Consolidated Document number 1166/VBHN-BLDTBXH Implementing the pilot management of labor, wages, and bonuses for some state-owned economic groups and corporations

DECREE

Implementing a pilot program to manage labor, wages, and bonuses for certain state-owned economic groups and corporations

Decree No. 20/2020/NĐ-CP dated February 17, 2020, of the Government implements a pilot program to manage labor, wages, and bonuses for certain state-owned economic groups and corporations, effective from April 1, 2020, amended and supplemented by:

1. Decree No. 87/2021/NĐ-CP dated September 29, 2021, of the Government extending the implementation period and amending and supplementing some articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, of the Government implementing a pilot program to manage labor, wages, and bonuses for certain state-owned economic groups and corporations, effective from September 29, 2021.

2. Decree No. 64/2023/NĐ-CP dated August 23, 2023, of the Government supplementing Decree No. 87/2021/NĐ-CP dated September 29, 2021, of the Government extending the implementation period and amending and supplementing some articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, of the Government implementing a pilot program to manage labor, wages, and bonuses for certain state-owned economic groups and corporations, effective from August 23, 2023.

Pursuant to the Law on Government Organization dated June 19, 2015;

Based on the Labor Code dated June 18, 2012;

Based on the Enterprise Law dated November 26, 2014;

Pursuant to the Law on Management and Use of State Capital for Investment in Business Operations dated November 26, 2014;

Decree No. 07/2021/NĐ-CP

The Government promulgates a Decree implementing a pilot program to manage labor, wages, and bonuses for certain state-owned economic groups and corporations[1].

Chapter I. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the implementation of a pilot program regarding labor management, wage scales; wages and bonuses for employees and General Directors, Deputy General Directors, Chief Accountants; remuneration, fees, and bonuses for Members of the Board of Members, Board of Management, Heads of Supervisory Boards, and Supervisors at economic groups and corporations after[2]:

1. The Parent Company - Vietnam Post and Telecommunications Group Corporation.

2. The Parent Company - Vietnam Airlines Joint Stock Corporation.

3. The Parent Company - Vietnam Air Traffic Management Corporation.

The above parent companies are collectively referred to as the company.

Article 2. Applicability

1. Employees as defined by the Labor Code.

2. General Director, Deputy General Director, Chief Accountant.

3. Member of the Board of Members, Board of Management, Head of Supervisory Board, and Supervisor.

4. State capital representative at the company, direct state owner representative, and state owner representative agency according to the Law on Management and Use of State Capital Invested in Production and Business Activities of Enterprises.

5. Agencies, organizations, and individuals related to the implementation of the provisions of this Decree.

Article 3. Principles of labor management, wages, and bonuses

1. The recruitment policy and labor utilization, wages, and bonuses of the company are decided by the company based on legal regulations and the Charter of the company.

2. Wages and bonuses for employees, General Director, Deputy General Director, Chief Accountant, Member of the Board of Members, Board of Management, Head of Supervisory Board, and Supervisor of the company are linked to labor productivity and business efficiency of the company.

3. The State manages labor, remuneration, fees, and bonuses for companies with 100% state-owned charter capital through the assignment of tasks and responsibilities to the state owner representative agency and direct state owner representatives at the company; for joint-stock companies, the state owner representative agency bases its directives on this Decree, instructing the state capital representative at the company to participate and vote at meetings of the Board of Management and Shareholders' Meeting.

Article 4. Exclusion of Objective Factors

The company excludes objective factors (if any) that directly affect productivity, profit, and profit margin on capital, serving as the basis for determining salaries and bonuses as stipulated in this Decree, including:

1. State adjustment of prices (for products and services priced or regulated by the state); corporate income tax incentives; adjustments to mechanisms, policies, or requirements for the company to relocate or reduce production and business sites; increased depreciation to recover capital faster; increase or decrease in registered capital or state investment capital in the company.

2. The company implements social welfare tasks, market stabilization, supply-demand balance for the economy according to the Prime Minister's decision; expands production and business; invests in and develops new products and services; complies with regulations of competent state agencies, Agreements, Treaties, or recommendations of international organizations to which Vietnam is a member.

