Consolidated Document number 467/VBHN-BLDTBXH guiding the implementation of labor management, wages, remuneration, and bonuses for the Credit Guarantee Fund for Small and Medium Enterprises.

Circular

Guidelines for managing labor, wages, remuneration, and bonuses for the Credit Guarantee Fund for Small and Medium Enterprises

Circular No. 04/2019/TT-BLDTBXH dated January 21, 2019, issued by the Minister of Labor, Invalids, and Social Affairs, guiding the management of labor, wages, remuneration, and bonuses for the Credit Guarantee Fund for Small and Medium Enterprises, effective from March 8, 2019, 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 10 Circulars guiding the management of labor, wages, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, Vietnam Asset Management Company Limited, Vietnam Television, Local Development Investment Funds, State Capital Investment Corporation, Credit Guarantee Fund for Small and Medium Enterprises, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Development Support Fund, and guiding the management of labor, wages, remuneration, and bonuses for Vietnam Asset Management Corporation Limited, effective from December 29, 2024.

Pursuant to Decree No. 14/2017/NĐ-CP dated 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. 34/2018/NĐ-CP dated March 8, 2018, of the Government, on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium Enterprises;

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 state-owned limited liability companies with 100% state capital; and 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 with 100% state capital;

At 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, remuneration, and bonuses for the Credit Guarantee Fund for Small and Medium Enterprises[1].

Section 1. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees, Chairperson, Director, Deputy Directors, Chief Accountant, and Auditor of the Credit Guarantee Fund for Small and Medium Enterprises as prescribed in Decree No. 34/2018/NĐ-CP dated March 8, 2018, of the Government on the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium Enterprises (hereinafter referred to as Decree No. 34/2018/NĐ-CP), including:

1. The Credit Guarantee Fund for Small and Medium Enterprises is established, organized, and operates according to the provisions of Decree No. 34/2018/NĐ-CP.

2. The Credit Guarantee Fund for Small and Medium Enterprises operates under Decision No. 58/2013/QĐ-TTg dated October 15, 2013, of the Prime Minister promulgating the Charter for the establishment, organization, and operation of the Credit Guarantee Fund for Small and Medium Enterprises, which has reorganized its organizational structure and supplemented the charter capital according to the provisions of Decree No. 34/2018/NĐ-CP.

The Credit Guarantee Funds for Small and Medium Enterprises specified in Clause 1 and Clause 2 of this Article hereinafter shall be collectively referred to as the Credit Guarantee Fund.

Article 2. Applicability

1. Employees working under labor contracts.

2. Chairperson, Director, Deputy Directors, Chief Accountant, and Auditor (hereinafter collectively referred to as managers).

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

Section 2. LABOR MANAGEMENT, WAGES, AND BONUSES FOR WORKERS

Article 3. Wage Scales, Payroll Tables, and Allowances

The fund for establishing wage scales, payroll tables, and allowances for workers 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 labor management, wages, and bonuses for workers employed in state-owned limited liability companies has been supplemented in Clause 3, 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 certain articles of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, 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 systems, remuneration, and bonuses for managers of state-owned limited liability companies (hereinafter referred to as Circular No. 06/2024/TT-BLDTBXH).

Article 4. Labor Management, Determination of Salary Fund, Advance Payment of Salary Fund, Distribution of Salaries, and Bonuses

1. The Guarantee Fund implements labor management, determines planned salary funds, actual salary funds, advance payments, and distributes salaries and bonuses for workers 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 implementation of labor management, wages, and bonuses for workers employed in state-owned limited liability companies (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 salary fund and the actual salary fund according to Articles 9 and 14 of Circular No. 26/2016/TT-BLDTBXH, the profit indicator (planned profit, actual profit for the year, and actual profit for the immediately preceding year) is calculated based on the difference between total income and total expenses (hereinafter referred to as income minus expenses) of the Guarantee Fund.

Article 5. Exclusion of Objective Factors when Determining Planned Salary Funds and Actual Salary Funds for Workers

1. When determining planned salary funds and actual salary funds for workers, the Guarantee Fund excludes objective factors affecting labor productivity and income minus expenses, including:

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

b) State adjustments to credit guarantee cost policies that affect the financial results of the Guarantee Fund or the exemption or reduction of credit guarantee costs as provided for in point b, Clause 2, Article 49 of Decree No. 34/2018/NĐ-CP.

2. The exclusion of objective factors stipulated in Clause 1 of this Article must be quantified with data and excluded according to the principle: Objective factors reducing labor productivity and income minus expenses shall be added to the labor productivity and income minus expenses indicators; Objective factors increasing labor productivity and income minus expenses shall be deducted from the labor productivity and income minus expenses indicators.

