Circular No. 26/2016/TT-BLDTBXH guiding the management of labor, wages, and bonuses for employees working in a limited liability company with a single member held 100% by the State.

CIRCULAR

GUIDELINES FOR THE MANAGEMENT OF LABOUR, WAGES, AND BONUSES FOR EMPLOYEES WORKING IN A JOINT STOCK COMPANY WITH 100% STATE CAPITAL OWNERSHIP UNDER THE REGULATIONS

Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012 of the Government"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."Theo đề nghị của Vụ trưởng Vụ Tín dụngof the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Home AffairsThe Minister of Labor, Invalids and Social Affairs issues this Circular stipulating the construction, management, update, exploitation and use of social assistance and poverty reduction databases.

Pursuant to DecreeNo. Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government on the management of labour, wages, and bonuses for employees working in joint stock companies with 100% state capital ownership Encouragement and Reward for employees in a joint stock company with 100% state capital ownership capital regulations; these guidelines shall be implemented for the management of labour, wages, and bonuses for

At the proposal of the Director of the Department of Labor and Wages;

Decree No. 74/2019/NĐ-CP dated September 23, 2019 of the Government amending and supplementing certain provisions of Decree No. 61/201FUNCTIONS, DUTIES, POWERS, ORGANIZATIONAL STRUCTURE, OPERATIONAL REGULATIONS, AND RELATIONSHIPS OF MANAGEMENT BOARDS; DUTIES, POWERS OF THE CHAIRPERSON, VICE CHAIRPERSON (IF ANY), SECRETARY, AND MEMBERS OF MANAGEMENT BOARDSemployees in a joint stock company with 100% state capital ownership person capital regulations.No.1. These Guidelines provide guidance on the implementation of the management of labour, wages, and bonuses for employees working under employment contracts (excluding the General Director or Director, Deputy General Director or Deputy Director, Chief Accountant working under employment contracts) in a joint stock company with 100% state capital ownership according to the provisions of Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government on the management of labour, wages, and bonuses for employees working in joint stock companies with 100% state capital ownership (hereinafter referred to as Decree No. 51/2016/NĐ-CP).

Section 1. GENERAL PROVISIONS

Article 1. Scope of Regulation

2. Joint stock companies with 100% state capital ownership are joint stock companies with 100% state capital ownership as stipulated in Article 1 of Decree No. 51/2016/NĐ-CP (hereinafter referred to collectively as the company).

The application objects of this Circular shall be implemented according to the provisions of Article 2 of Decree No. 51/2016/NĐ-CP.

Article 2. Applicability

Article 3. Review and Organize Labor Structure

Section 2. LABOR MANAGEMENT

Annually, the General Director (Director) shall organize a review of the organizational structure and labor force to report to the Chairman of the Board of Members or the Chairman of the Company:

1. Review the organizational structure and management hierarchy again to rearrange and adjust appropriately to the functions, tasks, and production and business requirements, ensuring efficiency, avoiding overlapping functions and tasks, and having connections between departments, teams, production workshops, business units, specialized departments, and direct management departments, minimizing intermediate organizational levels.

2. Rearrange the labor force within each department, team, production workshop, business unit, specialized department, where labor is organized based on job positions or job titles for managerial staff, professional, technical, and service staff; for direct production and business staff, labor is arranged according to the production line, machinery technology, or work process, then determine the labor force and assign tasks according to labor standards.

3. Review or establish new labor standards for direct production and business staff, ensuring the principles stipulated in Decree No. 49/2013/NĐ-CP dated May 14, 2013 of the Government detailing certain provisions of the Labour Code regarding wages.

1. The annual labor plan of the company is developed based on the organizational structure as stipulated in this Circular and the requirements of production and business volume, quality, and task plans, the previous year's labor usage situation, job positions or job titles, and labor standards.

Article 4. Development of labor plans

2. The labor plan includes: the total number of workers needed, the quantity and quality of newly recruited workers by job title and position; training and professional development plans for each type of worker.

3. Under conditions where the planned production and business volume and tasks do not increase, and the management hierarchy and production and business bases of the company do not increase compared to the previous year, the average planned workforce shall not exceed 5% more than the actual average workforce used in the previous year. The actual average workforce used and the planned average workforce are determined according to the Appendix attached to this Circular.

