Consolidated Document No. 466/VBHN-BLDTBX guiding the management of labor, wages, remuneration, and bonuses for local investment development funds.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses for local development investment funds

Circular No. 45/2016/TT-BLDTBXH dated December 28, 2016, issued by the Minister of Labor, Invalids, and Social Affairs, guiding the management of labor, wages, remuneration, and bonuses for Local Development Investment Funds, effective from February 15, 2017, has been 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 management of labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, the Vietnam Asset Management Company Limited, Vietnam Television, Local Development Investment 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 Development Support Fund, and guiding the management of labor, wages, remuneration, and bonuses for the Vietnam Asset Management Corporation 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. 138/2007/NĐ-CP dated August 28, 2007, of the Government, stipulating the organization and operation of Local Development Investment Funds; Decree No. 37/2013/NĐ-CP dated April 22, 2013, of the Government, amending and supplementing certain provisions of Decree No. 138/2007/NĐ-CP dated August 28, 2007, on the organization and operation of Local Development Investment Funds;

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 limited liability companies wholly owned by the state; Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government, stipulating wages, remuneration, and bonuses for managers of limited liability companies 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 Local Development Investment Funds[1].

Section 1. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees, Chairperson, Vice-Chairpersons, and members of the Management Board, Directors, Deputy Directors, Chief Accountants, Heads of Supervisory Boards, and Members of Supervisory Boards in Local Development Investment Funds established by provinces and centrally-administered cities according to Decree No. 138/2007/NĐ-CP dated August 28, 2007, of the Government stipulating the organization and operation of Local Development Investment Funds (hereinafter referred to as the Fund).

Article 2. Applicability

1. Employees working under labor contracts.

2. Members of the Supervisory Board.

3. Chairperson, Vice-Chairpersons, and members of the Management Board, Directors, Deputy Directors, Chief Accountants, and Heads of the Supervisory Board (hereinafter collectively referred to as Fund Managers).

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

||| Section 2. ||| LABOR MANAGEMENT, WAGES, COMPENSATION, AND BONUSES FOR MEMBERS OF THE SUPERVISION BOARD AND EMPLOYEES

||| Article 3. Wage Scale, Payroll, and Allowances^[2]

||| The fund for establishing the wage scale, payroll, and allowances for employees in accordance with Article 9a of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, War Invalids, and Social Affairs to guide the management of labor, wages, and bonuses for employees working in a limited liability company wholly owned by the State has been supplemented in Clause 3 of Article 1 of Circular No. 06/2024/TT-BLDTBXH dated July 30, 2024, issued by the Minister of Labor, War Invalids, and Social Affairs to amend and supplement some articles of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, War Invalids, and Social Affairs to guide the management of labor, wages, 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, War Invalids, and Social Affairs to guide the implementation of salary, compensation, and bonus systems for managers of a limited liability company wholly owned by the State (hereinafter referred to as Circular No. 06/2024/TT-BLDTBXH).

||| Article 4. Classification of Wages, Compensation, and Bonuses for Members of the Supervision Board

||| 1. Full-time members of the Supervision Board shall be classified at a wage level (including allowances, if any) equivalent to that of the Director of the Fund's department according to the wage scale, payroll, and allowances established by the Fund. The wages of full-time members of the Supervision Board shall be included in the employee wage fund and paid according to the Fund's wage regulations.

||| 2. Non-full-time members of the Supervision Board shall receive compensation based on their work and time spent, but not exceeding 20% of the wages of full-time members of the Supervision Board. In cases where the Fund does not have full-time members of the Supervision Board, the compensation shall be calculated relative to the wages of the Director of the department according to the Fund's wage regulations. The Fund shall determine and include the amount of compensation for non-full-time members of the Supervision Board in the employee wage fund after determining according to Article 5 of this Circular for payment to non-full-time members of the Supervision Board.

||| 3. Both full-time and non-full-time members of the Supervision Board shall receive bonuses from the employee bonus fund according to the Fund's bonus regulations.

||| Article 5. Labor Management, Determination of Planned Wage Fund, Actual Wage Fund, Advance Payment of Wage Fund, Distribution of Wages, and Bonuses

||| 1. The Fund shall manage labor, determine the planned wage fund, unit price of wages, advance payment of wages, actual wage fund, distribution of wages, and bonuses for employees (including full-time members of the Supervision Board) 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, issued by the Ministry of Labor, War Invalids, and Social Affairs to guide 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 and the average actual wage level to calculate the planned wage fund and the actual wage fund according to Articles 9 and 14 of Circular No. 26/2016/TT-BLDTBXH, the profit indicator (planned, actual for the year or actual for the immediately preceding year) shall be replaced by the total revenue minus total expenses indicator.

Article 6. Excluding Objective Factors When Determining the Planned Salary Fund and the Implemented Salary Fund of Workers

1. When determining the planned salary fund and the implemented salary fund of workers, the Fund excludes objective factors affecting labor productivity and total revenue minus total expenses of the Fund, including:

a) The impact of objective factors prescribed in Article 11 of Circular No. 26/2016/TT-BLDTBXH;

b) The State's write-off or extension of debt for borrowers; adjustment of the minimum lending interest rate of the Fund;

c) The Fund implements new tasks or tasks that increase costs without generating revenue assigned by the representative body of the owner.

