Circular No. 31/2016/TT-BLDTBXH guides the management of labor, wages, remuneration, and bonuses in organizations established and operating under the model of a state-owned limited liability company with 100% state capital as prescribed by the Securities Law.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses in organizations established and operating under the model of a state-owned limited liability company with 100% state capital as stipulated by the Securities Law.

 

Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Pursuant to Decree No. 51/2016/NĐ-CP dated June 13, 2016 of the Government on the management of labor, wages, and bonuses for employees in state-owned limited liability companies with 100% state capital.

Pursuant to Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government on wages, remuneration, and bonuses for managers in state-owned limited liability companies with 100% state capital.

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

The Minister of Labor, Invalids and Social Affairs issues this Circular guiding the implementation of the management of labor, wages, remuneration, and bonuses in organizations established and operating under the model of a state-owned limited liability company with 100% state capital as stipulated by the Securities Law.

Section 1

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees and managers in organizations established and operating under the model of a state-owned limited liability company with 100% state capital as stipulated by the Securities Law, including:

1. Hanoi Stock Exchange.

2. Ho Chi Minh City Stock Exchange.

3. Vietnam Securities Depository.

Organizations established and operating under the model of a state-owned limited liability company with 100% state capital as specified in Clause 1, Clause 2, and Clause 3 of this Article hereinafter referred to as securities organizations.

Article 2. Applicability

1. Employees working under labor contracts.

2. Members of the Supervisory Board.

3. Full-time and part-time managers include: Full-time and part-time members of the Board of Management, General Director, Deputy General Director, Chief Accountant.

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

Section 2

MANAGEMENT OF LABOR, WAGES, AND BONUSES FOR MEMBERS OF THE AUDIT BOARD AND EMPLOYEES

Article 3. Classification of wages, salaries, and bonuses for members of the Audit Board

1. Members of the Audit Board are classified according to the wage scale and salary table established by the securities organization in accordance with Decree No. 49/2013/NĐ-CP dated May 14, 2013 of the Government detailing certain provisions of the Labor Code regarding wages and Circular No. 17/2015/TT-BLDTBXH dated April 22, 2015 of the Ministry of Labor, Invalids and Social Affairs guiding the establishment of wage scales and salary tables for employees in state-owned limited liability companies.

2. Members of the Audit Board shall be entitled to receive wages and bonuses from the employee wage fund and bonus fund as stipulated in Article 4 of this Circular.

3. Based on the wage payment regulations and bonus regulations, the Board of Management decides on advance payment of wages, determination of wages and bonuses, and payment of wages and bonuses to members of the Audit Board based on the performance of the Audit Board and each individual member of the Audit Board.

Article 4. Labor management, determination of salary fund, advance payment of salaries, distribution of salaries and bonuses

1. Securities organizations shall implement labor management, determine planned salary fund, unit price of salaries, advance payment of salaries, actual salary fund implementation, distribution of salaries and bonuses for employees in accordance with Section 2; Articles 9, 10, 13 of Section 3 and Section 4 of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016 of the Ministry of Labor, Invalids and Social Affairs guiding the implementation of labor management, salaries, and bonuses for employees working in joint-stock companies wholly owned by the State (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

2. When determining the average planned salary level linked to the average labor productivity and profit as prescribed in Article 9 of Circular No. 26/2016/TT-BLDTBXH, the labor productivity shall be calculated based on the total revenue index as follows:

a) Planned average labor productivity

  (1)

Where:

- Electronic Information Portal_kh: Planned average labor productivity.

∑T_kh: Planned total revenue.

L_bqkh: Planned average number of workers, calculated according to the guidance provided in Clause 1 of the Appendix issued together with Circular No. 26/2016/TT-BLDTBXH.

b) Actual average labor productivity implemented in the year (or the immediately preceding year).

     (2)

Where:

Wth: Actual average labor productivity implemented in the year (or the immediately preceding year).

∑T_ENVIRONMENT: Actual total revenue implemented in the year (or the immediately preceding year).