3. In conditions where the volume and production and business tasks in the plan do not increase, and the number of management units and production and business bases of the company do not increase compared to the implementation of the immediately preceding year, the average planned number of workers shall not exceed 5% more than the actual average number of workers used in the immediately preceding year. The actual average number of workers used and the planned average number of workers shall be determined in accordance with the Appendix issued together with this Circular.

Article 5. Reporting and Approving the Labor Plan

1. The General Director (Director) shall prepare the labor plan and submit it for approval to the Board of Members or the Chairman of the company. The Board of Members or the Chairman of the company must report to the agency representing the owner for comments before approving the labor plan.

2. After approving the labor plan, the Chairman of the Board of Members or the Chairman of the company must send the company's labor plan report to the agency representing the owner together with the planned salary fund (accompanied by data according to Form No. 1 of this Circular) for inspection and supervision. For the parent company of State Economic Groups, Special-Class Corporations, Vietnam Civil Aviation Corporation, Northern Vietnam Maritime Safety Assurance Corporation, Southern Vietnam Maritime Safety Assurance Corporation, and Vietnam Post Corporation, they must also send it to the Ministry of Labor, Invalids, and Social Affairs for consolidation and overall supervision.

3. The General Director (Director) shall be responsible to the Board of Members or the Chairman of the company, and the Board of Members or the Chairman of the company shall be responsible to the agency representing the owner regarding the company's labor plan.

Article 6. Implementing the Labor Plan

1. Based on the approved labor plan, the General Director (Director) shall arrange and utilize labor; recruit and enter into employment contracts with newly recruited workers.

2. Recruitment and utilization of labor must ensure transparency and fairness in accordance with the provisions of the law, recruitment and utilization regulations, and the Company Charter.

3. The General Director (Director) may not recruit additional new workers without prior approval from the Chairman of the Board of Members or the Chairman of the company and shall be responsible to the Board of Members or the Chairman of the company for the effectiveness of recruitment and utilization of labor.

Article 7. Evaluating the Situation of Labor Utilization

1. Annually, the Board of Members or the Chairman of the company shall direct the General Director (Director) to evaluate the situation of labor utilization based on the approved labor plan.

2. The evaluation content must clearly analyze strengths, weaknesses, and limitations in recruitment and utilization of labor, subjective and objective causes, responsibilities of the General Director (Director), and propose measures to address weaknesses and limitations.

3. The labor utilization situation report shall be sent to the Board of Members or the Chairman of the company and the agency representing the owner. For State Economic Groups and corporations specified in Clause 2, Article 5 of this Circular, it must also be sent to the Ministry of Labor, Invalids, and Social Affairs.

Article 8. Handling Responsibility in Recruitment and Utilization of Labor

1. During implementation, if workers do not meet job requirements or have no work, the General Director (Director) must take measures to rearrange labor or provide training, retraining. In cases where the company has taken all measures but still cannot arrange work, resulting in termination of employment contracts, full benefits and rights for workers must be resolved according to labor laws.

2. For cases of recruiting labor exceeding the plan or not in accordance with the plan, leading to workers having no work and termination of employment contracts, depending on assigned responsibility and consequences caused, the General Director (Director), members of the Board of Members, or the Chairman of the company shall not receive bonuses, salary increases, extended salary increase periods, or reduced salaries.

3. Evaluation of the implementation of the labor plan is a component for assessing the performance of corporate managers according to Decree No. 97/2015/NĐ-CP dated October 19, 2015 of the Government on managing officials and positions at state-owned limited liability companies holding 100% of charter capital.

Section 3. DETERMINATION OF PLANNED WAGE FUNDS AND TEMPORARY ADVANCE ON WAGE FUNDS

Article 9. Average wage level plan

Based on the average actual wage level of the previous year and production and business targets, the company determines the planned average wage level (monthly) to calculate the planned wage fund linked to labor productivity and planned profit compared to the actual performance of the previous year as follows:

1. If the company has an average labor productivity higher than the actual performance of the previous year, the planned average wage level shall be determined as follows:

TL_bqkh = TL_bqthnt + TL_bqthnt x H is the scale factor based on the natural area including territory and territorial waters of the area where the strategic environmental assessment is implemented, as determined in Appendix II issued along with this Circular._tlns          (1)

Where:

- TL_bqkh: Average planned wage level.

