Joint Circular No. 26/2011/TTLT-BLDTBXH-BQP guiding the pilot implementation of salary management for the Military Post and Telecommunications Corporation during the period from 2011 to 2013 pursuant to Government Decree No. 65/2011/NĐ-CP dated July 29, 2011.

JOINT CIRCULAR

Guidelines for piloting the management of salaries for the Parent Company - Military Post and Telecommunications Group

during the period from 2011 to 2013 pursuant to Decree No. 65/2011/NĐ-CP dated July 29, 2011 of the Governmentof the Military for the period of 2011 - 2013 pursuant to Decree No. 65/2011/NĐ-CP dated July 29, 2011 of the Government

Pursuant to Decree No. 186/2007/NĐ-CP dated December 25, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - War Invalids and Social Affairs;

Pursuant to Decision No. 257/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating regulations on frequency band allocation for economic and social purposes, national defense, and security;

The Minister of Labor - War Invalids and Social Affairs, the Minister of Defense promulgates this Circular Joint amending and supplementing the name and some articles of Circular Joint No. 26/2011/TT-BLDTBXH-BQP dated October 12, 2011 of the Ministry of Labor - War Invalids and Social Affairs, Ministry of Defense guiding the implementation of pilot management of salary for the Parent Company - Military Post and Telecommunications Group during the period 2011-2013 pursuant to Government Decree No. 65/2011/NĐ-CP dated July 29, 2011.

The Ministry of Labor, War Invalids and Social Affairs and the Ministry of National Defense provide guidelines for piloting the management of salaries for the Parent Company - Military Post and Telecommunications Group (hereinafter referred to as the Military Post and Telecommunications Group) during the period from 2011 to 2013 according to Decree No. 65/2011/NĐ-CP as follows:

Article 1. Scope and Applicability

Implement in accordance with the provisions of Article 1 and Article 2 of Decree No. 65/2011/NĐ-CP.

Article 2. Labor Management

1. Annually, based on production and business requirements, the General Director of the Military Post and Telecommunications Group shall develop a labor plan and report it to the Ministry of National Defense for comments before implementation.

2. Based on the labor plan that has been commented on by the Ministry of National Defense, the General Director of the Military Post and Telecommunications Group shall manage:

a) For officers and professional soldiers in accordance with the Law on Officers of the Vietnam People's Army, Decree No. 18/2007/NĐ-CP dated February 1, 2007 of the Government on professional soldiers in the Vietnam People's Army, and the guidance of the Ministry of National Defense.

b) For defense workers in accordance with the guidance of the Ministry of National Defense.

c) For employees working under labor contracts in accordance with the Labor Code, the decrees detailing and guiding the implementation of certain articles of the Labor Code, and the implementing documents issued by the Ministry of Labor, War Invalids and Social Affairs.

3. In the fourth quarter of each year, the General Director of the Military Post and Telecommunications Group shall be responsible for evaluating the implementation of the labor plan. If the actual number of employees exceeds the demand for employment leading to unemployed workers, then plans must be made to arrange jobs for these workers. If the job requirements cannot be met, plans must be made to train and retrain these employees. After exhausting all measures but still unable to arrange jobs, the General Director of the Military Post and Telecommunications Group must fully implement the employee benefits regime as stipulated by law for these workers.

Article 3. Salary Classification and Allowances

1. While the Government has not yet issued new regulations or until the Military Post and Telecommunications Group has established salary scales and wage supplements as provided in Clause 2 of this Article, the General Director, Deputy General Directors, Chief Accountant, Auditor, and employees of the Military Post and Telecommunications Group shall continue to rank salaries and wage supplements according to current regulations as follows:

a) For the General Director, Deputy General Directors, Chief Accountant, and Auditors who are officers, and employees who are officers and professional soldiers, the ranking of salaries and wage supplements shall be carried out in accordance with the provisions of Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the salary system for cadres, civil servants, public officials, and armed forces personnel, and the implementing documents.

b) For defense workers and employees working under labor contracts, the ranking of salaries and wage supplements shall be carried out in accordance with the provisions of Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government on the salary scale and wage supplement system in state-owned companies, Decree No. 141/2007/NĐ-CP dated September 5, 2007 of the Government on the salary system for parent companies owned by the State and subsidiaries within economic groups, and the implementing documents. The defense and security allowance system shall be implemented in accordance with the guidance of the Ministry of National Defense.

