Circular No. 31/2008/TT-BLDTBXH guiding the implementation of labor regulations and wages for science and technology enterprises converted from public research organizations pursuant to Decree No. 80/2007/NĐ-CP dated May 19, 2007 of the Government.

 

CIRCULAR

GUIDELINES FOR IMPLEMENTING LABOR REGIMES AND SALARIES FOR SCIENCE AND TECHNOLOGY ENTERPRISES TRANSFORMED FROM PUBLIC RESEARCH INSTITUTIONS AND TECHNOLOGY DEVELOPMENT ORGANIZATIONS PURSUANT TO DECREE NO. 80/2007/ND-CP OF THE GOVERNMENT ON MAY 19, 2007.

Implementing Decree No. 80/2007/ND-CP of the Government on science and technology enterprises, after exchanging opinions with relevant ministries and sectors, the Ministry of Labor - Invalids and Social Affairs provides guidelines for implementing labor regimes and salaries for enterprises transformed from public research institutions and technology development organizations as follows:

I. SCOPE OF REGULATION AND APPLICABLE OBJECTS

2. Applicability:

This Circular guides the implementation of labor regimes and salaries for science and technology enterprises transformed from public research institutions and technology development organizations, public scientific and technological service organizations (referred to as scientific and technological organizations) pursuant to Decree No. 80/2007/ND-CP including:

a) Limited liability companies with two or more shareholders;

b) Joint-stock companies.

The companies specified in points a and b above shall be referred to as science and technology enterprises.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

a) Persons transferring to work under labor contracts as stipulated in Decree No. 44/2003/ND-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on labor contracts at science and technology enterprises.

b) Persons holding specialized and non-specialized positions on the Board of Directors; members of the Supervisory Board; specialized and non-specialized members of the Board of Members; specialized and non-specialized Supervisors, General Managers, Directors, Deputy General Managers, Deputy Directors, and Chief Accountants in science and technology enterprises (referred to as management officials).

c) Persons working at limited liability companies with two or more shareholders and joint-stock companies.

II. LABOR CONTRACTS

1. Persons working at scientific and technological organizations who transfer to work at science and technology enterprises as stipulated in Decree No. 80/2007/ND-CP shall implement signing labor contracts according to Decree No. 44/2003/ND-CP dated May 9, 2003 of the Government on labor contracts and Circular No. 21/2003/TT-LDTBXH dated September 22, 2003 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of certain points of Decree No. 44/2003/ND-CP as follows:

- For those who have signed employment contracts (fixed-term or indefinite-term contracts) as stipulated in Decree No. 116/2003/ND-CP dated October 10, 2003 of the Government on recruitment, utilization, and management of cadres and civil servants in state-owned units, they continue to sign labor contracts according to Decree No. 44/2003/ND-CP mentioned above.

- For those who have not been signed employment contracts as stipulated in Decree No. 116/2003/ND-CP, they must sign labor contracts according to Decree No. 44/2003/ND-CP mentioned above.

- For those who have signed employment contracts as stipulated in Decree No. 116/2003/ND-CP when transferring to work at science and technology enterprises with changes in job duties and positions held, they must sign new labor contracts but the signing of labor contracts must comply with the provisions of Decree No. 44/2003/ND-CP mentioned above.

2. For newly established science and technology enterprises in the form of limited liability companies with two or more shareholders and joint-stock companies, the signing of labor contracts for employees shall be implemented according to Decree No. 44/2003/ND-CP mentioned above.