- TL_bqthnt : The average actual wage level of the previous year, calculated based on the actual wage fund divided by the actual average number of employees used in the previous year according to the guidance in the Appendix attached hereto.

- W_kh: Planned average labor productivity; W_thnt: Actual average labor productivity of the previous year calculated according to the guidance in the Appendix attached hereto.

- Central agencies of political-social organizations;_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.lns}: Wage increase factor according to the increase in planned average labor productivity compared to the actual performance of the previous year, decided by the company linked to planned profit: If the planned profit is higher than the actual profit of the previous year, H_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.lns} shall not exceed 1.0; If the planned profit equals the actual profit of the previous year, H_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.lns} shall not exceed 0.8; If the planned profit is lower than the actual profit of the previous year, H_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.lns} shall not exceed 0.5.

The planned profit and actual profit of the previous year are profits after determining wages for the Board of Members or Company Chairman, Supervisory Board Chairperson, Supervisors, General Director (Director), Deputy General Director (Deputy Director), Chief Accountant.

2. If the company has an average labor productivity equal to the actual performance of the previous year, the planned average wage level shall be determined as follows:

a) In case the planned profit is higher than the actual performance of the previous year, the planned average wage level shall be determined according to the following formula:

TL_bqkh = TL_bqthnt + TL_{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.}        (2)

Where:

- TL_bqkh: Average planned wage level.

- TL_bqthnt: The average actual wage level of the previous year.

- TL_{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.}: Additional wage amount according to profit, determined according to the following formula:

TL_ln = TL_{bqthnt x}  x 0,2             (3)

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Planned profit; P_thnt: Actual profit of the previous year.

b) In case the planned profit equals the actual performance of the previous year, the planned average wage level shall be determined by the average actual wage level of the previous year.

c) In case the planned profit is lower than the actual performance of the previous year, the planned average wage level shall be determined according to the following formula:

TL_bqkh = TL_bqthnt - TL_{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)

Within theshall:

- TL_bqkh: Average planned wage level.

- TL_bqthnt: The average actual wage level of the previous year.

- TL_{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.}: Wage reduction amount according to profit, determined according to the following formula:

TL_ln = TL_bqthnt x x 0,2          (5)

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Planned profit; P_thnt: Actual profit of the previous year.

3. If the company has an average labor productivity lower than the actual performance of the previous year, the planned average wage level shall be determined as follows:

a) In case the planned profit is higher than the actual performance of the previous year, the planned average wage level shall be determined according to the following formula:

TL_bqkh = TL_bqthnt - TL_ns + TL_ln         (6)

Within theshall:

- TL_bqkh: Average planned wage level.

- TL_bqthnt: The average actual wage level of the previous year.

- TL_ns: Wage reduction amount according to average labor productivity, determined according to the following formula:

TL_ns = TL_bqthnt x   x 0,8           (7)

- Electronic Information Portal_kh: Planned average labor productivity; W_thnt: Actual average labor productivity of the previous year.

- TL_{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.}: Additional wage amount according to profit, calculated according to formula (3):

b) In case the planned profit equals the actual performance of the previous year, the planned average wage level shall be determined by the average actual wage level of the previous year minus the wage reduction amount according to average labor productivity (TL_ns) calculated according to formula (7).

c) In case the planned profit is lower than the actual performance of the previous year, the planned average wage level shall be determined according to the following formula:

TL_bqkh = TL_bqthnt - TL_ns - TL_{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.}        (8)

Where:

- TL_bqkh: Average planned wage level.

- TL_{bqthnorganize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}: The average actual wage level of the previous year.

- TL_ns: Wage reduction amount according to average labor productivity, calculated according to formula (7).

- TL_{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.}: Wage reduction amount according to profit, calculated according to formula (5).

