Circular No. 06/2024/TT-BLDTBXH amends and supplements certain articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government on labor management, salary, and bonuses for employees working in state-owned limited liability companies with 100% state capital, and Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government on salaries, remuneration, and bonuses for managers of state-owned limited liability companies with 100% state capital.

 Article 1. Amending and supplementing certain Articles of Circular No. 26/2016/TT-BLDTBXH

1. Amending Clause 3 of Article 8 as follows:

"3. Evaluating the responsibility in implementing the labor plan as the basis for assessing the completion of tasks by managers in accordance with Decree No. 159/2020/NĐ-CP dated December 31, 2020 of the Government, which has been amended and supplemented by Decree No. 69/2023/NĐ-CP dated September 14, 2023 of the Government amending and supplementing certain Articles of Decree No. 159/2020/NĐ-CP dated December 31, 2020 of the Government on managing individuals holding positions and representing state capital in enterprises."

2. Changing the name of Section 3 to:

"WAGE SCALE, PAYROLL, DETERMINATION OF THE WAGE FUND PLAN, TEMPORARY ADVANCE ON THE WAGE FUND

TEMPORARY WAGE FUND ADVANCEMENT

3. Adding Article 9a before Article 9, Section 3 as follows:

"Article 9a: Salary scale, salary table, and additional allowances
1. Based on production organization, labor organization, the company reviews and decides to continue maintaining or amending, supplementing, or establishing and issuing new salary scales, salary tables, and additional allowances (with applicable standards attached), ensuring the provisions of Clause 2 of this Article serve as the basis for determining salaries, paying salaries, and implementing regulations for employees according to labor laws.
2. The levels of salaries in the salary scale, salary table, and additional allowances are determined by the company, ensuring that the salary fund based on the total annual salary of all employees according to the levels in the company's salary scale, salary table, and additional allowances does not exceed the planned salary fund for employees as stipulated in this Circular. 3. When amending, supplementing, or establishing and issuing new salary scales, salary tables, and additional allowances, the company must consult the opinions of employee representative organizations at the workplace, conduct dialogue at the workplace according to the Labor Code and guiding documents, report to the owner's representative body for comments, and publicly announce within the company before implementation.

4. Amend and supplement Clause 4 of Article 9 as follows:

"4. For companies with losses or without profits (after excluding any objective factors if present), the planned average salary is calculated based on the average salary in the labor contract (including the salary level, additional allowance, and other supplementary amounts recorded in the labor contract specified in Point a, Subpoint b1 of Point b and Subpoint c1 of Point c of Clause 5 of Article 3 of Circular No. 10/2020/TT-BLDTBXH dated November 12, 2020 issued by the Minister of Labor, Invalids, and Social Affairs detailing and guiding the implementation of certain articles of the Labor Code regarding the content of labor contracts, collective bargaining councils, and occupations and jobs adversely affecting reproductive functions and child-rearing)."

5. Amend and supplement Clause 1 of Article 11 as follows:

"1. Objective factors affecting productivity and profit of the company to be excluded when determining employee salaries are defined in Point a and Point b of Clause 3 of Article 5 of Decree No. 51/2016/NĐ-CP amended and supplemented in Clause 2 of Article 1 of Decree No. 21/2024/NĐ-CP dated February 23, 2024 of the Government amending and supplementing certain articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government on labor management, salaries, and bonuses for employees working in state-owned limited liability companies with 100% state capital contribution, and Point c of Clause 3 of Article 5 of Decree No. 51/2016/NĐ-CP."

Article 2. Amend and supplement some articles of Circular No. 27/2016/TT-BLDTBXH

1. Replace the term "management personnel" in the title, the phrases "management personnel" or "company management personnel" in the articles and clauses of the Circular, and the phrase "management personnel" in Model Form No. 1, Model Form No. 2, and Model Form No. 3 issued together with the Circular with the term "management personnel, Supervisory Board Members".