III. SALARY REGIME

1. Salary Classification:

a) Limited liability companies with two or more shareholders, joint-stock companies independently establish and decide salary scales and pay tables according to state regulations, based on salary levels in the salary scale and pay table and the occupational titles and jobs undertaken, the company implements salary classification for employees.

b) In cases where limited liability companies with two or more shareholders, joint-stock companies apply the salary scale, pay table, and salary allowance system as stipulated in Decree No. 205/2004/ND-CP dated December 14, 2004 of the Government, the transfer and classification of salaries for persons transferring to work under labor contracts and those appointed to managerial positions are regulated as follows:

b.1 Principles for Transfer and Classification of Salaries:

- For those currently classified under Decree No. 204/2004/ND-CP dated December 14, 2004 of the Government (referred to as old salary), they must transfer and classify under Decree No. 205/2004/ND-CP dated December 14, 2004 of the Government (referred to as new salary);

- The transfer from old salary to new salary must be based on assigned tasks and held positions. The new salary coefficient must ensure it is equal to or higher than the nearest current salary coefficient. If the new salary coefficient is lower than the old salary coefficient (including any excess years-of-service allowance if applicable), they will be entitled to retain the difference until they are reassigned to another position or salary grade;

- During the process of transferring and classifying new salaries, the company may not combine promotions of officials' ranks, may not combine increases in salary grades, and may not classify salaries and allowances into higher categories than those of the company;

- The plan for transferring and classifying new salaries and allowances must be decided by the competent authority before implementation.

b.2 Methods for Transfer and Classification of Salaries:

b.2.1 For management officials appointed or currently holding leadership positions, they should be transferred and classified into corresponding leadership positions according to the company's category, specifically as follows:

- The Chairman of the Board of Directors specializing, the Chairman of the Board of Members specializing, shall be classified according to the Chairman of the Board of Directors position in the pay table of specialized Board of Directors members;

- Members of the Board of Directors who are full-time members, and full-time members of the Board of Members shall be remunerated according to the scale for full-time members of the Board of Directors.

- General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants shall be remunerated according to the scale for General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants.

- For non-full-time members of the Board of Directors, members of the Supervisory Board (excluding the Head of the Supervisory Board); non-full-time members of the Board of Members, and non-full-time supervisory personnel shall receive job responsibility allowances according to the company's classification.

The transfer and ranking of salaries shall be as follows:

+ Ranked at the new level 1 if the old salary coefficient (including position allowance and seniority allowance exceeding the ceiling, if any) is lower than or equal to the new level 1. The time for the next salary increase will be calculated from when the new level 1 was ranked. In cases where the difference between the two old and new salary coefficients is less than 70%, the time for the next salary increase will be calculated from when the old salary coefficient was held; if it is more than 70%, the time for the next salary increase will be calculated from when the new salary coefficient was held.

+ Ranked at the new level 2 if the salary coefficient (including position allowance and seniority allowance exceeding the ceiling, if any) is higher than level 1. If the old salary coefficient is higher than the new level 2 salary coefficient, then the difference in salary coefficient will be retained to match the old salary coefficient.

+ Personnel who cease to hold management positions shall be re-ranked according to their new job and position, without retaining the old salary coefficient or being transferred to an equivalent new salary coefficient.

b.2.2. For personnel appointed to the positions of Department Heads, Deputy Department Heads, and equivalent positions, they shall be transferred to the salary scale for specialized and professional staff in state-owned enterprises and shall receive position allowances for Department Heads, Deputy Department Heads, and equivalent positions according to the company's classification.

For supervisors who are transferred to the salary scale for specialized and professional staff in state-owned enterprises and shall receive position allowances for Department Heads.

b.2.3. For specialized and professional personnel and those working under labor contracts.

- For personnel ranked according to the salary scale for specialized and professional staff in the relevant categories of the salary scale for specialized and professional staff for cadres and staff in public institutions, the transfer and ranking of salaries shall be as follows:

+ Senior Researcher category (A3.1) shall be ranked in the Senior Specialist category; Principal Researcher category (A2.1) shall be ranked in the Principal Specialist category; Researcher category (A1) shall be ranked in the Specialist category; Technician category (B) shall be ranked in the Clerk, Technician category according to the salary scale for specialized and professional staff in state-owned enterprises;

+ Transferred and ranked into the grade with the new salary coefficient that is equal to or closest to the old salary coefficient of the category being ranked.

