Consolidated Document number 462/VBHN-BLDTBXH guiding the management of labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation

Circular No. 32/2016/TT-BLDTBXH dated October 25, 2016, issued by the Minister of Labor, Invalids, and Social Affairs, guiding the management of labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, effective from December 10, 2016, amended and supplemented by:

Circular No. 12/2024/TT-BLDTBXH dated November 14, 2024, issued by the Minister of Labor, Invalids, and Social Affairs, amending and supplementing ten circulars guiding the implementation of the management of labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, Vietnam Asset Management Company Limited, Vietnam Television, Local Investment Development Fund, State Capital Investment and Business Corporation, Credit Guarantee Fund for Small and Medium Enterprises, SME Development Fund, National Technology Innovation Fund, Cooperative Development Support Fund, and guiding the management of labor, wages, remuneration, and bonuses for Vietnam Asset Management Joint Stock Company Limited, effective from December 29, 2024.

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. 68/2013/NĐ-CP dated June 28, 2013, of the Government detailing and guiding the implementation of the Law on Deposit Insurance;

Pursuant to Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government stipulating the management of labor, wages, and bonuses for employees working in a limited liability company wholly owned by the State;

Pursuant to Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government stipulating wages, remuneration, and bonuses for managers of a limited liability company wholly owned by the State;

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 management of labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation[1].

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 Vietnam Deposit Insurance Corporation.

Article 2. Applicability

1. Workers working under labor contracts as prescribed by the Labor Code.

2. Managers include: Chairman and members of the Board of Directors, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant, and Auditor (excluding the General Director, Director, Deputy General Director, Deputy Director, or Chief Accountant who work under a labor contract).

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

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

Article 3. Management of labor, determination of planned wage fund, advance payment of wage fund, determination of actual wage fund, distribution of wages, and bonuses

1. The Vietnam Deposit Insurance Corporation shall manage labor, determine the average planned wage level, planned wage fund, advance payment of wages, unit wage rate, actual wage fund, distribution of wages, bonus fund, and distribution of bonuses for employees according to the provisions of Chapter 2; Articles 9, 10, and 13 of Chapter 3, and Chapter 4 of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of the management of labor, wages, and bonuses for employees working in a limited liability company wholly owned by the State (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

2. When determining the average planned wage level, planned wage fund, and actual wage fund as stipulated in Clause 1 of this Article, the Vietnam Deposit Insurance Corporation shall determine the average labor productivity index and profit as follows:

a) The average labor productivity index is calculated based on total revenue minus total costs excluding wages, as guided in the annex attached to Circular No. 26/2016/TT-BLDTBXH.

b) The profit index is replaced by the total revenue minus total costs.

Total revenue for calculating labor productivity and profit includes: total income from annual temporary idle capital investment activities before setting aside for accounting as income; income from deposit insurance business operations, and other income determined according to financial management regulations for the Vietnam Deposit Insurance Corporation.

Article 3a. Salary Scale, Salary Table, and Allowance

The Vietnam Deposit Insurance Corporation shall implement the salary scale, salary table, and allowance for employees in accordance with the provisions of Article 9a of Circular No. 26/2016/TT-BLDTBXH, which has been supplemented by Clause 3 of Article 1 of Circular No. 06/2024/TT-BLDTBXH dated July 30, 2024, issued by the Minister of Labor, Invalids, and Social Affairs to amend and supplement certain articles of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, Invalids, and Social Affairs guiding the management of labor, salaries, and bonuses for employees working in a limited liability company wholly owned by the State, and Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, Invalids, and Social Affairs guiding the implementation of salary systems, remuneration, and bonuses for managers of limited liability companies wholly owned by the State (hereinafter referred to as Circular No. 06/2024/TT-BLDTBXH).

Article 4. Exclusion of Objective Factors in Determining Employee Salaries

1. Objective factors affecting labor productivity and net revenue minus total expenses shall be excluded when determining employee salaries, including:

a) Objective factors stipulated in Clause 1 of Article 11 of Circular No. 26/2016/TT-BLDTBXH.

b) Decisions made by the State that directly affect the net revenue minus total expenses of the Vietnam Deposit Insurance Corporation: adjusting the deposit insurance premium rate framework, adjusting the deposit insurance payout limit; capitalizing the registered capital; adjusting the deposit interest rate of the Vietnam Deposit Insurance Corporation at the State Bank; adjusting the deposit insurance premium rate for participating organizations; adjusting the government bond interest rate, central bank bill interest rate, and not issuing government bonds or central bank bills; designating support levels for participating organizations that have lost their ability to pay, participate in performing political tasks, ensuring social welfare, balancing supply and demand in the economy, restructuring, and handling bad debts of participating organizations.

