Circular No. 83/2005/TT-BNV guiding the amendment and supplementation of the system for increasing salary grades and various allowances for civil servants, public officials, and employees

CIRCULAR

Guidelines for amending and supplementing the system of salary grade increases

and other allowances for civil servants, public officials, and employees

Pursuant to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the salary system for civil servants, public officials, employees, and armed forces (hereinafter referred to as Decree No. 204/2004/NĐ-CP), the Ministry of Home Affairs and relevant ministries and sectors have issued Circulars guiding the implementation of the salary grade increase system and other salary allowances for civil servants, public officials, and employees. Up to now, during the process of implementation at ministries, sectors, and localities, some difficulties have arisen. After exchanging opinions with the Ministry of Finance and relevant ministries and sectors, the Ministry of Home Affairs guides the amendment and supplementation of the salary grade increase system and other salary allowances for civil servants, public officials, and employees as follows:

I. ON THE SYSTEM OF SALARY GRADE INCREASES

The regular salary grade increase system and the early salary grade increase system for civil servants, public officials, and employees stipulated in Article 7 of Decree No. 204/2004/NĐ-CP has been implemented from October 1, 2004, according to the guidance provided in Circular No. 03/2005/TT-BNV dated January 5, 2005, of the Ministry of Home Affairs (hereinafter referred to as Circular No. 03/2005/TT). Now, the following amendments and supplements to Circular No. 03/2005/TT are hereby guided:

1. Supplement Clause 2, Section I regarding the subjects not subject to the salary grade increase system as follows:
Civil servants at commune level who are currently receiving retirement benefits or disability allowances, in addition to their current retirement benefits or disability allowances, shall be paid additional salary monthly in accordance with Clause 6, Article 8 of Decree No. 204/2004/NĐ-CP.

2. Supplement Point 1.2, Clause 1, Section II regarding the time period considered for regular salary grade increase as follows:

The time period during which civil servants, public officials, and employees are assigned by competent authorities through written decisions to work at international organizations, projects, or foreign representative offices established in Vietnam, where their salaries according to their rank, grade, and position (including leadership position allowances and seniority allowances exceeding the standard range if applicable) are paid by the organization or unit (still within the payroll establishment of the organization or unit).

3. Supplement the end of Point 1.1, Clause 1, Section III regarding the calculation method for the number of people eligible for early salary grade increases due to outstanding achievements based on a ratio of no more than 5% of the total number of civil servants, public officials, and employees within the payroll establishment of the organization or unit as follows:

For every 20 payroll positions (excluding any remaining positions under 20 after dividing the total number of payroll positions of the organization or unit by 20), the organization or unit is determined to have one person eligible for an early salary grade increase due to outstanding achievements. Based on this calculation method, in the fourth quarter of each year when reporting on the results of salary grade increases according to Form No. 1 issued together with Circular No. 03/2005/TT, the organization or unit (including those with less than 20 payroll positions) reports to the direct superior management authority for monitoring and checking the number of people eligible for early salary grade increases due to outstanding achievements in the following year. The superior management authority will allocate additional people eligible for early salary grade increases due to outstanding achievements (in the following year) beyond the ratio of no more than 5% of the subordinate organization or unit's payroll positions (with priority given to units with fewer than 20 payroll positions and units that perform well), but ensuring that the total number of people eligible for early salary grade increases due to outstanding achievements across all subordinate organizations and units does not exceed 5% of the total payroll positions reported by all subordinate organizations and units.

Specifically, the determination of the number of people eligible for early salary grade increases due to outstanding achievements from October 1, 2004, to the end of 2005 is calculated based on a ratio of five quarters (the fourth quarter of 2004 and the entire year 2005) with a ratio not exceeding 6.25% of the total number of payroll positions in the list of personnel transitioning from old to new salary scales approved by the competent authority (for every 16 people, one person is eligible for an early salary grade increase due to outstanding achievements). If, by the end of the first quarter of 2006, the organization or unit has not fully utilized the quota of people eligible for early salary grade increases based on the 6.25% ratio (quota for the fourth quarter of 2004 and the entire year 2005), it cannot be counted towards the quota for 2006.

From 2006 onwards, the number of people eligible for early salary grade increases due to outstanding achievements will be implemented strictly according to the prescribed ratio of no more than 5% of the total payroll positions of the organization or unit (if there is a change in payroll positions of 20 or more compared to the report submitted to the direct superior management authority, the organization or unit will adjust the number of people eligible for early salary grade increases according to the correct ratio of no more than 5% of the payroll positions of the organization or unit and report to the direct superior management authority for monitoring and checking). If, by the end of the first quarter of the following year, the organization or unit has not fully utilized the quota of people eligible for early salary grade increases for that year (including any additional people allocated by the direct superior management authority, if any), it cannot be counted towards the quota for early salary grade increases due to outstanding achievements in subsequent years.

