Joint Circular No. 34/2004/TTLT-BNV-BTC-BLDTBXH guides the implementation of Government Decree No. 121/2003/NĐ-CP dated October 21, 2003 on the treatment for cadres and civil servants at commune, ward, and town levels.

JOINT CIRCULAR

Guidelines for Implementing Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government on the System and Policies for Village, Ward, and Town Cadres and Civil Servants

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Pursuant to Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government on the System and Policies for Village, Ward, and Town Cadres and Civil Servants (hereinafter referred to as Decree No. 121/2003/NĐ-CP); after coordinating with the Central Organization Committee of the Party, the Ministry of Home Affairs, the Ministry of Finance, and the Ministry of Labor, Invalids, and Social Affairs have jointly issued these guidelines for implementation as follows:

I. Number of Full-Time Cadres and Civil Servants at the Commune Level
1. For communes, wards, and towns with less than 1,000 residents, no more than 17 full-time cadres and civil servants shall be assigned, including the following positions:

1.1. Secretary of the Party Committee, Secretary of the Branch Party Committee (in places where the Party Committee at the commune level has not yet been established);

1.2. Deputy Secretary of the Party Committee or Member of the Standing Committee of the Party Committee (in places without a dedicated Deputy Secretary responsible for Party work); Deputy Secretary of the Branch Party Committee (in places where the Party Committee at the commune level has not yet been established); Chairman of the People's Council (to be concurrently held by the Secretary or Deputy Secretary of the Party Committee);

1.3. Vice-Chairman of the People's Council;

1.4. Chairman of the People's Committee;

1.5. Vice-Chairman of the People's Committee;

1.6. Chairman of the Fatherland Front Committee;

1.7. Secretary of the Ho Chi Minh Communist Youth Union;

1.8. Chairman of the Women's Union;

1.9. Chairman of the Farmers' Association;

1.10. Chairman of the Veterans' Association;

1.11. Military Commander;

1.12. Chief of Police (in places where regular police forces have not been deployed);

1.13. Office - Statistics;

1.14. Justice - Household Registration;

1.15. Finance - Accounting;

1.16. Land Administration - Construction;

1.17. Culture - Social Affairs.

2. For mountainous, highland, remote, and island communes with between 1,000 and under 5,000 residents, and for plains communes, wards, and towns with under 10,000 residents, after assigning cadres and civil servants from the positions listed in Point 1 of Section I above, two additional full-time cadres and civil servants may be assigned from among the following positions: Vice-Chairman of the People's Committee (as stipulated by the Government where two Vice-Chairmen are assigned); Office - Statistics; Culture - Social Affairs; Justice - Household Registration, but the total number shall not exceed 19 cadres and civil servants.

3. For mountainous, highland, remote, and island communes with 5,000 residents or more, for every additional 1,500 residents, one additional full-time cadre or civil servant may be assigned, and for plains communes, wards, and towns with 10,000 residents or more, for every additional 3,000 residents, one additional full-time cadre or civil servant may be assigned, after using the positions listed in Point 1 of Section I above, additional full-time cadres and civil servants may be assigned from among the following positions: Vice-Chairman of the People's Committee (as stipulated by the Government where two Vice-Chairmen are assigned); Office - Statistics; Culture - Social Affairs; Land Administration - Construction; Finance - Accounting; Justice - Household Registration, but the maximum number shall not exceed 25 cadres and civil servants.

4. The assignment of additional full-time cadres and civil servants increases according to population size:

In places where additional full-time cadres and civil servants are assigned, the same position can be assigned to two to three full-time cadres and civil servants. The Chairman of the Provincial People's Committee shall decide on the assignment of additional full-time cadres and civil servants based on Clause 1 and Clause 2 of Article 3 of Decree No. 121/2003/NĐ-CP and the above guidelines, while also providing specific guidance on the allocation of tasks that are appropriate to the characteristics and requirements of the locality.

II. Salary System for Full-Time Cadres at the Commune Level
1. Principles for Ranking Salaries for Full-Time Cadres at the Commune Level:

1.1. Currently holding a specialized position, the salary shall be ranked according to that position. If multiple specialized positions are concurrently held, the salary shall be ranked according to the highest-ranking specialized position; when not concurrently holding a specialized position, the salary shall be ranked according to the specialized position held.

