Joint Circular No. 82/2005/TTLT-BNV-BTC amends and supplements 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 the transition from old salary grades to new salaries for civil servants, public officials, and employees.

CIRCULAR

Amending and supplementing Circular Jointly Issued 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 to new salary scales for cadres, civil servants, and public officials

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Pursuant to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the wage system for cadres, civil servants, public officials, and armed forces (hereinafter referred to as Decree No. 204/2004/NĐ-CP), the Ministry of Home Affairs and the Ministry of Finance issued Circular Jointly Issued No. 01/2005/TTLT-BNV-BTC dated January 5, 2005 guiding the implementation of the transition from old to new salary scales for cadres, civil servants, and public officials (hereinafter referred to as Circular Jointly Issued 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 Circular Jointly Issued No. 01/2005/TTLT as follows:

I - REGARDING CIVIL SERVANTS AT THE COMMUNE, WARD, AND TOWN LEVELS

Specialized cadres at commune, ward, and town levels (hereinafter collectively referred to as commune level) shall implement the assignment of salaries according to their current specialized positions based on the principle and method of transitioning from old to new salary scales (conversion table number 2) stipulated in Clause 1, Section II of Circular Jointly Issued No. 01/2005/TTLT. Non-specialized cadres at the commune level, village, and neighborhood do not fall under the category of those assigned salaries 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 cadres and civil servants at the commune, ward, and town levels (hereinafter referred to as Decree No. 121/2003/NĐ-CP). Civil servants at the commune level shall implement the assignment of salaries according to their current professional positions based on the principle and method of transitioning from old to new salary scales (conversion table number 5) stipulated in Clause 5, Section II of Circular Jointly Issued No. 01/2005/TTLT. Now, supplementary guidance on transitioning from old to new salary scales for specialized cadres and civil servants at the commune level is provided as follows:

1- Specialized cadres and civil servants at the commune level who are currently enjoying disability benefits of various grades without being recipients of retirement benefits or disability allowances shall be assigned salaries according to their current specialized positions or professional positions as prescribed in Decree No. 204/2004/NĐ-CP and guided in Circular Jointly Issued No. 01/2005/TTLT.

2- The percentage rate of re-election allowance to transition from old to new salary scales into grade 2 of the current specialized position at the commune level (conversion table number 2) is the 5% re-election allowance that specialized cadres at the commune level are currently enjoying at the time of transitioning from old to new salary scales. From October 1, 2004, implementing the new wage system for specialized cadres at the commune level as prescribed in Decree No. 204/2004/NĐ-CP and guided in Circular Jointly Issued No. 01/2005/TTLT, they will cease to enjoy this 5% re-election allowance.

3- Transitioning from old to new salary scales for commune-level militia officers.

a) From October 1, 2004 to December 31, 2004: Based on the current position held and the old salary coefficient enjoyed according to Decree No. 121/2003/NĐ-CP, transition to the new salary scale according to the guidance in Circular Jointly Issued No. 01/2005/TTLT. For the position of Deputy Commune Militia Officer (Deputy Chief of Military Affairs), the allowance system for non-specialized cadres at the 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 allowance levels already enjoyed (hereinafter referred to as temporary enjoyment level) according to the guidance in point a, Clause 3 of this article until there is a circular guiding the implementation of salary and allowance systems for commune-level militia officers according to Decree No. 184/2004/NĐ-CP dated November 2, 2004 of the Government (and any 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 enjoyment level, the difference in salary, allowance, and social insurance contributions will be retroactively paid from January 1, 2005 according to regulations; in case the circular guiding the implementation of Decree No. 184/2004/NĐ-CP stipulates a lower benefit than the temporary enjoyment level, the new level will be applied from the effective date of the circular guiding the implementation of Decree No. 184/2004/NĐ-CP and no issue of refunding the previously enjoyed higher amount will arise.

c) For the position of Commune Militia Officer (Chief of Military Affairs): 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 article is lower than the current living allowance, then continue to enjoy the retained difference to equal the current living allowance until the end of 2005, thereafter receiving the salary according to the position.