2. The exclusion of objective factors as stipulated in Clause 1 of this Article shall be carried out according to the following principles:

a) Labor productivity and total revenue minus total expenses affected by objective factors must be quantified and calculated with specific data;

b) Objective factors reducing (or increasing) labor productivity and total revenue minus total expenses shall be added (or deducted) from the corresponding reduction (or increase) in labor productivity and total revenue minus total expenses into the labor productivity and total revenue minus total expenses index for the year;

c) When determining the implemented salary fund, the Fund must reassess the implementation of objective factors against the plan to exclude their impact on labor productivity and total revenue minus total expenses.

Section 3. SALARY, COMPENSATION, AND BONUS FOR FUND MANAGERS

Article 7. Establishing a Pay Scale, Ranking, Promoting Ranks, and Rating the Fund to Determine the Basic Salary Level^[3]

1. Establishing a Pay Scale, Ranking, and Promoting Ranks

The Management Board of the Fund establishes a pay scale, ranking, and promoting ranks for Fund managers in accordance with Articles 4 and 5 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 salary, compensation, 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 at Clauses 3 and 4 of Article 2 of Circular No. 06/2024/TT-BLDTBXH.

2. Rating the Fund to Determine the Basic Salary Level

Based on the criteria for rating local development investment funds established in the Appendix attached to this Circular, the Fund rates itself as the basis for determining the basic salary level for dedicated Fund managers. The rating and re-rating of the Fund are carried out in accordance with Articles 6 and 7 of Circular No. 27/2016/TT-BLDTBXH. In this context, the Chairman of the Management Board is paid according to the basic salary level of the Chairman of the Board of Members; Management Board members are paid according to the basic salary level of Board of Members member positions.

Article 8. Salary, Compensation, and Bonus for the Head of the Supervisory Board

1. The salary and bonus of the dedicated Head of the Supervisory Board are included in the salary and bonus fund for dedicated Fund managers as stipulated in Article 9 of this Circular. For cases where the organizational structure of the Fund includes a non-dedicated Head of the Supervisory Board, the non-dedicated Head of the Supervisory Board receives compensation and bonuses based on work and time spent working, but the compensation does not exceed 20% of the Deputy Director's salary position.

2. After deducting social insurance, health insurance, and other amounts as prescribed by law, the Fund transfers the salary, compensation, and bonus of the Head of the Supervisory Board to the representative body of the owner for temporary advance payment, evaluation, and payment based on the completion of tasks.

Article 9. Determination of salary fund, remuneration, bonuses, and payment of salaries, remuneration, and bonuses

1.^[4] The determination of average salary level, salary fund, planned remuneration; actual salary fund, actual remuneration; bonus fund; payment of salaries, remuneration, and bonuses for the Fund manager shall be carried out in accordance with the provisions of Articles 3, 9, 11, 12, 14, 15, 16, 17, 18, Clauses 2, Clause 3, Clause 4, and Clause 5 of Circular No. 27/2016/TT-BLDTBXH, which have been amended and supplemented by Clauses 9, Clause 10, Clause 11, Clause 12, and Clause 14 of Circular No. 06/2024/TT-BLDTBXH.

2. When determining the planned salary fund, planned remuneration, actual salary fund, and actual remuneration as stipulated in Clause 1 of this Article, the profit indicator shall be replaced by the total revenue minus total expenses indicator as provided in Clause 2 of Article 5 of this Circular, wherein:

a) In cases where the Fund meets all conditions: ensuring the preservation and development of state capital; paying taxes and setting aside risk reserve funds in accordance with the provisions of the law; the average labor productivity does not decrease and the total revenue minus total expenses is higher than that of the immediately preceding year, then the planned average salary level of the dedicated Fund manager shall be determined as follows:

TL_bqkh = TL_cb + TL_cb x H_ln

Where:

- TL_bqkh: Planned average salary level of the dedicated Fund manager;

- TL_cb: Basic wage of the dedicated Fund manager determined according to Clause 1 of Article 10 of Circular No. 27/2016/TT-BLDTBXH, wherein the Deputy Chairman of the Management Board is calculated based on the basic wage of the Director position, and the Head of the Supervisory Board is calculated based on the basic wage of the Deputy Director position of the Fund;

- Central agencies of political-social organizations;_ln: Additional wage coefficient compared to the basic wage linked to the total revenue minus total expenses as follows: if the difference is under 50 billion VND, H_ln is calculated at a maximum of 0.3; if the difference is from 50 billion VND to under 100 billion VND, H_ln is calculated at a maximum of 0.5; if the difference is from 100 billion VND to under 150 billion VND, H_ln is calculated at a maximum of 0.7; if the difference is 150 billion VND or more, H_ln is calculated at a maximum of 1.0.

b) In cases where the organizational structure of the Fund includes positions such as Chairman, Deputy Chairmen, and non-dedicated members of the Management Board, and non-dedicated Heads of the Supervisory Board, the remuneration of the non-dedicated Chairman and Deputy Chairmen of the Management Board is calculated based on the salary of the Director position, and the remuneration of non-dedicated members of the Management Board and non-dedicated Heads of the Supervisory Board is calculated based on the salary of the Deputy Director position of the Fund.