2. Based on the provisions of Decree No. 101/2009/NĐ-CP dated November 5, 2009 of the Government on piloting the establishment, organization, operation, and management of state-owned economic groups, the principles for building salary scales, wage supplement systems as stipulated in Clause 1 of Article 5 of Decree No. 114/2002/NĐ-CP dated December 31, 2002 of the Government detailing and guiding the implementation of certain articles of the Labor Code regarding wages, Item 1 of Circular No. 28/2007/TT-BLDTBXH dated December 5, 2007, and the guidance of the Ministry of Labor, War Invalids and Social Affairs, the conditions for organizing production and business operations, and labor organization, the Military Post and Telecommunications Group shall build salary scales, wage supplement systems as the basis for ranking salaries and wage supplements for employees.

The salary scales, wage supplement systems built by the Military Post and Telecommunications Group must be reported to the Ministry of National Defense for comments before implementation.

Article 4. Determining the unit wage rate

1. The unit wage rate for the Military Post and Telecommunications Corporation assigned to be stable during the period from 2011 to 2013 is 230 dong per 1,000 dong of total revenue minus total expenses excluding wages.

The determination of the target for total revenue minus total expenses excluding wages shall be carried out in accordance with the Financial Regulation of the Parent Company - Military Post and Telecommunications Corporation issued by the Ministry of Finance.

2. When implementing the stable unit wage rate as prescribed in Clause 1 of this Article, the Military Post and Telecommunications Corporation must ensure the following conditions:

a) Fulfilling well the defense and security tasks assigned by the Party, State, and the Ministry of Defense.

b) Paying taxes to the state budget in accordance with tax laws and guiding documents.

c) The average wage increase rate must be lower than the average labor productivity increase rate.

The average wage increase rate, average labor productivity, and the method of determining the planned average wage linked to annual labor productivity are calculated according to the guidelines set forth in Circular No. 09/2005/TT-BLDTBXH dated January 5, 2005, issued by the Ministry of Labor, Invalids, and Social Affairs, excluding factors adjusting wages as stipulated by the State. For calculating average labor productivity and average wage, it includes the General Director, Deputy General Directors, Chief Accountant, and Auditor.

d) Annual profit must be at least 5% higher than the profit realized in the immediately preceding year (profit in 2011 is the base, and when calculating, it must be higher than the profit realized in 2010).

3. Based on the stable unit wage rate assigned under Clause 1 of this Article, each year, the General Director of the Military Post and Telecommunications Corporation is responsible for specifically determining the production and business plan targets for total revenue minus total expenses excluding wages, profit, and labor productivity linked to the assigned unit wage rate, ensuring compliance with the conditions stipulated in Clause 2 of this Article to serve as the basis for determining the planned wage and the annual wage fund.

Article 5. Determining the Wage Fund

1. Determining the Planned Annual Wage Fund

The planned annual wage fund of the Military Post and Telecommunications Corporation for planning wage expenditures is calculated using the formula:

V_khđg = V_đgôđ x C_kh(1)

Where:

- V_khđg: Planned wage fund based on the unit wage rate.

- V_đgôđ: Stable unit wage rate assigned as provided for in Clause 1 of Article 4 of this Circular.

- C_kh: Planned target for total revenue minus total expenses excluding wages of the Military Post and Telecommunications Corporation. This target is determined in accordance with the Financial Regulation of the Parent Company - Military Post and Telecommunications Corporation issued by the Ministry of Finance.

2. Determining the Actual Annual Wage Fund

The actual annual wage fund is determined based on the results of achieving the target for total income minus total expenses excluding wages, profit, and labor productivity of the Military Post and Telecommunications Corporation as follows:

a) The actual wage fund based on the results of achieving the target for total revenue minus total expenses excluding wages is calculated using the formula:

 Vthđg = Vđgôđ x Cth (2)

Where:

- V_thđg: Actual total revenue minus total costs excluding salary.

- V_đgôđ: Stable unit wage rate assigned as provided for in Clause 1 of Article 4 of this Circular.

- C_ENVIRONMENT: Actual target for total revenue minus total expenses excluding wages. This target is determined in accordance with the Financial Regulation of the Parent Company - Military Post and Telecommunications Corporation issued by the Ministry of Finance.

- Case 2: When actual profit and average labor productivity are lower than planned profit and average labor productivity, the annual salary fund according to the unit price of salary is adjusted using the following formula:

- Case 1: When the actual average labor productivity and profit achieved are equal to or higher than the plan, the actual wage fund based on the unit wage rate is calculated using Formula (2).

- Case 2: When the actual profit and average labor productivity achieved are lower than the plan, the actual wage fund based on the unit wage rate must be adjusted using the formula:

V_thđgđc = V_thđg - V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_{session number} - V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_w   (3)

Where:

+ V_thđgđc: Part of the salary fund adjusted according to profit, calculated in one of the following two ways:

+ V_thđg: Actual total revenue minus total costs excluding salary.

+ V_{session number}: Part of the salary fund adjusted according to profit.