3. Market impacts directly on basic input factors of the company; natural disasters, fires, epidemics, wars, and other force majeure causes.

Chapter II. LABOR MANAGEMENT AND WAGE SCALE CONSTRUCTION

Article 5. Labor Management

1. The company must develop a labor plan as the basis for recruiting labor.

2. The labor plan is developed based on the production and business plan, labor levels, organizational structure, and streamlined, rational indirect labor structure.

3. The labor plan must be approved by the Board of Members or the Board of Directors before implementation.

4. Recruitment of labor must be conducted openly and transparently in accordance with the law and the company's recruitment regulations and Articles of Association.

5. In cases where recruitment exceeds the demand, leading to surplus and termination of employment contracts, thereby increasing company costs, the General Director shall be responsible (including salary and bonus reductions) before the Board of Members or the Board of Directors of the company.

Article 6. Construction of Wage Scales

Based on production organization, labor organization, and operational regulations, the company establishes and promulgates wage scales (including allowances) to implement legal provisions for workers, General Director, Deputy General Director, Chief Accountant, Member of the Board of Members, Board of Directors, Head of Supervisory Board, and Professional Supervisors, including:

1. Wage scales for workers.

2. Wage scale for the General Director, Deputy General Director, and Chief Accountant (hereinafter referred to as the Executive Board).

3. Wage scale for specialized members of the Board of Members, Board of Directors, Head of Supervisory Board, and Professional Supervisors.

Chapter III. SALARIES AND BONUSES OF WORKERS AND THE EXECUTIVE BOARD

Article 7. Unit Price of Contracted Salaries

1. Salaries of workers and the Executive Board are contracted based on the unit price of salaries (hereinafter referred to as the contracted unit price) as follows:

a) For the parent company - Vietnam Post and Telecommunications Group, the contracted unit price is determined as a percentage of total revenue minus total expenses without salaries, based on the average unit price of the 2018-2019 period, and includes compensation for the difference in salaries of direct labor performing high-tech products listed in the High-Tech Product List issued by the Prime Minister or relevant ministries, if the company pays less than the industry average salary level in the market.

b) For the parent company - Vietnam Airlines Corporation, the contracted unit price is based on the ton-kilometer performance index with revenue, determined based on the average unit price of the 2018-2019 period, and includes compensation for the difference in salaries of Vietnamese pilots compared to foreign pilots if the company pays less.

c) For the parent company - Vietnam Air Traffic Management Corporation, the contracted unit price is based on the converted air traffic control kilometer index, determined based on the average unit price of the 2018-2019 period, and safety bonuses (if any) calculated for the number of workers expected to be added in 2020 as required by competent state authorities for aviation security and safety purposes.

2. The average unit price of the 2018-2019 period is calculated based on the actual annual salary and safety bonus (if any) fund of workers and the Executive Board divided by the contracted unit price index according to Clause 1 of this Article during the 2018-2019 period.

3. When determining the contracted unit price according to Clause 1 of this Article, the company must ensure that the planned pre-tax profit for 2020 is not lower than the average realized profit of the 2018-2019 period.

4. The company decides to temporarily advance up to 85% of the contracted unit price to pay monthly salaries to workers and the Executive Board.

Article 8. Implementation of the wage fund

1. The implementation of the wage fund shall be determined based on the unit price multiplied by the actual performance index for the unit price according to Article 7 of this Decree, ensuring that the average wage increase is lower than the average labor productivity increase and the actual profit is not less than the average actual profit of the 2018-2019 period.

2. For companies with actual profits exceeding the average profit of the 2018-2019 period, additional amounts may be added to the wage fund (recorded as expenses) according to the principle of adding 2% of the wage fund for every 1% excess profit, but not more than 20% of the excess profit and not more than two months' worth of actual wages.