L_bqth: Actual average number of workers used in the year (or the immediately preceding year), calculated according to the guidance provided in Clause 1 of the Appendix issued together with Circular No. 26/2016/TT-BLDTBXH.

The total revenue index for calculating labor productivity (including revenue from business activities, service provision, finance, and other income implemented according to financial regulations for enterprises wholly owned by the State) shall be determined in accordance with financial management regulations for securities organizations.

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

1. Objective factors affecting the labor productivity and profit of securities organizations to be excluded when determining the salary of employees are specified in Article 11 of Circular No. 26/2016/TT-BLDTBXH.

2. In addition to the objective factors stipulated in Clause 1 of this Article, securities organizations exclude objective factors due to the stock market increasing or decreasing business activity revenue impacting labor productivity and profit, including:

a) For Stock Exchanges, business activity revenue changes due to fluctuations in the following factors: number of listed companies, trading registration, and ability to meet listing conditions; volume and transaction prices of securities traded; number of trading members; value of bonds won, issuance plans, and scale of capital raised through bond issuance; value of government bond transactions, treasury bills; value of securities ownership transfer not through the Stock Exchange's trading system; volume and value of auctioned shares; futures account balances; futures account transfers; collateral asset values.

b) For Securities Depositories, business activity revenue changes due to fluctuations in the following factors: volume of securities deposited in the year; value of initial securities registration (first time) and additional securities registrations in the year; principal and interest value of government bonds and treasury bills; number of times rights are exercised and corresponding number of shareholders for each exercise; number of times and value of securities transfers; value of securities ownership transfer not through the Stock Exchange's trading system; number of deposit members; number of times transaction errors are corrected in the year; number of clearing members; futures account balances; futures account transfers; collateral asset values.

When determining the average salary level and salary fund, if the objective factors stipulated in points a and b, Clause 2 of this Article cause business activity revenue to increase by 7% or more, the portion of increased business activity revenue above 7% must be deducted as the basis for determining labor productivity and profit. In cases where objective factors cause business activity revenue to decrease by 3% or more, the portion of decreased business activity revenue above 3% may be added as the basis for determining labor productivity and profit.

Section 3

MANAGEMENT OF SALARIES, BONUSES FOR MANAGERS

Article 6. Salary Classification for Full-time Members of the Board of Directors, General Director, Deputy General Director, Chief Accountant

1. The salary classification for full-time managers shall be carried out in accordance with the provisions set forth in Section 2 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids and Social Affairs to guide the implementation of wage, remuneration, and bonus systems for managers of limited liability companies wholly owned by the State (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH).

2. When classifying salaries according to Clause 1 of this Article, the position of Chairman of the Board of Directors shall be reclassified as the position of Chairman of the Board of Members or the position of full-time Chairman of the company; the position of full-time member of the Board of Directors shall be reclassified as the position of full-time member of the Board of Members.

Article 7. Determination of Wage Fund, Remuneration, Bonuses, and Payment of Wages, Remuneration, and Bonuses

1. The determination of planned wage fund, remuneration; actual wage fund, remuneration, bonus fund; payment of wages, remuneration, and bonuses for members of the Board of Directors, General Director, Deputy General Director, Chief Accountant shall be carried out in accordance with the provisions set forth in Articles 3, 9, 11, 12, 14, 15, 16, 17, 18 and Clauses 1, 3, 4, 5, 6 of Article 10 of Circular No. 27/2016/TT-BLDTBXH.

2. When determining the average planned wage level for managers, if all conditions are met: ensuring the preservation and development of state capital; paying taxes as prescribed; the average labor productivity does not decrease and the planned profit is higher than the actual profit of the previous year, then the average planned wage level shall be determined as follows:

TL_bqkh = TL_cb + H_ln x TL_cb         (3)

Where:

- TL_bqkh: Average planned wage level.

- TL_cb: Basic wage level calculated according to Clause 1 of Article 10 of Circular No. 27/2016/TT-BLDTBXH.

- Central agencies of political-social organizations;_ln: Additional wage coefficient compared to the basic wage level, linked to the scale of profit as follows: For planned profit under VND 100 billion, Hln is calculated at a maximum of 0.5; For planned profit from VND 100 billion to less than VND 200 billion, Hln is calculated at a maximum of 0.7; For planned profit of VND 200 billion or more, Hln is calculated at a maximum of 1.0.

The average labor productivity serves as the basis for determining the average planned wage level for managers, calculated in accordance with the guidance provided in Clause 2, Article 4 of this Circular.

Article 8. Exclusion of Objective Factors when Determining the Wage Fund, Remuneration

1. The objective factors affecting labor productivity and profit that need to be excluded when determining the wage of managers are stipulated in Article 13 of Circular No. 27/2016/TT-BLDTBXH.

2. In addition to the objective factors specified in Clause 1 of this Article, securities organizations shall exclude objective factors due to the impact of the securities market on business revenue from operations, which affects labor productivity and profit, as stipulated in Clause 2, Article 5 of this Circular.

Section 4

IMPLEMENTATION AND EFFECTIVE DATE OF ENFORCEMENT

Article 9. Implementation Organization

1. The General Director of a securities organization shall be responsible for performing the tasks prescribed in Article 17 of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids and Social Affairs.

2. The Board of Directors of a securities organization shall be responsible for:

a) Performing the tasks prescribed for the Board of Members or the Chairman of the Company in Article 18 of Circular No. 26/2016/TT-BLDTBXH and Article 20 of Circular No. 27/2016/TT-BLDTBXH. When submitting wage and bonus reports to the representative body of the owner, they shall simultaneously submit them to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

b) Determining the planned wage level and advance wage payments for members of the Supervisory Board at the same time as determining the wage fund and advance wage payments for employees.

c) Determining and reporting to the representative body of the owner the implementation plan for wages and bonuses along with the assessment report on the completion of tasks by members of the Supervisory Board at the same time as reporting wages and bonuses for employees.

d) Deciding on wages and bonuses for members of the Supervisory Board based on their assigned tasks after reporting to the representative body of the owner.

3. Members of the Supervisory Board of a securities organization shall be responsible for performing supervisory board tasks related to inspection, supervision, review, and recommendation on matters concerning labor management, wages, and bonuses as stipulated in the Charter of the Securities Organization regulated by the Ministry of Finance.

4. The representative body of the owner of a securities organization (the Ministry of Finance) shall be responsible for:

a) Performing the tasks prescribed in Article 20 of Circular No. 26/2016/TT-BLDTBXH and Article 22 of Circular No. 27/2016/TT-BLDTBXH. When sending opinions to the securities organization regarding the annual wage and bonus fund, they shall simultaneously send them to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

b) Receiving, reviewing, and providing comments on any objective factors (if any) affecting labor productivity and profit, serving as the basis for the securities organization to determine the wages of employees and managers.

c) Receiving and examining the wage and bonus plans of the members of the Supervisory Board of the securities organization. If any determination of wages and bonuses for members of the Supervisory Board is found to be non-compliant with regulations, they shall instruct the Board of Directors of the securities organization to amend and supplement in accordance with the regulations.

Article 10. Effective Date

1. This Circular takes effect from December 10, 2016. The systems prescribed in this Circular shall be applied from January 1, 2016.

2. Circular No. 43/2013/TT-BLDTBXH dated December 30, 2013, issued by the Ministry of Labor, Invalids and Social Affairs to guide the management of labor, wages, remuneration, and bonuses in organizations established and operating under the model of a limited liability company wholly owned by the State as prescribed by the Securities Law shall cease to be effective from the date this Circular takes effect.

3. Full-time managers shall continue to be classified according to the ranking of the securities organization. Three years after the date this Circular becomes effective, the securities organization shall implement the general national ranking system.

4. Securities organizations shall apply the meal allowance for midday meals for employees and managers as prescribed in Clause 4, Article 22 of Circular No. 26/2016/TT-BLDTBXH and Clause 4, Article 25 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016 issued by the Ministry of Labor, Invalids, and Social Affairs. In the course of implementation, if there are any difficulties, the agencies and units are requested to report to the Ministry of Labor, Invalids, and Social Affairs for timely supplementary guidance.

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