Circular No. 16/2018/TT-BLDTBXH guides the management of labor, wages, remuneration, bonuses for employees and managers of State Capital Investment Corporation.

CIRCULAR

||| GUIDELINES FOR THE MANAGEMENT OF LABOUR, WAGES, COMMISSIONS, AND BONUSES FOR EMPLOYEES AND MANAGERS OF THE STATE CAPITAL INVESTMENT AND BUSINESS CORPORATION

Pursuant to 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;

Pursuant to Decree No. 147/2017/ND-CP dated December 25, 2017 of the Government amending and supplementing certain articles of Decree No. 151/2013/ND-CP dated November 1, 2013 of the Government on the functions, tasks, and operational mechanisms of the State Capital Investment and Business Corporation;

Pursuant to Decree No. 51/2016/ND-CP dated June 13, 2016 of the Government stipulating the management of labour, wages, and bonuses for employees working in limited liability companies wholly owned by the State; and Decree No. 52/2016/ND-CP dated June 13, 2016 of the Government stipulating wages, commissions, and bonuses for managers of limited liability companies wholly owned by the State;

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

The Minister of Labour, Invalids and Social Affairs issues this Circular guiding the management of labour, wages, commissions, and bonuses for employees and managers of the, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CPState Capital Investment and Business Corporation.ngThe company shall reduce the portion of salary-based capital when the planned capital compared to the implementation of the previous year or the actual implementation compared to the plan increases by 7% or more.No.State Capital Investment and Business Corporation.

Section 1. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees and managers of the State Capital Corporation Investment and Business (hereinafter referred to as SCIC).

Article 2. Applicability

1. Employees working under labor contracts.

2. Specialized managers and non-specialized managers include: Chairman of the Board of Members, Board of Members Members, General Director, Deputy General Directors, Head of Supervisory Board, Supervisors, and Chief Accountant.

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

Chapter 2. MANAGEMENT OF LABOR, WAGES, AND BONUSES FOR EMPLOYEES

Article 3. Labor management, determination of salary fund, advance payment of salaries, distribution of salaries and bonuses

1. SCIC shall implement the management of labour, determine the planned wage fund, unit wage rate, advance payment of wages, actual wage fund, distribution of wages and bonuses for employees according to the provisions of Section 2; Article 9, 10, 11, 13 Section 3 and Section 4 of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016 of the Ministry of Labour, Invalids and Social Affairs guiding the implementation of the management of labour, wages, and bonuses for employees working in limited liability companies wholly owned by the State (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

2. When determining the average labour productivity as prescribed in Clause 2 of the Appendix attached to Circular No. 26/2016/TT-BLDTBXH to determine the planned average wage level and the actual average wage level of SCIC as prescribed in Article 9 and Article 14 of Circular No. 26/2016/TT-BLDTBXH, the labour productivity index is calculated based on the wage calculation capital index (replacing the total revenue minus total expenditure without wages) and is determined by the following formula:

K_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.l} = 0,3 x K_tn + 0,6 x K_b + 0,1 x K_qt

Where:

- K_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.l}: Salary calculation index.

- K_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.}: Capital received in the year, calculated as the total value of state capital received in the year (stated in the Minutes of Transfer of Ownership Rights of State Capital according to the documents issued by the Ministry of Finance guiding the transfer of ownership rights of state capital at SCIC).

- K_b: Capital sold in the year, calculated as the original cost (recorded in accounting books) of investments sold by SCIC in the year.

- K_qt: Management capital in the year, determined as follows:

In which: K_qti is the management capital in month i, calculated as the original cost (recorded in the accounting books) of investments (capital assets and debt instruments, excluding bank deposits) managed by SCIC at 24 hours on the last day of month i in the year.

In case the planned wage calculation capital index exceeds the actual performance of the previous year or the actual performance exceeds the plan by 7% or more, the excess capital must be deducted from the basis for determining labour productivity. If the planned wage calculation capital index is less than the actual performance of the previous year or the actual performance is less than the plan by 3% or more, the reduced capital exceeding 3% is added to the basis for determining labour productivity.For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.A 7% increase serves as the basis for determining labor productivity. If the planned salary-based capital compared to the implementation of the previous year or the actual implementation compared to the plan decreases by 3% or more, then the salary-based capital reduction exceeding 3% will be added as the basis for determining labor productivity.For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.||N ||| declaration of customs import procedures. This adjustment is based on the degree of achievement of state-owned capital preservation and development targets, budget submission, labor productivity, and profit as stipulated in points a and b of Clause 1, Clauses 2 and 3, Article 15 of Circular No. 27/2016/TT-BLDTBXH.

