Joint Circular No. 23/1997/TTLT-BLDTBXH-BTC guides the salary classification for managerial and leadership staff of enterprises established pursuant to Decision No. 90/TTg dated March 7, 1993.

CIRCULAR

JOINT CIRCULAR NO. 23/1997/TTLT-BLDTBX-BTC OF THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS AND THE MINISTRY OF FINANCE ON DECEMBER 30, 1997 GUIDING THE GRADING OF SALARIES FOR MANAGEMENT STAFF AND LEADERSHIP STAFF OF ENTERPRISES ESTABLISHED PURSUANT TO DECISION NO. 90/TTG OF MARCH 7, 1993

Implementing Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government on supplementing the management position salary coefficient and leadership position allowance for enterprises, after exchanging opinions with relevant ministries, the Joint Ministry of Labor, War Invalids and Social Affairs - Finance guides the grading of salaries for management staff of enterprises established pursuant to Decision No. 90/TTg dated March 7, 1993 of the Prime Minister as follows:

I. APPLICABLE OBJECTS:

The applicable subjects are management staff and leadership staff of State-owned corporations registered and established according to Article 5 of Decision No. 90/TTg dated March 7, 1993 of the Prime Minister on the reorganization of state-owned enterprises (referred to as Corporation 90/TTg), which do not meet the conditions to be classified as special category enterprises under Decree No. 185/TTg dated March 28, 1996 of the Prime Minister.

Article 5 of Decision No. 90/TTg of the Prime Minister mentioned above is specified as follows:

a) The Corporation is a state-owned enterprise having at least five affiliated units related to each other in terms of technology, finance, investment development programs, services including supply, transportation, consumption, information, training.

b) The entire Corporation has a minimum statutory capital of 500 billion VND, for some Corporations in specific industries, the statutory capital may be lower but not less than 100 billion VND.

c) The Corporation implements economic accounting in one of the following two forms:

- Accounting for the entire Corporation, affiliated units report accounts.

- Comprehensive accounting with分级翻译任务，以下是第1部分的翻译结果：

d) There are economic and technical justifications for the establishment of the Corporation and the business plan of the Corporation, along with appraisal documents for those justifications.

e) There is a plan to arrange managers and administrators who meet the standards and have sufficient capacity to manage all activities of the Corporation.

g) There is a charter on organization and operation that has been approved by the supervising authority and adhered to in practice.

II. TRANSFER AND RANKING OF SALARIES AND POSITION ALLOWANCES FOR MANAGEMENT AND LEADERSHIP STAFF OF CORPORATION 90/TTG:

If Corporation 90/TTg meets the conditions and is decided by the Ministry managing the industry or field, or by the Chairman of the People's Committee of the province or centrally governed city, to rank salaries according to Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government, then the transfer and ranking of salaries shall be implemented for management and leadership staff of the Corporation as follows:

1/ General principles:

- Management staff holding positions such as General Director, Deputy General Director, Chief Accountant shall be ranked to position salary levels corresponding to their titles as stipulated in Article 1 of Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government.

- Leadership staff holding positions such as Department Head, Deputy Department Head, or equivalent shall be ranked to specialized and vocational salary scales for administrative and service staff in enterprises as stipulated in Decree No. 26/CP dated May 23, 1993 of the Government, and shall enjoy leadership position allowances as stipulated in Article 1 of Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government.

- When ceasing to hold a position, they will not receive the salary or position allowance of Corporation 90/TTg, and when performing any job or holding any position, they will receive the salary and position allowance corresponding to that job or position; the previous salary level or salary allowance of Corporation 90/TTg will not be retained as a basis for transferring to another equivalent salary level.

2/ Transfer and ranking of salaries for General Director, Deputy General Director, and Chief Accountant:

a) If the coefficient of the position salary level or the total coefficient of the specialized and vocational salary plus position allowance and retention difference coefficient (if any) currently received is lower than the coefficient of the first grade salary level, they will be ranked to the first grade salary level and the time for considering a salary increase in the next review period will be calculated from the date of the decision to rank the new salary grade coefficient. In case the total salary coefficient (including the salary grade coefficient plus position allowance and retention difference coefficient, if any) currently received is lower than the coefficient of the first grade salary level, but the difference is less than 70% of the difference between the first and second grade salary coefficients, the time for considering a salary increase in the next review period will be calculated from the date of the previous salary grade coefficient.

Example 1: Comrade A was appointed as Deputy General Director and currently holds a salary grade coefficient of 4.86 since July 1994 (Grade 2/4 of Senior Specialist in an enterprise) and receives a position allowance of 0.5; the current total salary coefficient is 5.36 (4.86 + 0.5). Therefore, Comrade A will be transferred to the first grade salary level corresponding to the Deputy General Director position, which is 5.72. The time for considering a salary increase in the next review period will be calculated from the date of the decision to rank the first grade salary level, coefficient 5.72.

Example 2: Comrade B, formerly Director of a Class I enterprise, held Grade 2/2 salary with a salary coefficient of 6.03 and a retention difference coefficient of 0.24 since June 1995; the current total salary coefficient is 6.27. Upon being appointed as General Director of Corporation 90/TTg, Comrade B will be transferred to the first grade salary level with a salary coefficient of 6.34. The time for considering a salary increase in the next review period will be calculated from June 1995, because:

b) If the coefficient of the position salary level or the total coefficient of the specialized and vocational salary plus position allowance and retention difference coefficient (if any) currently received equals the coefficient of the first grade salary level, they will be transferred to the first grade salary level and the time for considering a salary increase in the next review period will be calculated from the date of the previous salary grade decision.