4. For companies that incur losses or have no profit (after excluding any objective factors if any), the planned average wage level shall be calculated based on the average wage level in the labor contract (including salary, allowances, and other additional amounts specified in the labor contract stipulated in Clause 1, Point a Clause 2 and Point a Clause 3 Article 4 Circular No. 47/2015/TT-BLDTBXH dated November 16, 2015 of the Ministry of Labor - War Invalids and Social Affairs guiding the implementation of certain provisions on labor contracts, disciplinary measures, and material responsibility under Decree No. 05/2015/NĐ-CP dated January 12, 2015 of the Government detailing and guiding the implementation of certain contents of the Labor Code). The company must organize a review and rearrangement of labor to improve labor productivity, production efficiency, and wages for workers.

5. For companies with profit (after excluding any objective factors if any), after determining wages according to Clause 1, 2, and Clause 3 of this Article, if the planned average wage level is lower than the average wage level in the labor contract stipulated in Clause 4 of this Article, the planned average wage level shall be calculated based on the average wage level in the labor contract. In cases where the planned average labor productivity and profit are higher than the actual performance of the previous year but the planned average wage level is lower than the average wage level in the labor contract, the planned average wage level shall be calculated based on the average wage level in the labor contract and adjusted according to the increase in planned labor productivity and profit compared to the actual performance of the previous year.

6. For companies operating without profit objectives, the profit target can be replaced by product volume, service volume, or task targets to determine the planned average wage level. The planned average wage level shall be determined based on the average actual wage level of the previous year and adjusted (increased or decreased) according to the increase or decrease in labor productivity calculated according to product volume, service volume, or task targets compared to the actual performance of the previous year.

7. For companies that have reduced losses compared to the previous fiscal year or newly established companies that have not yet met the criteria for comparison, the average wage shall be determined based on the degree of loss reduction or production and business plan, ensuring general proportionality, and reporting to the entity representing the owner for review before making a decision.

Article 10. Planned Wage Fund

1. The planned wage fund for workers is determined according to the following formula:

V_kh = TL_bqkh x L_khbq x 12 + V_đt          (9)

Within theshall:

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_kh: Planned salary fund.

- TL_bqkh: The planned average wage level is determined in accordance with the provisions of Article 9 of this Circular.

-_khbq: The average number of workers planned, which is determined in accordance with the Appendix attached to this Circular.

- 12: Number of months in a year, for newly established companies, it is calculated based on the number of months the company operates.

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_đt: The difference in wages of dedicated staff of mass organizations paid by the organization, calculated based on the average number of dedicated staff of mass organizations planned and the difference between the average wage level of dedicated staff of mass organizations at the company and the average wage level paid by the organization. The average wage level of dedicated staff of mass organizations at the company is determined based on the average wage level used as the basis for determining the wage difference of the previous fiscal year's dedicated staff of mass organizations in accordance with state regulations and adjusted according to the average labor productivity, planned profit compared to the actual performance of the previous fiscal year as stipulated in Article 9 of this Circular.

2. After determining (or having decided) the planned wage fund according to Clause 1 of this Article, if the company adjusts its production and business plan, it must review and adjust the average wage level and the planned wage fund to ensure compliance with the conditions specified in Article 9 of this Circular.

Article 11. Objective Factors for Determining Wages

1. Objective factors affecting labor productivity and profits of the company to be excluded when determining the wages of workers include:

a) The State adjusts prices (for products and services priced by the State), provides corporate income tax incentives, increases or decreases state capital, adjusts mechanisms and policies, or requires the company to relocate, reduce production and business sites, directly impacting labor productivity and profit indicators of the company.

b) The company participates in implementing political tasks, ensuring social security, balancing supply and demand for the economy as decided by the Prime Minister, implements the reception or transfer of state-owned enterprise ownership rights during restructuring, debt resolution, and restructuring according to the Prime Minister's directives, new investments (including debt purchases, converting debts into equity for restructuring enterprises), expanding production and business operations, increasing depreciation to recover capital quickly approved by competent authorities, and differences in bonuses compared to the previous year's performance for lottery operating companies.

4. When the company implements public goods products and services ordered by the State, assigned plans, or tendered contracts, the corresponding planned salary fund for the volume of public goods products and services is determined based on the volume of public goods products and services ordered by the State, assigned plans, or tender contracts.

2. When determining the average wage level and planned wage fund, if there are objective factors affecting an increase or decrease in labor productivity and profits, the company calculates and quantifies to deduct the portion of objective factors causing an increase in labor productivity and profits or to add the portion of objective factors causing a decrease in labor productivity and profits.

Article 12. The planned payroll fund for certain special cases

1. For companies implementing public goods products and services ordered, assigned plans, or tendered by the State, the corresponding planned payroll fund shall be determined based on the volume of public goods products and services ordered, assigned plans, or contracts.

2. For companies producing and trading state-regulated products and services with production and trading quotas leading to the planned labor productivity not increasing or increasing less than the forecast consumer price index for the year according to the National Assembly's Resolution on the annual socio-economic development plan, the average planned payroll may be increased up to the level of the forecast consumer price index increase for the year according to the National Assembly's Resolution.

Article 13. Advance payroll, unit payroll rate

1. Based on the production and business plan, the company decides the advance payroll amount, but it shall not exceed 85% of the planned payroll fund to pay monthly to employees.

2. Depending on actual needs, the company determines the unit payroll rate based on total revenue, total revenue minus total costs excluding wages, profit, units of product, or other production and business efficiency indicators suitable for the nature of its operations to manage its production and business activities.

Section 4. DETERMINATION OF THE ACTUAL PAYROLL FUND, DISTRIBUTION OF WAGES AND BONUSES

Article 14. Actual Payroll Fund

1. The actual payroll fund for employees is determined according to the following formula:

V_ENVIRONMENT = TL_bqth x L_thbq x 12 + V_đt        (10)

Where:

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_ENVIRONMENT: Actual salary fund.

- TL_bqth: Average actual wage level, determined based on the average planned wage level linked to changes in average labor productivity and realized profit compared to the plan, following the principle of determining the average planned wage level based on the average actual wage level of the previous adjacent year linked to changes in average labor productivity and planned profit compared to the actual profit of the previous adjacent year as stipulated in Article 9 of this Circular.

-_thbq: Average number of actual employees used, calculated according to the guidelines set out in the Appendix attached to this Circular, linked to the approved planned average number of employees by the Board of Members or the Company Chairman, ensuring that under conditions where the volume and tasks of production and business implementation do not increase or the management units and business bases of the company do not increase compared to the plan, the actual average number of employees used to calculate the payroll fund does not exceed the planned average number of employees.

- 12: Number of months in a year, for newly established companies, it is calculated based on the number of months the company operates.

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:_đt: The difference in wages of dedicated staff members paid by the organization, determined according to Article 10 of this Circular.

For companies operating at a loss or without profit (after excluding objective factors if any), the actual payroll fund is calculated based on the average wage level in the labor contract, plus holiday wages, festival wages, and wages for working night shifts and overtime as stipulated in the Labor Code.

2. The company must reassess the impact of objective factors affecting labor productivity and realized profit compared to the plan to exclude them when determining the actual payroll fund according to Clause 1 of this Article. For companies producing and trading state-regulated products and services with production and trading quotas, they must also determine the average actual wage level based on the difference between the actual consumer price index increase in the year and the forecast consumer price index increase.

3. Based on the actual payroll fund and the payroll advanced to employees, the company determines the remaining payroll fund to enjoy. In cases where the company has advanced more than the actual payroll fund, the excess payroll advanced must be repaid from the payroll fund of the next adjacent year.

Article 15. Distribution of Wages

1. Based on the actual wage fund, the company shall establish a reserve wage fund for the next consecutive year to ensure uninterrupted wage payments. The annual reserve level shall be decided by the General Director (Director) after consulting with the Trade Union Executive Board of the company, but it must not exceed 17% of the actual wage fund stipulated in Article 14 of this Circular.

For companies engaged in production and business activities in agriculture, forestry, industrial crops, aquaculture, fishing, salt industry, the annual reserve must not exceed 20% of the actual wage fund.

2. The company shall establish a wage system based on job positions and titles, ensuring compliance with legal regulations, democracy, fairness, transparency, and linking wages to productivity, quality, and business efficiency, providing appropriate remuneration (without limiting the maximum amount) for individuals with talent, professional expertise, high labor productivity, and significant contributions to the company. When establishing the wage system, the participation of the Trade Union Executive Board of the company and employees must be ensured.

3. Based on the actual wage fund and the wage system, the company shall pay wages to employees. The company may not use the wage fund of employees to pay members of the Board of Members or the Chairman of the company, Head of Supervisory Board, Supervisor, General Director or Director, Deputy General Director or Deputy Director, Chief Accountant, nor may it use the wage fund of employees for other purposes.

Article 16. Bonus Fund and Distribution of Bonuses

1. The annual bonus fund from the incentive and welfare fund of the company shall be established according to the Government's regulations on state capital investment in enterprises and financial management for state-owned enterprises holding 100% of the charter capital, and the guidelines of the Ministry of Finance.

2. The company shall establish a bonus system in accordance with legal regulations, ensuring democracy, transparency, and linking bonuses to productivity, quality, and business efficiency, encouraging individuals with talent, professional expertise, high labor productivity, and significant contributions to the company. When establishing the bonus system, the participation of the Trade Union Executive Board of the company and employees must be ensured.

3. Based on the bonus fund and the bonus system, the company shall implement bonuses for employees.

Section 5. RESPONSIBILITY FOR IMPLEMENTATION

Article 17. Responsibilities of the General Director (Director)

1. Review or develop new labor norms, labor plans, assess the situation of labor utilization; establish and promulgate recruitment and labor usage regulations and organize labor recruitment according to regulations.

2. In the first quarter of each year, determine the planned wage fund, the actual wage fund of the previous consecutive year, compile data in Table 2 issued together with this Circular, report to the Board of Members or the Chairman of the company for approval.

3. Organize the development or review of job positions, work tasks, salary scales, pay tables, allowances, salaries based on job positions and work tasks, position standards, work standards, salary increase regulations, wage payment regulations, and bonus regulations of the company.

4. Advance payment of wages, decide on the establishment of unit price for wages, the level of wage reserve extraction; implement wage and bonus payments to employees according to the company's wage payment regulations and bonus regulations.

5. Regularly report to the Board of Members or the Chairman of the company on labor conditions, wages, and bonuses; provide complete reports, documents, and data on labor, wages, and bonuses as required by the Head of the Supervisory Board, Supervisor.

Article 18. Responsibilities of the Board of Members or the Chairman of the Company

1. In the first quarter of each year, review and submit for approval the production and business plan; approve labor norms, labor plans, planned salary fund, and actual salary fund of the previous adjacent year according to the provisions of this Circular.

2. Report to the representative body of the owner, and simultaneously send to the Inspector the labor norms, labor plans, planned salary fund, and actual salary fund of the previous year according to Form No. 2 issued together with this Circular within no later than ten days from the date of approval for inspection and supervision.

For State Economic Groups and State Corporations as stipulated in Clause 2, Article 5 of this Circular, when reporting to the representative body of the owner, they must also send to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

3. Direct the General Director (Director) to improve the organizational structure and personnel engaged in labor and salary work to implement the management contents of labor, salary, and bonuses as prescribed by the Government and this Circular.

4. Publicize the total number of employees, salary fund, bonus fund, salary level, and average income of the previous year on the company's electronic information page according to the provisions of the law, and report to the representative body of the owner at the same time.

5. Provide relevant documents and reports related to the implementation of the salary and bonus system upon request of the Head of the Supervisory Board, Inspector; review the contents according to the recommendations of the Head of the Supervisory Board, Inspector (if any) to direct the General Director (Director) to amend and supplement in accordance with the regulations.

Article 19. Responsibilities of the Head of the Supervisory Board, Inspector

1. Inspect, supervise, and periodically report to the representative body of the owner on the implementation by the Board of Members or the Chairman of the Company, the General Director, and the Director of the management contents of labor, salary, and bonuses as prescribed by the Government and this Circular.

2. Propose the Board of Members or the Chairman of the Company to direct amendments and adjustments if discovering non-compliance during the review and inspection process. If the Board of Members or the Chairman of the Company does not implement, report to the representative body of the owner for timely handling.

3. Review the determination of the salary fund to report to the representative body of the owner within fifteen days from receiving the report of the Board of Members or the Chairman of the Company; bear responsibility for the accuracy and honesty of the review report.

