Joint Circular No. 60/2003/TTLT-BNV-BTC guiding the amendment and supplementation of policies and target groups for streamlining the establishment.

JOINT CIRCULAR

GUIDELINES FOR AMENDING AND SUPPLEMENTING POLICIES AND OBJECTS OF STAFF REDUCTION

- Pursuant to Resolution No. 09/2003/NQ-CP dated July 28, 2003 of the Government on amending and supplementing Resolution No. 16/2000/NQ-CP dated October 18, 2000 of the Government on staff reduction in administrative agencies and public institutions;

- Pursuant to Decree No. 03/2003/NĐ-CP dated January 15, 2003 of the Government on adjusting salaries, social allowances, and reforming the salary management mechanism;

In order to continue implementing the policy of staff reduction according to the guidelines set forth in Circular No. 73/2000/TTLT-BTCCBCP-BTC dated December 28, 2000 of the Government Civil Service Organization Board (now the Ministry of Home Affairs) and the Ministry of Finance; the Ministry of Home Affairs and the Ministry of Finance jointly issue guidelines for amending and supplementing policies and objects of staff reduction as follows:

I. Continue to implement the policy of staff reduction in administrative agencies and public institutions according to Resolution No. 16/2000/NQ-CP of the Government and Circular No. 73/2000/TTLT-BTCCBCP-BTC dated December 28, 2000 of the joint issuance of the Government Civil Service Organization Board (now the Ministry of Home Affairs) and the Ministry of Finance guiding the implementation of the staff reduction policy in administrative agencies and public institutions until the end of 2005.

II. Supplement the scope of objects and apply the staff reduction policy according to Resolution No. 16/2000/NQ-CP dated October 28, 2000 of the Government as follows:

1. Cadres, civil servants, and employees within the state budget, receiving salaries from the state budget and income from public services as prescribed by law directly working in public organizations in fields such as education, training, health care, culture and information, physical education and sports, scientific research, technology transfer, and other public services managed by central ministries and local authorities.

1.1. The objects of staff reduction include those persons specified in Point 2, Part II of Joint Circular No. 73/2000/TTLT-BTCCBCP-BTC dated December 28, 2000 of the joint issuance of the Government Civil Service Organization Board (now the Ministry of Home Affairs) and the Ministry of Finance guiding the implementation of the staff reduction policy in administrative agencies and public institutions.

1.2. In 2003, implement the staff reduction policy for teachers in mountainous provinces and the Central Highlands as stipulated in Point 1.1, Section 1, Part II of this Circular, including:

- Four provinces in the Central Highlands: Lam Dong, Dak Lak, Gia Lai, Kon Tum.

- Mountainous provinces: Lai Chau, Son La, Hoa Binh, Ha Giang, Tuyen Quang, Thai Nguyen, Yen Bai, Cao Bang, Lao Cai, Bac Can, Lang Son, Quang Ninh, Phu Tho, Bac Giang.

- Mountainous districts and mountainous communes in provinces with mountainous areas.

1.3. From January 1, 2004, apply the staff reduction policy to all objects mentioned in Section 1, Part II of this Circular.

2. Positions such as members of the Board of Directors, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, members of the Supervisory Board, which must be reorganized due to restructuring state-owned enterprises, shall be subject to the staff reduction policy according to Resolution No. 16/2000/NQ-CP of the Government from the date Resolution No. 09/2003/NQ-CP dated July 28, 2003 comes into effect.

III. Amend and supplement the staff reduction policy according to Resolution No. 16/2000/NQ-CP of the Government

1. Funding for implementing the staff reduction policy for positions in state-owned enterprises as specified in Section 2, Part II of this Circular shall be allocated from the fund for supporting surplus labor as prescribed in Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government.

2. The application of the minimum wage when implementing the staff reduction policy in administrative agencies and public institutions and positions under the management of state-owned enterprises shall be implemented according to Resolution No. 16/2000/NQ-CP dated October 18, 2000 and Resolution No. 09/2003/NQ-CP dated July 28, 2003 of the Government.

2.1. The minimum wage level for calculating monthly salary for severance pay based on years of social insurance contributions for those who leave their jobs due to staff reduction is as follows:

2.1.1. The minimum wage level of 210,000 VND/month for calculating monthly salary for severance pay based on years of social insurance contributions before January 1, 2003.

2.1.2. The minimum wage level of 290,000 VND/month for calculating monthly salary for severance pay based on years of social insurance contributions from January 1, 2003.

2.2. The amount of retirement benefits before age; benefits when assigned to work at semi-governmental entities; job-seeking allowance; payment of salary during time spent studying to find employment; and six months' allowance for cases where study is undertaken to change careers before leaving the job shall be applied at the minimum wage level of 290,000 VND/month.

2.3. The method of calculating the base salary and salary-related allowances (if applicable) as prescribed in Joint Circular No. 73/2000/TTLT-BTC-BTCCBCP dated December 28, 2000 guiding the implementation of Resolution No. 16/2000/NQ-CP dated October 18, 2000 of the Government on the staff reduction policy in administrative agencies and public institutions.

Example: Mr. Tran Van D, subject to staff reduction, has a basic salary coefficient of 2.5 and a regional allowance coefficient of 0.3. As of his termination date in November 2003, he had 10 years and 2 months of social insurance contributions. His severance benefits are calculated as follows:

- Monthly salary and allowances that Mr. D enjoyed before January 1, 2003 for calculating severance pay.

210,000 VND x (2.5 + 0.3) = 588,000 VND/month

- Monthly salary and allowances that Mr. D enjoyed from January 1, 2003 for calculating severance pay.

290,000 VND x (2.5 + 0.3) = 812,000 VND/month

a. The amount of severance pay according to Decree No. 96/1998/NĐ-CP.

- Job-seeking allowance

812,000 VND x 3 months = 2,436,000 VND

- Severance pay

588,000 VND x 9 months + 812,000 VND x 1 month = 6,104,000 VND

b. The amount of severance pay according to Resolution No. 16/2000/NQ-CP is

588,000 VND x 9 months + 812,000 VND x 1 month = 6,104,000 VND

The total amount Mr. D will receive upon termination is (a+b)

2,436,000 VND + 6,104,000 VND + 6,104,000 VND = 14,644,000 VND

2.4. Additional funding due to the adjustment of the minimum wage to cover the payments of benefits for the implementation of the staff reduction policy according to Resolution No. 16/2000/NQ-CP dated October 18, 2000 and Resolution No. 09/2003/NQ-CP dated July 28, 2003 of the Government shall be provided from the state budget.

3. The number of officials, civil servants, and public employees in administrative agencies and public institutions who have been resolved under the streamlining policy pursuant to Resolution No. 16/2000/NQ-CP dated October 18, 2000, and Resolution No. 09/2003/NQ-CP dated July 28, 2003 of the Government shall be implemented as follows:

3.1. For those who are surplus due to restructuring the organizational structure; addressing overlapping functions and tasks among agencies and units; adjusting the standard positions of officials, civil servants, and public employees in administrative agencies and public institutions, the staffing quota of the agency or unit will decrease accordingly; as there are no longer job positions.

3.2. For those who, although within the organizational structure and job positions, due to poor health, lack of professional skills, etc., are unable to fulfill their job responsibilities and thus are subject to the streamlining policy, the agency or unit may retain the corresponding staffing quota to recruit qualified personnel to replace them, thereby continuously improving the quality of the cadre, civil servant, and public employee workforce.

IV. Implementation

1. Based on the results of implementing Resolution No. 16/2000/NQ-CP dated October 18, 2000 of the Government during the period from 2001 to 2002 (Phase 1), ministries, sectors, and localities shall compile, evaluate the implementation situation, and report relevant data according to Table 1 (attached) to the Ministry of Home Affairs and the Ministry of Finance for consolidation and reporting to the Government. This should be completed by mid-October 2003 before proceeding with the next phase of streamlining (Phase 2).

2. The allocation of funds from the labor surplus support fund to implement the streamlining policy for positions in state-owned enterprises shall be carried out in accordance with the provisions of Decree No. 41/2002/NĐ-CP dated April 11, 2002 of the Government and related guiding documents. When preparing Tables 2, 3, 4, and 5 issued together with Circular Joint Circular No. 73/2000/TTLT-BTCCBCP-BTC, state-owned enterprises (if applicable) shall be recorded separately in a dedicated section (according to the attached model).

V. Implementation Provisions

This Circular takes effect concurrently with the effectiveness of Resolution No. 09/2003/NQ-CP dated July 28, 2003 of the Government. Any difficulties encountered during implementation should be reported to the Ministry of Home Affairs and the Ministry of Finance for study and resolution.