Section 3. SALARY, COMPENSATION, AND BONUS FOR MANAGEMENT PERSONNEL

Article 6. Establishing Salary Scales, Ranking Salaries, and Increasing Pay Grades to Determine Basic Salary Levels

1. Establishing Salary Scales, Ranking Salaries, and Increasing Pay Grades

The Chairman of the Fund establishes salary scales, ranks salaries, and increases pay grades for management personnel of the Fund 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 joint stock companies (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH), which has been amended and supplemented by Clauses 3 and 4 of Article 2 of Circular No. 06/2024/TT-BLDTBXH.

2. Ranking the Fund to Determine Basic Salary Levels

Based on the ranking criteria issued in the Appendix to this Circular, the Fund determines its rank as the basis for setting basic salary levels for dedicated management personnel. The ranking and re-ranking of the Fund shall be carried out in accordance with Articles 6 and 7 of Circular No. 27/2016/TT-BLDTBXH. For the Chairman of the Fund, the basic salary shall be determined according to the position of the Chairman of the Board of Members.

Article 7. Determining the Salary, Compensation, and Bonus Fund for Management Personnel

1.[4] The determination of average salary levels, salary funds, planned compensation; actual salary funds, compensation; bonus funds; payment of salary, compensation, and bonuses to management personnel of the Fund shall be implemented in accordance with Articles 3, 9, 11, 12, 14, 15, 16, 17, 18, and Clauses 2, 3, 4, and 5 of Article 10 of Circular No. 27/2016/TT-BLDTBXH, which have been amended and supplemented by Clauses 9, 10, 11, 12, and 14 of Article 2 of Circular No. 06/2024/TT-BLDTBXH.

2. When determining the average salary level, planned salary fund, and actual salary fund for dedicated management personnel as stipulated in Clause 1 of this Article, the profit indicator (planned profit, profit realized in the year, and profit realized in the immediately preceding year) shall be calculated based on the difference between income and expenses, provided that the Guarantee Fund meets the following conditions: ensuring the preservation and development of state capital; paying taxes and other budget contributions, and setting aside risk reserves in accordance with the provisions of the law; maintaining average labor productivity without decline and having a planned income-expense difference higher than the previous year's actual difference, then the planned average salary level for dedicated management personnel shall be determined as follows:

TL_bqkh = TL_cb + TL_cb x H_In

Where:

- TL_bqkh: Planned average salary level for dedicated management personnel;

- TL_cb: Basic salary of dedicated management personnel determined in accordance with Clause 1 of Article 10 of Circular No. 27/2016/TT-BLDTBXH;

- Central agencies of political-social organizations;_In: Additional salary coefficient compared to the basic salary linked to the income-expense difference as follows: if the difference is less than three billion VND, H_In is calculated at a maximum of 0.3; if the difference is from three billion to less than five billion VND, H_In is calculated at a maximum of 0.5; if the difference is from five billion to less than ten billion VND, H_In is calculated at a maximum of 0.7; if the difference is ten billion VND or more, H_In is calculated at a maximum of 1.0.

3. When determining the compensation for non-dedicated management personnel, in cases where the Guarantee Fund does not have corresponding dedicated management personnel to determine the compensation for non-dedicated management personnel as stipulated in Clause 2, Article 3 of Circular No. 27/2016/TT-BLDTBXH, it shall be carried out as follows:

a) Determine the maximum salary level for each dedicated management personnel in accordance with Clause 2 of this Article;

b) Determine the compensation for non-dedicated management personnel based on their work and working hours, but not exceeding 20% of the salary level of the corresponding dedicated management personnel as specified in point a, Clause 3 of this Article.

Article 8. Exclusion of Objective Factors When Determining Wages, Fees, and Bonuses for Managers

When determining the wage fund, planned fees; actual wage fund, fees, and credit guarantee fund, objective factors affecting labor productivity and revenue minus expense differences shall be excluded as prescribed in Article 5 of this Circular.