Example: Mr. Nguyen Van Bay, currently ranked in the Researcher category, staff type A1, grade 6, coefficient 3.99 according to Decree No. 204/2004/ND-CP, is transferred and ranked in the Specialist category, grade 7, coefficient 4.2 according to the salary scale for specialized and professional staff in state-owned enterprises issued along with Decree No. 205/2004/ND-CP of the Government.

+ In cases where ranked into the final grade of the new category, if the new grade salary coefficient is lower than the old grade salary coefficient, then the difference in salary coefficient will be added to retain the old salary coefficient.

Example: Mr. Nguyen Van Nam, currently ranked in the Researcher category, staff type A1, grade 9, coefficient 4.98 according to Decree No. 204/2004/ND-CP, is transferred and ranked in the Specialist category, grade 8, coefficient 4.51 according to the salary scale for specialized and professional staff in state-owned enterprises issued along with Decree No. 205/2004/ND-CP of the Government and receives the retained difference in salary coefficient 0.47 (4.98 – 4.51).

+ In cases where personnel have been receiving seniority allowance exceeding the ceiling of the old salary category, the ratio of seniority allowance exceeding the ceiling is calculated based on the old salary coefficient to determine the total salary coefficient as the basis for transferring and ranking salaries.

Example: Mr. Nguyen Van Ba, currently ranked in the Senior Researcher category, grade 6, coefficient 8.00 and receiving seniority allowance exceeding the ceiling 5%, the total salary coefficient for transferring and ranking salaries is 8.40 (8.00 + 8.00 x 0.05), thus Mr. A is ranked in the Senior Specialist category, grade 4, coefficient 6.60 and receives the retained difference in salary coefficient 1.8.

- For personnel ranked in the category requiring a college degree or bachelor's degree (Ao) shall be ranked in the Clerk, Technician category according to the salary scale for specialized and professional staff in state-owned enterprises and the method of transferring and ranking salaries is similar to that of specialized and professional personnel in this Circular but not lower than grade 2, coefficient 1.99.

b.2.4. For clerical and service personnel according to the salary scale for clerical and service staff in state agencies and public institutions (scale 4), they shall be transferred to the corresponding new grade according to the position of clerical and service staff in the salary scale for clerical and service staff in state-owned enterprises.

b.2.5. For security personnel in agencies according to the salary scale for clerical and service staff in state agencies and public institutions (scale 4), they shall be transferred to group II, B.13, the position of security personnel in the salary scale for ticket sellers, security personnel at cultural public points, bus stations, railway stations, ports, and new security personnel as follows:

+ Old grade 1 is ranked in new grade 1; old grades 2 and 3 are ranked in new grade 2; old grades 4, 5 are ranked in new grade 3; old grades 6, 7 are ranked in new grade 4; old grades 8, 9, 10, 11, 12 are ranked in new grade 5.

+ In cases where ranked in new grade 5, if the new grade salary coefficient is lower than the old grade salary coefficient, then the difference in salary coefficient will be added to retain the old salary coefficient as stipulated in point 2.1, clause 2, section III above.

+ In cases where security personnel receive seniority allowance exceeding the ceiling, the ratio of seniority allowance exceeding the ceiling is calculated based on the old salary coefficient to determine the total salary coefficient as the basis for transferring and ranking salaries.

b.2.6. For technical and typist personnel according to the salary scale for clerical and service staff in state agencies and public institutions (scale 4), they shall be transferred to the position of Clerk, Technician according to the salary scale for specialized and professional staff.

The time for salary grade promotion for workers specified in points b.2.1, b.2.2, b.2.3, b.2.4, b.2.5, and b.2.6, clause 1, section III of this Circular shall be calculated from the last promotion under Decree No. 204/2004/NĐ-CP.

b.2.7. For production and business workers:

- Workers who have been assigned salaries according to the wage scales and pay tables for production and business workers as stipulated in Decree No. 205/2004/NĐ-CP shall retain their current salary grades.

