Joint Circular No. 82/2005/TTLT/BNV-BTC amending and supplementing Joint Circular No. 01/2005/TTLT/BNV-BTC dated January 5, 2005, issued by the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of transferring old salary grades to new salaries for cadres, civil servants, and public officials.

JOINT CIRCULAR

Amending and supplementing Circular Joint Circular No. 01/2005/TTLT/BNV-BTC dated January 5, 2005

of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the transition from old salary scales to new salary scales for officials, civil servants, and public employees

implementation of new salaries for officials, civil servants, and public employees

Pursuant to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the salary system for officials, civil servants, public employees, and armed forces (hereinafter referred to as Decree No. 204/2004/NĐ-CP), the Ministry of Home Affairs and the Ministry of Finance issued Joint Circular No. 01/2005/TTLT-BNV-BTC dated January 5, 2005 guiding the implementation of the transition from old salary scales to new salary scales for officials, civil servants, and public employees (hereinafter referred to as Joint Circular No. 01/2005/TTLT). To date, during the process of implementation at ministries, sectors, and localities, some difficulties have arisen. After exchanging opinions with relevant ministries and sectors, the Ministry of Home Affairs and the Ministry of Finance guide the amendment and supplementation of Joint Circular No. 01/2005/TTLT as follows:

I. FOR OFFICIALS AND CIVIL SERVANTS AT COMMUNE, WARD, AND TOWN LEVELS

Specialized officials at commune, ward, and town levels (hereinafter collectively referred to as commune level) shall implement salary grading according to their current specialized positions based on the principle and method of transitioning from old salary scales to new salary scales (conversion table number 2) stipulated in Clause 1, Section II of Joint Circular No. 01/2005/TTLT. Non-specialized officials at commune level, village, and neighborhood units that do not fall under the salary grading category but belong to the category entitled to monthly allowances decided by the People's Committee of provinces and centrally-administered cities according to Article 7 of Decree No. 121/2003/NĐ-CP dated October 21, 2003 of the Government on the system and policies for officials and civil servants at commune, ward, and town levels (hereinafter referred to as Decree No. 121/2003/NĐ-CP). Civil servants at commune level shall implement salary grading according to their current specialized positions based on the principle and method of transitioning from old salary scales to new salary scales (conversion table number 5) stipulated in Clause 5, Section II of Joint Circular No. 01/2005/TTLT. Now, supplementary guidance on transitioning from old salary scales to new salary scales for specialized officials and civil servants at commune level is provided as follows:

1. Specialized officials and civil servants at commune level who are currently receiving disability benefits of various categories without being recipients of retirement benefits or work incapacity allowances shall be graded according to their current specialized positions or specialized functions as prescribed in Decree No. 204/2004/NĐ-CP and guided in Joint Circular No. 01/2005/TTLT.

2. The percentage of re-election allowance for transitioning from old salary scales to new salary scales into the second grade of the current specialized position at commune level (conversion table number 2) is the 5% re-election allowance of specialized officials at commune level currently receiving at the time of transitioning from old salary scales to new salary scales. From October 1, 2004, implementing the new salary system for specialized officials at commune level as prescribed in Decree No. 204/2004/NĐ-CP and guided in Joint Circular No. 01/2005/TTLT, they will cease to receive the 5% re-election allowance.

3. Transition from old salary scales to new salary scales for commune-level security team officials.

a) From October 1, 2004 to December 31, 2004: Based on the current position held and the old salary scale currently receiving according to Decree No. 121/2003/NĐ-CP, transition to the new salary scale according to the guidance in Joint Circular No. 01/2005/TTLT. For the position of Deputy Commune Security Team Leader (Deputy Military Commander), the allowance system for non-specialized officials at commune level is implemented according to Article 7 of Decree No. 121/2003/NĐ-CP.

b) From January 1, 2005: temporarily maintain the salary and allowances already received (hereinafter referred to as temporary receipt) according to the guidance in point a, Clause 3 of this section until the issuance of a circular guiding the implementation of salary and allowance systems for commune-level security team officials according to Decree No. 184/2004/NĐ-CP dated November 2, 2004 of the Government (and any subsequent decree amending and supplementing this decree, if applicable) detailing the implementation of the Law on Self-Defense Militia (hereinafter referred to as the Circular guiding the implementation of Decree No. 184/2004/NĐ-CP). In case the Circular guiding the implementation of Decree No. 184/2004/NĐ-CP stipulates a higher benefit than the temporary receipt, the difference in salary and allowances will be back-paid from January 1, 2005, and social insurance contributions will be made accordingly; in case the Circular guiding the implementation of Decree No. 184/2004/NĐ-CP stipulates a lower benefit than the temporary receipt, the new benefit will be applied from the effective date of the Circular guiding the implementation of Decree No. 184/2004/NĐ-CP, and there will be no issue of refunding the previously received higher temporary receipt.