Section 4. RESPONSIBILITY FOR IMPLEMENTATION AND EFFECTIVENESS OF ENFORCEMENT[5]

Article 9. Responsibility for Implementation

1. Responsibilities of the Credit Guarantee Fund:

a) The Director of the Credit Guarantee Fund is responsible for performing the tasks stipulated in Article 17 of Circular No. 26/2016/TT-BLDTBXH;

b) The Chairman of the Credit Guarantee Fund is responsible for performing the tasks stipulated in Article 18, Clause 4 of Article 22 of Circular No. 26/2016/TT-BLDTBXH; Article 20, Clause 4 of Article 25 of Circular No. 27/2016/TT-BLDTBXH. When submitting reports on wages and bonuses to the agency representing the owner, they must also submit them to the Ministry of Labor, Invalids, and Social Affairs for monitoring, inspection, and general supervision;

c) The auditor is responsible for performing the tasks stipulated in Article 19 of Circular No. 26/2016/TT-BLDTBXH, Article 21 of Circular No. 27/2016/TT-BLDTBXH, and according to the Charter of the organization and operation of the Credit Guarantee Fund.

2. The agency representing the owner of the Credit Guarantee Fund is responsible for performing the tasks stipulated in Article 20 of Circular No. 26/2016/TT-BLDTBXH; Article 19, Article 22 of Circular No. 27/2016/TT-BLDTBXH. When submitting opinions to the Fund regarding the annual wage and bonus fund, they must also submit them to the Ministry of Labor, Invalids, and Social Affairs for general monitoring and supervision.

Article 10. Effective Date

1. This Circular takes effect from March 8, 2019. The regulations set forth in this Circular shall be applied to determine the wage fund, fees, bonuses, and payment of wages, fees, and bonuses from January 1, 2019.

2. For Credit Guarantee Funds for small and medium-sized enterprises operating under Decision No. 58/2013/QD-TTg dated October 15, 2013 of the Prime Minister but have not yet reorganized their organizational structure or supplemented their charter capital as prescribed in Decree No. 34/2018/NĐ-CP, they shall continue to manage labor, wages, fees, and bonuses in accordance with Circular No. 26/2016/TT-BLDTBXH and Circular No. 27/2016/TT-BLDTBXH.

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

ANNEX

CRITERIA FOR RANKING THE CREDIT GUARANTEE FUNDS FOR SMALL AND MEDIUM-SIZED ENTERPRISES
(Annexed to Circular No. 04/2019/TT-BLDTBXH dated January 21, 2019 of the Ministry of Labor, Invalids, and Social Affairs)

Ranking Score Range

[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 management of labor, wages, fees, and bonuses for the Vietnam Deposit Insurance Corporation, the Asset Management Company of Vietnam's Credit Institutions, Vietnam Television, Local Investment Development Fund, State Capital Investment and Business Corporation, Credit Guarantee Fund for Small and Medium Enterprises, Small and Medium Enterprise Development Fund, National Technological Innovation Fund, Cooperative Development Support Fund, and guiding the management of labor, wages, fees, and bonuses for Vietnam Asset Management Joint Stock 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 the management of labor, wages, and bonuses for employees working in wholly state-owned limited liability companies;

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

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 the management of labor, wages, and bonuses for employees working in wholly state-owned limited liability companies and Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government stipulating wages, fees, and bonuses for managers of wholly state-owned limited liability companies;

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

At the proposal of the Director of the Directorate of Labor Relations and Wages;

The Minister of Labor, Invalids, and Social Affairs promulgates the Circular amending and supplementing 10 Circulars guiding the management of labor, wages, fees, and bonuses for the Vietnam Deposit Insurance Corporation, the Asset Management Company of Vietnam's Credit Institutions, Vietnam Television, Local Investment Development Fund, State Capital Investment and Business Corporation, Credit Guarantee Fund for Small and Medium Enterprises, Small and Medium Enterprise Development Fund, National Technological Innovation Fund, Cooperative Development Support Fund, and guiding the management of labor, wages, fees, and bonuses for Vietnam Asset Management Joint Stock Company Limited.

[2] This provision was amended by Clause 1, Article 6 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[3] This provision was amended and supplemented by Clause 2, Article 6 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[4] This clause was amended and supplemented by Clause 3, Article 6 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 salaries, remuneration, and bonuses stipulated in Clauses 3 and 4 of Article 1, Clause 2 of Article 2, Clauses 2, 3, 4, 5, and 6 of Article 3, Clauses 2, 3, and 4 of Article 4, Clause 2 of Article 5, Clauses 2 and 3 of Article 6, Clauses 2 and 3 of Article 7, Clauses 1 and 2 of Article 8, Clauses 1 and 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 salary scales, pay grades, and job classification stipulated in Clause 1 of Article 1, Clauses 1 and 3 of Article 2, Clauses 1 and 2 of Article 4, Clause 1 of Article 5, Clauses 1 and 2 of Article 6, Clause 1 of Article 7, Clause 1 of Article 8, and Clauses 1 and 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 pursuant 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 cited according to the corresponding contents that have been 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.”