Article 20. Responsibilities of the State Capital Representative Body

1. Organize the implementation and guidance on the labor, salary, and bonus policies as prescribed in this Circular for companies assigned as representatives of the owner.

2. Receive, monitor, and inspect the reports of the Board of Members or the Chairman of the Company, Inspector regarding labor norms, labor plans, planned salary fund, and actual salary fund of the previous year, and provide opinions on external factors affecting productivity and profit (if any).

3. If non-compliance is discovered, within thirty days from receiving the report, issue a document requesting the Board of Members or the Chairman of the Company to supplement or adjust.

4. Depending on the degree of violation, decide on disciplinary measures such as no salary increase, extended salary grade promotion period, deduction from salary, bonus, remuneration, demotion in salary grade, reprimand, warning, dismissal, or termination of employment for the Chairman of the Board of Members or the Chairman of the Company according to the provisions of the law.

5. Take the lead and coordinate with the Ministry of Labor, Invalids and Social Affairs to inspect and supervise the salaries of the parent company of State Economic Groups and State Corporations as stipulated in Clause 2, Article 5 of this Circular.

6. Regularly organize inspections and supervisions annually and be responsible before the Government and the Prime Minister about the implementation of labor and salary policies of the company under their ownership.

7. By no later than May each year, compile and send to the Ministry of Labor, Invalids and Social Affairs the situation of labor, salary, and bonus implementation of the previous adjacent year and the construction of the planned salary fund of companies under their management according to Form No. 3 issued together with this Circular.

Article 21. Responsibilities of the Ministry of Labor - Invalids and Social Affairs

1. Implement tasks related to the rights and obligations of the owner towards a single-member limited liability company held 100% by the State, according to the division of labor by the Government.

2. Coordinate with the representative body of the owner to supervise salaries, remuneration, and bonuses for employees in the parent company of state-owned economic groups and corporations specified in Clause 2, Article 5 of this Circular.

3. Organize inspections and audits of the implementation of labor policies, salaries, and bonuses at companies; during the process of receiving reports, inspections, audits, and supervision, if discovering that the salary fund has been determined incorrectly, provide opinions for the representative body of the owner to instruct the company to adjust or rectify according to regulations.

4. Summarize the situation of salaries and bonuses at companies and report periodically to the Prime Minister.

Section 6. IMPLEMENTATION PROVISIONS

Article 22. Effectiveness

1. This Circular takes effect from October 15, 2016. The regimes prescribed in this Circular shall be applied from January 1, 2016.

2. Circular No. 18/2013/TT-BLDTBXH dated September 9, 2013, issued by the Ministry of Labor - Invalids and Social Affairs guiding the management of labor, salaries, and bonuses for employees in single-member limited liability companies owned by the State, ceases to be effective from the date this Circular takes effect.

3. For companies that have approved the salary fund plan for 2016 before this Circular takes effect, they must review the determination of the salary fund plan for 2016 as the basis for determining the actual salary fund for 2016 according to this Circular.

4. Companies implement a maximum daily meal allowance of VND 730,000 per person per month for employees. The midday meal system shall be implemented according to the guidance provided in Circular No. 22/2008/TT-BLDTBXH dated October 15, 2008, issued by the Ministry of Labor - Invalids and Social Affairs on implementing the midday meal system in state-owned enterprises.

5. The parent company - Military Telecommunications Group continues to apply pilot management of salaries for employees according to the provisions of the Government.

Article 23. Responsibility for Implementation

1. The Minister, the head of a ministry-level agency, the head of an agency under the Government, the Chairman of the People's Committee of provinces and centrally governed cities are responsible for directing, urging, and inspecting companies under their management to comply with the provisions of this Circular.

2. The Board of Directors or the Chairman of the parent company mentioned in Article 1 of this Circular shall organize the management of labor, salaries, and bonuses for employees working in companies held 100% by the parent company based on the content of labor management, salaries, and bonuses stipulated in this Circular.

3. Political organizations and political-social organizations shall consider and decide on the application of the provisions of this Circular for employees working in companies held 100% by political organizations and political-social organizations.

During the implementation, if there are difficulties, agencies, organizations, and companies are requested to reflect them to the Ministry of Labor - Invalids and Social Affairs for timely supplementary guidance./.