Method 1: Adjusting the wage fund by an absolute amount corresponding to the reduced profit, calculated using the formula:

V_{session number} x T_kh - P_ENVIRONMENT   (4)

Where:

V_{session number}: The portion of the salary fund adjusted based on profit.

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Planned profit corresponding to the unit wage rate as stipulated in Clause 1 of Article 4 of this Circular.

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_ENVIRONMENT: Actual profit.

Method 2: Adjusting the wage fund by a relative amount, calculated using the formula:

Where:

V_{session number}: The portion of the salary fund adjusted based on profit.

V_thđg: Actual total revenue minus total costs excluding salary.

V_cđ: Wage fund under the system. In 2011, the wage fund under the system was determined by multiplying the number of standard workers by the average job grade salary coefficient, the average subsistence allowance coefficient, and the regional minimum wage rate as prescribed by the Government. From 2012 onwards, the wage fund under the system is determined by multiplying the number of standard workers by the average job grade salary coefficient, the average subsistence allowance coefficient, and the general minimum wage rate as prescribed by the Government; in cases where the wage under the system (calculated based on the job grade salary and subsistence allowance coefficients classified according to Decree No. 204/2004/NĐ-CP, Decree No. 205/2004/NĐ-CP, and Decree No. 141/2007/NĐ-CP multiplied by the general minimum wage rate) is lower than the regional minimum wage rate prescribed by the Government, the difference between the wages of these individuals and the regional minimum wage rate is added to the wage fund under the system.

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Planned profit corresponding to the unit wage rate as stipulated in Clause 1 of Article 4 of this Circular.

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_ENVIRONMENT: Actual profit.

+ V_w: Part of the adjusted wage fund based on labor productivity (applicable after adjusting the actual wage fund based on profit using Formula (4) or Formula (5) and the actual average labor productivity is lower than the planned average labor productivity), calculated using the formula:

- Electronic Information Portal_ENVIRONMENT, - Electronic Information Portal_kh: Actual average labor productivity and planned average labor productivity, determined according to the guidelines set forth in Circular No. 09/2005/TT-BLDTBXH.

- Case 3: When the actual average labor productivity is lower than the plan and the actual profit is equal to or higher than the plan, the actual wage fund based on the unit wage rate must be adjusted using the formula:

Where:

+ V_thđgđc: Part of the salary fund adjusted according to profit, calculated in one of the following two ways:

+ V_thđg: Actual salary fund.

+ V_w: The portion of the wage fund adjusted based on labor productivity, calculated according to the formula:

- Electronic Information Portal_ENVIRONMENT, - Electronic Information Portal_kh: Actual average labor productivity and planned average labor productivity, determined according to the guidelines set forth in Circular No. 09/2005/TT-BLDTBXH.

- Case 4: When the actual profit is lower than the plan and the actual average labor productivity is equal to or higher than the plan, the actual wage fund based on the unit wage rate must be adjusted using the formula:

Where:

+ V_thđgđc: Part of the salary fund adjusted according to profit, calculated in one of the following two ways:

+ V_thđg: Actual salary fund.

+ V_{session number}: The portion of the wage fund adjusted based on profit, calculated according to formula (4) or formula (5).

The wage fund to be implemented after adjustment according to profit and labor productivity as stipulated in Point b of this Article shall not be lower than the wage system fund. In cases from 2012 onwards, when determining the wage fund to be implemented, for employees with a wage system level (calculated based on the salary coefficient and subsistence allowance coefficient classified according to Decree No. 204/2004/NĐ-CP, Decree No. 205/2004/NĐ-CP, and Decree No. 141/2007/NĐ-CP multiplied by the general minimum wage) being lower than the regional minimum wage prescribed by the Government, the difference between the wage system level of these individuals and the regional minimum wage shall be added to the wage fund to be implemented.

- Case 5: When there is no profit or loss, the wage fund to be implemented shall be determined as follows:

+ For 2011, the wage fund to be implemented shall be determined by multiplying the average number of actual workers employed by the average salary coefficient, average subsistence allowance coefficient, and the regional minimum wage.

+ From 2012 onwards, the wage fund to be implemented shall be determined by multiplying the average number of actual workers employed by the average salary coefficient, average subsistence allowance coefficient, and the general minimum wage; in cases where employees have a wage system level (calculated based on the salary coefficient and subsistence allowance coefficient classified according to Decree No. 204/2004/NĐ-CP, Decree No. 205/2004/NĐ-CP, and Decree No. 141/2007/NĐ-CP multiplied by the general minimum wage) being lower than the regional minimum wage prescribed by the Government, the difference between the wage system level of these individuals and the regional minimum wage shall be added to the wage fund to be implemented.

3. Based on the wage fund to be implemented as stipulated in Clause 2 of this Article and the wage fund already paid to employees, the Military Telecommunications Group shall determine the remaining wage fund to be enjoyed. In cases where the wage fund already paid exceeds the wage fund to be enjoyed, the Military Telecommunications Group must repay the excess wage payment from the wage fund to be implemented of the following consecutive year.