4- Transitioning from old to new salary scales for civil servants at the commune level.

a) Civil servants at the commune level who graduated from university or higher education programs matching the current professional position shall be assigned to the specialist rank (code 01.003); those who graduated from college matching the current professional position shall be assigned to the officer rank (code 01.004); those who graduated from secondary school matching the current professional position shall be assigned to the clerk rank (code 01.008). The transition from old to new salary scales from October 1, 2004 shall be carried out according to the guidance in Clause 5, Section II of Circular Jointly Issued No. 01/2005/TTLT.

b) Civil servants at the commune level who graduated from college matching the current professional position shall, from the effective date of this circular, be reassigned to the new salary scale for type A0 civil servants. The method of transitioning into the new salary coefficient for type A0 civil servants shall be carried out 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 to new salary scales for cadres, civil servants, and public officials with a college degree matching the current professional position.

c) Civil servants at the commune level who are currently working without having completed their specialized training as prescribed, and who 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 the 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 do not meet the criteria set forth in Decision No. 04/2004/QĐ-BNV dated January 16, 2004 of the Minister of Home Affairs regarding the specific criteria 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 position was that of a commune-level civil servant 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 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, following the guidelines set out in Circular Joint No. 01/2005/TTLT. In cases where specialized staff members are currently enjoying retention of the difference in salary coefficients between the old salary coefficient according to the specialized position of commune-level civil servants and the old salary coefficient of the current specialized position held, the retained difference in salary coefficients will be recalculated based on the new salary coefficient and reduced accordingly when the specialized staff member is assigned a higher salary grade.

Example 1: Ms. Dao Thi A, formerly a commune-level 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, and was assigned the old salary coefficient of 1.70 for this specialized position and enjoyed retention of the difference in salary coefficients 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 the commune was transferred to the new salary coefficient of 1.75 at Grade 1 of this specialized position. The retained difference in salary coefficients 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 the commune. Therefore, Ms. A received a new retained difference in salary coefficients of 0.91 (replacing the previous retained difference in salary coefficients of 0.24); this retained difference in salary coefficients of 0.91 will be reduced accordingly when Ms. A is assigned a higher salary grade compared to the new salary coefficient of 1.75 of the current position of Chairman of the Farmers' Association of the commune.

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, in accordance with the principle and method of transferring from the old salary scale to the new salary scale (Salary Transfer Table No. 3) prescribed in Clause 2, Section II of Circular Joint No. 01/2005/TTLT. Now, additional guidance on the method of transferring from the old salary scale to the new salary coefficient within 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 in the civil service rank, public office rank, or specialized and vocational position in the judiciary or prosecution (hereinafter referred to as the rank).

a) In cases where the old salary scale was assigned in a lower rank than the administrative civil service rank and transferred according to the current election position held (in Salary Transfer Table No. 3), if the calculation of the new salary scale according to the lower rank results in a new salary coefficient plus any excess years of service allowance (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 No. 01/2005/TTLT. At the same time, they shall also enjoy an additional retained difference in salary coefficients equal to the new salary coefficient plus any excess years of service allowance (if applicable) calculated according to the result of transferring to the new salary scale in the lower rank, and cease to enjoy the retained difference in salary coefficients based on the old salary (if applicable); this retained difference in salary coefficients based on the new salary (rounded to two decimal places) will be reduced accordingly when the staff member receives a salary increase in 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 salary 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, and was assigned the old salary coefficient of 4.00 for this election position and enjoyed a retained difference in salary coefficients 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 No. 01/2005/TTLT, Mr. B was transferred to Grade 2 with a new salary coefficient of 4.74 in the Senior Specialist Rank, with the next promotion period calculated 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 a new salary coefficient of 4.98 at Grade 9 of the Specialist Rank and enjoy a 6% excess years of service allowance, with a total salary 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. Therefore, starting from October 1, 2004, Mr. B will enjoy an additional retained difference in salary coefficients of 0.54 (5.28 - 4.74) and cease to enjoy the previous retained difference in salary coefficients of 0.26; this retained difference in salary coefficients based on the new salary of 0.54 will be reduced accordingly when Mr. B receives a salary increase in 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), 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 salary grade in 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 of Province D 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 her new salary starting October 1, 2004, as follows:

Prior to holding the position of Deputy Head of the Provincial People's Council, Ms. C had been assigned to Grade 5 in the Senior Specialist rank (two grades higher than the new salary assignment based on the current elected position of Deputy Head of the Provincial People's Council), thus starting 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 will be calculated from December 1, 2002 (the date of the old salary assignment at Grade 5 in the Senior Specialist rank).

c) In cases where the old salary was assigned at a higher administrative civil servant rank compared to the current elected position's administrative civil servant rank (in Table 3), 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 the old salary assignment 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), then the new salary shall be assigned to the nearest higher or equal coefficient in the administrative civil servant rank corresponding to the higher rank; the time for considering promotion to the next salary grade shall be calculated from October 1, 2004 (the date when the new salary coefficient according to Decree No. 204/2004/NĐ-CP was applied).

Example 4: Mr. Tran Van G, formerly a Senior High-Level 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 in Province H (a provincial city is a Class II city) and was assigned to an old salary coefficient of 5.90 for this elected position. Mr. G was reassigned from his old salary to his new salary starting October 1, 2004, as follows:

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

d) In cases where the old salary was assigned at a different rank (not an administrative civil servant rank) equivalent to or higher than the administrative civil servant rank corresponding to the current elected position (in Table 3), the transfer of the old salary coefficient to the new salary coefficient shall be carried out according to that different rank, then based on the new salary coefficient in that different rank, it shall be transferred to the nearest higher or equal coefficient in the corresponding administrative civil servant rank. Based on the new salary coefficient transferred into the corresponding 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 reassignment from the old salary to the new salary, another elected position with a lower, equal, or higher old salary coefficient was held compared to the old salary coefficient of the current elected position, if the reassignment from the old salary to the new salary is made according to that other elected position and 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 reassignment of the new salary according to the current elected position (in Table 3), then the new salary shall be reassigned to the administrative civil servant rank and grade according to the reassignment from the old salary to the new salary for that other 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 was re-elected for the second term (1999-2004) 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 his new salary starting 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, 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 (one level higher than the new salary transfer according to his current position as Chairman of the People's Committee of a district). Therefore, starting from October 1, 2004, Mr. H is classified at level 5 with the new salary coefficient of 5.76 for the rank of Senior Specialist and receives 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 submit explanatory documents regarding the work process, salary development, and positions (including proposed salary transfer from the old to the new system) for each individual 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 system to the new system shall be carried out strictly according to Circular Joint Circular No. 01/2005/TTLT and this Circular.

3- In cases where the elected position is no longer held but as of October 1, 2004, the person is still within the six-month period of retaining the old position salary, then starting from October 1, 2004, the old salary will be transferred to the new salary system and the retention of salary will be implemented as follows:

a) Transfer the old retained salary into the new salary coefficient of the civil servant or public official rank that they were appointed to, following the principle of being classified in the rank they were appointed to (a comparable or lower rank compared to the civil servant rank in Table 3). The new salary coefficient assigned to the appointed rank is the highest new salary coefficient closest to (if available) 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) in the appointed rank is counted from the day the old salary coefficient (being retained) of the previously held 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 in the retention coefficient will be added to equalize it with the new salary coefficient in Table 3. The time for considering the enjoyment of the seniority allowance exceeding the framework in the appointed rank is counted from the day the old salary coefficient (being retained) of the previously held elected position was held; the retention coefficient decreases correspondingly when the civil servant or public official enjoys the seniority allowance exceeding the framework in the appointed rank or is promoted.

b) Regarding salary retention: After transferring the old retained salary coefficient into the new salary coefficient of the appointed rank according to point a, Clause 3 hereof, starting from October 1, 2004, the civil servant stops receiving the retention of the old position salary coefficient to receive 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 stipulated.

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 P on August 1, 2004. According to regulations, Mr. M is entitled to retain the old salary coefficient of 4.00 of the Deputy Chairman position for six months (from August 1, 2004 to January 2005). Starting from October 1, 2004, Mr. M transfers the old salary to the new salary system in the civil servant or public official rank and retains the salary as follows:

Regarding the transfer of the old salary to the new salary system from October 1, 2004: If Mr. M meets the criteria for appointment to the rank of Senior Specialist, then Mr. M is transferred from the old retained salary coefficient of 4.00 to the new salary coefficient of 4.74 at level 2 of the Senior Specialist rank (as per Table 3); the time for considering the next salary increase for Mr. M at the Senior Specialist rank 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 is 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 is classified at the highest level in the appointed rank and receives the additional retention coefficient to equalize it with the new salary coefficient of 4.74; the retention coefficient decreases correspondingly when Mr. M enjoys the seniority allowance exceeding the framework in the appointed rank or is promoted).

Regarding salary retention: After implementing the transfer of the old salary of the elected position being retained to the new salary system according to the appointed rank mentioned above, starting from October 1, 2004, Mr. M stops receiving the retention of the old position salary coefficient of 4.00 to receive the retention of the leadership position allowance coefficient of 0.60 of the previously held Deputy Chairman position until January 2005 (end of the six-month salary retention period).

III. FOR PROFESSIONAL AND TECHNICAL CIVIL SERVANTS AND PUBLIC OFFICIALS

Professional and technical civil servants and public officials (including those holding leadership positions by appointment, specialized professional and technical positions in Courts and Procuratorates) implement salary classification according to the civil servant or public official rank suitable for their current professional and technical duties, following the principles and methods of transferring the old salary to the new salary system (Table 5) prescribed 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 system for professional and technical civil servants and public officials are as follows:

1- Amend Table 5 for the ranks of civil servants and officials with the old salary coefficient level 1 being 3.26 (category A2, group 2) as follows:

2- Supplement guidance on new salary classification for cases where before the old salary classification was changed to the new salary classification, there were decisions by competent authorities to promote or transfer ranks 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 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 receiving 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 being equal to or the nearest higher than 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. Đặng Thị N was classified to pay grade 12 with an old salary coefficient of 2.81 in the clerk 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 in the specialist rank (promotion). The time for considering promotion to the next pay grade in the specialist rank (from pay grade 5 to pay grade 6) was counted from December 1, 2003 (the date of holding the old salary coefficient of 2.81). Ms. N changed from the old salary to the new salary on October 1, 2004, as follows:

Since the old salary coefficient of 2.81 at pay grade 12 in the clerk rank (which Ms. N held before being classified to the specialist rank), when calculated to transfer to the new salary coefficient of 4.06 at pay grade 12 in the clerk rank (without receiving 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 in 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 in the specialist rank (4.32 is the nearest higher new salary coefficient compared to 4.06); the time for considering promotion to the next pay grade in 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 in the specialist rank).

b) At the time of changing from the old salary classification to the new salary classification (effective from Circular Joint No. 01/2005/TTLT and this Circular), if calculating the new salary classification based on the old salary coefficient at the old rank while receiving 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 shall still be classified to the new salary based on the old salary coefficient currently enjoyed at the current rank in accordance with the provisions of Circular Joint No. 01/2005/TTLT. At the same time, they shall 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 at the old rank; this retention differential coefficient (rounded off to two decimal places) will decrease correspondingly when the civil servant, public official, or employee is promoted to the next pay grade or receives the seniority allowance exceeding the ceiling in the current rank or is promoted to a higher rank.

Example 8: Mr. Đào Văn P was classified to pay grade 9 with an old salary coefficient of 5.60 in 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 in the senior specialist rank by the competent authority, the time for considering promotion to the next pay grade in the senior specialist rank (from pay grade 4 to pay grade 5) of Mr. P was counted from February 1, 2003 (the appointment date 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 changed from the old salary to the new salary on October 1, 2004, as follows:

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

c) The provisions on changing from the old salary to the new salary at points a and b of Clause 2 hereunder shall not apply to cases that are not due to promotion or transfer of rank before the change from the old salary classification to the new salary classification. Cases that are not due to promotion or transfer of rank before the change from the old salary classification to the new salary classification shall be classified to the new salary based on the old salary coefficient at the current rank and pay grade of civil servants and officials in accordance with the guidance in Table 5.