1.2. Upon ceasing to hold a specialized position, the salary and re-election allowance (if applicable) shall be retained for six months, after which the salary shall be ranked according to the new position held.

If upon ceasing to hold a specialized position, another position with a higher salary is taken up, the salary shall immediately be ranked according to the higher position.

If before holding a specialized position at the commune level, one was a civil servant at the commune level, upon ceasing to hold the specialized position, if returning to the previous rank, the time spent in the specialized position shall be counted towards the seniority ranking of the civil servant rank at the commune level.

2. Transfer to the Position Salary Coefficient for Full-Time Cadres at the Commune Level (including positions added based on population increase):

Based on the positions of full-time cadres at the commune level specified in Clause 1 of Article 2 of Decree No. 121/2003/NĐ-CP, the transfer to the position salary coefficient for full-time cadres at the commune level shall be implemented as follows:

2.1. Secretary of the Party Committee, Secretary of the Branch Party Committee (in places where the Party Committee at the commune level has not yet been established): ranked at 2.0 times the minimum wage;

2.2. Deputy Secretary of the Party Committee, Deputy Secretary of the Branch Party Committee (in places where the Party Committee at the commune level has not yet been established), Chairman of the People's Council, Chairman of the People's Committee: ranked at 1.9 times the minimum wage;

2.3. Vice-Chairman of the People's Council, Vice-Chairman of the People's Committee, Member of the Standing Committee of the Party Committee (in places without a dedicated Deputy Secretary responsible for Party work), Chairman of the Fatherland Front Committee: ranked at 1.8 times the minimum wage;

2.4. Secretary of the Ho Chi Minh Communist Youth Union, Chairman of the Women's Union, Chairman of the Farmers' Association, Chairman of the Veterans' Association, Member of the People's Committee: ranked at 1.7 times the minimum wage.

3. In cases where commune-level civil servants are elected to hold specialized positions as stipulated in Clause 1 of Article 2 of Decree No. 121/2003/NĐ-CP, if the salary of the elected position is lower than the salary previously enjoyed, they shall receive the salary of the elected position and retain the difference in coefficients between the civil servant salary and the elected position salary. The retention period for the difference in coefficients shall be throughout the duration of holding the elected position.

4. A full-time specialist at the commune level, if re-elected to the same position or elected to another position among full-time specialists, shall be entitled to an additional monthly allowance of 5% from the current position salary starting from the sixty-first month following the date of their first election to a position according to Decree No. 09/1998/NĐ-CP dated January 23, 1998 of the Government (hereinafter referred to as Decree No. 09/1998/NĐ-CP) or according to Decree No. 121/2003/NĐ-CP; the additional 5% monthly allowance for re-election shall remain stable throughout the period of re-election.

III. Remuneration System for Commune-level Civil Servants
Commune-level civil servants as defined in Clause 2, Article 2 of Decree No. 121/2003/NĐ-CP (including those additionally assigned based on population size) shall enjoy the remuneration system stipulated in Decree No. 25/CP dated May 23, 1993 of the Government as follows:

1. Principles for Salary Grading for Commune-level Civil Servants:

1.1. Commune-level civil servants who have graduated from university or higher education programs relevant to the current job title shall be graded according to the administrative salary scale, grade specialist (code 01.003) as prescribed for civil servants at the district level or above.

1.2. Commune-level civil servants who have graduated from college programs relevant to the current job title shall be graded according to the administrative salary scale, grade clerk (code 01.004).

In cases where they are initially recruited with an associate degree relevant to the current job title, after the probationary period, they shall be placed at grade 2 of the clerk grade (during the probationary period, they shall receive a percentage of grade 2 salary of the clerk grade).

1.3. Commune-level civil servants who have graduated from secondary vocational programs relevant to the current job title shall be graded according to the administrative salary scale, grade clerical staff (code 01.008).

1.4. Those individuals specified in points c, d, đ, e, g of Clause 2, Article 2 of Decree No. 121/2003/NĐ-CP who are currently working without having completed the required professional training for their current job title shall be granted a salary coefficient of 1.09 compared to the minimum wage up to December 31, 2006; thereafter, if they fail to meet the criteria set forth in Decision No. 04/2004/QĐ-BNV dated January 16, 2004 of the Minister of Home Affairs regarding specific standards for commune, ward, and town cadres and civil servants, the People's Committee of the commune shall propose to the Chairman of the People's Committee of the district to review each case individually and make a decision.