The Vietnam Deposit Insurance Corporation must pay deposit insurance money to depositors at participating organizations, thereby reducing investment capital (due to a decrease in the business reserve fund).

2. When determining the average salary level and planned salary fund for employees, if there are objective factors affecting an increase or decrease in labor productivity and net revenue minus total expenses, the Vietnam Deposit Insurance Corporation must quantify these factors with specific data to reduce the portion of objective factors causing an increase in labor productivity and net revenue minus total expenses, or to add the portion of objective factors causing a decrease in labor productivity and net revenue minus total expenses.

3. The Vietnam Deposit Insurance Corporation must reassess the implementation of objective factors affecting labor productivity and net revenue minus total expenses compared to the plan to exclude them when determining the actual salary fund for employees.

Section 3. MANAGEMENT OF SALARIES, REMUNERATION, AND BONUSES FOR MANAGERS

Article 5. Establishing the salary scale, grading, increasing rank, and ranking the company to determine the basic wage level.

1.[4] The establishment of the salary scale, grading, increasing rank, and ranking the company to determine the basic wage level for 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 Minister of Labor, Invalids, and Social Affairs guiding the implementation of wage, remuneration, and bonus systems for managers of state-owned limited liability companies (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH), which has been amended and supplemented by Clauses 2, 3, 4, 5, 6, 7, and 8 of Article 2 of Circular No. 06/2024/TT-BLDTBXH.

2. When grading salaries according to Clause 1 of this Article, the position of the dedicated Chairman of the Board of Directors of the Vietnam Deposit Insurance Corporation shall be transferred to be graded according to the position of the dedicated Chairman of the Board of Members or the dedicated Chairman of the company; the position of the dedicated member of the Board of Directors of the Vietnam Deposit Insurance Corporation shall be transferred to be graded according to the position of the dedicated member of the Board of Members.

Article 6. Determining the wage fund, remuneration, bonuses, advance payments, and payment of wages, remuneration, and bonuses for managers.

1. The determination of the wage fund, planned remuneration, average planned wage level; advance payment of wages and remuneration; determination of the actual wage and remuneration fund, bonus fund, and payment of wages, remuneration, and bonuses for managers shall be carried out in accordance with the provisions set forth in Articles 3, 9, 10, 12, 14, 15, 16, 17, 18, 19, and Clauses 1 and 2 of Article 11 of Circular No. 27/2016/TT-BLDTBXH, which has been amended and supplemented by Clauses 9, 10, and 14 of Article 2 of Circular No. 06/2024/TT-BLDTBXH.

2. When determining the wage fund, planned remuneration, average planned wage level; advance payment of wages and remuneration; determination of the actual wage and remuneration fund, bonus fund, and payment of wages, remuneration, and bonuses for managers and supervisors as stipulated in Clause 1 of this Article, the Vietnam Deposit Insurance Corporation shall implement as follows:

a) The average labor productivity index and profit serve as the basis for determining the wage fund, remuneration, bonuses, and average wage level, calculated in accordance with Clause 2 of Article 3 of this Circular.

b) The exclusion of external factors affecting labor productivity and total revenue minus total expenses shall be implemented in accordance with the provisions set forth in Article 4 of this Circular,.

Chapter 4. ORGANIZATION OF IMPLEMENTATION AND EFFECTIVE DATE

Article 7. Implementation Organization

1. The Board of Directors of the Vietnam Deposit Insurance Corporation is responsible for performing tasks as specified for the Board of Members or the Chairman of the company under 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 must also submit them to the Ministry of Labor, Invalids, and Social Affairs for general monitoring and supervision.

2. The supervisor of the Vietnam Deposit Insurance Corporation is responsible for performing the tasks of the supervisor as specified in Article 19 of Circular No. 26/2016/TT-BLDTBXH and Article 21 of Circular No. 27/2016/TT-BLDTBXH.

3. The State Bank of Vietnam is responsible for performing the tasks of the representative body of the owner as specified in Article 20 of Circular No. 26/2016/TT-BLDTBXH and Article 22 of Circular No. 27/2016/TT-BLDTBXH.

4. The Ministry of Labor, Invalids, and Social Affairs is responsible for:

a) Performing tasks related to the rights and obligations of the owner towards the Vietnam Deposit Insurance Corporation as assigned by the Government.

b) Cooperating with the State Bank of Vietnam to monitor wages, remuneration, and bonuses for employees and managers of the Vietnam Deposit Insurance Corporation; inspecting and supervising the implementation of the wage, remuneration, and bonus system of the Vietnam Deposit Insurance Corporation.

