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CIRCULAR

GUIDING THE WAGE SCALING FOR LABORERS TRANSFER-RED FROM OTHER SECTORS TO STATE ENTERPRISES

Recently, the Ministry of Labor, War Invalids and Social Affairs has received a lot of official dispatches, applications and letters from ministries, branches, localities, enterprises and laborers, requesting the explanation of and guidance on the wage scaling for laborers transferred from other sectors to State enterprises or transferred from one State enterprise to another. In order to uniformly settle this issue, after consulting with some relevant ministries and branches, the Ministry of Labor, War Invalids and Social Affairs hereby provides guidance on the wage scaling for the above-mentioned subjects as follows:

I. SUBJECTS OF APPLICATION:

Laborers working in other sectors, now transferred to State enterprises, include:

a) Those who are salaried according to the salary tables issued together with Decision No. 69/QD-TW of May 17, 1993 of the Party’s Central Committee;

b) Those who are salaried according to the salary tables issued together with Resolution No. 35/NQ-UBTVQHK9 of May 17, 1993 of the National Assembly Standing Committee;

c) Those who are salaried according to the salary tables issued together with the Government’s Decree No. 25/CP of May 23, 1993 temporarily stipulating new salary regimes for officials and employees of administrative and public-service units as well as armed forces;

d) Those who are paid according to the wage scales and tables of State enterprises as prescribed, and transferred from one enterprise to another;

e) Those who are paid according to the salary scales and tables of foreign-invested enterprises, foreign or international agencies and organizations in Vietnam or enterprises operating under the Enterprises Law.

The transferred laborers shall be understood as those who are transferred according to State’s regulations; who change their working places and comply with the regime of labor contract.

II. WAGE SCALING:

1. Principles:

Subjects prescribed in the above-mentioned Item I, when transferred to State enterprises, shall be wage-scaled according to the principles: the doer of one job shall be paid according to wage-scale for such job; holder of one post shall be paid according to such post, the currently-enjoyed wage scales shall not be preserved as basis for wage scaling in new work places. Wages shall be scheduled on the basis of assigned tasks, titles, technical skills; titles, professional criteria; enterprise’s category as well as the wage scales and tables which enterprises are allowed to apply as prescribed by the State.

2. Methods for wage scaling:

a) For those who are transferred to work in State enterprises:

- For those who are appointed to work as Chairman of Management Board, full-time member of Management Board, member of Control Board (excluding general directors or directors of large-scale independent enterprises where management boards have already been established), the wage scaling shall comply with Joint-Circular No. 06/TTLT-TCCB-BLDTBXH of October 20, 1998 of the Government’s Commission for Organization and Personnel, the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance, guiding the implementation of the Prime Minister’s Decision No. 83/1998/QD-TTg of April 15, 1998 providing for salary and title allowance regime for members of Management Boards and Control Boards of State corporations and large-scale independent State enterprises.

- For those who are appointed to the posts of General Director, Deputy General Director, Director, Deputy Director, Chief Accountant of enterprises, the wage scaling shall comply with Joint-Circular No. 15/LT-TT of May 26, 1996 of the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance guiding the implementation of the Prime Minister’s Decision No. 185/TTg of March 28, 1996 on enterprises of special-category; Joint-Circular No. 23/1997/TTLT-BLDTBXH-BTC, guiding the implementation of the Government’s Decree No.110/ND-CP of November 18, 1997 supple-menting salary coefficients for managerial posts and title allowances for leaders of enterprises, issued together with Decree No. 26/CP of May 23, 1993 and Joint-Circular No. 17/1998/TTLT-BLDTBXH-BTC of December 31, 1998 guiding the categorization of State enterprises.

b) For those who are transferred to work in State enterprises under labor contracts:

- For those who are transferred to work as workers or employees for various jobs, directly or indirectly engaged in the production and business, based on their assigned tasks, titles, technical skills, enterprises shall organize tests on their professional, technical standards and skills. Laborers qualified for any jobs shall be paid according to wage scales prescribed for such jobs in accordance with the wage scales and tables which enterprises are allowed to apply as prescribed by the State.

- For those who are transferred to do professional, executive or service work in enterprises: doers of professional or executive work of one category shall be wage-scaled according to the salary table of professional, executive and service posts which enterprises are allowed to apply as prescribed by the State, their wage grades shall be agreed upon after considering their jobs and specific situation. The time for the next wage promotion shall be calculated from the wage scaling under mutual agreement.

When transferred to work in enterprises, if the laborers are appointed to the posts of department directors, deputy-directors or equivalent posts in the enterprises, apart from having their salaries scheduled according to the above-mentioned prescriptions, they shall be entitled to title allowances according to enterprise’s category in compliance with general provisions.

III. IMPLEMENTATION ORGANIZATION

This Circular takes effect after its signing

The State enterprises shall base themselves on the guidance in this Circular to make wage scaling for the concerned subjects in strict accordance with provisions.

In the course of implementation, any arising problems should be reported in writing to the Ministry of Labor, War Invalids, and Social Affairs for settlement.

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