Circular No. 36 TC/CN guides the classification and salary grading for state-owned insurance companies under the Vietnam Insurance Corporation based on their actual revenue and the number of stable business operations implemented. These companies are divided into four categories from Category I to Category IV, with different salary levels for the leaders of these insurance companies.
Scope of application
State-owned insurance companies under the Vietnam Insurance Corporation
Key points
- Insurance companies are classified from Category I to Category IV based on their actual revenue and the number of stable business operations implemented.
- Category 4: Below 20 points, Category 3: From 20 to below 60 points, Category 2: From 60 to below 100 points, Category 1: 100 points or more.
- The leaders of insurance companies (Directors, Deputy Directors, and Heads/Deputy Heads of Departments) are graded according to a specific salary scale.
- Actual revenue counts as 1 point for every 25 million VND for Domestic Insurance and 100 million VND for Foreign Insurance.
- The number of stable business operations implemented for over three years counts as 4 points for Domestic Insurance and 6 points for Foreign Insurance.
🌐 Social impact of this document
- Positive impact: Ensuring fairness in classification and salary grading, enhancing management efficiency.
- Negative impact: Time and resource costs for reviewing and adjusting salaries for company leaders.
❓ Frequently asked questions
What criteria are used to classify insurance companies?
Insurance companies are classified based on actual revenue (1 point for every 25 million VND for Domestic Insurance and 100 million VND for Foreign Insurance) and the number of stable business operations implemented for at least three years (4 points for Domestic Insurance and 6 points for Foreign Insurance).
Which specific salary scale are the leaders of insurance companies graded according to?
The leaders of insurance companies are graded according to a specific salary scale, for example: Directors of Category IV from 374-405-438 dong.
How will the salary grade of company leaders be adjusted if the company upgrades its category?
If the company upgrades its category and the current salary grade has been held for three years or more, it will be placed at Grade 2 of that category. If less than three years, it will be placed at Grade 1.
Which insurance companies will be classified?
The Ministry of Finance decides the classification for companies from Category II to Category IV, while the Vietnam Insurance Corporation prepares separate files for submission to the Ministry for review and approval of Category I companies.
Which insurance companies will have their salary grades adjusted?
Insurance companies that upgrade their category and meet the scoring criteria will be reviewed and regraded for their leaders' salaries, for example: Directors of Category IV from 374-405-438 dong.
Full text
|
MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ------------------------------ |
|
Number: 36 TC/CN |
Hanoi, August 22, 1990 |
CIRCULAR
Guidelines for grading and setting salaries for state insurance companies under the Vietnam Insurance Corporation
_____________________________
Pursuant to Decree No. 155/HĐBT dated October 15, 1988 of the Council of Ministers on the functions and tasks of the organizational structure of the Ministry of Finance, the Ministry of Finance issued Decision No. 27 TC/QĐ-TCCB dated February 27, 1989, transferring the state insurance industry organization into the Vietnam Insurance Corporation and provincial and municipal state insurance companies directly under the central authority of the Vietnam Insurance Corporation (hereinafter referred to as Insurance Companies).
To implement Article 2 of Decision No. 27TC/QĐ-TCCB dated February 27, 1989; after receiving the agreement from the Ministry of Labor, Invalids and Social Affairs (Document No. 1639/LĐ-TBXH dated July 13, 1990), the Ministry of Finance guides certain points regarding the grading and setting salaries for Insurance Companies as follows:
I. REGARDING THE GRADING OF INSURANCE COMPANIES:
Insurance Companies are divided into four grades, from Grade I to Grade IV. The grading is based on the following criteria and principles:
1. Grading criteria:
Based on Circular No. 17/LĐ-TT dated November 14, 1985 of the Ministry of Labor guiding the ranking of enterprises, companies, etc., and considering the specific nature of the state insurance industry, the Ministry of Finance has established two main indicators as the basis for assessing the grading of Insurance Companies as follows:
- Indicator 1: Revenue realized (in Vietnamese Dong).