4. Amend the example at Point 1.2, Clause 1, Section III as follows:

Example: Mr. Nguyen Van A, who was classified at level 3 with the old salary coefficient of 2.34 from April 1, 2003 to October 1, 2004, was transferred to the new salary coefficient of 3.00 at level 3 for the specialist rank (the time for the next salary increase review would be calculated from April 1, 2003). In 2005, Mr. A achieved outstanding results in performing his duties, and on February 1, 2006, he was decided by the competent authority to be promoted ahead of schedule by nine months (to level 4 with the new salary coefficient of 3.33). Therefore, Mr. A's entitlement to the new level (level 4) would be calculated from July 1, 2005 (the date when nine months were still needed to achieve a regular promotion). Since Mr. A was decided to be promoted ahead of schedule on February 1, 2006 (after July 1, 2005, which is the date of entitlement to the new level), Mr. A would be entitled to back pay and back social insurance contributions for the difference in salary coefficients between level 4 and level 3 (0.33, or 3.33 minus 3.00) from July 2005 to January 2006; the time for the next salary increase review for Mr. A would be calculated from July 1, 2005.

5. Supplement Clause 1, Section V regarding effectiveness as follows:

Repeal Clause 5, Section III on the regular promotion system for communal-level civil servants as stipulated in Circular Joint 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 the system and policies for cadres and civil servants at commune, ward, and town levels (to implement according to the provisions of Circular No. 03/2005/TT).

II. ON THE SYSTEM OF POSITION ALLOWANCES FOR LEADERSHIP POSITIONS

The system of position allowances for leadership positions for cadres, civil servants, and public officials as stipulated in Clause 3, Article 5 of Decree No. 204/2004/NĐ-CP shall be implemented from October 1, 2004, in accordance with the guidance provided in Circular No. 02/2005/TT dated January 5, 2005, issued by the Ministry of Home Affairs (hereinafter referred to as Circular No. 02/2005/TT). Now, amend and supplement some points of Circular No. 02/2005/TT as follows:

1. Amend Point c2, Clause 2, Section II as follows:

If the holder of a leadership position ceases to hold such a position due to being granted an extension of working time until retirement age as stipulated in Decree No. 71/2000/NĐ-CP dated November 23, 2000 of the Government or ceases to hold such a position to process retirement procedures upon notification by the competent authority while still belonging to the payroll with social insurance contributions of the agency or unit (hereinafter referred to as ceasing to hold a leadership position), then starting from October 1, 2004, the holder will transfer from the old position allowance coefficient to the new position allowance coefficient corresponding to the leadership position held at the time of ceasing to hold the leadership position until the day they receive their pension (in cases where the holder ceases to hold a leadership position from October 1, 2004 onwards, they will retain the new position allowance coefficient from the day of ceasing to hold the leadership position until the day they receive their pension).

2. Supplement the end of Point d2, Clause 2, Section II as follows:

If the reorganization of central agencies' organizational structures is carried out pursuant to a Government Decree or a Prime Minister Decision, then depending on specific circumstances, the Minister, the head of a ministry equivalent to a ministry, or the head of a government agency shall base their decision on the correlation of the leadership cadre team under their management to decide whether to retain the new position allowance coefficient of the previous rank or previous position of that agency or unit, and report to the Ministry of Home Affairs for monitoring.

3. Amend the end of Clause 2, Section IV regarding the application of position allowances for leadership positions for agencies and units with prescribed ranges of position allowances in the table of position allowances for leadership positions attached to Decree No. 204/2004/NĐ-CP as follows:

During the period without guidance on ranking from the managing ministry or sector, temporarily maintain the current position allowance coefficient (if any). After receiving the decision on organization ranking (according to Decree No. 204/2004/NĐ-CP) from the competent authority (following the guidance on organization ranking from the managing ministry or sector), back payment of position allowances and back social insurance contributions for the difference between the new position allowance coefficient and the old position allowance coefficient (if any) will be made from October 1, 2004. For those holding leadership positions after October 1, 2004, but before the decision on ranking is made, back payment of position allowances and back social insurance contributions will be made from the day they hold the leadership position.

In cases where the new ranking of the organization is higher than the old ranking (hereinafter referred to as upgrading), during the period from October 1, 2004, to the day the decision on upgrading is made, back payment of position allowances and back social insurance contributions for the difference between the new position allowance coefficient and the old position allowance coefficient of the old ranking will be made; from the day the decision on upgrading is made, the holder will enjoy the new position allowance coefficient of the new ranking.

