Circular No. 34/2019/TT-BLDTBXH guiding the management of labor, wages, remuneration, and bonuses for the Small and Medium Enterprise Development Fund

CIRCULAR

GUIDELINES FOR THE MANAGEMENT OF LABOR, WAGES, COMPENSATION, AND BONUSES FOR THE SMALL AND MEDIUM ENTERPRISE DEVELOPMENT FUND

Pursuant to Decree No.14/2017/NĐ-CP of February 17, 2017, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Pursuant to Decree No.Decision No. 39/2019/NĐ-CP of May 10, 2019, of the Government, on the organization and operation of the Small and Medium Enterprise Development Fund;

Pursuant to Decree No.51/2016/NĐ-CP of June 13, 2016, of the Government, stipulating the management of labor, wages, and bonuses for employees in state-owned single-member limited liability companies holding 100% of the charter capital;

Pursuant to Decree No.52/2016/NĐ-CP of June 13, 2016, of the Government, stipulating the management of wages, compensation, and bonuses for managers in state-owned single-member limited liability companies holding 100% of the charter capital;

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

The Minister of Labor, Invalids, and Social Affairs issues this Circular guiding the management of labor, wages, compensation, and bonuses for the Small and Medium Enterprise Development Fund.

Section 1. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees and managers of the Small and Medium Enterprise Development Fund (hereinafter referred to as the Fund).

Article 2. Applicability

1. Employees of the Fund work under labor contracts in accordance with the Labor Code.

2. Managers of the Fund include: Chairman of the Board of Members, members of the Board of Members, Supervisory Board Member, General Director, Deputy General Director.

Organizations and individuals related to the implementation of the provisions of this Circular.

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

Article 3. Labor Management

The Fund implements labor management according to the provisions of Section 2 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, wage, and bonus management for employees working in state-owned single-member limited liability companies holding 100% of the charter capital (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

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

The Fund establishes, decides on the pay scale, salary table, and allowances, and implements salary adjustments for employees according to the provisions of Decree No. 49/2013/NĐ-CP dated May 14, 2013, of the Government detailing the implementation of certain articles 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 pay scales, salary tables, allowances, and salary adjustments for employees in state-owned single-member limited liability companies according to Decree No. 49/2013/NĐ-CP dated May 14, 2013, of the Government detailing the implementation of certain articles of the Labor Code regarding wages.

Article 5. Planned Salary Fund, Advance Salary Payment, Implemented Salary Fund, Salary Distribution, Bonus

1. The Fund determines the planned wage fund, advance payment of wages, actual wage fund implemented, distribution of wages and bonuses for employees according to the provisions of Article 9, Article 10, Article 13, Article 14, Article 15, and Clause 2, Clause 3 of Article 16 of Circular No. 26/2016/TT-BLDTBXH.

2. When determining the average planned wage level and the average actual wage level to calculate the planned wage fund and the actual wage fund according to the provisions of Article 9 and Article 14 of Circular No. 26/2016/TT-BLDTBXH, the Fund determines productivity and profit indicators as follows:

a) The average labor productivity indicator (planned, actual in the year or actual of the immediately preceding year) is calculated based on the total revenue minus total costs excluding salaries.

b) The profit indicator (planned, actual in the year or actual of the immediately preceding year) is replaced by the total revenue minus total costs.

The total revenue and total cost indicators specified in point a and point b of this clause are determined according to the provisions of Decree No. 39/2019/NĐ-CP dated May 10, 2019, of the Government on the organization and operation of the Small and Medium Enterprise Development Fund (hereinafter referred to as Decree No. 39/2019/NĐ-CP).

Article 6. Excluding Objective Factors when Determining the Planned Salary Fund and the Implemented Salary Fund for Employees

When determining the planned wage fund and the actual wage fund of employees, the Fund excludes objective factors affecting labor productivity, total revenue minus total costs according to the provisions of Article 11 of Circular No. 26/2016/TT-BLDTBXH, Clause 3 of Article 55 of Decree No. 39/2019/NĐ-CP.

Section 3. MANAGEMENT OF SALARY, REMUNERATION, AND BONUS FOR MANAGERS

Article 7. Salary Classification for Managers

1. Managers of the Fund are ranked, promoted, and have their salaries adjusted when the Fund's rank changes according to the provisions of Section 2 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of wage, compensation, and bonus systems for managers of state-owned single-member limited liability companies holding 100% of the charter capital (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH).

2. The ranking criteria for the Fund shall be carried out according to the ranking criteria for the Financial Company group (Standard No. 56, Financial Company) issued together with Joint Circular No. 23/2005/TTLT-BLDTBXH-BTC dated August 31, 2005, of the Ministry of Labor, Invalids, and Social Affairs - Ministry of Finance guiding the ranking and salary setting for full-time members of the Board of Directors, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant of state-owned enterprises until the Government has new regulations on wage systems applicable to state-owned single-member limited liability companies holding 100% of the charter capital.

Article 8. Determination of the wage fund, remuneration, payment of wages, and bonuses for managers

1. The determination of the planned wage and compensation fund; the determination of the actual wage and compensation fund; the payment of wages, compensation, and bonuses for Fund managers is carried out according to the provisions of Article 3, Article 9, Clause 1, 3, 4, 5, 6 of Article 10, Article 11, Article 12, Article 14, Article 15, Article 16, Clause 2, Clause 3 of Article 17, Article 18, and Article 19 of Circular No. 27/2016/TT-BLDTBXH.

2. When determining the planned wage and compensation fund, the actual wage and compensation fund as stipulated in Clause 1 of this Article, the Fund determines the average labor productivity and profit indicators according to the provisions of Clause 2 of Article 5 of this Circular, wherein:

In cases where the Fund meets all conditions; ensures the preservation and development of state capital; pays taxes and sets aside risk reserves as prescribed; maintains average labor productivity without decline and has total revenue minus total costs higher than the previous year, the planned average wage level for managers is determined as follows:

TLbqkh = TLcb + TLcb x Hln

Where:

- TLbqkh: The planned average wage level for managers.

- TLcb: The basic wage level for managers determined according to Clause 1 of Article 10 of Circular No. 27/2016/TT-BLDTBXH.

- Hln: The additional wage coefficient relative to the basic wage level linked to the total revenue minus total costs as follows: if the total revenue minus total costs is less than 50 billion VND, then Hln is calculated at a maximum of 0.3; if the total revenue minus total costs is from 50 billion VND to less than 100 billion VND, then Hln is calculated at a maximum of 0.5; if the total revenue minus total costs is from 100 billion VND to less than 150 billion VND, then Hln is calculated at a maximum of 0.7; if the total revenue minus total costs is 150 billion VND or more, then Hln is calculated at a maximum of 1.0.

3. When determining the planned payroll fund and the actual payroll fund of the manager, the Fund excludes objective factors affecting labor productivity, total revenue minus total costs as prescribed in Article 13 of Circular No. 27/2016/TT-BLDTBXH, Clause 3 of Article 55 of Decree No. 39/2019/NĐ-CP.

Section 4. RESPONSIBILITY FOR IMPLEMENTATION AND EFFECTIVENESS OF ENFORCEMENT

Article 9. Responsibility for Implementation

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

2. The Board of Directors of the Fund shall be responsible for performing the tasks stipulated in Article 18, Clause 4 of Article 22 of Circular No. 26/2016/TT-BLDTBXH and Article 20, Clause 4 of Article 25 of Circular No. 27/2016/TT-BLDTBXH. When submitting payroll and bonus reports to the representative body of the owner, they shall simultaneously submit them to the Ministry of Labor, Invalids, and Social Affairs for monitoring, inspection, and supervision.

3. The Inspector is responsible for performing the tasks specified in Article 19 of Circular No. 26/2016/TT-BLDTBXH and Article 21 of Circular No. 27/2016/TT-BLDTBXH.

4. The representative body of the owner (the Ministry of Planning and Investment) shall be responsible for performing the tasks stipulated in Clauses 1, 2, 3, 4, 6, and 7 of Article 20 of Circular No. 26/2016/TT-BLDTBXH and Clauses 1, 2, 3, 4, 6, 7, and 8 of Article 22 of Circular No. 27/2016/TT-BLDTBXH. When providing opinions to the Fund on the annual payroll, remuneration, and bonuses, they shall simultaneously submit them to the Ministry of Labor, Invalids, and Social Affairs for monitoring, inspection, and supervision.

Article 10. Effective Date

1. This Circular takes effect from February 15, 2020. The regulations set forth in this Circular shall be applied from July 1, 2019.

2. Circular No. 38/2016/TT-BLDTBXH dated October 25, 2016, of the Ministry of Labor, Invalids, and Social Affairs guiding the management of labor, wages, and remuneration for the Small and Medium Enterprise Development Fund ceases to be effective from the date this Circular takes effect.

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