JOINT CIRCULAR No. 35/2005/TTLT/BLDTBXH-BTC Circular guiding the implementation of Decision No. 234/2005/QD-TTg dated September 26, 2005 on special regimes for workers, staff, and officials in certain industries and occupations in state-owned companies.

JOINT CIRCULAR

Guidelines for Implementing Decision No. 234/2005/QĐ-TTg dated September 26, 2005

of the Prime Minister on Special Regime for Workers, Staff, and Civil Servants

in Certain Industries and Occupations in State-Owned Enterprises

Pursuant to Decision No. 234/2005/QĐ-TTg dated September 26, 2005 of the Prime Minister on Special Regime for Workers, Staff, and Civil Servants (referred to as workers) in certain industries and occupations in state-owned enterprises, the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance jointly issue the following guidelines:

I. FIXED RATION REGIME

1. The fixed ration regime prescribed in Appendix No. 01 attached hereto shall apply to the specified subjects.

2. The fixed rations include five levels: 32,000 VND/day; 37,000 VND/day; 45,000 VND/day; 80,000 VND/day; and 110,000 VND/day.

These levels apply to the subjects specified in Appendix No. 01 mentioned above.

3. Calculation Method: The fixed ration amount is calculated based on actual working days as follows:

a) For workers employed under time-based contracts:

- If working monthly, the number of actual working days eligible for rations shall not exceed the standard working days in the month chosen by the company but shall not exceed 26 days/month at most;

- If working weekly, the number of actual working days eligible for rations shall not exceed the standard working days in the week chosen by the company but shall not exceed 6 days/week at most;

- If working daily, if working for 4 hours or more, they shall be entitled to full-day rations, less than 4 hours, half-day rations.

b) For workers employed under piece-rate or volume-based contracts, the number of working days eligible for rations shall be calculated based on the standard working day and the degree of completion of assigned tasks. In cases where the standard is exceeded, the number of working days eligible for rations shall not exceed the standard working days in the month chosen by the company but shall not exceed 26 days/month if calculated monthly, or 6 days/week if calculated weekly.

II. SAFETY INCENTIVE REGIME

1. The safety incentive regime prescribed in Appendix No. 02 attached hereto shall apply to the specified subjects.

2. The safety incentives include two levels: 20% and 15% of the salary grade and position.

These levels apply to the subjects specified in Appendix No. 02 mentioned above.

3. Principles of Incentives

a) Collectives and individuals who comply with production and business safety regulations according to standards, procedures, and norms issued by competent state authorities shall be entitled to monetary rewards.

b) Collectives and individuals causing accidents resulting in safety losses shall not be rewarded for the entire month, quarter, or year from the date of the accident based on the extent of damage, scope of impact, and specific responsibility.

c) Companies and units must establish safety reward regulations consistent with their production and business activities to reward collectives and individuals.

4. Reward Fund

a) The safety reward fund is calculated using the following formula:

Vtt = Lđh x Hcb x Lttct x Mtt x 12 months

Where:

- Vtt: Safety reward fund calculated annually;

- Lđh: Workers entitled to rewards;

- Hcb: Average salary grade, position, and professional wage coefficient;

- Lttct: Company's minimum wage level (the minimum wage level used to calculate the unit price of wages approved by competent state authorities);

- Mtt: Safety reward level received (15%, 20%);

b) The reward fund shall be used based on the provisions set out in points 1, 2, and 3 above. In cases where safety is not ensured but expenditures exceed the prescribed reward fund, corresponding reductions shall be made in the following year.

III. DIVER ALLOWANCE

1. Applicability: Divers classified under Pay Scale B.7 during diving operations serving oil and gas projects, transportation, water conservancy works, etc.

2. Allowance Level: When diving deeper than 3 meters, each hour of actual diving shall be entitled to an allowance calculated as a percentage of the general minimum wage as follows:

- From 3 meters to 10 meters, apply a rate of 0.1;

- Over 10 meters to 20 meters, apply a rate of 0.25;

- Over 20 meters to 30 meters, apply a rate of 0.4;

- Over 30 meters to 40 meters, apply a rate of 0.55;

- Over 40 meters to 50 meters, apply a rate of 0.7;

- Over 50 meters, for every additional 10 meters dived, the allowance increases by 0.1 but the maximum rate does not exceed twice the general minimum wage.

For complex, difficult, and dangerous dives such as diving in areas with strong currents, large waves, in regions with blasting, dangerous animals, underwater welding or cutting in narrow spaces with short visibility, an additional 30% of the corresponding rate shall be applied.

3. Calculation Method: Diver allowances are calculated based on actual diving hours. The general minimum wage from January 1, 2005 to September 30, 2005 was 2,900,000 VND/month; from October 1, 2005 onwards, it is 3,500,000 VND/month. In cases where the state adjusts the general minimum wage, the allowance will be calculated based on the new general minimum wage.

IV. SEAWARD TRAVEL ALLOWANCE

1. Applicability includes workers of Vietnam Oil and Gas Corporation during actual working days on offshore platforms, service vessels, oil transport vessels, and offshore oil facilities.