Specifically, for those holding leadership positions with a retirement decision made after October 1, 2004, by the competent authority, and at the time of calculating the pension, there is no decision on organization ranking (according to Decree No. 204/2004/NĐ-CP to enjoy the new position allowance coefficient), from October 1, 2004, to the day of retirement, monthly additional coefficients of 0.10 (for those currently enjoying the old position allowance coefficient of 0.30 or less) and 0.20 (for those currently enjoying the old position allowance coefficient of 0.35 or more) will be added to calculate social insurance contributions and as a basis for calculating the pension. Those who have already received a retirement decision and are entitled to additional position allowances according to this provision will not raise the issue of recalculating the pension (reissuing the pension book) after the competent authority makes a decision on organization ranking of the organization where they worked before retirement.

4. For the Tax and Customs Departments under the General Department and other organizations for which the table of leadership position allowances issued together with Decree No. 204/2004/NĐ-CP provides that "Ministries managing sectors and fields shall specify after reaching agreement with the Ministry of Home Affairs and the Ministry of Finance," during the period before specific decisions on leadership position allowances (based on new coefficients) are made by competent authorities, they shall apply leadership position allowances as specified in the cases guided by Clause 3 Section II of this Circular.

5. For Industrial Zone Management Boards, Economic Zone Management Boards, Open Economic Zone Management Boards, Border Economic Zone Management Boards, Economic and Trade Zone Management Boards, High-Tech Zone Management Boards, and other economic zone management boards (hereinafter referred to collectively as Industrial Zone Management Boards), the ranking shall be carried out according to the guidance provided in Circular No. 36/2005/TT-BNV dated April 6, 2005, of the Ministry of Home Affairs. During the period before the Ministry of Home Affairs agrees on the first rank, leaders of Industrial Zone Management Boards shall enjoy leadership position allowances at the second rank as stipulated in the table of leadership position allowances issued together with Decree No. 204/2004/NĐ-CP.

6. Regarding associations and non-governmental organizations at the central level.

a) On the ranking of associations and non-governmental organizations at the central level:

Rank I (as defined in the table of leadership position allowances issued together with Decree No. 204/2004/NĐ-CP) shall be applied to associations at the central level (including those that have changed their names) as specified in Circular No. 199/TCCP dated May 6, 1994, of the Government's Organizational and Cadre Department (now the Ministry of Home Affairs) guiding the specialized leadership position allowances of associations (hereinafter referred to as Circular No. 199/TCCP) and associations and non-governmental organizations at the central level assigned personnel quotas by the State and having decisions (or agreements) made before October 1, 2004, by competent authorities applying the leadership position allowance levels as specified for associations at the central level in Circular No. 199/TCCP.

From now on, the ranking of I for associations and non-governmental organizations at the central level assigned personnel quotas shall be discussed by the Minister of Home Affairs with relevant central agencies to consider and decide.

Rank II (as defined in the table of leadership position allowances issued together with Decree No. 204/2004/NĐ-CP) shall be applied to associations and non-governmental organizations at the central level assigned personnel quotas remaining.

b) In cases where civil servants and public officials within the state budget are appointed to hold specialized leadership positions in associations and non-governmental organizations at the central level (new ranks I and II) and have decisions from competent authorities assigning salaries at the level of Minister or equivalent or higher leadership position allowances (according to old coefficients) than those stipulated in Circular No. 199/TCCP, then the associations and non-governmental organizations at the central level shall submit requests to the competent authority managing cadres according to current classification levels to consider and decide on transferring salary and leadership position allowances to the new coefficient system appropriately.

c) In cases where the charter of associations and non-governmental organizations at the central level stipulates and elects the positions of Chairman, Vice-Chairman, Secretary-General, and Deputy Secretary-General, the leadership position allowance for the position of Secretary-General shall be lower by 0.10 compared to the leadership position allowance for the position of Vice-Chairman; the leadership position allowance for the position of Deputy Secretary-General shall be lower by 0.05 compared to the leadership position allowance for the position of Secretary-General.

