Circular No. 12/2022/TT-BLDTBXH guiding the management of labor, wages, remuneration, and bonuses for the National Science and Technology Innovation Fund

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses for the National Technology Innovation Fund

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BASED ON THE GOVERNMENT DECREE NO. 14/2017/NĐ-CP OF FEBRUARY 17, 2017, PROVIDING THE FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF LABOR, INVALIDS AND SOCIAL AFFAIRS;

BASED ON THE GOVERNMENT DECREE NO. 51/2016/NĐ-CP OF JUNE 13, 2016, PROVIDING MANAGEMENT OF LABOR, WAGES AND BONUSES FOR WORKERS IN JOINT STOCK COMPANIES WITH 100% STATE CAPITAL;

BASED ON THE GOVERNMENT DECREE NO. 52/2016/NĐ-CP OF JUNE 13, 2016, PROVIDING WAGES, REMUNERATION AND BONUSES FOR MANAGERS IN JOINT STOCK COMPANIES WITH 100% STATE CAPITAL;

BASED ON THE PRIME MINISTER’S DECISION NO. 04/2021/QĐ-TTg OF JANUARY 29, 2021, ISSUING THE REGULATIONS ON THE ORGANIZATION AND OPERATIONS OF THE NATIONAL SCIENCE AND TECHNOLOGY INNOVATION FUND;

Pursuant to the proposal of the Director of the Directorate of Labor Relations and Wages;

THE MINISTER OF LABOR, INVALIDS AND SOCIAL AFFAIRS ISSUES THE CIRCULAR GUIDING THE IMPLEMENTATION OF LABOR MANAGEMENT, WAGES, REMUNERATION AND BONUSES FOR THE NATIONAL SCIENCE AND TECHNOLOGY INNOVATION FUND.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

THIS CIRCULAR GUIDES THE MANAGEMENT OF LABOR, WAGES, REMUNERATION AND BONUSES FOR WORKERS, CIVIL SERVANTS, CHAIRPERSON AND BOARD MEMBERS, DIRECTORS, DEPUTY DIRECTORS, CHIEF ACCOUNTANTS, AND AUDITORS OF THE NATIONAL SCIENCE AND TECHNOLOGY INNOVATION FUND AS PROVIDED FOR IN THE PRIME MINISTER’S DECISION NO. 04/2021/QĐ-TTg OF JANUARY 29, 2021, ISSUING THE REGULATIONS ON THE ORGANIZATION AND OPERATIONS OF THE NATIONAL SCIENCE AND TECHNOLOGY INNOVATION FUND (HEREINAFTER REFERRED TO AS THE FUND).

Article 2. Applicability

1. Officials and employees working under labor contracts.

2. Chair and members of the Management Board, Directors, Deputy Directors, Chief Accountants, and Auditors (hereinafter collectively referred to as managers).

3. Agencies, organizations, and individuals related to the management of labor, wages, remuneration, and bonuses as stipulated in this Circular.

Chapter II

MANAGEMENT OF LABOR, WAGES, AND BONUSES FOR OFFICIALS AND EMPLOYEES

Article 3. Management of labor, determination of wage funds, advance payment of wage funds, distribution of wages, and bonuses

1. THE FUND SHALL IMPLEMENT LABOR MANAGEMENT IN ACCORDANCE WITH SECTION 2 OF THE CIRCULAR NO. 26/2016/TT-BLĐTBXH OF SEPTEMBER 1, 2016, GUIDING THE IMPLEMENTATION OF LABOR MANAGEMENT, WAGES AND BONUSES FOR WORKERS IN JOINT STOCK COMPANIES WITH 100% STATE CAPITAL (HEREINAFTER REFERRED TO AS CIRCULAR NO. 26/2016/TT-BLĐTBXH).