2. Amend the name of Section 2 to:

"ESTABLISHING SALARY TABLES, DETERMINING SALARIES, AND RANKING THE COMPANY

TO DETERMINE THE BASIC SALARY LEVEL OF MANAGEMENT PERSONNEL,

SUPERVISORY BOARD MEMBERS RESPONSIBLE"

3. Amending Article 4 as follows:

"Article 4. Establishing the Salary Scale
1. Based on the company's management organizational structure, the Board of Members or the Company Chairman shall establish and issue the salary scale (including applicable standards), ensuring that the provisions set forth in Clause 2 of this Article serve as the basis for implementing social insurance, health insurance, unemployment insurance, and other benefits for managers and full-time Supervisors in accordance with labor laws.
2. The salary levels in the salary scale for managers and full-time Supervisors shall be decided by the Board of Members or the Company Chairman, ensuring that the total salary fund determined based on the annual salaries of all managers and full-time Supervisors according to the salary scale does not exceed the planned salary fund for managers and full-time Supervisors as stipulated in this Circular. When establishing or amending the salary scale for managers and Supervisors, the Board of Members or the Company Chairman must seek the opinions of the representative organization of workers at the workplace, engage in dialogue at the workplace in accordance with the Labor Code and guiding documents, report to the agency representing the owner for approval, and publicly announce it within the company before implementation.

4. Amend Article 5 as follows:

"Article 5. Ranking Salaries, Increasing Pay Grades

The Board of Members or the Company Chairman shall rank salaries and increase pay grades (if applicable) for managers and full-time Supervisors according to the salary scale established in accordance with Article 4 of this Circular.

5. Amend the name of Article 6 to:

"Article 6. Ranking the Company to Determine the Basic Salary Level"

6. Amend and supplement Point c of Clause 2 of Article 6 as follows:

"c) A parent company in a parent-subsidiary model that meets the following conditions: plays a significant role in the economy; has state capital (including capital from the state budget, capital received with origins from the state budget, capital from the development fund at the company, credit guaranteed by the Government, state investment credit for development, and other capital invested by the State in the company) of VND 2.5 trillion or more, profit (or total revenue minus total expenses for companies operating without profit objectives) of VND 200 billion or more, has ten or more subsidiary units (including dependent accounting units and independent accounting units held 100% of charter capital and controlling shares by the company) or has production and business organizations nationwide, and fulfills all tax payment obligations as prescribed. The indicators of capital, profit, or total revenue minus total expenses for companies operating without profit objectives are averaged over three years. Companies meeting these conditions shall submit a written request to the agency representing the owner for consensus with the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance before reporting.

7. Amend and supplement Point c of Clause 3 of Article 6 as follows:

"c) A parent company in a parent-subsidiary model that meets the following conditions: plays a significant role in the economy; has state capital (including capital from the state budget, capital received with origins from the state budget, capital from the development fund at the company, credit guaranteed by the Government, state investment credit for development, and other capital invested by the State in the company) of VND 1.8 trillion or more, profit (or total revenue minus total expenses for companies operating without profit objectives) of VND 100 billion or more, has five or more subsidiary units (including dependent accounting units and independent accounting units held 100% of charter capital and controlling shares by the company) or has production and business organizations nationwide, and fulfills all tax payment obligations as prescribed. The indicators of capital, profit, or total revenue minus total expenses for companies operating without profit objectives are averaged over three years. Companies meeting these conditions shall submit a written request to the agency representing the owner for consideration and decision after reaching consensus with the Ministry of Labor, Invalids, and Social Affairs and the Ministry of Finance.

8. Amend Article 8 as follows:

"Article 8. Basic Salary Level When Company Class or Position Changes

When the company class changes or the manager, dedicated supervisor changes position or title, the basic salary level of the manager, supervisor shall be calculated based on the new company class or position, title, without retaining the basic salary level according to the old class or position, title.