3. In cases where actual profits are lower than the average of the 2018-2019 period, the company must reduce the wage fund according to one of the two methods chosen by the company: reducing by a percentage rate or by the difference in value between actual profit and the average profit of the 2018-2019 period. The maximum reduction shall not exceed two months' worth of actual wages and must ensure that the actual wage fund does not fall below the wage fund calculated based on the average wage level stipulated in the labor contracts.

4. Based on the actual wage fund and the wages temporarily advanced to employees, the company determines the remaining wage fund to be enjoyed. If the temporarily advanced and expended amount exceeds the actual wage fund, it must be repaid from the wage fund of the following consecutive year.

5.[3] Based on the actual wage fund, the company decides to use the entire wage fund to pay wages in the year or set aside a portion to establish a supplementary reserve fund for the next year's wage fund, but it shall not exceed 17% of the actual wage fund.

Article 9. Bonus Fund

1. Based on the actual profit after fulfilling obligations to the State and shareholders, and setting up funds according to state regulations on profit distribution, the company may establish a bonus and welfare fund for employees and the management board, not exceeding three months' worth of actual wages if the actual profit is not lower than the plan; not exceeding three months' worth of actual wages multiplied by the percentage ratio of actual profit to planned profit if the actual profit is lower than the plan.

2. Based on the bonus and welfare fund at Clause 1 of this Article, the company decides to allocate it into a bonus fund and a welfare fund, where the bonus fund is used to reward employees and the management board; the welfare fund is used to invest in building or repairing welfare facilities and funding common welfare activities of the company (including members of the Board of Members, Board of Directors, Head of Supervisory Board, and Supervisors).

Article 10. Payment of Wages and Bonuses

Employees and the Management Board shall be paid wages and bonuses according to the company's regulations as follows:

1. The regulations on payment of wages and bonuses shall be issued by the Chairman of the Board of Members, the Board of Directors, ensuring democracy, transparency, and participation of the representative organization of the workforce at the workplace.

2. Wages and bonuses paid to employees shall be based on their job or position and the results of their work. Wages and bonuses paid to the Management Board shall be based on their positions, linked to profit, return on equity, and the results of their tasks; among which, the wages and bonuses paid to the General Director shall not exceed seven times the average wages and bonuses of employees. For the General Director hired under a labor contract, it shall be implemented according to the agreement in the labor contract.

3. The General Director evaluates and decides the level of wages and bonuses for employees; the Board of Members and the Board of Directors evaluate and decide the level of wages and bonuses for the General Director, Deputy General Director, and Chief Accountant.

Chapter IV. WAGES, COMPENSATION, AND BONUSES OF BOARD OF MEMBERS, BOARD OF DIRECTORS, HEAD OF SUPERVISORY BOARD, AND SUPERVISORS

Article 11. Basic Salary Level

1. The basic salary level for Members of the Board of Members, Board of Directors, Head of Supervisory Board, and Professional Supervisors shall be stipulated as follows:

2. The type of company specified in Clause 1 of this Article shall be determined as follows:

a) Type 1, applicable to companies with planning indicators: charter capital of 10,000 billion VND or more; revenue of 30,000 billion VND or more and having 10 management units (subsidiaries that are independently accounted for or dependent) or total number of employees used of 5,000 or more.

b) Type 2, applicable to companies with planning indicators: charter capital under 10,000 billion VND; revenue under 30,000 billion VND and having less than 10 management units or total number of employees used under 5,000.

3. Companies shall base on planning indicators to determine the type of company and the basic salary level for Members of the Board of Members, Board of Directors, Head of Supervisory Board, and Professional Supervisors.