- Workers assigned salaries according to the pay table stipulated in Decree No. 204/2004/NĐ-CP when transitioning to the wage scales and pay tables for production and business workers as stipulated in Decree No. 205/2004/NĐ-CP shall be assessed based on the job assigned, position, technical rank standards, and companies shall organize skill proficiency checks. Workers achieving a certain craftsman level will be assigned to the corresponding salary grade according to the wage scales and pay tables prescribed by the State.

For administrative drivers assigned salaries according to the pay table for administrative and service staff in state agencies and state-run organizations (Table 4), they shall transition to the pay table for drivers (B12) in the group of small cars, taxis, trucks, cranes under 3.5 tons, and passenger buses under 20 seats as follows:

Grade 1 old corresponds to new Grade 1; Grades 2 and 3 old correspond to new Grade 2; Grades 4, 5, 6 correspond to new Grade 3; Grades 7, 8, 9, 10, 11, 12 correspond to new Grade 4;

In case of being assigned to new Grade 4, if the new salary grade coefficient is lower than the old salary grade coefficient, the employee shall be entitled to retain the difference coefficient.

In cases where drivers enjoy seniority allowances exceeding the standard range, the ratio of such seniority allowances exceeding the standard range shall be calculated based on the old salary coefficient to determine the total salary coefficient as the basis for transferring and assigning salaries.

Example: Mr. Nguyen Van A, currently assigned Grade 12 with a salary coefficient of 4.03 and enjoying a seniority allowance exceeding the standard range of 5%, the total salary coefficient for transferring and assigning salaries is 4.23 (4.03 + 4.03 x 0.05). Therefore, Mr. A will be assigned Grade 4 with a salary coefficient of 3.60 for the driver position and will enjoy a retained difference coefficient of 0.63.

b.3. Company ranking.

- Companies shall implement the ranking regulations as stipulated in Circular No. 23/2005/TT-BLDTBXH dated August 31, 2005, issued by the Ministry of Labor, Invalids, and Social Affairs, guiding the ranking and assignment of salaries for full-time members of the Board of Directors, General Director, Deputy General Director, Chief Accountant of state-owned enterprises to assign salaries for managerial personnel.

- For companies without ranking criteria, the basis for temporary ranking shall be determined according to the leadership position allowance levels for the position of Institute Director and equivalent positions as stipulated in Circular No. 18/2005/TT-BKHCN dated November 2, 2005, issued by the Ministry of Science and Technology, guiding the implementation of leadership position allowances in scientific and technological organizations. According to the principle: if the leadership allowance for the Institute Director is 0.9 or higher, it will be temporarily ranked as Class I company; 0.7 will be temporarily ranked as Class II company; 0.6 or lower will be temporarily ranked as Class III company as the basis for assigning salaries for managerial personnel.

Based on the method of establishing company ranking criteria issued together with Circular No. 23/2005/TT-BLDTBXH dated August 31, 2005, issued by the Ministry of Labor, Invalids, and Social Affairs, guiding the ranking and assignment of salaries for full-time members of the Board of Directors, General Director, Deputy General Director, Chief Accountant of state-owned enterprises, the Ministry of Science and Technology shall be responsible for organizing the establishment of ranking criteria for scientific and technological enterprises and proposing the agreement of the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance to issue.

2. Salary management:

a) For scientific and technological enterprises that independently establish and decide on wage scales and pay tables, they shall implement the construction and registration of wage scales, pay tables, allowances, and determination of salary and bonus funds according to the provisions of Decree No. 114/2002/NĐ-CP dated December 31, 2002, issued by the Government detailing and guiding the implementation of some articles of the Labor Code on wages; Decree No. 110/2008/NĐ-CP dated October 10, 2008, issued by the Government setting regional minimum wages for workers employed in companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor; Circular No. 13/2003/TT-BLDTBXH dated May 30, 2003, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of some articles of Decree No. 114/2002/NĐ-CP dated December 31, 2002, issued by the Government on wages for workers employed in enterprises operating under the Enterprise Law; and Circular No. 28/2007/TT-BLDTBXH dated December 5, 2007, issued by the Ministry of Labor, Invalids, and Social Affairs amending Circular No. 13/2003/TT-BLDTBXH and Circular No. 14/2003/TT-BLDTBXH dated May 30, 2003, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of some articles of Decree No. 114/2002/NĐ-CP of the Government on wages and Circular No. 24/2008/TT-BLDTBXH dated October 20, 2008, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of regional minimum wages for enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor as the basis for assigning and paying wages to workers.