9. Amend and supplement Article 10 as follows:

"Article 10. Average Planned Salary Level

The average planned salary level (per month) of managers, dedicated supervisors shall be determined in accordance with labor productivity and business efficiency of the company as follows:
1. For companies with average labor productivity not decreasing and having profits, where planned profit is higher than the actual performance of the previous year, the average planned salary level shall be determined based on the basic salary level and additional factor compared to the basic salary level linked to the planned profit group according to the Additional Factor Table in Clause 4, Article 2 of Decree No. 21/2024/NĐ-CP dated February 23, 2024, amending and supplementing certain articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016, stipulating labor management, salaries, and bonuses for employees working in state-owned single-member limited liability companies holding 100% capital contribution, and Decree No. 52/2016/NĐ-CP dated June 13, 2016, stipulating salaries, remuneration, and bonuses for managers of state-owned single-member limited liability companies holding 100% capital contribution.
2. For companies with profits, where planned profit does not exceed the actual profit of the previous year, the maximum additional factor shall be applied according to the following formula:

Where:

- Central agencies of political-social organizations;_tt: Maximum additional factor compared to the basic salary level.

- Central agencies of political-social organizations;_ln: Additional factor compared to the basic salary level linked to the profit level according to the corresponding activity sector group when average labor productivity does not decrease and planned profit is higher than the actual performance of the previous year, determined based on the Additional Factor Table in Clause 4, Article 2 of Decree No. 21/2024/NĐ-CP dated February 23, 2024, amending and supplementing certain articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016, stipulating labor management, salaries, and bonuses for employees working in state-owned single-member limited liability companies holding 100% capital contribution, and Decree No. 52/2016/NĐ-CP dated June 13, 2016, stipulating salaries, remuneration, and bonuses for managers of state-owned single-member limited liability companies holding 100% capital contribution.

- P_kh: Planned profit; P_thnt: Actual profit of the previous year.

3. For companies without profits, the average planned salary level shall be determined lower than the basic salary level, but not less than 50% of the basic salary level, based on production and business plans compared to the actual performance of the previous year.
4. For loss-making companies, the average planned salary level shall be determined at 50% of the basic salary level. 5. For companies reducing losses compared to the actual performance of the previous year, newly established companies, or newly operational companies, the average planned salary level shall be determined based on the degree of reduced losses or production and business plans, ensuring overall proportionality and reporting to the representative body of the owner for consideration and decision.

10. Amend Clause 1 of Article 11 as follows:

"1. For companies with profits, where planned profit equals or exceeds the actual profit of the previous year, but the average planned salary level (after determination according to Clauses 1, 2, 3 of Article 10 and Clause 2 of Article 11 of this Circular) is lower than the actual performance of the previous year, the average planned salary level shall be calculated based on the average actual salary level of the previous year."

11. Amend Clause 4 of Article 11 as follows:

"4. For companies implementing public goods products or services ordered by the State, replace the profit target index with the quantity of products or services, task plan index to determine the average planned salary level, where the quantity of products or services, tasks equal to or higher than the actual performance of the previous year, the average planned salary level shall be calculated at a maximum of the basic salary multiplied by the forecasted consumer price index for the year according to the Resolution of the National Assembly on the Annual Economic and Social Development Plan. Specific salary levels shall be reviewed and decided by the representative body of the owner to ensure compatibility with the general wage level of company managers and supervisors in the area. In cases where companies have profits and planned profits are higher than the actual performance of the previous year, the average planned salary level shall be determined according to Clause 1 of Article 10 of this Circular, where the additional factor is calculated according to companies belonging to Group 3.

For companies implementing special public goods products or services ordered and planned by the State, the salary of managers and supervisors shall be determined based on the average salary of managers and supervisors included in the price of public goods products or services ordered and planned by the competent state authority."

12. Supplement Clause 5 to Article 11 as follows:

"5. For companies operating without profit objectives, when determining salaries according to Articles 10 and 11 of this Circular, the profit index shall be replaced by the total revenue minus total expenses index."