1.5. If commune-level civil servants change their professional qualifications due to decisions made by competent authorities to send them for further training, they shall be graded into the corresponding grade based on their new educational qualifications; the time for the next salary increment shall be calculated from the date of obtaining the new qualification. The competent authority managing the civil servant must bear responsibility for its decision regarding the transfer of grading according to this regulation.

2. Transfer to Professional Grade and Salary Level for Commune-level Civil Servants Previously holding a professional position receiving subsistence allowance as stipulated in Decree No. 09/1998/NĐ-CP:

Based on the time that commune-level civil servants have received the subsistence allowance according to Decree No. 09/1998/NĐ-CP until November 1, 2003 (the implementation date of the policies stipulated in this Circular) to transfer to the appropriate grade and salary level as follows:

2.1. For commune-level civil servants graded according to the specialist grade:

a) If the time receiving subsistence allowance (according to the civil servant grade and level) is less than three years (less than 36 months), then they retain their current grade and level; the time for the next salary increment is calculated from the date of receiving the subsistence allowance.

b) If the time receiving subsistence allowance (according to the civil servant grade and level) is three years or more (36 months or more), then they are transferred to the next higher level (if available within the grade) compared to their current level; the time for the next salary increment is calculated from November 1, 2003.

2.2. For commune-level civil servants graded according to the clerk grade or clerical staff grade:

a) If the time receiving subsistence allowance (according to the civil servant grade and level) is less than two years (less than 24 months), then they retain their current grade and level; the time for the next salary increment is calculated from the date of receiving the subsistence allowance.

b) If the time receiving subsistence allowance (according to the civil servant grade and level) is two years or more (24 months or more), then they are transferred to the next higher level (if available within the grade) compared to their current level; the time for the next salary increment is calculated from November 1, 2003.

3. Transfer to Professional Grade and Salary Level for Commune-level Civil Servants Previously Holding Full-time Specialist Positions:

3.1. In cases where they were professional staff according to Decree No. 09/1998/NĐ-CP or commune-level civil servants according to Decree No. 121/2003/NĐ-CP before assuming the full-time specialist position, after ceasing to hold the full-time specialist position, they shall retain their salary and re-election allowance (if applicable) as stipulated in Item 1.2, Point 1, Section II above. After the retention period, they shall be graded as follows:

a) If there has been no change in their professional qualifications obtained through training, they shall be graded based on the professional grade and level previously held before assuming the elected position and the time spent in the elected position, in accordance with the regulations on the time for the next salary increment for commune-level civil servants stipulated in this Circular.

b) If there has been a change in their professional qualifications due to decisions made by competent authorities to send them for further training, they shall be graded according to the principle stipulated in Item 1.5, Point 1, Section III above.

3.2. In cases where they were not professional staff according to Decree No. 09/1998/NĐ-CP or were not commune-level civil servants according to Decree No. 121/2003/NĐ-CP before assuming the full-time specialist position, they shall be transferred to the initial grade based on their current professional qualifications as stipulated in Point 1, Section III above (without undergoing a probationary period), and then the time with professional qualifications shall be considered to grade them appropriately as follows:

a) In cases where they have a professional qualification obtained before assuming the elected position, the time for the next salary increment (after the initial grade based on the level of training) shall be calculated from the date of assuming the elected position.

b) In case of having a professional degree obtained while holding an elected position, the time for salary grade increase (after the initial grade based on educational level) shall be counted from the date of obtaining the professional degree.

4. Salary system during the probation period for commune-level civil servants:

Commune-level civil servants undergoing the probation period shall receive 85% of the initial salary grade according to their professional educational level of the recruited civil servant rank; for probationary civil servants in highland, remote, mountainous, border, and island communes, they shall receive 100% of the initial salary grade according to their professional educational level of the recruited civil servant rank. The probation period shall not be counted towards the time for salary grade increase based on seniority.

5. Regular salary grade increase system for commune-level civil servants:

Commune-level civil servants who have met the condition of holding the previous grade for three years (36 months) for those ranked as specialist and two years (24 months) for those ranked as staff officer or clerk, and simultaneously meet the two criteria specified below throughout the time holding the previous grade shall be entitled to a one-grade salary increase (if there is still a higher grade within the rank).