7. Regarding associations and non-governmental organizations at the local level.

a) Associations and non-governmental organizations at provincial level (hereinafter referred to as provincial level) assigned personnel quotas by the State shall apply leadership position allowances as stipulated in the table of leadership position allowances issued together with Decree No. 204/2004/NĐ-CP.

b) In cases where the charter of associations and non-governmental organizations at the provincial level stipulates and elects the positions of Chairman, Vice-Chairman, Secretary-General, and Deputy Secretary-General, the leadership position allowance for the positions of Secretary-General and Deputy Secretary-General shall be applied according to the principle stipulated in point c clause 6 above.

c) In cases where the charter of associations and non-governmental organizations has organizational structures down to district, urban districts, and towns within provinces (hereinafter referred to as district level) and are assigned personnel quotas by the State, the leadership position allowance shall be equal to that of a department-level agency under the same-level People's Committee.

8. For social insurance offices at the district level, the leadership position allowance shall be equal to that of a department-level agency under the same-level People's Committee.

9. For leadership positions in organizations not specifically defined regarding the level of leadership position allowances or the framework of leadership position allowances in the table of leadership position allowances issued together with Decree No. 204/2004/NĐ-CP, the following shall be implemented:

a) For organizations established by Government Decrees or Prime Minister's Decisions: Depending on specific circumstances, the competent authority shall examine and decide on the leadership position allowances (based on new coefficients) for leadership positions in such organizations appropriately.

b) For the remaining organizations, the following shall be implemented:

If established by the Minister or Head of a Central Agency within their respective authority, the Minister or Head of the Central Agency shall examine and decide on the highest leadership position allowance (based on new coefficients) equal to that of the Deputy Director of a Department in the same Ministry or Central Agency (excluding organizations with agreements from the Minister of Home Affairs).

If established by the Chairman of the Provincial People's Committee within their respective authority, the Chairman of the Provincial People's Committee shall examine and decide on the highest leadership position allowance (based on new coefficients) equal to that of the Deputy Director of a Department.
If the Director of the Department, Chairman of the People's Committee at the district level, or Head of the agency or unit establishes it within their respective authority, then the Director of the Department, Chairman of the People's Committee at the district level, or Head of the agency or unit shall examine and decide on the highest rate of position allowance (based on the new coefficient) equal to the position allowance for the title of Deputy Director of the affiliated department.

III. REGARDING OTHER ALLOWANCE REGIMES

The allowance regimes for officials, civil servants, and public employees stipulated in Article 6 of Decree No. 204/2004/ND-CP shall be implemented according to the guiding Circulars of the Ministry of Home Affairs and joint Circulars between the Ministry of Home Affairs and relevant ministries and sectors. Now, additional guidance is provided for implementing certain allowance regimes as follows:

1. Regarding the subjects not subject to allowance regimes.

Specialized officials and civil servants at the commune level who are currently receiving retirement benefits or disability allowances, in addition to their current retirement benefits or disability allowances, shall receive additional monthly salary as prescribed in Clause 6, Article 8 of Decree No. 204/2004/ND-CP. Since they are not classified under any wage scales or pay grades, they are not subject to the allowance regimes prescribed in Article 6 of Decree No. 204/2004/ND-CP.

2. Regarding the responsibility allowance regime.

The responsibility allowance regime for officials, civil servants, and public employees from October 1, 2004 onwards shall be implemented according to the guidance provided in Circular No. 05/2005/TT-BNV dated January 5, 2005, issued by the Ministry of Home Affairs. Additional guidance is now provided for some points as follows:

a) For Market Management Boards: They shall receive a responsibility allowance with a coefficient of 0.1 or 0.2 depending on the scale of each market, decided upon by the Head of the agency with the appropriate authority.

b) For Cemetery Management Boards: The responsibility allowance shall be as follows:
Team Leader and equivalent positions: Coefficient 0.2.

Deputy Team Leader and Group Leader: Coefficient 0.1.

c) For teachers and educational managers working at specialized schools who are currently receiving a responsibility allowance with a coefficient of 0.3 as per the current regulations, they shall still be entitled to leadership position allowances (if applicable).

d) For staff and employees under the payroll of Thong Nhat Hospital (Ho Chi Minh City): They shall receive a responsibility allowance with a coefficient of 0.2.

3. Regarding the special allowance regime.

The special allowance regime from October 1, 2004 onwards shall be implemented according to the guidance provided in Circular No. 09/2005/TT-BNV dated January 5, 2005, issued by the Ministry of Home Affairs, which guides the implementation of the special allowance regime for officials, civil servants, public employees, and armed forces personnel (hereinafter referred to as Circular No. 09/2005/TT).