Example 3: Comrade C, formerly Director of a Class I enterprise, held Grade 1/2 salary with a salary coefficient of 5.72 since May 1995. Now appointed as Deputy General Director of Corporation 90/TTg, Comrade C will be ranked to the first grade salary level of Deputy General Director, with a salary coefficient of 5.72. The time for considering a salary increase in the next review period will be calculated from May 1995.

c) If the coefficient of the position salary level or the total coefficient of the specialized and vocational salary plus position allowance and retention difference coefficient (if any) currently received is higher than the coefficient of the first grade salary level but lower than the coefficient of the second grade salary level, they will be ranked to the first grade salary level and will enjoy the retention difference coefficient. The time for considering a salary increase in the next review period will be calculated from the date of the previous salary grade decision. When promoted to the second grade, the retention difference coefficient will cease to be enjoyed.

Example 4: Comrade D, Associate Professor at a university, was assigned a salary coefficient of 5.31 (rank 8/9 for the Associate Professor and Senior Lecturer grade) in January 1994, with a position allowance of 0.5; the current total salary coefficient is 5.81 (5.31 + 0.5). Upon being appointed Deputy General Director, he would be reassigned to rank 1 with a Deputy General Director salary coefficient of 5.72 and would retain a differential coefficient of 0.09 (since his current total salary coefficient of 5.81 is higher than the Deputy General Director rank 1 salary coefficient of 5.72 but lower than the Deputy General Director rank 2 salary coefficient: 6.03). The next salary increase review period will start from January 1994.

d) If the position salary coefficient or the total current salary coefficient for professional and vocational positions plus the position allowance and retained differential coefficient (if any) equals the second-level salary coefficient, then reassign to the second level. In cases where the current total salary coefficient is higher than the second-level salary coefficient, assign to the second-level salary coefficient and retain the differential coefficient. Example 5: Comrade H, Associate Professor and University President, currently has a salary coefficient of 5.85 (rank 4/7 for the senior administrative officer grade under Table 01) and a position allowance of 0.9; the current total salary coefficient is 6.75 (5.85 + 0.9). Upon being appointed General Director, he would be reassigned to the second level with a General Director salary coefficient of 6.72.

Example 6: Comrade K, Department Head, currently has a salary coefficient of 6.26 (rank 5/7 for the senior administrative officer grade under Table 01) and a position allowance of 0.8; the current total salary coefficient is 7.06 (6.26 + 0.8). Upon being appointed General Director, he would be reassigned to the second level with a General Director salary coefficient of 6.72 and would retain a differential coefficient of 0.34 (7.06 - 6.72).

e) In the case where a company ranked first re-registers and establishes a Holding Company 90/TTg, the salary assignment for Holding Company management personnel shall be as follows:

- For the Director of a first-ranked company who is appointed General Director of the Holding Company, reassign to rank I with a salary coefficient of 6.34. The next salary increase review period will start from when the new salary coefficient rank is assigned.

- For the Director of a first-ranked company who is appointed Deputy General Director of the Holding Company, reassign according to the corresponding Deputy General Director rank of the Holding Company, rank 1 to rank 1, rank 2 to rank 2.

- For the Deputy Director of a first-ranked company who is appointed Deputy General Director of the Holding Company, reassign to rank I with a Deputy General Director salary coefficient of 5.72. The next salary increase review period will start from when the new salary coefficient rank is assigned.

3/ For the positions of Department Head, Deputy Department Head, and equivalent positions in Holding Company 90/TTg, assign salaries according to the professional and vocational grade and rank based on the civil servant professional and vocational salary table issued together with Decree No. 26/CP dated May 23, 1993 of the Government, and enjoy leadership position allowances as stipulated in Article 1 of Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government, with specific allowances as follows:

- For Department Heads and equivalent positions, the position allowance is: 0.5 based on the minimum wage.

- For Deputy Department Heads and equivalent positions, the position allowance is: 0.4 based on the minimum wage.

4/ The salary coefficients for management personnel and leadership position allowances stipulated in Article 1 of Decree No. 110/1997/NĐ-CP dated November 18, 1997 of the Government shall not be applied to raise the ranks of management personnel and leaders of enterprises classified as first-ranked enterprises according to Circular No. 21/LB-TT dated June 2, 1993 of the Ministry of Labor - Invalids and Social Affairs - Finance.

5/ For the positions of General Director, Deputy General Director, Chief Accountant, Department Head, Deputy Department Head, and equivalent positions in member enterprises of Holding Company 90/TTg, the classification of member enterprises and the assignment of salaries for the aforementioned positions shall be carried out according to the provisions of Joint Circular No. 21/LB-TT dated June 17, 1993 of the Ministry of Labor - Invalids and Social Affairs - Finance.

III. IMPLEMENTATION

1/ Based on the guidance and regulations set forth in this Circular, relevant Ministries and provincial People's Committees shall propose salary assignments for management personnel of Holding Company 90/TTg and submit written communications to the Ministry of Labor - Invalids and Social Affairs for consideration. After receiving written comments from the Ministry of Labor - Invalids and Social Affairs, relevant Ministries and provincial People's Committees shall issue decisions on salary assignments according to the current hierarchical management of cadres.

The accompanying letter of request shall include:

- A certified copy of the decision to establish Holding Company 90/TTg;

- A list of proposed salary assignments for management personnel of Holding Company 90/TTg submitted by relevant Ministries and provincial People's Committees according to the model specified in this Circular.

2/ This Circular takes effect from December 3, 1997.

During implementation, if there are any difficulties, relevant Ministries and provincial People's Committees are requested to report them to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution.