Decree No. 21/2024/NĐ-CP amends and supplements certain Articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government on labor management, wages, and bonuses for workers employed in joint-stock companies with 100% state-owned charter capital, and Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government on wages, remuneration, and bonuses for managers in joint-stock companies with 100% state-owned charter capital.

DECREE

Amending and supplementing certain articles of Decree No. 51/2016/NĐ-CP

dated June 13, 2016 of the Government on labor management, wages, and bonuses for employees working in a limited liability company with 100% state-owned charter capital, and Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on wages, remuneration, and bonuses for managers of a limited liability company with 100% state-owned charter capital;

wages and bonuses for employees working in a company with limited liability

with one member, where the State holds 100% of the charter capital

and Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government

stipulates wages, remuneration, and bonuses for company managers

with one member, where the State holds 100% of the charter capital

Pursuant toLaw on Government OrganizationLaw amending and supplementing some articles of the Law on the Organization of the Government and the Law on the Organization of Local Administration November 22, 2019;Decision No. 108/2023/NQ-QH15

Pursuant toLabor CodeNovember 20, 2019;

Pursuant toEnterprise Lawthe sixteenth day of June, two thousand and twenty;

Pursuant toLaw on State Capital Management and Utilization for Production and Business at EnterprisesNovember 26, 2014;

Decree No. 07/2021/NĐ-CP

 dated May 21, 2012 on promoting industry."51/2016/NĐ-CPdated June 13, 2016 of the Government on labor management, wages, and bonuses for employees working in a limited liability company with 100% state-owned charter capital and Decree No. 52/2016/NĐ-CPdated June 13, 2016 of the Government on wages, remuneration, and bonuses for managers of a limited liability company with 100% state-owned charter capital.

Article 1. Amending and supplementing certain articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government on labor management, wages, and bonuses for employees working in a limited liability company with 100% state-owned charter capital (hereinafter referred to as Decree No. 51/2016/NĐ-CP)

1. Amend Article 4 as follows:

"Article 4. Salary scale, salary table, and salary allowances

1. Based on production organization and labor organization, the company establishes and promulgates wage scales, salary tables, and allowances as the basis for determining salaries, paying salaries, and implementing regulations for employees in accordance with labor laws.

2. The levels of wages in the wage scales, salary tables, and allowances shall be determined by the company, but must ensure that the wage fund calculated according to the levels of wages in the wage scales, salary tables, and allowances does not exceed the planned wage fund for employees as stipulated in this Decree.

3. When establishing or amending the wage scales, salary tables, and allowances, the company must seek opinions from the representative organizations of employees at the workplace, conduct dialogue at the workplace in accordance with regulations, report to the agency representing the owner for comments, and publicly announce within the company before implementation."

2. Amending and supplementing points a and b of Clause 3, Article 5 as follows:

"a) The State adjusts prices, production and business quotas (for products and services priced or quota-limited by the State), grants corporate income tax preferences, increases or decreases state capital, requires the company to relocate, reduce production and business locations, adjust policies directly affecting the labor productivity and profit indicators of the company.

b) The company participates in implementing political tasks, national defense security, ensuring social welfare, balancing supply and demand in the economy as decided by the Prime Minister; implements investment, receipt or transfer of state capital ownership rights according to the directives of the Government or the Prime Minister; receives, purchases, sells, writes off, defers, and processes debts, assets, purchases, and sells products and services in accordance with laws or requirements of competent state agencies; implements retroactive provisions as stipulated by the Government; increases depreciation to recover capital quickly in accordance with tax laws; adjusts operational policies according to the requirements of competent state agencies, agreements, treaties, or regulations of international organizations of which Vietnam is a member; implements restructuring plans, supplements, or withdraws investment in other enterprises; invests new, expands production and business; adjusts or newly creates financial risk reserves and credit reserves in accordance with laws; provides products and services priced by the State and adjusted according to price adjustment mechanisms but not fully compensated for actual reasonable production and business costs when price-forming factors change as stipulated by the Price Law; allocates costs of unsuccessful oil exploration and development projects as stipulated by the Government, determines corporate income tax according to oil contracts for oil exploration, development companies in accordance with tax laws; purchase debt, debt processing revenue and profits not recorded in the income statement for debt purchasing companies as stipulated by laws; fluctuations in revenue from securities market organization activities and securities custody operations; differences in bonus payments compared to the previous year for lottery businesses; changes in mining environment and conditions for mining companies."

Article 2. Amend and supplement some articles of Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on salaries, remuneration, and bonuses for managers of limited liability companies wholly owned by the State (hereinafter referred to as Decree No. 52/2016/NĐ-CP).

1. The phrase "manager" in the title and phrases "manager" or "company manager" in the articles, clauses, and Appendices of the Decree shall be replaced with the phrase "manager, Supervisor."

2. Amend Article 3 as follows:

"Article 3. Salary grading for full-time managers and Supervisors

1. Based on the management organizational structure, the Board of Members or the Chairman of the company shall establish and issue a salary scale and grade salaries for full-time managers and Supervisors as the basis for implementing social insurance, health insurance, unemployment insurance, and other benefits as prescribed by labor laws.

2. The salary levels in the salary scale shall be decided by the Board of Members or the Chairman of the company but must ensure that the total salary fund calculated based on the salary levels in the scale does not exceed the planned salary fund for managers and full-time Supervisors as stipulated in this Decree.

3. When establishing or amending the salary scale for managers and Supervisors, the Board of Members or the Chairman of the company must seek opinions from the representative organization of workers at the workplace, conduct dialogue according to regulations, report to the agency representing the owner for approval, and publicly announce it within the company before implementation.

3. Supplement Clause 8 to Article 4 as follows:

"8. In cases where the Audit Board of the company only has one Supervisor as provided for in Article 103 of the Enterprise Law, the Supervisor shall be entitled to receive salaries, remuneration, and bonuses corresponding to the position of Chairperson of the Audit Board."

k) Developing and disseminating technical guidance materials to improve and enhance the quality of the irrigation system, and meet the irrigation criteria."

"2. The average planned salary level shall be determined based on the basic salary level according to the company's category as specified in Appendix I and Appendix II issued together with this Decree and the additional factor compared to the basic salary level according to the planned profit increase over the previous year as follows:

a) For companies with unchanged productivity and planned profits higher than those realized in the previous year, the additional factor shall not exceed the additional factor as prescribed as follows:

 Additional Factor Table

In cases where the company's planned profit is significantly higher than the lowest profit level corresponding to an additional factor of 2.5 in the Additional Factor Table, plays a significant role in the national economy, operates in fields where market enterprises pay higher salaries to managerial staff than the equivalent positions in the company, and it is necessary to apply a higher additional factor to encourage managerial staff, then report to the agency representing the owner when considering and deciding on the salary fund for managers and Supervisors consistent with the market salary level for equivalent positions in the same field of operation, after seeking the opinion of the Ministry of Labor, Invalids, and Social Affairs to ensure overall balance.

b) For companies with planned profits not higher than the realized profits of the previous year, the additional factor shall not exceed 70% of the additional factor corresponding to the profit level in the Additional Factor Table prescribed in point a of this clause multiplied by the ratio between the planned profit and the realized profit of the previous year.

c) For companies without profit, the average planned salary level must be lower than the basic salary level, but not lower than 50% of the basic salary level. In case of loss, the average planned salary level shall be 50% of the basic salary level.

d) For companies reducing losses compared to the previous year, newly established or newly operational companies, the average planned salary level shall be determined based on the degree of reduced losses or production and business plans to ensure general proportionality and report to the agency representing the owner for consideration and decision.

e) In cases where the planned profit is equal to or higher than the realized profit of the previous year, after determining according to points a and b of this clause, if the average planned salary level is lower than the average actual salary level of the previous year, the average planned salary level shall be the average actual salary level of the previous year.

5. Delete the content "or the company operates not for profit purposes" in Clause 4 of Article 5.

6. Supplement Clause 4a after Clause 4 of Article 5 as follows: "4a. For companies operating not for profit purposes, when determining salaries according to Clauses 2 and 3 of this Article, the profit indicator shall be replaced by the total revenue minus total expenses indicator."

7. Amend Clause 6 of Article 5 as follows:

"6. When determining the average salary level, the salary fund, and the planned remuneration for managers, Supervisors, the company shall exclude objective factors (if any) affecting labor productivity and planned profit compared to the actual performance of the immediately preceding year. Objective factors are defined in points a, b, and c of Clause 3, Article 5 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 joint stock companies with 100% state capital."

8. Delete the content "For financial Supervisors at state economic groups, submit to the Ministry of Finance for evaluation and payment" in Clause 7, Article 4 and the content "receive, manage, and pay salaries, remuneration, and bonuses for financial Supervisors submitted by state economic groups" in point a, Clause 5, Article 9.

9. Repeal Clause 3, Article 10.

10. Amend and supplement some contents of Appendix I according to the Appendix issued together with this Decree.

Article 3. Effectiveness

1. This Decree takes effect from April 10, 2024.

2. The regulations on the salary fund, salary payment, remuneration, and bonuses stipulated in Clause 2, Article 1, Clauses 3, 4, 6, 7, and 10, Article 2 of this Decree shall be implemented from January 1, 2024.