Fulfilling assigned tasks;

Not being subject to any of the disciplinary measures of reprimand, warning, demotion in salary grade, or punishment by the Court.

In case commune-level civil servants are subject to any of the disciplinary measures of reprimand, warning, demotion in salary grade, or punishment by the Court, the time for salary grade increase shall be extended by one year (12 months).

IV. Social insurance and health insurance system for full-time cadres and commune-level civil servants
1. Full-time cadres and commune-level civil servants shall implement the social insurance system according to the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government and Decree No. 01/2003/NĐ-CP dated January 09, 2003 of the Government amending and supplementing certain provisions of the Social Insurance Regulations issued together with Decree No. 12/CP dated January 26, 1995 of the Government, and shall implement the health insurance system according to the Health Insurance Regulations issued together with Decree No. 58/1998/NĐ-CP dated August 13, 1998 of the Government, including the following systems: sickness allowance system; maternity allowance system; work injury allowance system; retirement pension system; death benefit system; recuperation and health recovery leave system; and health insurance system.

2. The contribution rate for social insurance is 20% of the monthly salary including: the salary according to rank, grade, and position; reappointment allowance and retention differential coefficient (if any) of full-time cadres and commune-level civil servants; among which, full-time cadres and commune-level civil servants contribute 5%, and the employer (Commune People's Committee) contributes 15%.

The contribution rate for health insurance is 3% of the monthly salary including: the salary according to rank, grade, and position; reappointment allowance and retention differential coefficient (if any) of full-time cadres and commune-level civil servants; among which, full-time cadres and commune-level civil servants contribute 1%, and the employer (Commune People's Committee) contributes 2%.

Full-time cadres and commune-level civil servants who contribute to social insurance and health insurance shall be provided with a Social Insurance Booklet and a Medical Examination and Treatment Voucher according to regulations.

3. Full-time commune-level cadres who cease to hold the positions stipulated in Account 1 of Article 2 of Decree No. 121/2003/NĐ-CP if they have contributed to social insurance for at least ten years and are less than five years away from the retirement age as prescribed, without receiving a one-time social insurance allowance and voluntarily continuing to pay social insurance contributions at a rate of 15% of their monthly salary before ceasing to hold the position to the Social Insurance Office where they reside until they reach the required social insurance contribution period and retirement age, shall be entitled to a retirement pension.

4. Full-time cadres and commune-level civil servants who have contributed to social insurance under Decree No. 09/1998/NĐ-CP and subsequently continued contributing to social insurance under Decree No. 121/2003/NĐ-CP and the guidance of this Circular, the working time with social insurance contributions under Decree No. 09/1998/NĐ-CP shall be combined with the working time with social insurance contributions under Decree No. 121/2003/NĐ-CP to calculate the social insurance benefits.

5. Calculation method for the average monthly salary used as the basis for social insurance contributions to determine the monthly pension or one-time social insurance allowance as follows:

5.1. Full-time cadres and commune-level civil servants who contribute to social insurance according to the salary levels prescribed in Decree No. 121/2003/NĐ-CP and the guidance of this Circular, the average monthly salary for the last five years, including reappointment allowance and retention differential coefficient (if any), shall be calculated as the basis for social insurance contributions to determine the pension or one-time social insurance allowance.

5.2. Full-time cadres and commune-level civil servants who have both periods of social insurance contributions at the subsistence allowance level of the positions prescribed in Decree No. 09/1998/NĐ-CP and periods of social insurance contributions at the salary levels prescribed in Decree No. 121/2003/NĐ-CP and the guidance of this Circular, the average of the subsistence allowances and monthly salaries for the last five years shall be calculated as the basis for social insurance contributions to determine the pension or one-time social insurance allowance.

6. Full-time cadres and commune-level civil servants who are currently receiving retirement benefits, disability allowances, first and second-class war invalids' benefits, shall receive 100% of the salary level according to the position prescribed in Decree No. 121/2003/NĐ-CP up to December 31, 2004, and from January 1, 2005, they shall receive 40% of the salary level according to the position prescribed in Decree No. 121/2003/NĐ-CP, without having to contribute to social insurance and health insurance, and when they stop working, they will not be entitled to social insurance benefits as prescribed in this Circular.