IV. OTHER CONTENTS

1- Amend point a, Clause 6, Section II of Circular Joint Circular No. 01/2005/TTLT on transferring old salary grades to new salaries for cases involving changes in job titles or job positions as follows:

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

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

2- Supplement the guidance for point b, Clause 6, Section II of Joint Circular No. 01/2005/TTLT regarding the retention period of salary and retention coefficient allowance as stipulated by law for military officers transitioning to civilian jobs as follows:

a) The minimum retention period of salary for military officers transitioning to civilian jobs as stipulated by law shall be at least 18 months from the date of transition; the extension of retention beyond 18 months shall be decided by the head of the competent authority managing civil servants, public officials, and employees, ensuring internal salary parity within the organization.

b) The retention coefficient allowance for military officers transitioning to civilian jobs as stipulated by law shall be determined by the difference between the salary coefficient including the first and second salary increments at the time of transition and the salary coefficient plus the seniority allowance exceeding the ceiling (if any) assigned to the newly appointed civil servant or public official rank. During the retention period of salary (as specified in point a, Clause 2 hereof), the retention coefficient allowance shall decrease correspondingly if the civil servant, public official, or employee receives a salary increment or seniority allowance exceeding the ceiling in the newly appointed rank or receives a promotion in rank.

c) Based on the supplementary guidance provided in points a and b, Clause 2 hereof, amend the retention coefficient allowance of Mr. Q in Example 11 (excluding leadership position allowances in both old and new salary coefficients) as follows: the retention coefficient allowance based on the old salary from August 1, 2004, is 1.09 (4.15 - 3.06); the recalculated retention coefficient allowance 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 retention period ends) is 1.08 (1.41 - 0.33). From February 2006 onwards, the continuation of Mr. Q's retention allowance shall be decided by the head of the competent authority managing civil servants, public officials, and employees.

3- Supplement the guidance on transferring old salary grades to new salaries for civil servants, public officials, and employees dispatched abroad as follows: Civil servants, public officials, and employees dispatched abroad shall have their old salaries transferred to new salaries 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: In cases where intern doctors are recruited into lecturer ranks in medical schools, during the probationary period, they shall receive a probationary salary based on the level 2 salary of the recruited rank; after the probationary period, they shall be assigned to level 2 of the appointed rank, and the period for considering subsequent salary increments shall be counted from the date of appointment to the rank.

V. EFFECTIVE DATE

1- This Circular takes effect 15 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 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 and benefits for civil servants and public officials in communes, wards, and towns.

3- New salary coefficients, leadership position allowances, seniority allowances exceeding the ceiling, and retention coefficient allowances (if any) transferred according to the guidance in this Circular shall be calculated for back payment of salary differences and social insurance contributions for the period from October 1, 2004, to the date of transferring old salaries to new salaries according to this Circular.

4- Cases of new salary assignments in the senior specialist rank and equivalent ranks that enjoy retention coefficient allowances (if any) as stipulated in this Circular shall be reviewed and decided by the Minister, the head of a ministry-level agency, the head of a government agency, and the Chairman of the People's Committee of provinces and centrally-administered cities, and reported in writing to the Ministry of Home Affairs for monitoring and inspection.

5- Cases of being elected, recruited, and appointed to civil servant ranks and public official positions during the period from October 1, 2004 to before the effective date 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 reclassify to the new salary according to the guidance in Joint Circular No. 01/2005/TTLT and the guidance in this Circular. During the implementation process, if there are difficulties, ministries, sectors, and localities shall report to the Ministry of Home Affairs and the Ministry of Finance for study and resolution.

During the implementation process, if there are difficulties, ministries, sectors, and localities shall report to the Ministry of Home Affairs and the Ministry of Finance for study and resolution.