- Indicator 2: Number of business operations that have been implemented stably for more than three years.
In addition to the two main indicators, there is also a adjustment indicator applied to units operating in difficult areas.
2. Grading method:
Based on the principle of scoring each main indicator, the scoring method is as follows:
|
Type of insurance Main indicator |
Domestic insurance |
Foreign insurance |
|
1. Revenue realized |
25 million VND is scored 1 point |
100 million VND is scored 1 point |
|
2. Number of business operations that have been implemented stably for over three years |
1 operation is scored 4 points |
1 operation is scored 6 points |
- Adjustment coefficient: H = 10% for mountainous provinces: Son La, Lai Chau, Hoang Lien Son, Cao Bang, Lang Son, Bac Thai.
(The score of the adjustment indicator cannot exceed 10% of the total score of the two main indicators).
Summary table for grading Insurance Companies:
|
Company Rank |
Class 4 |
Class 3 |
Class 2 |
Class 1 |
|
Total score according to the indicators |
Below 20 points |
From 20 to less than 60 points |
From 60 to less than 100 points |
100 points and above |
Based on the above regulations and the financial settlement data of the state insurance industry's business activities in 1989, the Vietnam Insurance Corporation scores and proposes the grading for 44 provincial Insurance Companies for the Ministry to review. The Ministry of Finance decides the grading for Companies from Grade 2 to Grade 4. For Grade 1 Companies, the Vietnam Insurance Corporation prepares separate files for submission to the Ministry for the Ministry to seek the agreement of the Ministry of Labor, Invalids and Social Affairs before the Ministry of Finance issues the decision.
II. REGARDING SETTING SALARIES FOR LEADERS OF INSURANCE COMPANIES:
Leaders of Insurance Companies (Directors, Deputy Directors, and Heads and Deputy Heads of Departments) are ranked according to the salary scale below:
|
Salary grade Grades Position |
Less than 50 points |
From 50 to less than 70 points |
From 70 to less than 90 points |
From 90 to 100 points |
|
Credit organization branch in province/city and basic credit cooperative… |
374-405-438 |
388-420-455 |
438-474-513 |
474-513-555 |
|
Deputy Director |
333-359-388 |
346-374-405 |
388-420-455 |
420-455-493 |
|
Head of department Deputy head of department |
|
|
346-374-405 310-333-359 |
374-405-438 333-359-388 |
|
Head of HR and Administration Department |
|
|
310-333-359 |
333-359-388 |
|
Deputy head of HR and Administration Department |
|
|
290-310-333 |
300-322-346 |
After receiving the Ministry of Finance's decision on the grading of Insurance Companies, the Vietnam Insurance Corporation will review and reassign salaries for leaders of Insurance Companies according to the following principles:
a) For Companies that have been upgraded:
If the current salary grade is equal to or higher than Grade 1 and has been held for three years or more, they will be assigned to Grade 2 of that grade. If not, they will be assigned to Grade 1.
If the current salary grade is equal to or higher than Grade 2 of the new Company grade and has been held for three years or more, they will be assigned to Grade 3 of that grade. If not, they will be assigned to Grade 2.
b) For Companies downgraded: The current salary grade will be temporarily retained.
According to these principles, the Vietnam Insurance Corporation will prepare a list of leaders who meet the conditions for adjusting their salary grades for the Ministry to sign the decision or issue the decision according to the Ministry of Finance's management level of cadres.
The above are some guidelines on grading and setting salaries for provincial Insurance Companies. The General Director of the Vietnam Insurance Corporation and the Directors of the Companies should study and implement the contents of this circular accurately.
During the implementation process, if there are any difficulties, the Companies and the Vietnam Insurance Corporation should report to the Ministry for consideration and resolution./.
|
KT/BỘ TRƯỞNG BỘ TÀI CHÍNH DEPUTY MINISTER (Signed) Pham Van Trong |
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