Circular No. 27/2010/TT-BLDTBXH guiding the management of labor, wages, remuneration, and bonuses in a state-owned limited liability company with one member.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses in a limited liability company with state ownership

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Pursuant to Decree No. 186/2007/NĐ-CP dated December 25, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor - War Invalids and Social Affairs;

Pursuant to Decree No. 86/2007/NĐ-CP dated May 28, 2007 of the Government on labor management and wage management in a limited liability company with 100% state-owned charter capital;

Pursuant to Decree No. 25/2010/NĐ-CP dated March 19, 2010 of the Government on converting state-owned enterprises into limited liability companies with state ownership and organizing management of limited liability companies with state ownership;

The Ministry of Labor - Invalids and Social Affairs issues guidelines for implementing labor management, wage management, remuneration, and bonuses in a limited liability company with state ownership as follows:

SCOPE I. SCOPE AND APPLICABLE OBJECTS

Article 1. Scope of Regulation

The scope of application of this Circular includes limited liability companies with state ownership, including:

1. Limited liability companies under Ministries, People's Committees of provinces and centrally-administered cities.

2. Limited liability companies converted from State-owned Corporations, Parent Companies of State-owned Corporations decided by the Prime Minister, Ministers of Ministries, Chairmen of People's Committees of provinces and centrally-administered cities to convert and approve their organizational charters.

3. Limited liability companies under Economic Groups, State-owned Corporations decided by the Prime Minister, Ministers of Ministries, Chairmen of People's Committees of provinces and centrally-administered cities to establish, convert and approve their organizational charters.

This Circular does not apply to limited liability companies that are parent companies of State-owned Economic Groups.

Limited liability companies with state ownership referred to in Clauses 1, 2, and 3 above shall be referred to as the company hereinafter.

Article 2. Applicability

1. Workers employed under labor contracts as prescribed in Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on labor contracts;

2. Full-time members, non-full-time members of the Board of Members (for companies organized under the Board of Members model) or full-time Chairman, non-full-time Chairman (for companies organized under the Chairman model), full-time Supervisors, non-full-time Supervisors;

3. General Directors, Directors, Deputy General Directors, Deputy Directors, Chief Accountants (excluding those working under contracts).

PART II. MANAGEMENT OF LABOR, WAGES, AND BONUSES FOR WORKERS EMPLOYED UNDER LABOR CONTRACTS

Article 3. Labor Management

1. In the last quarter of the previous year or in January of the planning year, based on the requirements of workload, quality, production and business tasks, labor norms, technical grade standards for workers, professional standards for civil servants, and the situation of labor utilization in the previous year, the General Director (Director) of the company shall develop a labor utilization plan, specifying the total number of workers to be utilized in the planning year, the number and quality of new workers to be recruited; training and upgrading plans for each type of worker, and report to the Board of Members (or the Chairman of the company) for approval before implementation.

2. Based on the labor utilization plan, the General Director (Director) of the company shall implement the recruitment of new workers according to the provisions of Decree No. 39/2003/NĐ-CP dated April 18, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on employment and Circular No. 20/2003/TT-BLĐTBXH dated September 22, 2003 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of certain provisions of Decree No. 39/2003/NĐ-CP dated April 18, 2003 of the Government; sign labor contracts with newly recruited workers according to the provisions of Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on labor contracts, Circular No. 21/2003/TT-BLĐTBXH dated September 22, 2003 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of certain provisions of Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government,and Circular No. 17/2009/TT-BLĐTBXH dated May 26, 2009 of the Ministry of Labor - Invalids and Social Affairs amending and supplementing certain points of Circular No. 21/2003/TT-BLĐTBXH dated September 22, 2003 of the Ministry of Labor - Invalids and Social Affairs. 3. In the last quarter of each year, the General Director (Director) of the company shall be responsible for evaluating the implementation of the labor utilization plan; if the actual number of workers exceeds the demand leading to unemployment, then a job placement plan must be developed for the workers; if the quality of workers does not meet the job requirements, then a training and retraining plan must be developed for these workers. In cases where all measures have been taken but still cannot arrange jobs, the Board of Members (or the Chairman of the company),

the General Director (Director) of the company must fully settle the benefits for workers when terminating labor contracts according to the provisions of Decree No. 39/2003/NĐ-CP dated April 18, 2003 and Decree No. 44/2003/NĐ-CP dated May 9, 2003 of the Government. The General Director (Director) of the company shall be responsible for fully settling the employee benefits regime for employees when terminating the labor contract in accordance with the provisions of Government Decree No. 39/2003/NĐ-CP dated April 18, 2003, and Government Decree No. 44/2003/NĐ-CP dated May 9, 2003.

Article 4. Salary Classification and Allowances

1. The company continues to apply the salary scale, wage table, and wage allowances issued together with Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government stipulating the system of salary scales, wage tables, and wage allowance systems in state-owned enterprises and other guiding documents for implementation to classify wages for employees until the Government issues new regulations. Encouragement is given to the company to employ individuals with high professional expertise, technical skills, excellence, talent, and to establish appropriate wage classification systems for these workers.

2. The company shall develop plans to review and compile statistics on occupational titles and job positions; establish criteria for evaluating work performance as a basis for immediately developing a suitable salary scale and wage table when new regulations are issued, consistent with the company's production organization and labor organization.

Article 5. Minimum Wage Level for Calculating Unit Labor Cost

The company may choose a higher minimum wage level than the regional minimum wage set by the Government during each period (the regional minimum wage from January 1, 2010, implemented according to Decree No. 97/2009/NĐ-CP dated October 30, 2009 of the Government stipulating the regional minimum wage for workers employed by companies, enterprises, cooperatives, joint ventures, farms, households, individuals, and other organizations in Vietnam that hire labor) to calculate unit labor cost, but must ensure the following conditions:

1. Paying taxes to the state budget in accordance with tax laws and implementing guidelines;

2. The average wage increase rate must be lower than the average productivity increase rate.

The average wage increase rate, average productivity increase rate, and determination of planned average wages linked to productivity to determine the unit labor cost are calculated according to the guidance provided in Circular No. 09/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids, and Social Affairs, where the labor force for calculating average productivity and average wages does not include members of the Board of Directors or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor;

3. There must be profits, and planned profits must not be lower than the realized profits of the previous year, except for certain special cases (the State has intervened to stabilize the market; increased depreciation to recover capital quickly; technological innovation; expanding production and business operations; new investments).

Article 6. Establishing Unit Labor Cost

Based on the nature and characteristics of production and business activities, the company selects one of the following methods to establish the unit labor cost as a basis for planning the wage fund and paying wages to employees:

1. Unit labor cost calculated based on total revenue or total revenue minus total costs (excluding wages) or profit, calculated using the formula:

Of which:

V_đg: Unit labor cost calculated based on total revenue (unit of measurement: dong/1,000 dong revenue) or total revenue minus total costs excluding wages (unit of measurement: dong/1,000 dong total revenue minus total costs excluding wages) or profit (unit of measurement: dong/1,000 dong profit);

nh cơ_db : Established staffing levels, built according to the guidance provided in Circular No. 06/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor, Invalids, and Social Affairs (excluding members of the Board of Directors or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor);  2005 of the Ministry of Labor, Invalids, and Social Affairs (excluding members of the Board of Directors or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor);

TL_{x 12 months} : The minimum wage level chosen by the company in accordance with Article 5 of this Circular;

H_cb : Average wage grade coefficient, determined based on the average job grade of direct production and business workers and the average wage coefficient of indirect labor (excluding members of the Board of Directors or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor). Job grades are determined based on production organization, labor organization, technical level, technology, and product quality requirements;

H_pc : Average allowance coefficient, determined based on the number of allowance recipients and the allowance rates specified by the State, including: area allowance; attraction allowance; responsibility allowance; hazardous and dangerous allowance; mobility allowance; department head and deputy department head position allowance;

V_đt : The difference between the wage calculated based on the company's chosen minimum wage and the wage paid by the trade union organization to full-time trade union staff (for full-time trade union staff paid by the trade union organization);

V_ttlđ : Additional night shift wage, determined by adding 30% of the day shift wage of employees working night shifts as specified in the plan.

 Provincial People's Committees set specific pricesT_kh send a text message Provincial People's Committees set specific pricesT_kh - Provincial People's Committees set specific pricesC_kh (excluding wages) send a text message "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh : Production and business targets for Total Revenue or Total Revenue minus total costs (excluding wages) or Profit. These indicators are calculated according to the provisions and guidance of the Ministry of Finance.

If the company is assigned by the State to undertake investment and business operations with state capital, it shall report to the owner to supplement or replace other production and business efficiency indicators suitable for the nature of its activities, linked to the company's functions and tasks, to calculate the unit labor cost.

2. Unit labor cost calculated based on units of products (including converted products) sold, calculated using the formula:

V_đg  =  V_hours   x   T_sp                      (2)

Of which:

V_đg: The unit price of wages based on units of products, including converted products sold (unit of measurement is dong/unit of product);

V_hours: Hourly wage for calculating unit labor cost, calculated by dividing the planned average monthly wage by 26 days and then by 8 hours, where the average monthly wage is based on the wage grade coefficient, average allowance, the company's chosen minimum wage, the wage difference for full-time trade union staff, and additional night shift wage;

T_sp: Comprehensive labor input for a unit of product (measured in hours-person/unit of product), established according to the guidance provided in Circular No. 06/2005/TT-BLDTBXH dated January 5,  2005 of the Ministry of Labor - Invalids and Social Affairs (excluding members of the Board of Directors or Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor).

Article 7. Determining the planned salary fund

The total planned salary fund of the company for overall salary expenditure planning includes: the planned salary fund based on the wage rate and the planned salary fund based on the system not included in the wage rate, including:

1. Planned salary fund based on the wage rate, calculated according to the formula:

V_khđg  =  V_đg    x   C_sxkh                   (3)

Where:

V_khđg : The planned wage fund according to the unit price of wages;

V_đg : Wage rate calculated according to the provisions of Article 6 of this Circular;

C_sxkh: Production and business plan index regarding Total Revenue or total revenue minus total costs (excluding wages) or profit or total product (including converted products) linked to the wage rate as stipulated in Article 6 of this Circular.

2. Planned salary fund based on the system not included in the wage rate, calculated according to the formula:

V_khcđ  =  V_pc  +  V_bs                         (4)

Of which:

V_khcđ : Planned salary fund based on the system not included in the wage rate;

V_pc : Various allowances and other systems (if any) not included in the wage rate, including: diving allowance; sea travel allowance; aviation safety award, power operation safety award, calculated based on the number of beneficiaries and the amount stipulated by the State;

V_bs : Wages for days off entitled to according to the Labor Code (including annual leave, personal leave, public holidays, Tet holidays, maternity leave regime), applicable to companies that establish wage rates based on unit products without considering labor norms when establishing standards.

Article 8. Determining the actual salary fund

The total actual salary fund of the company for the year includes: actual salary fund based on the wage rate and actual salary fund based on the system not included in the wage rate, including:

1. Actual salary fund based on the wage rate, determined based on the results of production and business tasks, labor productivity, and profits of the company as follows:

a) Actual salary fund based on the results of production and business tasks, calculated according to the formula:

V_thđg = V_đgth   x   C_sxth                    (5)

Where:

V_thđg : Actual salary fund based on the wage rate;

C_sxth: Production and business performance index regarding Total Revenue or total revenue minus total costs (excluding wages) or profit or total product (including converted products) consumed.

V_đgth : Actual wage rate, determined based on the planned wage rate (calculated according to the provisions of Article 6 of this Circular) and adjusted according to the production and business performance index (calculating the wage rate) as follows:

- If the production and business performance index reaches below 110% compared to the plan, the actual wage rate equals 100% of the planned wage rate.

- If the production and business performance index reaches from 110% to below 120% compared to the plan, the portion exceeding from 110% to below 120%, the actual wage rate equals 80% of the planned wage rate.

- If the production and business performance index reaches from 120% to below 130% compared to the plan, the portion exceeding from 120% to below 130%, the actual wage rate equals 50% of the planned wage rate.

- If the production and business performance index reaches 130% or more compared to the plan, the portion exceeding 130% or more, the actual wage rate equals 30% of the planned wage rate.

b) Adjusting the actual salary fund based on labor productivity and profit:

- For companies with average actual labor productivity and actual profit equal to or higher than the plan , the actual salary fund based on the wage rate is calculated according to formula (5).

- For companies with average actual labor productivity and actual profit lower than the plan (actual profit after adjusting the salary fund of management staff according to Clause 2, Article 13 of this Circular) , the actual salary fund based on the wage rate must be adjusted according to formula:

V_thđgđc   =  V_thđg  -  V_{on Month Day Year}  -  V_t,                (6)

Where:

V_thđgđc : Actual wage fund according to the wage rate after adjustment;

V_thđg : Actual wage fund according to the wage rate;

V_{on Month Day Year} : Adjusted salary fund based on labor productivity, calculated according to the formula:

- Electronic Information Portal_th, W_kh: Average actual labor productivity and planned labor productivity of the company, determined according to the guidance in Circular No. 09/2005/TT-BLDTBXH dated January 5, 2005 of the Ministry of Labor - Invalids and Social Affairs.

V_t, : Adjusted salary fund based on profit (applicable in cases where after adjusting the salary fund of management staff and the actual salary fund based on labor productivity according to formula (7) the actual profit is lower than the planned profit), calculated according to one of the following two methods:

Method 1: Adjust the salary fund according to an absolute level corresponding to the decrease in profit, calculated by the formula:

V_t,  =   "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh  -  "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_th                                                                          (8)

Where:

V_t, : Adjusted wage fund according to profit;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Planned profit corresponding to the unit price of salary as stipulated in Article 5 and Article 6 of this Circular;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_th : Actual profit corresponding to the adjusted salary fund for management staff and the actual salary fund based on labor productivity.

Method 2: Adjust the salary fund according to a relative level, calculated by the formula: 

Where:

V_t, : Adjusted wage fund according to profit;

V_thđg : Actual wage fund according to the wage rate;

V_cđ : The regulated salary fund, determined by multiplying the number of standard labor units with the average wage rate coefficient, the average allowance coefficient, and the minimum regional wage rate;

V_{on Month Day Year} : The adjusted salary fund based on labor productivity, calculated by formula (7);

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_th : Actual profit corresponding to the adjusted salary fund for management staff and the actual salary fund based on labor productivity;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Planned profit corresponding to the unit price of salary as stipulated in Article 5 and Article 6 of this Circular;

- For companies with average actual labor productivity lower than planned and actual profit equal to or higher than planned , the actual salary fund based on the wage rate must be adjusted according to formula:

V_thđgđc   =  V_thđg  -  V_{on Month Day Year}                    (10)

Where:

V_thđgđc : Actual wage fund according to the wage rate after adjustment;

V_thđg : Actual wage fund according to the wage rate;

V_{on Month Day Year} : The adjusted salary fund based on labor productivity, calculated by formula (7).

- For companies with actual profit lower than planned (actual profit after adjusting the salary fund for management staff as stipulated in Clause 2, Article 13 of this Circular) and average actual labor productivity equal to or higher than planned , the actual salary fund based on the wage rate must be adjusted according to formula:

V_thđgđc   =  V_thđg  -   V_t,               (11)

Where:

V_thđgđc : Actual wage fund according to the wage rate after adjustment;

V_thđg : Actual wage fund according to the wage rate;

V_t, : The adjusted salary fund based on profit, calculated by formula (8) or by the formula:

Where:

V_t, : Adjusted wage fund according to profit;

V_thđg : Actual wage fund according to the wage rate;

V_cđ : The regulated salary fund;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_th : Actual profit (after adjusting the salary fund for management staff);

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Planned profit corresponding to the unit price of salary as stipulated in Article 5 and Article 6 of this Circular;

The actual salary fund adjusted according to labor productivity and the above profit shall not be lower than the regulated salary fund (V_cđ).

- For companies without profit or loss or those that do not establish and report the unit price of salary as prescribed then the actual salary fund is determined by multiplying the average number of actual laborers used with the wage rate coefficient, the average allowance coefficient, and the minimum regional wage rate.

2. The actual salary fund under the regulated system is not included in the unit price of salary, calculated according to the formula:

V_thcđ  =  V_pc  +  V_bs  +  V_tg  +  V_ld         (13)

Where:

V_thcđ : The actual salary fund under the regulated system is not included in the unit price of salary;

V_pc; V_bs :  Wage allowances and other benefits not included in the unit price of salary; wages for holidays enjoyed according to the Labor Code, calculated based on actual expenditures as prescribed by the State;

V_tg : Overtime wages, calculated based on actual overtime hours worked (total planned overtime hours and unplanned overtime hours not exceeding the maximum allowed by the Labor Code) to implement additional workloads and tasks not included in the planned salary fund.

V_ld Night shift wages shall be calculated based on the actual hours worked during night shifts to implement the quantity and work arising unexpectedly within the planned wage fund.

3. Based on the actual salary fund as prescribed in Clause 1 and Clause 2 of this Article and the salary fund already paid to employees, the company determines the remaining salary fund to be enjoyed. In cases where the salary fund has been exceeded, the company must repay the excess from the next year's actual salary fund.

Article 9. Salary Payment Regulations

1. The company establishes salary payment regulations in accordance with the law, ensuring democracy, fairness, transparency, and encouraging talented individuals with high professional skills and labor productivity who make significant contributions to the company, while preventing equal distribution. When establishing salary payment regulations, the participation of the Company Trade Union Executive Board is required, and these regulations must be communicated to each employee.

2. The company may set up a reserve fund to supplement the next year's salary fund to ensure uninterrupted salary payments and may not use it for other purposes. The annual reserve amount is decided by the General Director or Director after consulting with the Company Trade Union Executive Board, but it shall not exceed 17% of the actual salary fund.

3. Based on the actual salary fund and salary payment regulations, the company pays salaries according to productivity, quality, and business efficiency to each unit, department, and individual employee.

Article 10. Bonus System

1. The annual bonus fund shall be sourced from the company's award fund in accordance with the regulations and guidelines issued by the Ministry of Finance.

2. The company is responsible for establishing a bonus regulation in compliance with the law, ensuring democracy, fairness, transparency, and openness, encouraging individuals with talent, professional expertise, high productivity, and significant contributions to the company. When formulating the bonus regulation, the company must involve the Trade Union Executive Board and disseminate it to each employee.

3. Based on the bonus fund, the company shall award bonuses to employees according to the company's bonus regulation.

SECTION III. MANAGEMENT OF SALARIES, COMPENSATION, AND BONUSES FOR BOARD MEMBERS, COMPANY CHAIRMAN, GENERAL MANAGER, DEPUTY GENERAL MANAGER, CHIEF ACCOUNTANT, AND AUDITORS

Article 11. Salary Classification

1. The company continues to apply the salary tables issued together with Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government and related implementation guidelines to classify salaries for board members or the company chairman, dedicated auditors, general manager, director, deputy general manager, deputy director, and chief accountant until the Government issues new regulations.

For the positions of board member or company chairman, dedicated auditor, the salary classification shall be as follows:

- Dedicated chairperson of the board of directors, dedicated company chairman shall be classified according to the position of chairperson of the board of management; dedicated board members shall be classified according to the position of dedicated board member in the dedicated board member salary table based on the company's rank;

- Dedicated auditors shall be classified according to the specialized and vocational salary table and shall receive a position allowance equivalent to that of a department head. In cases where a person was previously appointed to a dedicated auditor position and was classified according to the dedicated board member salary table or the general manager, deputy general manager, director, deputy director, or chief accountant salary table, and if the new salary coefficient (specialized coefficient plus position allowance equivalent to a department head) is lower than the old salary coefficient, they shall continue to receive the difference in coefficients to maintain the old salary coefficient until the Government issues new regulations. 

2. The company's ranking serves as the basis for salary classification and reclassification for dedicated board members, dedicated company chairman, dedicated auditors, general manager, director, deputy general manager, deputy director, and chief accountant, following the joint circular No. 23/2005/TTLT-BLDTBXH-BTC dated August 31, 2005 of the Ministry of Labor, Invalids and Social Affairs and the Ministry of Finance guiding the ranking and salary classification for dedicated board members, general manager, deputy general manager, deputy director, and chief accountant of state-owned companies. For companies that have already been ranked, their existing ranking will be maintained until the end of the specified period; for companies yet to be ranked or those whose ranking needs to be reassessed, the company shall determine its ranking and report to the owner for decision. 

Article 12. Management of Salary, Fees, and Bonuses 

1. The dedicated members of the Board of Members or the dedicated Chairman of the company, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, and dedicated Supervisors shall enjoy salary benefits annually based on the business results and efficiency of the company and their management, operation, or supervision activities. In cases where the Chairman of the Board of Members or the Chairman of the company concurrently holds the position of General Director or Director; or where the General Director or Director is also a member of the Board of Members, they shall only receive the salary of the highest-ranking position among those held.

Non-dedicated members of the Board of Members or non-dedicated Chairman of the company, and non-dedicated Supervisors shall enjoy fee benefits based on the work performed and time spent working. The level of fees is determined by the company, wherein the fee for non-dedicated members of the Board of Members shall not exceed 20% of the salary of dedicated members of the Board of Members (in cases where there are no dedicated members, it will be compared to the average salary of the General Director, Deputy General Director, Director, and Deputy Director); the fee for non-dedicated Supervisors shall not exceed 20% of the salary of dedicated Supervisors (in cases where there are no dedicated Supervisors, it will be compared to the salary of the Chief Accountant); the fee for the non-dedicated Chairman of the company shall not exceed 20% of the salary of the General Director or Director.

2. The fund for salaries and fees of members of the Board of Members or the Chairman of the company, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, and Supervisors shall be determined annually, with a monthly advance payment of 70% of the estimated salary or fee for that month; the remaining 30% shall only be settled and paid at the end of the year based on the financial regulations of the single-member limited liability company and the monitoring and evaluation regulations for members of the Board of Members, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, and Supervisors issued by the Ministry of Finance.

The fund for salaries and fees of members of the Board of Members or the Chairman of the company, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, and Supervisors shall be separately accounted for, not included in the unit price of salaries, but included in the cost of production or operating expenses and reflected as a separate item in the annual financial report of the company.

3. Members of the Board of Members or the Chairman of the company, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, and Supervisors shall enjoy bonus benefits according to their term of office. The amount of bonuses corresponds to the business results and efficiency of the company and their management, operation, or supervision activities. Annually, 70% of the total bonus amount for the year shall be advanced; the remaining 30% shall only be settled and paid after the completion of the term of office, based on the financial regulations of the company and the monitoring and evaluation regulations issued by the Ministry of Finance.

If the classification results of the company and the assessment results of management, operation, or supervision do not meet the requirements stipulated in the financial management regulations and the monitoring and evaluation regulations, then members of the Board of Members or the Chairman of the company, General Director, Deputy General Director, Director, Deputy Director, and Supervisors shall not settle the 30% of the annual salary (for those receiving salaries) and shall not enjoy the remaining 30% of the term bonus.

The planned salary and fee fund, the implemented salary and fee fund, and the bonus fund shall be determined by the company in accordance with this Circular and reported to the owner for decision before implementation.

Article 13. Determination of the salary fund for full-time members of the Board of Directors or the full-time Chairman of the company, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, and full-time Supervisors (referred to collectively as full-time management officials). (referred to collectively as full-time management officials)

1. Planned salary fund

a) For companies with profits, the planned salary fund is calculated according to the formula:

V_{= [ L}  =  nh cơ_ql  x  (H_cv + H_pc)  x  TL_{x 12 months}  x (1  +  ảo_{: Adjusted planned salary fund (this fund is referred to as the planned salary fund);}) x  Twelve months         (14)

Where:

V_{= [ L}  : Planned salary fund of full-time management officials;

nh cơ_ql    : Number of full-time management officials based on actual figures at the time of determining the planned salary fund;

H_cv and H_pc : Average salary coefficient and allowance coefficient based on current salary coefficients and allowances (including: regional allowances; attraction allowances; hazardous and dangerous work allowances, and safety reward systems if applicable) of full-time management officials.

TL_{x 12 months} : Minimum wage level chosen by the company to calculate the unit price of wages. For companies with multiple minimum wage levels to calculate the unit price of wages, the highest minimum wage level may be selected.

ảo_{: Adjusted planned salary fund (this fund is referred to as the planned salary fund);} : Additional adjustment factor for increasing the planned salary fund chosen by the company, but not exceeding twice and must ensure the following conditions:

- Paying state budget according to tax laws and guiding documents;

- Must have profit and planned profit not lower than the realized profit of the previous year, except for some special cases (State has intervened to stabilize the market; increased depreciation to recover capital quickly, modernize technology, expand production and business; new investment);

- The increase (in percentage terms) of the average planned salary of full-time management officials compared to the previous year's realization does not exceed the increase (in percentage terms) of the average planned salary of employees compared to the previous year's realization.

b) For companies without profit or loss, the planned salary fund is calculated according to the formula:

V_{= [ L}  =  nh cơ_ql  x  (H_cv + H_pc)  x  TL_{Maximum Downhill Gradient}  : Planned salary fund;      (15)

Where:

V_{= [ L}  : Planned salary fund of full-time management officials;

nh cơ_ql, H_cv, H_pc: Number of full-time management officials, average salary coefficient and allowance coefficient of full-time management officials;

TL_{Maximum Downhill Gradient} : Regional minimum wage level prescribed by the Government.

2. Actual salary fund

a) For companies with realized profit higher than planned profit the actual salary fund is calculated according to the formula:

Where:

V_thqlđc : Adjusted actual salary fund of full-time management officials;

V_{= [ L} : Planned salary fund of full-time management officials;

V_cđ : Salary system fund of full-time management officials, calculated according to formula (15) of this Circular;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_th, "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Realized profit and planned profit of the company.

In case the actual salary fund determined according to formula (16) of this Circular results in an increase (in percentage terms) of the average actual salary of full-time management officials compared to the plan being higher than the increase (in percentage terms) of the average actual salary of employees compared to the plan, then the average actual salary of full-time management officials will only be calculated based on the increase (in percentage terms) of the average salary of employees.

b) For companies with realized profit equal to planned profit the actual salary fund equals the planned salary fund according to formula (14) at point a, Clause 1, Article 13 of this Circular.

c) For companies with realized profit lower than planned profit, the actual salary fund must be adjusted according to the formula:

Where:

V_thqlđc : Adjusted actual salary fund of full-time management officials;

V_{= [ L} : Planned salary fund of full-time management officials; 

V_cđ : Salary system fund of full-time management officials;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_th, "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_kh: Actual profit and planned profit of the company;

d) For companies without profit or loss or failing to establish and report the planned salary fund as required the actual salary fund equals the salary system fund, calculated according to formula (15) of this Circular.

When determining the actual salary fund according to points a, b, c and point d of Clause 2 of this Article, in case there is a fluctuation (increase or decrease) in the number of full-time management officials compared to the time of determining the planned salary fund, the actual salary fund must be adjusted (increased or decreased) according to the fluctuation (increase or decrease) in the number of full-time management officials.

e) After determining the actual salary fund according to profit as stipulated in points a, b, c and point d of Clause 2 of this Article, the company must determine the actual salary fund enjoyed based on the classification result of the company and the assessment result of management, operation or supervision as stipulated in Clause 2 and Clause 3, Article 12 of this Circular.

If the actual salary fund enjoyed is lower than the actual salary fund according to profit, the actual salary fund enjoyed is guaranteed to be at least equal to the temporarily allocated salary fund for full-time management officials as stipulated in Clause 2, Article 12 of this Circular. For companies without profit or loss or failing to establish a planned salary fund as required the actual salary fund enjoyed equals the salary system fund, calculated according to formula (15) of this Circular.

f) Based on the actual salary fund and the temporarily allocated salary fund, the company determines the remaining actual salary fund enjoyed. In case expenses exceed the actual salary fund, the excess salary expenses must be refunded within the same year.

Article 14. Determination of the remuneration fund for non-executive members of the Board of Members or non-executive Chairman of the company, non-executive Supervisors (referred to as non-executive management officials) (referred to as non-professional managerial officials)

1. The planned remuneration fund shall be calculated based on the actual number of non-executive management officials at the time of determining the planned remuneration fund, the planned salary level of executive management officials, and the ratio of remuneration to salary chosen by the company according to Clause 1, Article 12 of this Circular.

2. The implemented remuneration fund shall be calculated based on the actual number of non-executive management officials at various implementation points throughout the year, the implemented salary level of executive management officials, and the ratio of remuneration to salary chosen by the company according to Clause 1, Article 12 of this Circular.

3. Based on the implemented remuneration fund and the advance remuneration fund, the company shall determine the remaining remuneration fund to be enjoyed. In cases where expenditures exceed the implemented remuneration fund, the excess remuneration paid must be refunded within the same year.

Article 15. Remuneration and incentive regulations

1. The Chairman of the Board of Members or the Chairman of the company, General Director, Director shall be responsible for directing specialized departments to establish remuneration and incentive regulations and implement payment of salaries, remunerations, and bonuses to Board of Members members or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Supervisor according to the degree of completion of production and business plans and individual responsibilities.

2. When establishing remuneration and incentive regulations, the participation of the Company's Trade Union Executive Committee is required. These regulations must ensure fairness, democracy, transparency, and must have the approval of the owner before implementation.

PART IV. IMPLEMENTATION PROVISIONS

Article 16. Implementation Organization

1. Responsibilities of the company 

a) Annually, establish labor norms, labor usage plans; production and business plans, profits as the basis for determining the company's salary plan and bear responsibility for the authenticity of these figures;

b) By the first quarter of each year, establish and decide on unit prices for salaries, planned salary funds for employees; determine the planned salary and remuneration funds for Board of Members members or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Supervisor according to the provisions of this Circular;

c) At the end of each accounting period, determine and decide on the implemented salary fund, bonus fund to be enjoyed by employees; determine the implemented salary, remuneration, and bonus funds for Board of Members members or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Supervisor according to the provisions of this Circular;

d) Within five working days from the date of issuing decisions on labor norms, labor usage plans; unit prices for salaries, planned salary funds, implemented salary funds, employee bonus funds as stipulated in point a, b, and point c, Clause 1 of this Article, the company must submit a written report to the owner along with Form No. 1 and Form No. 2a (for companies setting unit prices for salaries based on total revenue or total revenue minus total costs without salaries or profits) or Form No. 2b (for companies setting unit prices for salaries based on products) for inspection and supervision;

đ) When submitting reports on unit prices for salaries, planned salary funds, implemented salary funds, employee bonus funds, the company simultaneously reports to the owner the decisions and approvals regarding the planned salary and remuneration funds and the implemented salary, remuneration, and bonus funds for Board of Members members or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Supervisor (in writing and accompanied by Form No. 3 attached to this Circular).

The company must submit reports on unit prices for salaries, salary and remuneration funds, and bonuses as specified in points đ and đ above to the Provincial Tax Department or Central City Tax Department where the company's main office is located to determine taxable income.

đ) Establish technical grade standards for workers, professional standards for officials and staff; regulations on rank promotion and salary increase; remuneration and incentive regulations for employees, remuneration and incentive regulations for Board of Members members or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Supervisor to apply within the company and submit them to the owner for inspection and supervision in accordance with the law.

2. Responsibilities of the owner

a) Guide and be responsible for implementing labor systems, salary policies, and bonuses for companies assigned as owners according to the provisions of this Circular;

b) Receive, review, and supervise the implementation of reports on labor norms, labor usage plans, unit prices for salaries, planned salary funds, implemented salary funds, employee bonus funds, remuneration and incentive regulations of the company.

Within thirty days from the date of receiving the company's labor and salary reports, the owner must provide a written response to the company. If any contents are found to be inconsistent with state regulations, the owner must require the company to make corrections, supplements, or adjustments in accordance with state regulations;

c) Receive and approve the planned salary and remuneration funds, implemented salary and remuneration funds, and bonus funds for Board of Members members or the Chairman of the company, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Supervisor;

d) Regularly organize inspections and evaluations of the implementation of labor systems, salary policies, and bonuses for companies assigned as owners.

đ) Quarterly in the second quarter of each year, ministries, provincial people's committees under the central government, parent companies of state-owned economic groups, special-class comprehensive companies shall report to the Ministry of Labor - Invalids and Social Affairs on the implementation results of production and business operations, labor, wages, bonuses of the immediately preceding year, and the construction of wage unit prices and wage funds for the planning year of companies under their management according to forms number 4a and 4b attached hereto.

3. Responsibilities of the Ministry of Labor - Invalids and Social Affairs

a) Guide, inspect, supervise the implementation of the provisions of this Circular and perform tasks related to the rights and obligations of the owner towards a single-member limited liability company owned by the State, as assigned by the Government.

b) Summarize the situation regarding labor, wages, remuneration, and bonuses of companies and periodically report to the Prime Minister.

Article 17. Effective Date

1. This Circular takes effect 45 days from the date of signature. The Circular No. 15/2007/TT-BLDTBXH dated August 31, 2007 of the Ministry of Labor - Invalids and Social Affairs guiding the implementation of the Decree No. 86/2007/NĐ-CP dated May 28, 2007 of the Government on the management of labor and wages in single-member limited liability companies wholly owned by the State is hereby repealed.

The wage, bonus, and remuneration systems prescribed in this Circular shall be implemented from May 5, 2010.    

2. The construction of wage unit prices and wage funds for the year 2010 shall be carried out in accordance with the guidance provided in Appendix No. 1 issued together with this Circular.

3. Single-member limited liability companies owned by political organizations or political-social organizations may apply the provisions of this Circular.

Any difficulties encountered during the implementation should be reported to the Ministry of Labor - Invalids and Social Affairs for timely supplementary guidance./.