2. Allowance Level: 110,000 VND/day (equivalent to 7 USD/day).

3. Calculation Method: Seaward travel allowance is calculated based on actual working days at sea.

V. SHORTAGE OF DRINKING WATER REGIME

1. Applicability: Workers living and working in areas lacking fresh water as stipulated.

2. Conditions for Entitlement

- Working and residing in areas lacking fresh water due to natural conditions that cannot be overcome for one month or longer.

- Working on marine vessels unable to store fresh water.

3. Calculation Method: Freshwater costs for personal use by workers are calculated based on the following five criteria:

- Actual number of workers working and residing on vessels or in areas lacking fresh water;

- Freshwater consumption standard at an average of 6 cubic meters/person/month;³- Number of days without fresh water in a year;

- Price of freshwater (including transportation costs from purchase location to worker residence and workplace);

- Water expenses already included in worker salaries (3,000 VND/cubic meter x 6 cubic meters/person/month).³ fresh water (including transportation costs from the purchase location to the place of residence and work of the employee);

- Water expenses for daily use already included in the salary of the employee (3,000 VND/m³ /person/month).³/person/month).

Based on the above criteria to determine the difference between the actual purchase and transportation costs for water supply according to the standard, minus the cost of water supply already included in wages.

Example: A company has 200 workers living and working in a region lacking fresh water for 4 months per year. The cost of purchasing and transporting 1 cubic meter (m³) of fresh water from the purchase location to the workers' residence and workplace is 9,000 dong/m³ . Therefore, the cost of fresh water recorded in production costs or business expenses in one year is:

(9,000 dong/m³ - 3,000 dong/m³) x 200 people x 6 m³/person/month x 4 months = 28,800,000 dong.
VI. IMPLEMENTATION

1. Responsibilities of the company, unit

a) For companies, units with employees applying the quantitative meal allowance regime as stipulated in Section I above, the company, unit must organize meals at the workplace for employees. Based on the prescribed meal level, the company, unit deducts 70% from production costs or business expenses, while the remaining 30% is contributed by the employee. The company, unit shall not pay money or reduce the meal allowance by not collecting the 30% contribution from the employee.

In cases where production organization, job nature, or scattered work makes it impossible for the company to provide meals at the workplace, the company shall issue cash equivalent to 70% of the prescribed quantitative allowance. The company must coordinate with the same-level trade union committee to compile a list of employees engaged in scattered work who will receive cash allowances, which must be submitted to the Board of Directors or General Director for approval and public announcement within the company.

Employees receiving the quantitative meal allowance shall not enjoy the meal allowance during working hours or the allowance for heavy and hazardous work in kind. When transferring to other jobs not covered by the quantitative meal allowance, they shall cease to enjoy this allowance.

b) For companies with employees applying the safety bonus regime as stipulated in Section II above, the company must annually establish a safety bonus fund and cooperate with the company's trade union committee to develop a safety bonus regulation to be approved by the Chairman of the Board of Directors or the General Director. The regulation should base its criteria for rewarding groups and individuals, as well as cases of safety breaches that disqualify them from bonuses, on national standards, procedures, and regulations on safety issued by competent state authorities. The safety bonus regulation must be publicly announced within the company and disseminated to each employee.

c) For companies with employees applying diving allowances and sea travel allowances, the company must plan and pay diving allowances and sea travel allowances to employees as prescribed in Sections III and IV above.

d) The company is responsible for providing drinking water to employees working in regions lacking fresh water as stipulated in Section V above. In cases where production organization, job nature, or scattered work in remote areas make it impossible to provide regular drinking water, the company shall issue cash to employees for purchasing fresh water (the difference between the actual purchase and transportation costs minus the cost of drinking water already included in wages).

2. Ministries, sectors, People's Committees of provinces and centrally governed cities have the responsibility:

- To guide companies under their management to implement regimes in accordance with state regulations.

- The People's Committee of provinces and centrally governed cities shall define regions lacking fresh water based on the proposal of the Department of Labor, Invalids, and Social Affairs.

- To inspect and audit the implementation of policies and benefits for employees in companies under their management.

3. Accounting: 70% of the quantitative meal allowance, safety bonuses, diving allowances, sea travel allowances, and costs for purchasing fresh water as stipulated in Sections I, II, III, IV, and V shall be recorded in production costs or business expenses but shall not be included in the wage rate or wage fund according to the company's wage rate.

VII. EFFECTIVE DATE OF IMPLEMENTATION

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

Repeal Circular No. 06/LB-TT dated February 28, 1997, jointly issued by the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance guiding the allowance for certain special professions in enterprises; Circular No. 20/1999/TT-BLDTBXH dated September 8, 1999, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decision No. 121/1999/QD-TTg dated May 8, 1999, of the Prime Minister regarding the salary and income of Vietnam Electricity Corporation; and Circular No. 04/1999/TTLT-BLDTBXH-BTC dated January 9, 1999, jointly issued by the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance guiding the allocation of foreign currency costs for quantitative meals for workers and officials working on overseas shipping vessels.

2. The provisions of this Circular shall take effect from January 1, 2005.

During the implementation process, if there are difficulties, please report to the joint ministries of Labor, Invalids, and Social Affairs and Finance for consideration and resolution./.