c) For the position of Commune Security Team Leader (Military Commander): Implement the provisions in point d, Clause 2, Article 4 of Decree No. 121/2003/NĐ-CP, if the new salary according to the position assigned according to the guidance in points a and b of Clause 3 of this section is lower than the current living allowance, the difference will continue to be maintained up to the end of 2005, after which the new salary will apply.

4. Transition from old salary scales to new salary scales for civil servants at commune level.

a) Civil servants at commune level who graduated from university or higher education and whose major matches the current position held shall be graded according to the specialist rank (code 01.003); those who graduated from college and whose major matches the current position held shall be graded according to the assistant specialist rank (code 01.004); those who graduated from secondary school and whose major matches the current position held shall be graded according to the clerk rank (code 01.008). The transition from old salary scales to new salary scales from October 1, 2004, shall be implemented according to the guidance in Clause 5, Section II of Joint Circular No. 01/2005/TTLT.

b) Civil servants at commune level who graduated from college and whose major matches the current position held shall, from the effective date of this Circular, be transferred to the new salary scale for type A0 civil servants. The method of transferring to the new salary scale for type A0 civil servants shall be implemented according to the guidance in Circular No. 80/2005/TT-BNV dated August 10, 2005 of the Ministry of Home Affairs guiding the implementation of the transition from old salary scales to new salary scales for officials, civil servants, and public employees with a college degree matching their current major.

c) Civil servants at the commune level who are currently working without having completed their specialized training as prescribed, and are currently receiving the old salary coefficient of 1.09 (as stipulated in point c, Clause 2, Article 4 of Decree No. 121/2003/NĐ-CP), shall from October 1, 2004 be transferred to a new salary coefficient of 1.18 (as stipulated in Salary Table No. 4 issued together with Decree No. 204/2004/NĐ-CP) until December 31, 2006. Thereafter, starting from January 1, 2007, 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-level civil servants, then the People's Committee at the commune level shall propose to the Chairman of the People's Committee at the district level to examine each case individually and make a decision.

5. In cases where the original civil servant at the commune level was elected to hold a specialized position at the commune level, and at the time of transferring from the old salary scale to the new salary scale, they were assigned to the old salary scale according to the current specialized position at the commune level (as stipulated in point c, Clause 1, Article 4 of Decree No. 121/2003/NĐ-CP), then the transfer to the new salary scale shall be based on the old salary coefficient of the current specialized position held. For cases where specialized staff members are currently enjoying retention of the difference between the old salary coefficient according to the commune-level civil servant specialty and the old salary coefficient of the current specialized position held, the retained difference coefficient shall be recalculated based on the new salary coefficient and reduced accordingly when the specialized staff member receives a higher salary grade.

Example 1. Ms. Dao Thi A, formerly a civil servant of Commune B, was assigned the old salary coefficient of 1.94 at Grade 5 of the Cadre Rank from January 1, 2004. On May 1, 2004, Ms. A was elected to hold the position of Chairman of the Farmers' Association of Commune B, assigned to the old salary coefficient of 1.70 for this specialized position and enjoyed retention of the difference coefficient of 0.24 (1.94 - 1.70). Ms. A was transferred from the old salary scale to the new salary scale from October 1, 2004 as follows:

The old salary coefficient of 1.70 for the position of Chairman of the Farmers' Association of Commune B was transferred to the new salary coefficient of 1.75 at Grade 1 of this specialized position. The retained difference coefficient of 0.24 (based on the old salary) of Ms. A was recalculated based on the new salary coefficient from October 1, 2004 as follows: The old salary coefficient of 1.94 at Grade 5 of the Cadre Rank was transferred to the new salary coefficient of 2.66, which is higher by 0.91 (2.66 - 1.75) than the new salary coefficient of 1.75 of the current position of Chairman of the Farmers' Association of Commune B, so Ms. A received a new retained difference coefficient of 0.91 (replacing the old retained difference coefficient of 0.24); this retained difference coefficient of 0.91 will be reduced accordingly when Ms. A receives a higher salary than the new salary coefficient of 1.75 of the current position of Chairman of the Farmers' Association of Commune B.

II. FOR ELECTION POSITIONS

Election positions that fall under the category of specialized and vocational salary scales shall implement the new salary scale according to the administrative civil service rank and grade and enjoy the leadership position allowance of the current election position held, following the principle and method of transferring from the old salary scale to the new salary scale (Transfer Table No. 3) as prescribed in Clause 2, Section II of Circular Joint Circular No. 01/2005/TTLT. Now, additional guidance on the method of transferring from the old salary scale to the new salary coefficient into the administrative civil service rank for these election positions is provided as follows:

1. In cases where before holding the current election position, the individual was assigned the old salary scale at the civil service rank, professional rank, or specialized and vocational position in the Court or Prosecution (hereinafter referred to as the rank).

a) In cases where the old salary scale was assigned at a lower rank than the administrative civil service rank, the transfer shall be made according to the current election position held (in Transfer Table No. 3). If calculating the new salary scale according to the lower rank results in a new salary coefficient plus the seniority allowance exceeding the ceiling (if applicable) being higher than the new salary coefficient transferred according to the current election position held, then the transfer to the new salary scale shall still be based on the old salary coefficient of the current election position held, in accordance with the provisions of Circular Joint Circular No. 01/2005/TTLT. At the same time, they shall also enjoy an additional retained difference coefficient to equalize the new salary coefficient plus the seniority allowance exceeding the ceiling (if applicable) calculated based on the result of transferring the new salary scale at the lower rank, and cease to enjoy the retained difference coefficient based on the old salary (if applicable); this retained difference coefficient based on the new salary (rounded to two decimal places) shall be reduced accordingly when the officer receives a salary increase at the administrative civil service rank according to the current election position held.

Example 2. Mr. Dang Van B, formerly Director of District C, was assigned the old salary coefficient of 4.06 at Grade 10 of the Specialist Rank from September 1, 2003 and enjoyed the leadership position allowance of the Director of District position with an old coefficient of 0.20. On June 1, 2004, Mr. B was elected to hold the position of Deputy Chairman of the People's Committee of District C, assigned the old salary coefficient of 4.00 for this election position and enjoyed a retained difference coefficient of 0.26 (4.06 + 0.20 - 4.00); during his tenure from September 1, 2003 to the present, Mr. B has always fulfilled his assigned tasks and has not been disciplined. Mr. B was transferred from the old salary scale to the new salary scale from October 1, 2004 as follows:

Based on the old salary coefficient of 4.00 for the current election position held, according to the provisions of Circular Joint Circular No. 01/2005/TTLT, Mr. B was transferred to Grade 2 of the new salary coefficient of 4.74 at the Senior Specialist Rank, with the next salary grade review period starting from June 1, 2004 (the date he assumed the position of Deputy Chairman of the People's Committee of District C). However, since Mr. B was previously assigned the old salary coefficient of 4.06 at Grade 10 of the Specialist Rank from September 1, 2003 (before assuming the position of Deputy Chairman of the People's Committee of District C), the calculation of transferring to the new salary scale would place him at the salary coefficient of 4.98 at Grade 9 of the Specialist Rank and enjoy a 6% seniority allowance exceeding the ceiling, with a total coefficient of 5.28 (4.98 + 6%VK) which is higher than the new salary coefficient of 4.74 at Grade 2 of the Senior Specialist Rank transferred according to the current position of Deputy Chairman of the People's Committee of District C, so starting from October 1, 2004, Mr. B shall enjoy an additional retained difference coefficient of 0.54 (5.28 - 4.74) and cease to enjoy the old retained difference coefficient of 0.26; this retained difference coefficient based on the new salary of 0.54 shall be reduced accordingly when Mr. B receives a salary increase at the Senior Specialist Rank.

b) In cases where the old salary grade was at the same level or higher within the same administrative civil servant rank before being reassigned according to the current elected position title (in Table 3 for reassignment), the new salary shall be assigned at the same level or higher; the time for considering promotion to the next salary grade or for enjoying seniority allowances exceeding the ceiling (if applicable) shall be calculated from the date of holding the previous salary grade within the administrative civil servant rank prior to assuming the current elected position.

Example 3. Ms. Pham Thi C, formerly a Senior Specialist of Province D, was assigned to Grade 5 with an old salary coefficient of 4.47 since December 1, 2002. On June 1, 2004, Ms. C was elected to hold the position of Deputy Head of the Provincial People's Council and was assigned to an old salary coefficient of 4.60 for this elected position; during her service period from December 1, 2002 to the present, Ms. C has consistently fulfilled her assigned tasks and has not been disciplined. Ms. C was reassigned from her old salary to the new salary on October 1, 2004, as follows:

Prior to holding the elected position of Deputy Head of the Provincial People's Council, Ms. C had been assigned to Grade 5 in the Senior Specialist rank (which is two grades higher than the new salary grade assigned according to the elected position of Deputy Head of the Provincial People's Council currently held), therefore, starting from October 1, 2004, Ms. C was assigned to Grade 5 with a new salary coefficient of 5.76 in the Senior Specialist rank; the time for considering promotion to the next salary grade shall be calculated from December 1, 2002 (the date of assignment to Grade 5 in the Senior Specialist rank).

c) In cases where the old salary grade was in an administrative civil servant rank higher than the administrative civil servant rank to which the new salary is reassigned according to the current elected position (in Table 3 for reassignment), the old salary shall be reassigned to the new salary according to the higher administrative civil servant rank; the time for considering promotion to the next salary grade or for enjoying seniority allowances exceeding the ceiling (if applicable) shall be calculated from the date of assignment to the old salary coefficient in the previous rank before assuming the current elected position. If the new salary coefficient assigned according to the higher administrative civil servant rank is lower than the new salary coefficient assigned according to the current elected position (in Table 3 for reassignment), then the new salary coefficient shall be assigned at the nearest higher or equal coefficient in the administrative civil servant rank to which the new salary is reassigned (according to the higher rank) compared to the new salary coefficient assigned according to the current elected position; the time for considering promotion to the next salary grade shall be calculated from October 1, 2004 (the date when the new salary coefficient was applied according to Decree No. 204/2004/NĐ-CP).

Example 4. Mr. Tran Van G, formerly a Senior Senior Specialist of Province H, was assigned to Grade 1 with an old salary coefficient of 4.92 since January 1, 2004. On July 1, 2004, Mr. G was elected to hold the position of Chairman of the People's Committee of a provincial city (a provincial city is a Class II urban area) and was assigned to an old salary coefficient of 5.90 for this elected position. Mr. G was reassigned from his old salary to the new salary on October 1, 2004, as follows:

Prior to holding the elected position of Chairman of the People's Committee of a Class II urban area, Mr. G had been assigned to Grade 1 in the Senior Senior Specialist rank (a higher rank but with a new salary coefficient of 6.20, which is lower than the new salary coefficient of 6.44 at Grade 7 in the Senior Specialist rank for the current elected position of Chairman of the People's Committee of a Class II urban area), therefore, starting from October 1, 2004, Mr. G was reassigned from his old salary to the new salary at Grade 2 with a new salary coefficient of 6.56 in the Senior Senior Specialist rank (6.56 is the nearest higher coefficient compared to the salary coefficient of 6.44); the time for considering promotion to the next salary grade in the Senior Senior Specialist rank of Mr. G shall be calculated from October 1, 2004.

d) In cases where the old salary grade was in a different rank (not an administrative civil servant rank) equivalent to or higher than the administrative civil servant rank to which the new salary is reassigned according to the current elected position (in Table 3 for reassignment), the transfer of the old salary coefficient to the new salary coefficient shall be carried out according to the different rank, and then based on the new salary coefficient in the different rank, it shall be transferred to the nearest higher or equal new salary coefficient in the equivalent administrative civil servant rank. Based on the new salary coefficient reassigned to the equivalent administrative civil servant rank, the new salary shall be assigned to the elected candidate according to the guidance provided in points b and c of Clause 1.

2. Cases where the elected position currently held was preceded by other elected positions.

a) In cases where, during the period from April 1, 1993 to the date of reassigning the old salary to the new salary, the elected position held had an old salary coefficient lower than, equal to, or higher than the old salary coefficient of the current elected position, if reassigning the old salary to the new salary according to the previously held elected position results in the same administrative civil servant rank but with a higher salary grade (or being assigned to a higher administrative civil servant rank) compared to the new salary assigned according to the current elected position (in Table 3 for reassignment), then the new salary shall be reassigned to the administrative civil servant rank and grade according to the reassignment of the old salary to the new salary for the previously held elected position and shall enjoy leadership position allowances for the current elected position.

Example 5. Mr. Nguyen Van H held the position of Deputy Chairman of the District People's Committee and was assigned to an old salary coefficient of 4.00 since April 1, 1995, and during his second term (1999-2004) was re-elected and enjoyed a 5% re-election allowance. On May 1, 2004, Mr. H was elected to hold the position of Chairman of the District People's Committee and was assigned to an old salary coefficient of 4.90 and ceased to enjoy the 5% re-election allowance; during his service period from April 1, 1995 to the present, Mr. H has consistently fulfilled his assigned tasks and has not been disciplined. Mr. H was reassigned from his old salary to the new salary on October 1, 2004, as follows:

According to Table 3, the positions of Chairman and Deputy Chairman of the People's Committee of a district are both transferred to the rank of Senior Specialist (the Chairman is classified at level 4, the Deputy Chairman at level 2). However, if calculated based on the old salary coefficient of 4.00 from April 1, 1995 when Mr. H was elected as Deputy Chairman of the People's Committee of a district, from October 1, 2004, Mr. H was classified at level 5 with the new salary coefficient of 5.76 for the rank of Senior Specialist (one level higher than the new salary transfer according to his current position as Chairman of the People's Committee of a district). Therefore, since October 1, 2004, Mr. H has been classified at level 5 with the new salary coefficient of 5.76 for the rank of Senior Specialist and enjoys the leadership position allowance coefficient of 0.70 corresponding to his current position as Chairman of the People's Committee of a district. The time for considering the next salary increase (from level 5 to level 6) for Mr. H at the rank of Senior Specialist is counted from April 1, 2004 (the date he had held the old salary coefficient of 4.00 for nine years).

b) In special cases where there are complex salary developments due to holding different leadership positions (elected or appointed), the Heads of Ministries and Agencies under the Central Government, the Chairmen of the People's Committees of provinces and centrally-administered cities shall base their decisions on the relative cadre leadership team under their management, examine each specific case, and prepare explanatory documents regarding the work history, salary development, and positions (including proposed salary transfer from the old to the new system) for each individual to be sent to the Ministry of Home Affairs for unified opinions before making a decision. During the period without the opinion of the Minister of Home Affairs, the transfer from the old salary to the new salary shall be implemented strictly according to Circular Joint Circular No. 01/2005/TTLT and the guidance provided in this Circular.

3. In cases where the elected position is terminated but as of October 1, 2004, the person is still within the six-month period for retaining the old position salary, then starting from October 1, 2004, the old salary will be transferred to the new salary and the retention of salary will be carried out as follows:

a) Transfer the old salary (currently retained) into the new salary coefficient of the civil servant or public official rank appointed according to the principle that if appointed to a certain rank (equivalent or lower than the civil servant rank in Table 3), the salary will be classified according to that rank. The new salary coefficient assigned to the appointed rank is the highest new salary coefficient equal to or higher (if available) compared to the new salary coefficient in Table 3; the time for considering the next salary increase or enjoying the seniority allowance exceeding the framework (if applicable) at the appointed rank is counted from the day the old salary coefficient (currently retained) of the elected position was held.

If already classified at the highest salary grade in the appointed rank but still lower than the new salary coefficient in Table 3, then the difference coefficient for retention will be added to match the new salary coefficient in Table 3. The time for considering the seniority allowance exceeding the framework at the appointed rank is counted from the day the old salary coefficient (currently retained) of the elected position was held; the retention difference coefficient decreases correspondingly when the civil servant or public official enjoys the seniority allowance exceeding the framework in the appointed rank or is promoted to a higher rank.

b) Regarding salary retention: After transferring the old salary coefficient (currently retained) into the new salary coefficient of the appointed rank according to the guidance at point a, clause 3 above, starting from October 1, 2004, the civil servant stops enjoying the retention of the old position salary coefficient to enjoy the retention of the leadership position allowance coefficient of the previously held elected position until the end of the six-month salary retention period as prescribed.

Example 6. Mr. Vu Van M, former Deputy Chairman of the People's Committee of District N from December 1, 2002, transferred to work in the Ministry of P on August 1, 2004. According to regulations, Mr. M is currently within the six-month period for retaining the old salary coefficient of 4.00 of the Deputy Chairman position of the People's Committee of a district (from August 1, 2004 to January 2005). Starting from October 1, 2004, Mr. M will transfer the old salary to the new salary in the civil servant or public official rank and retain the salary as follows:

Regarding the transfer of the old salary to the new salary starting from October 1, 2004: If Mr. M meets the criteria for appointment to the rank of Senior Specialist, then Mr. M will be transferred from the old salary coefficient of 4.00 (currently retained) to the new salary coefficient of 4.74 at level 2 of the rank of Senior Specialist (as per Table 3); the time for considering the next salary increase at the rank of Senior Specialist for Mr. M is counted from December 1, 2002 (the day he held the old salary coefficient of 4.00). If Mr. M is appointed to a lower rank than Senior Specialist, then Mr. M will be classified at the new salary coefficient equal to or higher than the closest one in the appointed rank compared to the new salary coefficient of 4.74 (if the new salary coefficient at the highest level in the appointed rank is lower than 4.74, then Mr. M will be classified at the highest level in the appointed rank and will enjoy the additional difference coefficient for retention to match the new salary coefficient of 4.74; the retention difference coefficient decreases correspondingly when Mr. M enjoys the seniority allowance exceeding the framework in the appointed rank or is promoted to a higher rank).

Regarding salary retention: After implementing the transfer of the old salary of the elected position currently retained to the new salary according to the appointed rank mentioned above, starting from October 1, 2004, Mr. M will stop enjoying the retention of the old position salary coefficient of 4.00 (old) to enjoy the retention of the leadership position allowance coefficient of 0.60 of the previously held Deputy Chairman position of the People's Committee of a district until January 2005 (end of the six-month salary retention period).

III. FOR SPECIALIST AND ADMINISTRATIVE CIVIL SERVANTS AND PUBLIC OFFICIALS

Civil servants and public officials in specialist and administrative positions (including those holding leadership positions appointed, specialized positions in the judiciary and prosecution) shall classify salaries according to the civil servant or public official rank suitable for the current specialist or administrative work according to the principle and method of transferring the old salary to the new salary (Table 5) stipulated in Clause 5, Section II of Circular Joint Circular No. 01/2005/TTLT. Now, amendments and supplements to the guidance on transferring the old salary to the new salary for specialist and administrative civil servants and public officials are as follows:

1. Amend Table 5 for civil servant and public official ranks with the old salary coefficient level 1 being 3.26 (belonging to type A2, group 2) as follows:

2. Supplement guidance on new salary classification for cases that before the old salary classification was changed to the new salary classification had been decided by competent authorities to promote rank or transfer rank according to the old salary coefficient as follows:

a) At the time of changing from the old salary classification to the new salary classification (effective from Circular Joint Circular No. 01/2005/TTLT and this Circular), if calculating the new salary classification based on the old salary coefficient at the rank held before promotion or transfer (hereinafter referred to as the old rank) without enjoying the seniority allowance exceeding the ceiling and having a higher new salary coefficient than the new salary coefficient transferred according to the old salary coefficient currently enjoyed at the newly appointed rank upon promotion or transfer (hereinafter referred to as the current rank), then they shall be classified to a higher pay grade in the current rank with the new salary coefficient equal to or closest to the new salary coefficient calculated based on the old rank. The time for considering promotion to the next pay grade in the current rank (after being classified to a higher pay grade in the current rank) shall be counted from the date of receiving the new salary in the current rank.

Example 7. Ms. Dang Thi N was classified to pay grade 12 with an old salary coefficient of 2.81 at the staff officer rank since December 1, 2003. On August 1, 2004, Ms. N obtained a bachelor's degree and met the required qualifications for the specialist rank, and she was decided by the competent authority to change her salary to pay grade 5 with an old salary coefficient of 2.82 at the specialist rank (promotion), the time for considering promotion to the next pay grade at the specialist rank (after promotion) was counted from December 1, 2003 (the date of holding the old salary coefficient of 2.81). Ms. N was changed from the old salary to the new salary from October 1, 2004 as follows:

As the old salary coefficient of 2.81 at pay grade 12 at the staff officer rank (which Ms. N held before being classified to the specialist rank), when calculated to be transferred to the new salary coefficient of 4.06 at pay grade 12 at the staff officer rank (without enjoying the seniority allowance exceeding the ceiling) is higher than the new salary coefficient of 3.66 transferred according to the old salary coefficient of 2.82 at pay grade 5 at the specialist rank currently held by Ms. N, therefore, Ms. N was classified to the new salary coefficient of 4.32 at pay grade 7 at the specialist rank (4.32 is the new salary coefficient closest to 4.06); the time for considering promotion to the next pay grade at the specialist rank (from pay grade 7 to pay grade 8) of Ms. N was counted from October 1, 2004 (the date of receiving the new salary at the specialist rank).

b) At the time of changing from the old salary classification to the new salary classification (effective from Joint Circular No. 01/2005/TTLT and this Circular), if calculating the new salary classification based on the old salary coefficient at the old rank while enjoying the seniority allowance exceeding the ceiling and having the new salary coefficient plus the seniority allowance exceeding the ceiling (at the old rank) higher than the new salary coefficient transferred according to the old salary coefficient currently enjoyed at the current rank, then they still base on the old salary coefficient currently enjoyed at the current rank to transfer to the new salary classification in accordance with the provisions of Joint Circular No. 01/2005/TTLT. At the same time, they enjoy the retention differential coefficient equivalent to the new salary coefficient plus the seniority allowance exceeding the ceiling calculated based on the result of transferring the new salary classification at the old rank; this retention differential coefficient (rounded off to two decimal places) decreases correspondingly when the civil servant, public official is promoted to the next pay grade or enjoys the seniority allowance exceeding the ceiling in the current rank or is promoted to a higher rank.

Example 8. Mr. Dao Van P was classified to pay grade 9 with an old salary coefficient of 5.60 at the chief specialist rank since September 1, 2000. On February 1, 2003, Mr. P was appointed and classified to pay grade 4 with an old salary coefficient of 5.85 at the senior specialist rank by the competent authority, the time for considering promotion to the next pay grade at the senior specialist rank (from pay grade 4 to pay grade 5) of Mr. P was counted from February 1, 2003 (the date of appointment to the senior specialist rank); during the working period from September 1, 2000 to now, Mr. P has always completed assigned tasks and has not been disciplined. Mr. P was changed from the old salary to the new salary from October 1, 2004 as follows:

Based on the old salary coefficient of 5.85 currently enjoyed at the current rank, according to the provisions of Joint Circular No. 01/2005/TTLT, Mr. P was transferred to the new salary coefficient of 7.28 at pay grade 4 at the senior specialist rank, the time for considering promotion to the next pay grade at the senior specialist rank of Mr. P was counted from February 1, 2003. However, as Mr. P was classified to the old salary coefficient of 5.60 at pay grade 9 at the chief specialist rank (since September 1, 2000) and transferred to the new salary from October 1, 2004, he was classified to the new salary coefficient of 6.78 at pay grade 8 at the chief specialist rank and enjoyed 9% seniority allowance exceeding the ceiling, with a total coefficient of 7.39 (6.78 + 9%VK) higher than the new salary coefficient of 7.28 at pay grade 4 transferred at the current senior specialist rank, therefore, starting from October 1, 2004, Mr. P enjoyed an additional retention differential coefficient of 0.11 (7.39 - 7.28). When Mr. P was promoted to pay grade 5 with a new salary coefficient of 7.64 at the senior specialist rank, as the increase in salary coefficient due to promotion was 0.36 higher than the retention differential coefficient of 0.11 currently enjoyed, Mr. P ceased to enjoy the retention differential coefficient of 0.11.

The provisions on transferring from the old salary to the new salary at points a and b of Clause 2 hereunder do not apply to cases that were not due to promotion or transfer of rank before the change from the old salary classification to the new salary classification. Cases that were not due to promotion or transfer of rank before the change from the old salary classification to the new salary classification shall base on the old salary coefficient at the current civil servant or public official rank and grade to transfer to the new salary classification in accordance with the guidance in Table 5.

IV. OTHER PROVISIONS

1. Amend Point a Clause 6 Section II Circular Joint Circular No. 01/2005/TTLT regarding the transfer from old salary to new salary for cases involving changes in job titles or work positions as follows:

Prior to changing job titles or work positions, civil servants and public officials who have been authorized by competent authorities to be assigned a higher old salary coefficient than their current job title or work position shall base their transfer to the new salary from October 1, 2004, according to Circular Joint Circular No. 01/2005/TTLT and this Circular, and enjoy leadership position allowances based on their current leadership job title (if applicable). If the new work position does not match the rank held before the change in job title or work position, they must be reassigned to a matching rank. If they have been authorized to enjoy a retention coefficient difference (based on the old salary) upon changing job titles or work positions, they will cease to enjoy such retention coefficient difference (based on the old salary) from October 1, 2004.

