Circular No. 13/2022/TT-BLDTBXH guiding the management of labor, wages, remuneration, and bonuses for the Fund supporting the development of cooperatives.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses for the Cooperative Development Support Fund

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BASED ON Decree No. 14/2017/NĐ-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - Invalids and Social Affairs;

BASED ON Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government stipulating the management of labor, wages, and bonuses for employees working in joint-stock companies with 100% state-owned charter capital;

BASED ON Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government stipulating wages, remuneration, and bonuses for managers of joint-stock companies with 100% state-owned charter capital;

BASED ON Decree No. 45/2021/NĐ-CP dated March 31, 2021 of the Government on the establishment, organization, and operation of the Cooperative Development Support 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 COOPERATIVE DEVELOPMENT SUPPORT FUND.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

THIS CIRCULAR GUIDES THE MANAGEMENT OF LABOR, WAGES, REMUNERATION, AND BONUSES FOR EMPLOYEES, CHAIRMAN, GENERAL MANAGER OR DIRECTOR, VICE GENERAL MANAGER OR VICE DIRECTOR, HEAD OF ACCOUNTING, SUPERVISOR OF THE COOPERATIVE DEVELOPMENT SUPPORT FUND AS PROVIDED IN Decree No. 45/2021/NĐ-CP dated March 31, 2021 of the Government on the establishment, organization, and operation of the Cooperative Development Support Fund (hereinafter referred to as Decree No. 45/2021/NĐ-CP), including:

1. The Vietnam Cooperative Development Support Fund.

2. Cooperative Development Support Funds at provincial and centrally-administered city levels operating under the model of a joint-stock limited company with 100% state-owned charter capital.

The Cooperative Development Support Funds specified in Clause 1 and Clause 2 of this Article hereinafter referred to as the Fund.

Article 2. Applicability

1. Employees working under labor contracts.

2. Chairperson, General Director or Director, Deputy General Director or Deputy Director, Chief Accountant, and Auditor (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 EMPLOYEES

||| Article 3. Wage Scale, Payroll, and Allowances

1. The Fund shall establish the wage scale, salary table, allowances, and salary adjustment for employees according to Article 93 of the Labor Code.

2. The wage scale and salary table established by the Fund must involve the participation of the representative organization of employees at the workplace and be publicly disclosed at the Fund before issuance.

Article 4. Labor Management, Determination of Salary Fund, Advance Payment of Salary Fund, Distribution of Salaries, and Bonuses

1. The Fund shall implement labor management, determine the planned wage fund, actual wage fund, advance payment, and distribution of wages and bonuses for employees according to Section 2; Articles 9, 10, 13 Section 3 and Section 4 of Circular No. 26/2016/TT-BLĐTBXH dated September 1, 2016 of the Minister of Labor - Invalids and Social Affairs guiding the implementation of labor management, wages, and bonuses for employees working in joint-stock companies with 100% state-owned charter capital (hereinafter referred to as Circular No. 26/2016/TT-BLĐTBXH).

2. When determining the average planned wage level and the average actual wage level to calculate the planned wage fund and the actual wage fund according to 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 based on the difference between total income and total expenses (hereinafter referred to as income minus expense difference) of the Fund. The determination of the income minus expense difference shall be carried out according to the guidance of the Ministry of Finance.

Article 5. Exclusion of Objective Factors when Determining Employee Salary Funds

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

2. The objective factors for exclusion when determining the wage fund include those specified in Clause 1, Article 11 of Circular No. 26/2016/TT-BLĐTBXH and Clause 2, Article 45 of Decree No. 45/2021/NĐ-CP.

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 6. 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 of Section 2 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, Invalids and Social Affairs guiding the wage system, remuneration, and bonuses for managers of limited liability companies wholly owned by the State (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH). For the Chairman of the Fund, the salary shall be classified according to the position of Chairman of the Board of Members.

2. The Fund shall base on the classification standards issued in the Appendix to this Circular to determine the rank as the basis for determining the wage system level and basic salary for dedicated managers.

Article 7. Determining the wage fund, remuneration, and bonuses

1. The determination of average wage levels, wage fund, planned remuneration; actual wage fund and 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, 19 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 based on the difference between revenue and expenditure, wherein:

a) In cases where the Fund ensures all conditions such as capital preservation and development, tax payment and other budget contributions, risk reserve fund allocation in accordance with the law, loan growth, average labor productivity not decreasing, and the planned revenue-expenditure difference being higher than that of the previous year, the average planned wage level for dedicated managers shall be determined as follows:

TL_bqkh= TL_cbx (1 + H_ln)

Where:

TL_bqkh: Average planned wage level for 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;

H_ln: Additional wage coefficient compared to the basic wage linked to the income-expenditure difference as follows: for an income-expenditure difference below 10 billion VND, H_lnshall be calculated at a maximum of 0.1; for a difference from 10 billion VND to less than 20 billion VND, H_lnshall be calculated at a maximum of 0.3; for a difference from 20 billion VND to less than 30 billion VND, H_lnshall be calculated at a maximum of 0.5; for a difference from 30 billion VND to less than 50 billion VND, H_lnshall be calculated at a maximum of 0.7; for a difference of 50 billion VND or more, H_lnshall be 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.

3. When determining the remuneration of non-dedicated managers, if the Fund does not have corresponding dedicated managers to determine the remuneration of non-dedicated managers as prescribed in Clause 2 of Article 3 of Circular No. 27/2016/TT-BLDTBXH, it shall be implemented as follows:

a) Determine the wage level of each specialized management personnel in accordance with Clause 2 of this Article.

b) Determine the remuneration of non-dedicated managers based on work tasks and working hours, but not exceeding 20% of the wage level of corresponding dedicated managers as specified in point a of Clause 3 of this Article.

Article 8. Exclusion of Objective Factors When Determining the Salary Fund and Remuneration for Managers

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-expenditure difference, they must be excluded to ensure that wages are linked to labor productivity and the actual operational efficiency of the Fund.

2. Objective factors to be excluded 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 2 of Article 45 of Decree No. 45/2021/NĐ-CP.

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 9. Responsibility for Implementation

1. Responsibilities of the Fund:

a) The Chairman of the Fund is responsible for performing the tasks prescribed in Article 18, Clause 4 of Circular No. 26/2016/TT-BLDTBXH; Article 20, Clause 4 of Circular No. 27/2016/TT-BLDTBXH. When submitting wage and bonus reports to the State-owned enterprise representative body, they must also submit them to the Ministry of Labor, Invalids and Social Affairs for general monitoring, inspection, and supervision.

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

c) The Inspector is responsible for performing the tasks prescribed in 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 State-owned enterprise representative body for the Fund is responsible for performing the tasks prescribed in Circular No. 26/2016/TT-BLDTBXH; Article 19, Article 22 of Circular No. 27/2016/TT-BLDTBXH. When sending opinions to the Fund regarding the annual wage and bonus fund, they must also send them to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

Article 10. 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.