2. Officials and employees shall be entitled to wages and bonuses from the wage and bonus fund determined by the Fund according to the following provisions:

a) THE FUND FOR WAGES (PLANNED AND ACTUAL), TEMPORARY ADVANCES AND DISTRIBUTION OF WAGES AND BONUSES FOR CIVIL SERVANTS AND WORKERS SHALL BE IMPLEMENTED IN ACCORDANCE WITH ARTICLES 9, 10, AND 13 OF SECTIONS 3 AND 4 OF CIRCULAR NO. 26/2016/TT-BLĐTBXH.

b) WHEN DETERMINING THE AVERAGE PLANNED WAGE LEVEL AND THE AVERAGE ACTUAL WAGE LEVEL TO CALCULATE THE FUND FOR WAGES (PLANNED AND ACTUAL) AS PROVIDED FOR IN ARTICLES 9 AND 14 OF CIRCULAR NO. 26/2016/TT-BLĐTBXH, THE PROFIT INDICATOR (PLANNED PROFIT, ACTUAL PROFIT FOR THE YEAR AND ACTUAL PROFIT FOR THE IMMEDIATELY PRECEDING YEAR) SHALL BE CALCULATED BY THE DIFFERENCE BETWEEN TOTAL INCOME AND TOTAL EXPENSES (HEREINAFTER REFERRED TO AS INCOME LESS EXPENSES DIFFERENCE) OF THE FUND.

Article 4. Excluding Objective Factors When Determining the Salary Fund for Civil Servants and Employees

1. WHEN DETERMINING THE FUND FOR WAGES (PLANNED AND ACTUAL) OF CIVIL SERVANTS AND WORKERS, IF THERE ARE OBJECTIVE FACTORS DIRECTLY IMPACTING LABOR PRODUCTIVITY AND INCOME LESS EXPENSES DIFFERENCE, SUCH FACTORS MUST BE EXCLUDED TO ENSURE THAT WAGES ARE TIED TO LABOR PRODUCTIVITY AND THE TRUE EFFECTIVENESS OF THE FUND'S OPERATIONS.

2. THE OBJECTIVE FACTORS TO BE EXCLUDED WHEN DETERMINING THE FUND FOR WAGES INCLUDE THE FACTORS PROVIDED FOR IN CLAUSE 1, ARTICLE 11 OF CIRCULAR NO. 26/2016/TT-BLĐTBXH AND CLAUSE 3, ARTICLE 44 OF DECISION NO. 04/2021/QĐ-TTg.

3. The impact of objective factors on labor productivity and the income minus expense difference of the Fund must be quantified by specific values.

Chapter III

SALARIES, REMUNERATION, AND BONUSES FOR MANAGERS

Article 5. Salary Classification and Salary Adjustment for Dedicated Fund Managers

1. The Fund shall implement salary classification and salary adjustment for dedicated managers in accordance with the provisions set out in Section 2 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, Invalids and Social Affairs to guide the implementation of wage, remuneration, and bonus systems for managers of state-owned limited liability companies (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH), including:

a) The Chairman of the Management Board shall classify wages according to the position of Chairman of the Board of Members.

b) Members of the Management Board shall classify wages according to the position of members of the Board of Members.

2. The Fund shall temporarily apply the standard ranking criteria for the Financial Company group (No. 56. Financial Company) issued together with Joint Circular No. 23/2005/TTLT-BLDTBXH-BTC dated August 31, 2005, jointly issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance on ranking and wage classification for dedicated board members, General Directors, Directors, Deputy General Directors, Deputy Directors, and Chief Accountants of state-owned enterprises to determine the Fund's ranking.

3. When applying the standard ranking criteria for the Financial Company group to determine the Fund's ranking as stipulated in Clause 2 of this Article, the profit indicator shall be replaced by the revenue minus expense indicator.

Article 6. Determination of salary fund, remuneration, and bonus fund

1. The determination of average wage levels, wage fund, planned remuneration; actual wage fund, remuneration; bonus fund; payment of wages, remuneration, and bonuses for Fund managers shall be carried out in accordance with the provisions of Articles 3, 9, 11, 12, 14, 15, 16, 17, 18, and Clauses 1, 3, 4, 5, 6 of Article 10 of Circular No. 27/2016/TT-BLDTBXH.