Based on this amendment, Examples 8, 9, and 10 in Circular Joint Circular No. 01/2005/TTLT do not necessarily require a decision from the competent authority to enjoy the retention coefficient difference when civil servants and public officials change job titles or work positions. For Example 9, the time for enjoying retention allowances for leadership positions shall be implemented according to Circular No. 02/2005/TT-BNV dated January 5, 2005, issued by the Ministry of Home Affairs guiding the implementation of leadership position allowances for civil servants and public officials.

2. Supplement the guidance for Point b Clause 6 Section II Circular Joint Circular No. 01/2005/TTLT regarding the retention period of salary and retention coefficient difference according to the law for military officers transferring to other sectors as follows:

a) The minimum retention period of salary according to the law for military officers transferring to other sectors shall be at least 18 months from the date of the officer's sector transfer; the continuation of retaining salary beyond 18 months shall be decided by the head of the competent authority managing civil servants and public officials, ensuring internal salary parity within the organization.

b) The retention coefficient difference according to the law for military officers transferring to other sectors shall be determined by the difference between the salary coefficient currently enjoyed (including the first and second salary increases) at the time of sector transfer and the salary coefficient plus the seniority allowance exceeding the ceiling (if any) assigned to the civil servant or public official rank. During the salary retention period (as stipulated in Point a Clause 2 here), the retention coefficient difference shall decrease correspondingly when civil servants and public officials receive a salary increase or seniority allowance exceeding the ceiling in their assigned rank or receive a promotion in rank.

c) Based on the supplementary guidance provided in Points a and b Clause 2 here, amend Mr. Q's retention coefficient difference in Example 11 (excluding leadership position allowances in the old and new salary coefficients) as follows: the retention coefficient difference based on the old salary from August 1, 2004, is 1.09 (4.15 - 3.06); the recalculated retention coefficient difference based on the new salary from October 1, 2004, is 1.41 (5.40 - 3.99), and from April 1, 2005, until the end of January 2006 (when the 18-month salary retention period ends) is 1.08 (1.41 - 0.33). From February 2006 onwards, the continuation of Mr. Q's salary retention shall be decided by the head of the competent authority managing civil servants and public officials.

3. Supplement the guidance on transferring from old salary to new salary for civil servants and public officials dispatched abroad as follows: Civil servants and public officials dispatched abroad shall have their old salary transferred to the new salary by the dispatching agency or unit.

4. Supplement the guidance on assigning salaries for intern doctors recruited into lecturer ranks in medical schools as follows: Intern doctors who graduate and are recruited to work in medical schools (recruited into lecturer ranks) shall receive a trial salary based on the level 2 salary of the recruited rank during the probationary period; after the probationary period, they shall be assigned to level 2 of the appointed rank, with the next salary increase review period starting from the date of appointment to the rank.

V. EFFECTIVE DATE

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

2. This Circular replaces the provisions in Clause 4 Section II; Points 1.1, 1.2, 1.3, and 1.4 Clause 1 Section III and Clause 7 Section IV of Circular Joint Circular No. 34/2004/TTLT/BNV-BTC-BLDTBXH dated May 14, 2004, issued by the Ministry of Home Affairs, the Ministry of Finance, and the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decree No. 121/2003/NĐ-CP dated October 21, 2003, of the Government on policies for civil servants and public officials in communes, wards, and towns.

3. The new salary coefficient, leadership position allowance, seniority allowance exceeding the ceiling, and retention coefficient difference (if any) transferred according to this Circular shall be calculated for back payment of salary and social insurance contributions for the difference between the new and old salaries during the period from October 1, 2004, to the date of transferring the old salary to the new salary according to this Circular.

4. In cases where new salaries are assigned to high-level specialist ranks and equivalent ranks and enjoy a retention coefficient difference (if any) according to this Circular, the Minister, Head of a ministry equivalent to a ministry, Head of a government agency, and Chairman of the People's Committee of provinces and centrally-administered cities shall consider and decide, and report in writing to the Ministry of Home Affairs for monitoring and inspection.

5. Cases elected, recruited, and appointed to civil service ranks and positions during the period from October 1, 2004, to before the date of implementation of Circular Joint Circular No. 01/2005/TTLT shall be based on the old salary coefficient of the elected position or the current job according to the old salary system of 1993 to transfer and rank to the new salary in accordance with the guidance of Circular Joint Circular No. 01/2005/TTLT and the guidance provided in this Circular. The date of implementation of Circular Joint Circular No. 01/2005/TTLT is January 26, 2005.

In the course of implementation, if there are any difficulties, the ministries, sectors, and localities shall report to the Ministry of Home Affairs and the Ministry of Finance for study and resolution./.