Article 12. Salary Level

1. The planned salary level for Members of the Board of Members, Board of Directors, Head of Supervisory Board, and Professional Supervisors shall be determined based on the basic salary level linked to profit and the post-tax return on equity (hereinafter referred to as the return rate) planning compared to profit and the return rate achieved in the immediately preceding year as follows:

a) If the planned profit and return rate are equal to or higher than the profit and return rate of the immediately preceding year, then the maximum planned salary level will be two times the basic salary level.

b) If the planned profit or return rate is lower than the profit or return rate of the immediately preceding year, then the maximum planned salary level will be calculated as two times the basic salary level multiplied by the percentage ratio of the planned profit or return rate lower than the profit or return rate of the immediately preceding year. In case both the planned profit and return rate are lower than the profit and return rate of the immediately preceding year, the maximum planned salary level will be calculated as two times the basic salary level multiplied by the percentage ratio of the planned profit to the profit of the immediately preceding year and multiplied by the return rate planning compared to the return rate of the immediately preceding year. The planned salary level after calculation according to profit and return rate shall not be lower than fifty percent of the basic salary level.

c) If there is no profit, the maximum planned salary level will be fifty percent of the basic salary level; if there is a loss, the maximum planned salary level will be thirty percent of the basic salary level.

2. The actual salary level shall be based on the planned salary level and the actual profit and return rate compared to the plan according to the principle stipulated in Clause 1 of this Article. In case the actual profit and return rate exceed the planned profit and return rate, additional salary (recorded as expense) will be calculated according to the principle of exceeding one percent of profit compared to the plan, an additional two percent of salary but not exceeding two months of the planned salary.

Article 13. Allowance Level

The allowance for Non-Professional Supervisors, Members of the Board of Members, and Board of Directors shall be calculated based on work and working time, but shall not exceed twenty percent of the corresponding salary level of Members of the Board of Members, Board of Directors, and Professional Supervisors.

Article 14. Amount of Bonus

Based on profits realized after fulfilling obligations to the State and setting aside funds according to the State's regulations on profit distribution, the company shall allocate bonuses for members of the Board of Members, Board of Directors, Head of Supervisory Board, and Supervisors as follows:

1. For companies wholly owned by the State with 100% capital contribution, bonuses shall be allocated based on the degree of achievement of profit targets and the classification of the company: not exceeding two months' salary and remuneration if actual profits equal or exceed the plan and the company is classified as type A; not exceeding two months' salary and remuneration multiplied by the percentage of actual profits compared to planned profits if actual profits are lower than the plan and the company is classified as type A or type B; no allocation of bonuses if the company is classified as type C or the company does not undergo classification.

The classification of the company shall be carried out in accordance with the Government's regulations and the Ministry of Finance's guidance on supervising state capital investment in enterprises; financial supervision, assessing operational efficiency, and publicly disclosing financial information of state-owned enterprises and enterprises with state capital participation.

2. For joint-stock companies, after fulfilling obligations to shareholders who have contributed capital, bonuses shall be allocated based on the degree of achievement of profit targets: not exceeding two months' salary and remuneration if actual profits equal or exceed the plan; not exceeding two months' salary and remuneration multiplied by the percentage of actual profits compared to planned profits if actual profits are lower than the plan.

Article 15. Payment of Salary, Remuneration, and Bonuses

1. Members of the Board of Members, Board of Directors, Head of Supervisory Board, and Supervisors shall be temporarily advanced monthly salaries and remunerations not exceeding 85% of the planned salary and remuneration levels.

2. The level of salary, remuneration, and bonuses received annually shall be determined based on the salary, remuneration, and bonus levels stipulated in this Decree and the degree of completion of tasks by each individual.

The representative body of the owner shall establish criteria for evaluating the degree of completion of tasks, decide on the salary, remuneration, and bonuses to be paid to each member of the Board of Members, Board of Directors representing state capital, Head of Supervisory Board, and Supervisors.

3. In cases where members of the Board of Members, Board of Directors, Head of Supervisory Board, and Supervisors have been temporarily advanced more than their entitled salary and remuneration, they must immediately repay the excess amount within the year.

Chapter V. RESPONSIBILITY FOR IMPLEMENTATION

Article 16. Responsibilities of Companies Wholly Owned by the State with 100% Capital Contribution

1. The General Director shall be responsible for:

a) Determining and reporting to the Board of Members the unit price of the contract, the salary and bonus system for employees and the Management Board, the wage scale, and the wage list.

b) Determining the planned wage fund for temporary advances to employees; submitting to the Board of Members the labor plan, the implemented wage fund of the previous adjacent year for employees and the Management Board, and the salary and bonus levels for each individual in the Management Board.

c) Publicizing the salary, remuneration, and bonuses of the Management Board, members of the Board of Members, Head of Supervisory Board, and Supervisors in accordance with regulations.