3. When determining the planned salary fund, planned remuneration, actual salary fund, and actual remuneration as stipulated in Clauses 1 and 2 of this Article, the Fund excludes objective factors affecting labor productivity and total revenue minus total expenses as prescribed in Article 6 of this Circular.

Section 4. ORGANIZATION OF IMPLEMENTATION AND EFFECTIVE DATE OF ENFORCEMENT^[5]

Article 10. Implementation Organization

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

2. The Management Board of the Fund is responsible for:

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

b) Determining the amount of salary and bonus for the Head of the Supervisory Board according to this Circular and transferring it to the representative body of the owner for payment linked to the degree of completion of tasks by each individual.

3. The Head of the Supervisory Board is responsible for organizing the Supervisory Board to inspect, supervise, audit, and make recommendations on matters related to labor management, salaries, remuneration, and bonuses as prescribed for the position of Supervisor in Article 19 of Circular No. 26/2016/TT-BLDTBXH, Article 21 of Circular No. 27/2016/TT-BLDTBXH, and in accordance with the Charter of the organization's operation of the Fund.

4. The representative body of the owner of the Fund is 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 submitting opinions to the Fund regarding the annual salary and bonus fund, they simultaneously submit 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) as prescribed in this Circular as a basis for the Fund to determine the salaries of workers and the salaries and remuneration of managers;

c) Organizing the management, evaluation, payment of salaries, remuneration, and bonuses, and implementing systems for the Head of the Supervisory Board of the Fund as for the position of Supervisor as prescribed in Article 19 of Circular No. 27/2016/TT-BLDTBXH.

Article 11. Effective Date

1. This Circular takes effect from February 15, 2017. The regulations prescribed in this Circular shall be applied from January 1, 2017.

2. The Fund applies the meal allowance for workers 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.

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.

ANNEX

LOCAL DEVELOPMENT INVESTMENT FUND RATING STANDARDS^[6]
(Annexed to Circular No. 12/2024/TT-BLDTBXH dated November 14, 2024 issued by the Minister of Labor, Invalids, and Social Affairs)

Fund category

^{______________________________________}

^[1] Circular No. 12/2024/TT-BLDTBXH dated November 14, 2024, of the Minister of Labor - Invalids and Social Affairs amending and supplementing 10 Circulars guiding the implementation of labor management, salary, remuneration, and bonus for Vietnam Deposit Insurance Corporation, Vietnam Asset Management Company Limited, Vietnam Television, Local Investment Development Fund, State Capital Investment Corporation, Small and Medium Enterprise Credit Guarantee Fund, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Development Support Fund, and guiding labor management, salary, remuneration, and bonus for Vietnam Asset Recovery Company Limited, effective from December 29, 2024, is based on the following:

Based on 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;

Based on Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government stipulating labor management, salary, and bonus for employees working in limited liability companies wholly owned by the state;

Based on Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government stipulating salary, remuneration, and bonus for managers of limited liability companies wholly owned by the state;

Based on Decree No. 21/2024/NĐ-CP dated February 23, 2024, of the Government amending and supplementing some articles of Decree No. 51/2016/NĐ-CP dated June 13, 2016, of the Government stipulating labor management, salary, and bonus for employees working in limited liability companies wholly owned by the state and Decree No. 52/2016/NĐ-CP dated June 13, 2016, of the Government stipulating salary, remuneration, and bonus for managers of limited liability companies wholly owned by the state;

Based on Decree No. 129/2020/NĐ-CP dated October 27, 2020, of the Government regarding the functions, tasks, and operational mechanisms of Vietnam Asset Recovery Company Limited;

In accordance with the proposal of the Director of the Directorate of Labor Relations and Wages;

The Minister of Labor - Invalids and Social Affairs issues this Circular amending and supplementing 10 Circulars guiding the implementation of labor management, salary, remuneration, and bonus for Vietnam Deposit Insurance Corporation, Vietnam Asset Management Company Limited, Vietnam Television, Local Investment Development Fund, State Capital Investment Corporation, Small and Medium Enterprise Credit Guarantee Fund, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Development Support Fund, and guiding labor management, salary, remuneration, and bonus for Vietnam Asset Recovery Company Limited.

^[2] This is amended at Clause 1, Article 4 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

^[3] This is amended and supplemented at Clause 2, Article 4 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

^[4] This Clause is amended at Clause 3, Article 4 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

^[5] 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 provisions on salary funds, payment of wages, remuneration, bonuses 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 applied from January 1, 2024.

3. The provisions on establishing wage scales, pay scales, 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 prescribed in the Circulars referred to in Articles 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 of this Circular according to 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 referred to according to the corresponding contents amended and supplemented in Circular No. 06/2024/TT-BLDTBXH.

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

^[6] This Appendix is added at Clause 4 of Article 4 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.