Article 6. Wages for General Director, Deputy General Directors, Chief Accountant, and Supervisors

1. The wages and subsistence allowances of the General Director, Deputy General Directors, Chief Accountant, and Supervisors shall be included in the wage unit price of the Military Telecommunications Group as stipulated in Article 4 and Article 5 of this Circular.

2. Based on the wage fund to be implemented as stipulated in Clause 2 of Article 5 of this Circular, the Military Telecommunications Group shall determine the wage fund and pay monthly wages to the General Director, Deputy General Directors, Chief Accountant, and Supervisors according to the wage payment regulations of the Military Telecommunications Group.

Article 7. Wage Payment Regulations

1. The Military Telecommunications Group is responsible for establishing wage payment regulations for the General Director, Deputy General Directors, Chief Accountant, Supervisors, and employees as stipulated in Point d of Clause 2 of Article 4 and Clause 2 of Article 5 of Decree No. 65/2011/NĐ-CP.

2. The Military Telecommunications Group may establish a reserve fund to supplement the wage fund of the following consecutive year to ensure uninterrupted wage payments and shall not use it for other purposes. The annual reserve amount shall be decided by the General Director after consulting with the same-level Trade Union Executive Committee, but shall not exceed 17% of the wage fund to be implemented.

3. Based on the wage fund to be implemented and the wage payment regulations, the Military Telecommunications Group shall pay wages according to productivity, quality, and efficiency of production and business operations for each unit, department, and individual employee.

Article 8. Implementation organization

1. Responsibilities of the Military Telecommunications Group:

a) Establish labor norms, annual labor plans, technical grade standards for skilled workers, professional standards for civil servants and staff members, promotion regulations, salary increment regulations, and wage payment regulations to apply within the Military Telecommunications Group as prescribed.

b) Specifically determine annual production and business plan indicators regarding total revenue minus total costs excluding wages, profits, and labor productivity linked to the assigned wage unit price as stipulated in Clause 3 of Article 4 of this Circular, and compile the results of production and business operations, profits, labor, and actual wage payments of the previous consecutive year, report to the Ministry of National Defense, the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance for supervision and inspection.

c) Implement the construction of wage scales, salary tables, and subsistence allowances as stipulated in Clause 2 of Article 3 of this Circular, and conduct a summary and report on the implementation results of the pilot management of wages for the Military Telecommunications Group during the period 2011-2013 as stipulated in Clause 3 and Clause 4 of Article 6 of Decree No. 65/2011/NĐ-CP.

2. Responsibilities of the Ministry of National Defense:

a) Provide opinions on labor plans, wage scales, salary tables, subsistence allowances, and wage payment regulations for the Military Telecommunications Group to implement.

b) Take the lead and coordinate with the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance to review and adjust the wage unit price stipulated in Clause 1 of Article 4 of this Circular upon request from the Military Telecommunications Group when the State changes its wage policy; inspect and supervise the implementation of the pilot management of wages for the Military Telecommunications Group during the period 2011-2013.

c) Direct the Military Telecommunications Group to implement the construction of wage scales, salary tables, subsistence allowances, and conduct a summary evaluation of the implementation results of the pilot management of wages for the Military Telecommunications Group during the period 2011-2013.

3. Responsibilities of the Ministry of Labor, Invalids and Social Affairs:

a) Coordinate with the Ministry of National Defense to review and adjust the wage unit price stipulated in Clause 1 of Article 4 of this Circular upon request from the Military Telecommunications Group; carry out inspections and supervision of the implementation of the pilot management of wages for the Military Telecommunications Group as stipulated in Decree No. 65/2011/NĐ-CP and this Circular.

b) Provide guidance on procedures for the Military Telecommunications Group to implement the construction of wage scales, salary tables, and subsistence allowances as stipulated in Clause 2 of Article 3 of this Circular.

c) Take the lead and coordinate with relevant Ministries and sectors to study, handle, or report to the Government for consideration and handling of any issues arising during the implementation of the pilot management of wages for the Military Telecommunications Group as stipulated in Decree No. 65/2011/NĐ-CP.

d) Summarize and evaluate the implementation of the pilot management of salaries for the Military Telecommunications Group during the period from 2011 to 2013, and report to the Prime Minister in the fourth quarter of 2013.

Article 9. Effective Date

1. This Circular takes effect 45 days from the date of signature.

2. The provisions of this Circular shall be implemented from January 1, 2011 to December 31, 2013.

In the course of implementation, if there are any difficulties, the Military Telecommunications Group is requested to reflect them to the relevant ministries for consideration and resolution./.