2. The Chairman of the Board of Members shall be responsible for:

a) Seeking opinions from the representative body of the owner regarding the wage list of members of the Board of Members, Head of Supervisory Board, and Supervisors and the salary level for the Management Board in the salary system; issuing the salary and bonus system for employees and the Management Board and the wage scale; reporting to the representative body of the owner for approval of the unit price of the contract.

b) Approving the labor plan, the implemented wage fund of the previous adjacent year for employees and the Management Board; approving the salary and bonus levels for each individual in the Management Board; determining and reporting to the representative body of the owner the exclusion of objective factors (if any), the salary, remuneration, and bonuses of each member of the Board of Members, Head of Supervisory Board, and Supervisors.

c) By the end of 2020, summarizing the implementation of the pilot program as stipulated in this Decree, reporting to the representative body of the owner and the Ministry of Labor, Invalids, and Social Affairs.

3. The Head of Supervisory Board and Supervisors shall be responsible for assisting the representative body of the owner in inspecting and supervising the implementation of the Board of Members and the General Director in accordance with the law and the provisions of this Decree.

Article 17. Responsibilities of the State Capital Representative at Joint Stock Companies

1. Participate in providing opinions to the Board of Directors to specify the responsibilities of the Chairman of the Board of Directors, General Director, Head of the Supervisory Board, and Supervisor regarding the implementation of labor management, salaries, remuneration, and bonuses in accordance with Article 16 of this Decree.

2. Report to the State Capital Ownership Agency for approval on plans for labor utilization, unit price quotas, and employee bonuses and the Executive Board; salaries, remuneration, and bonuses of Board of Directors members, Head of the Supervisory Board, and Supervisors before participating in discussions and voting in the Board of Directors or Shareholders' Meeting; report on the implementation status after the Board of Directors or Shareholders' Meeting approves.

3. Evaluate the results of monitoring the implementation of labor, salaries, remuneration, and bonuses for the company. In cases where tasks are not completed, clearly identify responsibility, causes, and propose solutions.

Article 18. Responsibilities of the State Capital Ownership Agency

1. Approve the unit price quotas of companies wholly owned by the state or instruct the state capital representative to approve the unit price quotas of joint stock companies, after consulting the Ministry of Labor, Invalids and Social Affairs.

2. Approve (for companies wholly owned by the state) or instruct the state capital representative (for joint stock companies) on planned salaries, salaries received, and bonuses for each member of the Board of Members, Board of Directors who are state capital representatives, Head of the Supervisory Board, and Supervisors; simultaneously send the approval documents mentioned above to the Ministry of Labor, Invalids and Social Affairs for inspection and supervision.

3. By the end of 2020, summarize the pilot implementation according to this Decree and submit the results to the Ministry of Labor, Invalids and Social Affairs.

Article 19. Responsibilities of the Ministry of Labor, Invalids and Social Affairs

1. Guide the implementation of provisions on unit price quotas and wage funds for employees and the Executive Board as stipulated in Articles 7 and 8 of this Decree.

2. By the end of 2020, summarize the pilot implementation according to this Decree to report to the Prime Minister.

Chapter VI. IMPLEMENTING PROVISIONS[4]

Article 20. Effective Date

1. This Decree takes effect from April 1, 2020.

2. Provisions on employee salaries and bonuses, and Executive Board salaries, remuneration, and bonuses stipulated in this Decree shall be implemented from January 1, 2020.[5].

Article 21. Organization of Implementation

1. Based on the provisions of this Decree, the Board of Members and the Board of Directors of the parent company decide to implement pilot management for subsidiaries owned by the parent company with 51% or more of the charter capital, ensuring that the salaries and bonuses of the Board of Members, Supervisors, and Board of Directors of subsidiaries do not exceed the maximum salary and bonus levels prescribed for the parent company.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial people's committees under central cities, and related organizations and individuals are responsible for implementing this Decree.