b) Annually, based on the production and business plan, enterprises shall be responsible for building a planned salary fund to serve as the basis for paying wages to workers linked to productivity, quality, efficiency of the enterprise, and contributions to the company, encouraging those with high professional expertise, excellent skills, and market wage levels.

The planned salary fund built by the enterprise shall be registered with provincial or centrally-administered city Tax Bureaus where the enterprise's main office is located to serve as the basis for determining taxable income.

c) Enterprises shall be responsible for establishing a wage payment regulation serving as the basis for paying wages to workers in accordance with the law, ensuring democracy, fairness, transparency, and clarity.

When establishing wage regulations, the enterprise's Trade Union Executive Committee must participate, and such regulations must be disseminated to each employee and registered with the Department of Labor - Invalids and Social Affairs of the province or centrally governed city where the enterprise's main office is located.

IV. IMPLEMENTATION

1. Based on the guidance content provided in this Circular, the Ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally governed cities shall direct and guide scientific and technological enterprises to implement state wage policies in accordance with the relevant provisions.

2. For state-owned companies and limited liability companies with 100% state-owned charter capital converted from scientific and technological organizations, the transfer of salary classification according to point b.2, Clause 1, Section III of this Circular and the implementation of labor management, wage, and income mechanisms shall be carried out as follows:

- For state-owned companies, they shall comply with Decree No. 206/2004/NĐ-CP dated December 14, 2004 of the Government on labor management, wages, and income in state-owned companies; Decree No. 207/2004/NĐ-CP dated December 14, 2004 of the Government on wage systems, bonuses, and responsibility regimes for members of the Board of Directors, General Directors, and Directors of state-owned companies; and Circular No. 07/2005/TT-LĐTBXH dated January 5, 2005 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of Decree No. 206/2004/NĐ-CP; Circular No. 08/2005/TT-LĐTBXH dated January 5, 2005 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of Decree No. 207/2004/NĐ-CP of the Government.

- For limited liability companies with 100% state-owned charter capital, they shall comply with Decree No. 86/2007/NĐ-CP dated May 28, 2007 of the Government on labor management and wages in limited liability companies with 100% state-owned charter capital; and Circular No. 15/2007/TT-LĐTBXH dated August 31, 2007 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of Decree No. 86/2007/NĐ-CP.

3. New scientific and technological enterprises established in the form of limited liability companies with two or more shareholders and joint-stock companies shall implement labor contracts in accordance with Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain articles of the Labor Code on labor contracts and wage systems as stipulated in 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 on wages; Circular No. 13/2003/TT-LĐTBXH dated May 30, 2003 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of certain articles of Decree No. 114/2002/NĐ-CP on wages for employees working in enterprises operating under the Law on Enterprises; and Circular No. 28/2007/TT-LĐTBXH dated December 5, 2007 of the Ministry of Labor - Invalids and Social Affairs amending Circular No. 13/2003/TT-LĐTBXH and Circular No. 14/2003/TT-LĐTBXH dated May 30, 2003 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of certain articles of Decree No. 114/2002/NĐ-CP of the Government on wages.

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

Scientific and technological enterprises converted from research and technology development organizations in accordance with Decree No. 80/2007/NĐ-CP dated May 19, 2007 of the Government on scientific and technological enterprises before the effective date of this Circular also fall within the scope of application of this Circular.

During the implementation process, if there are any difficulties, it is recommended that the relevant ministries, provincial people's committees, state economic groups, and corporations report to the Ministry of Labor - Invalids and Social Affairs for consideration and resolution.