Consolidated Document number 468/VBHN-BLDTBXH guiding labor, wages, remuneration, and bonuses for small and medium-sized enterprise development funds.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses for the Small and Medium Enterprise Development Fund

Circular No. 34/2019/TT-BLDTBXH dated December 30, 2019, issued by the Minister of Labor, Invalids, and Social Affairs, guiding the management of labor, wages, remuneration, and bonuses for the Small and Medium Enterprise Development Fund, effective from February 15, 2020, was 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 implementation of labor management, wages, remuneration, and bonuses for the Deposit Insurance Corporation of Vietnam, the Vietnam Asset Management Company Limited, Vietnam Television, Local Investment and 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 Development Support Fund, and guiding the management of labor, wages, remuneration, and bonuses for the 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 joint-stock limited companies 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 joint-stock limited 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 the Small and Medium Enterprise Development Fund[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 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 in accordance with Section 2 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 labor management, wages, and bonuses for employees working in joint-stock limited companies wholly owned by the State (hereinafter referred to as Circular No. 26/2016/TT-BLDTBXH).

Article 4. Salary Scale, Salary Table, Allowance

The fund for establishing the salary scale, salary table, and allowance for employees as stipulated in Clause 9a of Circular No. 26/2016/TT-BLDTBXH 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, Invalids, and Social Affairs to amend and supplement some articles of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, and Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, both issued by the Minister of Labor, Invalids, and Social Affairs guiding the implementation of labor management, salary, and bonus for employees working in a limited liability company wholly owned by the State (hereinafter referred to as Circular No. 06/2024/TT-BLDTBXH).

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

1. The fund determines the planned salary fund, advance salary payment, implemented salary fund, salary distribution, and bonus for employees according to Articles 9, 10, 13, 14, 15, and Clauses 2 and 3 of Article 16 of Circular No. 26/2016/TT-BLDTBXH.

2. When determining the average planned salary level and the average actual salary level to calculate the planned salary fund and the implemented salary fund as stipulated in Articles 9 and 14 of Circular No. 26/2016/TT-BLDTBXH, the fund sets the indicators for calculating labor productivity and profit 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 points a and 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 salary fund and the implemented salary fund for employees, the fund excludes objective factors affecting labor productivity and total revenue minus total costs as stipulated in Article 11 of Circular No. 26/2016/TT-BLDTBXH and 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. The manager of the Fund shall be classified, promoted, and reclassified in salary when the Fund's grade changes according to Section 2 of Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of the salary system, remuneration, and bonus for managers of a limited liability company wholly owned by the State (hereinafter referred to as Circular No. 27/2016/TT-BLDTBXH).

2. The ranking criteria for the Fund shall be implemented 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 classification of salary for full-time members of the Board of Directors, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant of state-owned companies until the Government issues new regulations on salary applicable to limited liability companies wholly owned by the State.

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

1.[3] The determination of the planned wage fund and remuneration; the actual wage fund and remuneration; payment of wages, remuneration, and bonuses for managers shall be carried out in accordance with the provisions of Articles 3, 9, 11, 12, 14, 15, 16, Clause 2 and Clause 3 of Article 17, Articles 18, 19, Clauses 2, 3, 4, and 5 of Article 10 of Circular No. 27/2016/TT-BLDTBXH, which has 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 planned wage fund and remuneration, the actual wage fund and remuneration as stipulated in Clause 1 of this Article, the Fund shall determine the average labor productivity index and profit in accordance with Clause 2 of Article 5 of this Circular, including:

In cases where the Fund meets all conditions; ensures the preservation and development of state capital; pays taxes and sets up risk reserve funds as prescribed; the average labor productivity does not decrease and the total revenue minus total expenses is higher than that of the immediately preceding year, the average planned wage for managers shall be determined as follows:

TL_bqkh = TL_cb + TL_cb x H_ln

Wherein:

- TL_bqkh: The average planned wage for managers.

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

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

3.[4] When determining the planned wage fund and the actual wage fund for managers, the Fund excludes factors affecting labor productivity and total revenue minus total expenses as prescribed in Article 13 of Circular No. 27/2016/TT-BLDTBXH, which has been amended and supplemented by Clause 13 of Article 2 of Circular No. 06/2024/TT-BLDTBXH and 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 Members of the Fund is responsible for performing the tasks specified 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 wage and bonus reports to the agency representing the owner, they must also 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 agency representing the owner (Ministry of Planning and Investment) is responsible for performing the tasks specified 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 sending opinions to the Fund on the annual wage fund, remuneration, and bonuses, they must also send 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 shall cease 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.

[1] Circular No. 12/2024/TT-BLDTBXH dated November 14, 2024 of 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, State Capital Investment and Business 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, taking effect 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;

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 joint-stock limited companies 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 joint-stock limited 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 the management of labor, wages, and bonuses 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 wages, remuneration, and bonuses 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 Management Corporation Limited;

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

The Minister of Labor - Invalids and Social Affairs issues the Circular 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 Bond Trading Corporation Limited.

[2] This is amended in Clause 1, Article 7 of Circular No. 12/2024/TT-BLDTBXH, which takes effect from December 29, 2024.

[3] This clause is amended in Clause 2, Article 8 of Circular No. 12/2024/TT-BLDTBXH, which takes effect from December 29, 2024.

[4] This clause is amended in Clause 3, Article 8 of Circular No. 12/2024/TT-BLDTBXH, which takes effect from December 29, 2024.

[5] Article 11 of Circular No. 12/2024/TT-BLDTBXH, which takes effect from December 29, 2024, provides as follows:

"Article 11. Effective Date

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

2. The regulations on wage funds, payment of wages, remuneration, and bonuses stipulated in Clause 3 and Clause 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 wage scales, salary tables, and grading 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 mentioned in Articles 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 of this Circular, which are referred to according to the provisions in 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 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."