13. Amend and supplement Clause 1 of Article 13 as follows:

"1. The objective factors affecting labor productivity and profit of the company to be excluded when determining the salary and remuneration of managers and Supervisors as stipulated at points a, b, and c clause 6 Article 5 Decree No. 52/2016/ND-CP of the Government, amended and supplemented at clause 7 Article 2 Decree No. 21/2024/ND-CP dated February 23, 2024 of the Government amending and supplementing some articles of Decree No. 51/2016/ND-CP dated June 13, 2016 of the Government on labor management, salary, and bonuses for employees working in a limited liability company with 100% state-owned charter capital and Decree No. 52/2016/ND-CP dated June 13, 2016 of the Government on salary, remuneration, and bonuses for managers of a limited liability company with 100% state-owned charter capital."

14. Amend the phrase "Clause 2" in clause 2 Article 11 to the phrase "clause 1, clause 2"; the phrase "Clause 2" in point c clause 1 Article 15 to the phrase "clause 1, clause 2".

15. Amend and supplement clause 1 Article 20 as follows:

"1. Report to the agency representing the owner's approval of the salary table of managers and dedicated Supervisors; issue the salary table, adjust the salary grade, and increase the salary grade for managers and dedicated Supervisors according to the provisions of this Circular."

16. Amend and supplement clause 2 Article 22 as follows:

"2. Receive and provide comments on the salary table for managers and dedicated Supervisors of companies under its management."

17. Amend and supplement clause 3 Article 22 as follows:

"3. Based on the maximum adjustment coefficient framework corresponding to profit in each field prescribed in clause 1 Article 10 of this Circular, decide on the specific division of the adjustment coefficient corresponding to planned profit to suit the actual situation, ensuring the correlation between salary and the scale and efficiency of operations among companies."

Article 3. Effectiveness

1. This Circular takes effect from September 15, 2024. From the date this Circular takes effect, the following regulations shall be abolished:

a) Clause 3 Article 3 Circular No. 26/2016/TT-BLDTBXH.

b) Article 24, clause 6 Article 25 and certain provisions in Circular No. 27/2016/TT-BLDTBXH, including: the phrase "capital development index, budget payment," in clause 2 Article 11; the phrase "For financial Supervisors at state-owned economic groups, the state-owned economic group transfers to the Ministry of Finance to form a common fund, evaluate, and pay out." in clause 7 Article 3; the phrase "(or the Ministry of Finance for financial Supervisors at state-owned economic groups)" in clause 2 Article 14 and clause 1 Article 19; the phrase "(or the Ministry of Finance)" in clause 3 Article 20; the phrase "extend the period for increasing or decreasing salary grades," in clause 7 Article 22.

c) Circular No. 31/2016/TT-BLDTBXH dated October 25, 2016 of the Minister of Labor, Invalids, and Social Affairs guiding the implementation of labor management, salary, remuneration, and bonuses in organizations established and operating under the model of a limited liability company with 100% state-owned charter capital as provided for in the Securities Law.

d) Circular No. 36/2016/TT-BLDTBXH dated October 25, 2016 of the Minister of Labor, Invalids, and Social Affairs guiding remuneration for managers of the Vietnam Oil and Gas Corporation performing expert and technical advisory work in oil exploration and exploitation projects.

2. The regulations on the salary fund, salary payment, remuneration, and bonuses stipulated in clause 4 and clause 5 Article 1; clauses 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 17 Article 2 of this Circular shall be implemented from January 1, 2024. The regulations in clause 3 Article 1 and clauses 3 and 4 Article 2 of this Circular shall be implemented from April 10, 2024. During the implementation process, if there are difficulties, please send opinions to the Ministry of Labor, Invalids, and Social Affairs (through the Directorate of Labor Relations and Wages) for consideration and revision.

During the implementation process, if there are difficulties, please send opinions to the Ministry of Labor, Invalids, and Social Affairs (through the Directorate of Labor Relations and Wages) for consideration and revision./.