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[1] (i) The Government issued Decree No. 87/2021/NĐ-CP dated September 29, 2021, extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, on piloting labor management, salaries, and bonuses for some state-owned economic groups and corporations.

"Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Labor Code on November 20, 2019;

Pursuant to the Law on Enterprises dated June 17, 2020;

Law on Management and Use of State Capital for Investment in Production and Business Activities of Enterprises dated November 26, 2014;

Decree No. 07/2021/NĐ-CP

The Government issued a Decree extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, on piloting labor management, salaries, and bonuses for some state-owned economic groups and corporations.

(ii) The Government issued Decree No. 64/2023/NĐ-CP dated August 23, 2023, supplementing Decree No. 87/2021/NĐ-CP dated September 29, 2021, extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, on piloting labor management, salaries, and bonuses for some state-owned economic groups and corporations.

"Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Labor Code on November 20, 2019;

Pursuant to the Law on Enterprises dated June 17, 2020;

Pursuant to the Law on Management and Use of State Capital for Investment in Business Operations dated November 26, 2014;

Decree No. 07/2021/NĐ-CP

The Government issued a Decree supplementing Decree No. 87/2021/NĐ-CP dated September 29, 2021, extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, on piloting labor management, salaries, and bonuses for some state-owned economic groups and corporations.

[2] This paragraph was amended pursuant to Clause 1, Article 1 of Decree No. 87/2021/NĐ-CP dated September 29, 2021, extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, on piloting labor management, salaries, and bonuses for some state-owned economic groups and corporations, effective from September 29, 2021.

[3] This clause was added pursuant to Clause 2, Article 1 of Decree No. 87/2021/NĐ-CP dated September 29, 2021, extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020, on piloting labor management, salaries, and bonuses for some state-owned economic groups and corporations, effective from September 29, 2021.

[4] (i) Articles 2 and 3 of Decree No. 87/2021/NĐ-CP dated September 29, 2021, were supplemented by Decree No. 64/2023/NĐ-CP dated August 23, 2023, as follows:

“Article 2. Effective Date

1. This Decree takes effect from the date of signature.

2. The provisions of this Decree shall take effect from January 1, 2021 until the Government issues a new Decree regulating labor management, salaries, remuneration, and bonuses in state-owned enterprises pursuant to Resolution No. 27-NQ/TW dated May 21, 2018 of the Seventh Plenary Session of the Central Committee of the Communist Party of Vietnam's Twelfth Tenure on salary policy reform for cadres, civil servants, public officials, and workers in state-owned enterprises which becomes effective.

3. In cases where the company's labor productivity, profit, and profit rate on equity capital decrease mainly due to the direct impact of objective factors, when determining the wage fund for employees, the Management Board shall determine according to the unit price quota and salary, remuneration levels of members of the Board of Members, Board of Directors, Head of Supervisory Board, and Supervisors as stipulated in Clause 1, Clause 3 Article 8 and Clause 2 Article 12, Article 13 of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government, if the average salary level of the Management Board and employees on the payroll list is lower than 65% of the average salary level (including safety bonus, if any) of these employees implemented in 2019; the salary and remuneration level of members of the Board of Members, Board of Directors, Head of Supervisory Board, and Supervisors is lower than 65% of the actual salary and remuneration level of each corresponding position implemented in 2019, then the company shall determine and report to the agency representing the owner for consideration and decision on the average salary level of the Management Board and employees higher than 65% of the actual average salary level (including safety bonus, if any) of these employees implemented in 2019; the salary and remuneration level of members of the Board of Members, Board of Directors, Head of Supervisory Board, and Supervisors higher than 65% of the actual salary and remuneration level of each corresponding position implemented in 2019.

4. When determining salaries and remuneration as prescribed in Clause 3 of this Article, the company must complete the profit plan (excluding objective factors) assigned by the agency representing the owner. The average salary level of employees and the Management Board shall not be lower than the salary level determined according to the wage scale established and promulgated by the company in accordance with Article 6 of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government.