Article 4. Responsibilities for Implementation

1. The Ministry of Labor - Invalids and Social Affairs shall take the lead and coordinate with relevant ministries to guide the implementation of the provisions of this Decree.

2. State financial funds outside the budget that are currently applying the salary mechanism under Clause 6, Article 10 of Decree No. 52/2016/NĐ-CP shall continue to apply an additional salary coefficient not exceeding 1.0 times the basic salary level to determine the salary of managers and Supervisors of the fund.

3. For securities trading centers, the Vietnam Securities Depository and Central Counterparty Corporation, when there are objective factors specified in point b, Clause 2, Article 1 of this Decree; point b and point c, Clause 2, Article 6 of Decree No. 59/2021/NĐ-CP dated June 18, 2021 of the Government on certain special provisions regarding the financial management mechanism and effectiveness assessment of operations for the Vietnam Securities Trading Center and the Vietnam Securities Depository and Central Counterparty Corporation, causing revenue fluctuations of more than 7% increase or more than 3% decrease, then the portion of revenue increase over 7% (in the case of revenue increase over 7%) or the portion of revenue decrease over 3% (in the case of revenue decrease over 3%) must be excluded from the revenue index used as the basis for determining labor productivity and profit linked to employee salaries, manager salaries, and Supervisor salaries.

4. For organizations specified in Clause 6, Article 10 of Decree No. 51/2016/NĐ-CP, Clause 6, Article 10 of Decree No. 52/2016/NĐ-CP, and the Social Policy Bank, the Ministry of Labor - Invalids and Social Affairs shall guide labor management, salaries, remuneration, and bonuses according to the salary mechanism prescribed by the Government in Decree No. 51/2016/NĐ-CP, Decree No. 52/2016/NĐ-CP, and this Decree, linked to labor productivity, operational efficiency, and consistent with the specific nature of these organizations, including assigning the Ministry of Labor - Invalids and Social Affairs to annually receive, review, inspect, and supervise reports on labor plans and salary funds for employees; receive, consider, and approve salary funds, remuneration, and bonuses for managers and Supervisors of the Social Policy Bank after consulting with the Ministry of Finance and the State Bank of Vietnam.

5. Assign the Ministry of Labor - Invalids and Social Affairs to guide salary management for the Vietnam Television Station based on the salary mechanism prescribed in Decree No. 51/2016/NĐ-CP and this Decree, linked to labor productivity and operational efficiency, and consistent with the specific nature of the station, according to the provisions of Clause 9, Article 2 of Decree No. 60/2022/NĐ-CP dated September 8, 2022 of the Government on the functions, tasks, powers, and organizational structure of the Vietnam Television Station and relevant laws.

6. 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 are responsible for implementing this Decree.

ANNEX

AMEND AND SUPPLEMENT SOME CONTENTS OF APPENDIX I

ATTACHED TO DECREE NO. 52/2016/NĐ-CP

JUNE 13, 2016 OF THE GOVERNMENT

(Attached to Decree No. 21/2024/NĐ-CP dated February 23, 2024 of the Government)

1. Amend the name of Appendix I to:

“COMPANY CATEGORY”

2. Amend point 1 to:

“1. Use company category: Company category is used to determine the basic salary level for managers and dedicated Supervisors.”

3. Amend and supplement the content “profit of 200 billion VND or more, tax payment to the state budget of 200 billion VND or more (average indicators of capital, profit, and tax payment over three years) and having ten or more subsidiary units or a total workforce of the parent company and subsidiary units of 10,000 people or more” in item b, point 2 to: “profit (or total revenue minus total expenses for non-profit-oriented companies) of 200 billion VND or more, having ten or more subsidiary units (independent accounting and dependent) or operating production and business nationwide, fulfilling all tax payment obligations to the state budget as prescribed. Average indicators of capital, profit, or total revenue minus total expenses for non-profit-oriented companies are calculated over three years.”

4. Amend and supplement the content “profit of 100 billion VND or more, tax payment to the state budget of 100 billion VND or more and having five or more subsidiary units or a total workforce of the parent company and subsidiary units of 7,000 people or more” in item c, point 2 to: “profit (or total revenue minus total expenses for non-profit-oriented companies) of 100 billion VND or more, having five or more subsidiary units (independent accounting and dependent) or operating production and business nationwide, fulfilling all tax payment obligations to the state budget as prescribed. Average indicators of capital, profit, or total revenue minus total expenses for non-profit-oriented companies are calculated over three years.”