Article 8. 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. The Vietnam Deposit Insurance Corporation applies the meal allowance for employees and managers in accordance with the provisions set forth in Clause 4 of Article 22 of Circular No. 26/2016/TT-BLDTBXH and Clause 4 of Article 25 of Circular No. 27/2016/TT-BLDTBXH.

During the implementation process, if there are any difficulties, agencies, units, and the Vietnam Deposit Insurance Corporation are requested to report to the Ministry of Labor, Invalids, and Social Affairs for timely guidance and supplementation.

[1] Circular No. 12/2024/TT-BLDTBXH dated November 14, 2024, issued by the Minister of Labor, Invalids, and Social Affairs amending and supplementing ten circulars guiding the management of labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, Asset Management Corporation of Credit Institutions of Vietnam, Vietnam Television, Local Development Investment Fund, State Capital Investment and Business Corporation, Small and Medium Enterprise Guarantee Fund, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Support Development Fund, and guiding the management of labor, wages, remuneration, and bonuses for Vietnam Asset Management Corporation Limited Liability Company, effective from December 29, 2024, is based on the following grounds:

"Pursuant to Decree No. 62/2022/NĐ-CP dated September 12, 2022, 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 stipulating the management of labor, wages, and bonuses for employees working in a limited liability company wholly owned by the State;

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

BASED ON Decree No. 21/2024/NĐ-CP dated February 23, 2024, of the Government amending and supplementing certain articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government on labor management, wages, and bonuses for employees working in state-owned joint stock companies with 100% state capital, and Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government on wages, remuneration, and bonuses for managers of state-owned joint stock companies with 100% state capital;

BASED ON Decree No. 129/2020/NĐ-CP dated October 27, 2020, of the Government on the functions, tasks, and operational mechanisms of the Vietnam Asset Management Company;

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 to amend and supplement ten Circulars guiding the implementation of labor management, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, the Vietnam Asset Management Corporation, Vietnam Television, Local Investment Development Funds, the State Capital Investment Corporation, the Small and Medium Enterprise Credit Guarantee Fund, the Small and Medium Enterprise Development Fund, the National Science and Technology Innovation Fund, the Cooperative Support Development Fund, and to guide labor management, wages, remuneration, and bonuses for the Vietnam Asset Management Corporation.

[2] This is added at Clause 1, Article 1 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[3] The title of this is amended according to the provisions of Clause 2, Article 1 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[4] This Clause is amended according to the provisions of Clause 3, Article 1 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[5] This is amended according to the provisions of Clause 4, Article 1 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[6] Article 11 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024, provides as follows:

"Article 11. Effectiveness of Implementation

1. This Circular takes effect from December 29, 2024.

2. The wage fund systems, salary payment, remuneration, and bonus regulations stipulated in Clause 3 and Clause 4 of Article 1, Clause 2 of Article 2, Clause 2, Clause 3, Clause 4, Clause 5, and Clause 6 of Article 3, Clause 2, Clause 3, and Clause 4 of Article 4, Clause 2 of Article 5, Clause 2 and Clause 3 of Article 6, Clause 2 and Clause 3 of Article 7, Clause 1 and Clause 2 of Article 8, Clause 1 and Clause 3 of Article 9, and Clause 2 of Article 10 of this Circular shall be implemented from January 1, 2024.

3. The provisions on establishing wage scales, salary tables, and grading stipulated in Clause 1 of Article 1, Clause 1 and Clause 3 of Article 2, Clause 1 and Clause 2 of Article 4, Clause 1 of Article 5, Clause 1 and Clause 2 of Article 6, Clause 1 of Article 7, Clause 1 of Article 8, Clause 1 and Clause 2 of Article 9 of this Circular shall be implemented from April 10, 2024.

4. The contents stipulated in the Circulars mentioned in Articles 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 of this Circular, which are cited according to the provisions of Section 2, Article 9, and Article 11 of Circular No. 26/2016/TT-BLDTBXH and Section 2, Article 11, Article 13, Article 20, and Article 22 of Circular No. 27/2016/TT-BLDTBXH, shall be cited according to the corresponding contents that have been amended and supplemented in Circular No. 06/2024/TT-BLDTBXH.

5. In cases where the cited documents in this Circular are amended, supplemented, or replaced, they shall be implemented according to the newly issued documents.