5. The Head of the Supervisory Board and Supervisors of the company continue to apply salaries, remuneration, and bonuses as prescribed in Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government, and shall not apply the provisions on salaries, remuneration, and bonuses at Clause 2 Article 8 of Decree No. 47/2021/NĐ-CP dated April 1, 2021 of the Government detailing certain provisions of the Enterprise Law until the Government issues a new Decree regulating labor management, salaries, remuneration, and bonuses in state-owned enterprises which becomes effective.

6. For the Parent Company - Vietnam Airlines Corporation (hereinafter referred to as VNA), after paying wages to Vietnamese pilots working under employment contracts with VNA from the actual wage fund of employees and the Management Board as prescribed in Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government and Clause 3, Clause 4 Article 2 of this Decree (hereinafter referred to as the actual wage fund), if the salary level of Vietnamese pilots is lower than that of foreign pilots working for VNA, then the additional wage source for Vietnamese pilots shall be determined as follows:

a) The maximum annual additional wage source shall be based on the difference between the pre-supplement salary level of Vietnamese pilots and the salary level (including basic salary, hourly flying salary, and hourly teaching salary) of foreign pilots, averaged accordingly by job title group within the same flight team and the actual working time of the pilots.

b) The pre-supplement salary level of Vietnamese pilots is the salary received from the annual actual wage fund, according to VNA's wage payment regulations. The allocation of the annual actual wage fund for paying Vietnamese pilots shall be based on the ratio (%) between the actual salary paid to Vietnamese pilots in 2022 and the actual wage fund of 2022.

c) Determining the additional wage source must be consistent with VNA's financial capacity, ensuring that VNA completes the annual profit target assigned by the State Capital Investment Committee (if VNA incurs losses, it must reduce losses compared to the previous year).

d) The additional wage source shall be recorded as production and business costs of VNA in accordance with the law and used to pay Vietnamese pilots currently working under employment contracts with VNA at the time of additional payment, not to be paid to other individuals or used for other purposes. Additional payments to Vietnamese pilots shall be based on their job titles and actual working time according to VNA's regulations.

Article 3. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of provincial People's Committees directly under the central government, and related organizations and individuals are responsible for implementing this Decree."

(ii) Article 2 and Article 3 of Decree No. 64/2023/NĐ-CP dated August 23, 2023 of the Government are stipulated as follows:

"Article 2. Responsibility for organizing implementation

1. The State Capital Representative at VNA is responsible for:

a) Before January 31 each year, developing a supplementary wage source plan for Vietnamese pilots of the previous year, clearly stating the appropriateness of the plan with VNA's financial capacity and the degree of completion of the profit target, reporting to the State Capital Investment Committee for comments.

b) Participate in opinions and voting in the Board of Directors or General Meeting of Shareholders according to the plan that has been commented on by the State Capital Management Committee to decide on supplementing the source of salary for Vietnamese pilots.

c) Participate in opinions and voting to have the General Director or the Board of Directors of VNA issue regulations to pay additional salary from the supplementary salary source for Vietnamese pilots.

d) Report the results of implementing the supplementation of the salary source and payment of salary for Vietnamese pilots to the State Capital Management Committee.

2. The State Capital Management Committee shall be responsible for:

a) Directing the state capital representative at VNA to perform the tasks prescribed in Clause 1 of this Article.

b) Reviewing and providing written comments to inform the state capital representative at VNA about the plan to supplement the salary source for Vietnamese pilots, while sending it to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

Article 3. Effectiveness

1. This Decree takes effect from the date of issuance.

2. The supplementation of the salary source as stipulated in Article 1 of this Decree shall be implemented from January 1, 2023.

3. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, and related organizations and individuals shall be responsible for enforcing this Decree.

[5] The phrase "up to December 31, 2020" is abolished pursuant to Clause 3, Article 1 of Decree No. 87/2021/NĐ-CP dated September 29, 2021 of the Government on extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government on piloting the management of labor, salaries, and bonuses for some state-owned economic groups and corporations, which took effect from September 29, 2021.