ministry, will base on specific circumstances to adjust the salary for management officials.

This circular takes effect from April 1, 1993. Previous regulations on ranking workshops, industrial associations, companies, and corporations are abolished.

During implementation, if there are difficulties, ministries, sectors, and localities are requested to reflect them to the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance for consideration and resolution.