7. Full-time cadres and commune-level civil servants who are currently receiving war invalids' benefits of all classes and third-class war invalids' benefits (excluding those currently receiving benefits as prescribed in Point 6 of Section IV above), shall receive 100% of the salary level according to the position they are holding, and shall contribute to and enjoy social insurance and health insurance.

8. Staff members of communes, wards, and towns who have worked and participated in social insurance under Decree No. 09/1998/NĐ-CP, and now according to Decree No. 121/2003/NĐ-CP are no longer required to participate in mandatory social insurance, shall be handled as follows when they retire:

8.1. Male staff members aged 55 and female staff members aged 50, with continuous work experience of at least 15 years and having paid social insurance for at least 15 years, shall receive monthly allowances.

The monthly allowance for the first 15 years is equal to 45% of the average living expenses of the last five years before retirement; for each additional year of work and social insurance payment beyond 15 years, an additional 2% will be added, but the maximum allowance shall not exceed 75% of the average living expenses of the last five years before retirement;

8.2. In cases where less than 15 consecutive years of social insurance payments have been made, upon retirement, a one-time allowance shall be provided, with one month's living expenses calculated based on the average of the last five years before retirement for each year of work;

8.3. In cases where more than 15 consecutive years of social insurance payments have been made but the age requirement for receiving monthly allowances has not yet been met, if the individual voluntarily submits a request to wait until they meet the age requirement for monthly allowances, and this is confirmed by the People's Committee of the commune, ward, or town, they may retire and wait until they reach 55 years old for males and 50 years old for females to receive monthly allowances as stipulated in Point 8.1 of Section IV above. The People's Committee of the commune, ward, or town shall be responsible for preparing all necessary documents as if the individual had already met the requirements for monthly allowances, and submit them to the local Social Insurance agency for management, monitoring, and processing of monthly allowances when the age requirement is met.

9. Specialized staff members and civil servants at the commune level from November 1, 2003 to July 1, 2004, who have not yet been assigned salaries and enrolled in social insurance under Decree No. 121/2003/NĐ-CP, shall be handled according to Point 8 of Section IV above when they retire.

V. Allowances for non-specialized staff members at the commune level, village cadres, and neighborhood people's committees
1. Non-specialized staff members at the commune level, village cadres, and neighborhood people's committee members shall receive monthly allowances.

2. The Provincial People's Committee shall base their decision on Article 7 of Decree No. 121/2003/NĐ-CP to determine the number and amount of monthly allowances for the aforementioned non-specialized staff members, ensuring the following requirements:

2.1. Only necessary positions shall be filled based on job needs;

2.2. The allowance amount must be based on the workload, nature of the work, and the financial capacity of the locality to ensure appropriate payment.

3. The Chairman of the Provincial People's Committee shall base their decision on the workload, nature of the work, and the financial capacity of the locality to determine the monthly allowances for the Chairman of the Red Cross Association and the Chairman of the Senior Citizens' Association, ensuring that these allowances are commensurate with other community cadre positions.

VI. Sources of funding for implementation of policies

The funding for implementing policies for commune-level cadres and civil servants, non-specialized staff members working in communes, wards, and towns, and village cadres and neighborhood people's committee members shall be guaranteed by the local budget in accordance with the provisions of the State Budget Law and current guiding documents of the State Budget Law.

VII. Implementation Provisions

1. This Circular shall take effect 15 days after its publication in the Official Gazette and shall replace Circular Joint No. 99/1998/TT-LT dated May 19, 1998, issued by the Government Organizational and Cadre Department - Ministry of Finance - Ministry of Labor, Invalids, and Social Affairs, guiding the implementation of Decree No. 09/1998/NĐ-CP dated January 23, 1998, of the Government amending and supplementing Decree No. 50/CP dated July 26, 1995, of the Government regarding the living expense system for commune, ward, and town cadres.

2. The policies for commune, ward, and town cadres and civil servants stipulated in this Circular shall be implemented starting from November 1, 2003.

3. The Provincial People's Committee shall base their guidance on Decree No. 121/2003/NĐ-CP dated October 21, 2003, of the Government on policies for commune, ward, and town cadres and civil servants and this Circular, taking into account the specific circumstances of the locality. Any difficulties encountered during implementation should be reported to the relevant ministries for supplementary guidance.