3. When determining the planned average wage level of SCIC as prescribed in Article 9 of Circular No. 26/2016/TT-BLDTBXH, the planned profit index is compared with the profit level of 3.9 trillion VND (replacing the comparison with the actual profit level of the previous year).Supplement

Section 3. SALARY, COMPENSATION, AND BONUS FOR MANAGEMENT PERSONNEL

Article 4. Salary grading, determining the salary fund, remuneration, bonuses, and payment of salaries, remuneration, and bonuses

1. SCIC implements the principle of determining, paying salaries, remuneration, and bonuses; salary grading for responsible managers; determining the planned remuneration fund, actual remuneration fund, bonus fund; and paying salaries, remuneration, and bonuses to managers in accordance with Articles 3, Sections 1 and 2, Articles 12, 13, 14, 16, 17, 18, and 19 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of salary, remuneration, and bonus systems for managers of state-owned limited liability companies (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH).y2. SCIC determines the planned salary fund based on the number of responsible managers and the average planned salary level as stipulated in Article 5, and the actual salary fund of responsible managers as stipulated in Article 6 of this Circular.

The average planned salary level (calculated monthly) of responsible managers is determined in conjunction with the preservation and development of state capital, tax payments as prescribed, labor productivity, and planned profits of SCIC (after excluding the impact of external factors if any) as follows:

Article 5. Planned Salary Level for Dedicated Management Personnel

1. If SCIC preserves and develops state capital, makes tax payments as prescribed, and achieves a planned profit of VND 2.9 trillion, the average planned salary level will be calculated based on the basic salary (determined based on the average basic salary of responsible managers corresponding to the company's category as specified in Appendix 2 attached to Government Decree No. 52/2016/NĐ-CP).g2. If SCIC preserves and develops state capital, makes tax payments as prescribed, and achieves a planned profit higher than VND 2.9 trillion, the average planned salary level will be determined based on the basic salary and an additional adjustment factor compared to the basic salary (referred to as Factor H).

a) If the planned profit is higher than VND 2.9 trillion but less than VND 3.9 trillion, Factor H will be a maximum of 0.5 times the basic salary.

b) If the planned profit is from VND 3.9 trillion to less than VND 5.0 trillion, Factor H will be a maximum of 0.7 times the basic salary._{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.}) as follows:

c) If the planned profit is VND 5.0 trillion or more, Factor H will be a maximum of 1.0 times the basic salary._ln In cases where the planned average labor productivity, calculated according to Clause 2 of Article 3 of this Circular, decreases compared to the previous year's performance, after determining the average planned salary level according to Clause 2 of this Article, the salary must be reduced by the following principle: For every 1% decrease in planned average labor productivity compared to the previous year's performance, there will be a reduction of 0.5% in the average planned salary level.

3. If SCIC has a planned profit lower than VND 2.9 trillion, the average planned salary level will be determined based on the basic salary and reduced according to the principle: For every 1% decrease in the planned profit below VND 2.9 trillion, there will be a reduction of 0.5% in the basic salary, but not less than 1.2 times the average salary under the system._{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.} 4. If SCIC does not have a profit, the average planned salary level will be determined based on the production and business plan compared to the previous year's performance, ranging from the average salary under the system to a maximum of 1.2 times the average salary under the system.

5. If SCIC incurs losses, the average planned salary level will be determined at the level of the average salary under the system. In cases where losses are reduced compared to the previous year's performance, SCIC will determine the salary of managers based on the degree of loss reduction, ensuring overall proportionality, and report to the representative body of the owner for review and decision._{lFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.} 1. The actual salary fund is determined based on the actual number of responsible managers (averaged) and the actual average salary level in conjunction with the degree of achievement of the targets for preserving and developing state capital, making tax payments, labor productivity, and profit as stipulated in points a and b of Clauses 1, 2, and 3 of Article 15 of Circular No. 27/2016/TT-BLDTBXH.