Circular No. 09/2005/TT was issued based on areas that had already been receiving special allowances according to the provisions of Joint Circular No. 02/LB-TT dated January 25, 1994, issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance regarding the implementation of the special allowance regime, Joint Circular No. 04/2001/TTLT-BLDTBXH-BTC dated October 18, 2001, issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance providing supplementary guidance on communes eligible for the special allowance regime, and agreements made by the Ministry of Labor, Invalids and Social Affairs from January 18, 2001 to September 30, 2004. Therefore, starting from October 1, 2004, when there is a change in administrative boundaries or the addition of new areas eligible for special allowances, the special allowance shall be applied according to the following principle:

a) In cases where the name of a locality that has been receiving special allowances is changed, the current level of special allowance shall remain unchanged. Within their scope of management, the Heads of central ministries and sectors, and the Chairmen of provincial People's Committees shall report (with copies of the relevant authority's documents regarding the name change) to the Ministry of Home Affairs for monitoring.

b) In cases where administrative boundaries are divided or merged for localities that have been receiving special allowances, within their scope of management, the Heads of central ministries and sectors, and the Chairmen of provincial People's Committees shall issue documents proposing the special allowance levels for newly divided or merged areas (with copies of the relevant authority's documents regarding the division or merger of administrative boundaries and calculations of additional costs due to the proposed special allowance), to be sent to the Ministry of Home Affairs.

Based on the proposals of the Heads of central ministries and sectors and the Chairmen of provincial People's Committees, the Ministry of Home Affairs will exchange opinions with the Ministry of Finance and related ministries and sectors to consider and respond. During the period before the Ministry of Home Affairs issues a response, the current level of special allowance for those currently receiving it shall remain unchanged.

c) In cases where a ministry or sector, or a provincial People's Committee proposes to add new areas eligible for special allowances or to adjust (increase or decrease) the special allowance levels for areas already receiving special allowances, the Heads of central ministries and sectors, and the Chairmen of provincial People's Committees shall send documents to the Ministry of Home Affairs (explaining clearly the reasons for the proposal; calculating additional costs due to the proposal; listing the new areas proposed to be added, the areas proposed to have their allowance levels adjusted, and the special allowance levels of adjacent areas already receiving allowances, if applicable).

Based on the proposals of the Heads of central ministries and sectors and the Chairmen of provincial People's Committees, the Ministry of Home Affairs will exchange opinions with the Ministry of Finance and related ministries and sectors to consider and respond. During the period before the Ministry of Home Affairs issues a response, the current areas and levels of special allowances shall remain unchanged.

4. Regarding the regional allowance regime.

The regional allowance regime from October 1, 2004 onwards shall be implemented according to the guidance provided in Joint Circular No. 11/2005/TTLT-BNV-BLDTBXH-BTC-UBDT dated January 5, 2005, issued by the Ministry of Home Affairs, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the National Ethnic Minorities Commission, guiding the implementation of the regional allowance regime (hereinafter referred to as Joint Circular No. 11/2005/TTLT).
The Joint Circular No. 11/2005/TTLT (amended by the Circular No. 803/BNV-TL dated April 14, 2005 of the Ministry of Home Affairs) was issued based on areas entitled to regional allowances as stipulated in Appendix 1 accompanying the Joint Circular No. 03/2001/TTLT-BLDTBXH-BTC-UBDTMN dated January 18, 2001 of the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance, and the Committee for Ethnic Minorities and Mountainous Areas (now the Committee for Ethnic Minorities), guiding the implementation of regional allowance systems and other agreements of the Ministry of Labor, War Invalids and Social Affairs from January 18, 2001 to September 30, 2004. Therefore, starting from October 1, 2004, when there is a change in administrative boundaries (renaming, division, merger) for areas entitled to regional allowances, the regional allowance shall be applied according to the principle of special allowance as provided in point a and point b, Clause 3, Section III of this Circular.

In cases where ministries, sectors, or provincial People's Committees propose to supplement areas entitled to regional allowances or request changes (increases or decreases) in the amount of regional allowances, they shall implement in accordance with the guidance provided in Clause 1, Section III of the Joint Circular No. 11/2005/TTLT. Based on the proposals of the heads of central ministries and sectors and the Chairpersons of provincial People's Committees, the Ministry of Home Affairs will consult with the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance, the Committee for Ethnic Minorities, and related ministries and sectors to consider and respond. During the period before receiving a response from the Ministry of Home Affairs, the existing level and areas entitled to regional allowances shall remain unchanged.

IV. EFFECTIVE DATE OF IMPLEMENTATION

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

2. The amended and supplemented contents regarding the system of salary increment and other allowances for civil servants and public officials as stipulated in this Circular shall be implemented from October 1, 2004.

Any difficulties encountered during the implementation process should be reported to the Ministry of Home Affairs by relevant ministries, sectors, and localities for study and resolution./.