2. When determining the average wage level, planned wage fund, and actual wage fund of dedicated managers as stipulated in Clause 1 of this Article, the profit indicator (planned profit, profit realized in the year, and profit realized in the immediately preceding year) shall be calculated using the revenue minus expense indicator, wherein:

a) In cases where the Fund meets all conditions: ensuring the preservation and development of state capital; paying taxes and other budgetary contributions, setting aside risk reserves in accordance with the provisions of the law; having growth in loan balances; maintaining average labor productivity without decline and planned revenue minus expense being higher than that of the immediately preceding year, the planned average wage level of dedicated managers shall be determined as follows:

TL_bqkh= TL_cbx (1 + H_ln)

Where:

- TL_bqkh: Planned average wage level of dedicated managers;

- TL_cb: Basic wage of dedicated managers determined in accordance with Clause 1 of Article 10 of Circular No. 27/2016/TT-BLDTBXH;

- Central agencies of political-social organizations;_ln: Additional salary coefficient compared to the basic salary linked to the revenue minus expense indicator as follows: if the difference is less than three billion VND, H_lnis calculated at a maximum of 0.1; for a difference from VND 3 billion to under VND 10 billion, H_lnis calculated at a maximum of 0.3; for a difference from VND 10 billion to under VND 20 billion, H_lnis calculated at a maximum of 0.5; for a difference from VND 20 billion to under VND 30 billion, H_lnis calculated at a maximum of 0.7; for a difference of VND 30 billion or more, H_lnis calculated at a maximum of 1.0.

b) In cases where the Fund does not have loan growth, the average wage level shall not exceed the basic wage.

Article 7. Exclusion of Objective Factors when Determining Salary and Remuneration

1. When determining the wage fund and remuneration fund (planned and actual) for managers, if there are objective factors directly affecting labor productivity and revenue minus expense, these must be excluded to ensure that wages are linked to labor productivity and the actual operational efficiency of the Fund.

2. Objective factors for exclusion when determining the wage fund and remuneration fund include those specified in Clause 1 of Article 13 of Circular No. 27/2016/TT-BLDTBXH and Clause 3 of Article 44 of Decision No. 04/2021/QD-TTg.

3. The impact of objective factors on labor productivity and the income minus expense difference of the Fund must be quantified by specific values.

Chapter IV

RESPONSIBILITY FOR IMPLEMENTATION AND EFFECTIVE DATE OF ENFORCEMENT

Article 8. Responsibilities for Implementation

1. Responsibilities of the Fund:

a) The Management Board is responsible for performing the tasks prescribed in Article 18, Clause 4 of Article 22 of Circular No. 26/2016/TT-BLDTBXH; Article 20, Clause 4 of Article 25 of Circular No. 27/2016/TT-BLDTBXH. When submitting wage and bonus reports to the representative body of the owner, they shall simultaneously submit them to the Ministry of Labor, Invalids and Social Affairs for general monitoring, inspection, and supervision;

b) The Director of the Fund is responsible for performing the tasks prescribed in Article 17 of Circular No. 26/2016/TT-BLDTBXH;

c) The Inspector is responsible for performing the tasks prescribed in Article 19 of Circular No. 26/2016/TT-BLDTBXH, Article 21 of Circular No. 27/2016/TT-BLDTBXH, and in accordance with the Charter of the Fund's organization and operation.

2. The representative body of the owner for the Fund is responsible for performing the tasks prescribed in Article 20 of Circular No. 26/2016/TT-BLDTBXH; Article 19, Article 22 of Circular No. 27/2016/TT-BLDTBXH. When submitting opinions to the Fund regarding the annual wage and bonus funds, they shall simultaneously submit them to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

Article 9. Effective Date

This Circular takes effect from August 15, 2022.

During the implementation process, if there are any difficulties, please reflect them to the Ministry of Labor, Invalids, and Social Affairs for research, timely amendment, and supplementation.