2. In cases where SCIC's actual profit decreases compared to the plan or there is no profit or a loss, the actual average salary level will be determined as follows:ắa) If the actual profit decreases compared to the plan, for every 1% decrease in actual profit compared to the plan, the actual average salary level will be reduced by 1% compared to the planned average salary level.

b) If the actual profit decreases and is lower than the lowest profit threshold when determining the planned average salary level as stipulated in Clause 2 of Article 5 of this Circular, the actual average salary level will only be calculated based on the additional adjustment factor within the corresponding threshold as specified in Clause 2 of Article 5 of this Circular.

In cases where there is no profit, a loss, or a decrease in losses compared to the plan, the actual average salary level will be determined according to Clauses 4 and 5 of Article 5 of this Circular.

1. The Board of Members is responsible for implementing the contents and tasks stipulated in Article 18, Clause 4 of Circular No. 26/2016/TT-BLDTBXH and Article 20, Clause 4 of Circular No. 27/2016/TT-BLDTBXH. When submitting salary 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 monitoring, inspection, and general supervision.on2. The representative body of the owner for SCIC is responsible for implementing the tasks stipulated in Article 20 of Circular No. 26/2016/TT-BLDTBXH and Article 22 of Circular No. 27/2016/TT-BLDTBXH. When submitting opinions to SCIC regarding the annual salary and bonus funds, they shall simultaneously submit them to the Ministry of Labor, Invalids, and Social Affairs for general monitoring and supervision.onsive con During the implementation process, if there are difficulties, the agencies and units should reflect these issues to the Ministry of Labor, Invalids, and Social Affairs for timely guidance and supplementation.

Article 6. Actual Salary Fund for Dedicated Management Personnel

- Ministries, ministerial-level agencies, and agencies directly under the Government;on- The electronic portal of the Ministry of Labor, Invalids, and Social Affairs.ắ||

2. In cases where SCIC's realized profit is lower than the plan, there is no profit, or a loss, the average wage level shall be determined as follows:

a) For every 1% decrease in realized profit compared to the plan, the average wage level must be reduced by 1% relative to the planned average wage level.

b) If the realized profit decreases and is lower than the lowest profit level within each range when determining the planned average wage level as specified in Clause 2, Article 5 of this Circular, the realized average wage level can only be calculated according to the additional adjustment factor within the corresponding range defined in Clause 2, Article 5 of this Circular.

c) In cases without profit, with a loss, or a reduction in loss compared to the plan, the realized average wage level shall be determined according to the provisions of Clause 4 and Clause 5, Article 5 of this Circular.u||.

Section 4. RESPONSIBILITY FOR IMPLEMENTATION AND EFFECTIVENESS OF ENFORCEMENT

Article 7. Responsibility for Implementation

1. Responsibilities of SCIC:

a) The General Director is responsible for performing the tasks specified in Article 17 of Circular No. 26/2016/TT-BLDTBXH.

b) The Board of Members is responsible for implementing the contents and tasks stipulated in Article 18, Clause 4, Article 22 of Circular No. 26/2016/TT-BLDTBXH, and Article 20, Clause 4, Article 25 of Circular No. 27/2016/TT-BLDTBXH. When submitting wage and bonus reports to the owner's representative body, they must also submit them to the Ministry of Labor, Invalids, and Social Affairs for general monitoring, inspection, and supervision.

c) The Head of the Supervisory Board and the Supervisor are responsible for performing the tasks specified in Article 19 of Circular No. 26/2016/TT-BLDTBXH and Article 21 of Circular No. 27/2016/TT-BLDTBXH.

2. The owner's representative body for SCIC is responsible for performing the tasks stipulated in Article 20 of Circular No. 26/2016/TT-BLDTBXH and Article 22 of Circular No. 27/2016/TT-BLDTBXH. When providing opinions to SCIC on the annual wage and bonus fund, they must also submit them to the Ministry of Labor, Invalids, and Social Affairs for general monitoring and supervision.

Article 8. Effective Date

1. This Circular takes effect from December 1, 2018.

2. The regulations stipulated in this Circular shall be applied from January 1, 2018.

During the implementation process, if there are any difficulties, the agencies and units should report to the Ministry of Labor, Invalids, and Social Affairs for timely guidance and supplementation.i./.