Consolidated Document number 469/VBHN-BLDTBXH guiding the implementation of labor management, wages, remuneration, and bonuses for the National Science and Technology Innovation Fund.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses for the National Technology Innovation Fund

Circular No. 12/2022/TT-BLDTBXH dated June 30, 2022, issued by the Minister of Labor, Invalids, and Social Affairs to guide the management of labor, wages, remuneration, and bonuses for the National Technology Innovation Fund, effective from August 15, 2022, amended and supplemented by:

Circular No. 12/2024/TT-BLDTBXH dated November 14, 2024, issued by the Minister of Labor, Invalids, and Social Affairs to amend and supplement 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, Small and Medium Enterprise Credit Guarantee Fund, Small and Medium Enterprise Development Fund, National Technology Innovation Fund, Cooperative Development Support Fund, and to guide the management of labor, wages, remuneration, and bonuses for Vietnam Asset Management Joint Stock Company, 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. 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;

Pursuant to Decision No. 04/2021/QĐ-TTg dated January 29, 2021, of the Prime Minister promulgating the Charter on the organization and operation of the National Technology Innovation Fund;

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 to guide the management of labor, wages, remuneration, and bonuses for the National Technology Innovation Fund[1].

Chapter I. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees, officials, Chair and members of the Management Board, Directors, Deputy Directors, Chief Accountants, and Auditors of the National Technology Innovation Fund as prescribed in Decision No. 04/2021/QĐ-TTg dated January 29, 2021, of the Prime Minister promulgating the Charter on the organization and operation of the National Technology Innovation Fund (hereinafter referred to as the Fund).

Article 2. Applicability

1. Officials and employees working under labor contracts.

2. Chair and members of the Management Board, Directors, Deputy Directors, Chief Accountants, and Auditors (hereinafter collectively referred to as managers).

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

Chapter II. MANAGEMENT OF LABOR, WAGES, AND BONUSES FOR OFFICIALS AND EMPLOYEES

Article 3. Management of labor, determination of wage funds, advance payment of wage funds, distribution of wages, and bonuses

1. The Fund shall manage labor in accordance with the provisions of Section 2 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, 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).

2. Officials and employees shall be entitled to wages and bonuses from the wage and bonus fund determined by the Fund according to the following provisions:

a) The wage fund (planned and actual), the advance payment and distribution of wages and bonuses for officials and employees shall be carried out in accordance with the provisions of Articles 9, 10, 13 of Sections 3 and 4 of Circular No. 26/2016/TT-BLDTBXH.

b) When determining the average planned wage level and the average actual wage level to calculate the wage fund (planned and actual) as prescribed in 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) shall be calculated based on the difference between total income and total expenses (hereinafter referred to as income minus expenses) of the Fund.

Article 4. Excluding Objective Factors When Determining the Salary Fund for Civil Servants and Employees

1. When determining the salary fund (planning and implementation) for civil servants and employees, if there are objective factors directly affecting labor productivity and revenue minus expense differences, such factors must be excluded to ensure that salaries are linked to labor productivity and the actual operational effectiveness of the Fund.

2. The objective factors to be excluded when determining the salary fund include those specified in Clause 1, Article 11 of Circular No. 26/2016/TT-BLDTBXH and Clause 3, Article 44 of Decision No. 04/2021/QD-TTg.

3. The impact of objective factors on labor productivity and revenue minus expense differences of the Fund must be quantified with specific values.

Chapter III. SALARY, COMPENSATION, AND BONUS FOR MANAGERS

Article 5. Establishing a Pay Scale, Grading Salaries, and Increasing Ranks to Determine the Basic Salary Level

1. Establishing a Pay Scale, Grading Salaries, and Increasing Ranks

The Management Board of the Fund establishes a pay scale, grades salaries, and increases 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, War 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 dated July 30, 2024, issued by the Minister of Labor, War Invalids, and Social Affairs amending and supplementing certain articles of Circular No. 26/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, War Invalids, and Social Affairs guiding the management of labor, salaries, and bonuses for employees working in state-owned limited liability companies and Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016, issued by the Minister of Labor, War 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. 06/2024/TT-BLDTBXH).

2. Ranking the Fund to Determine the Basic Salary Level

The Management Board of the Fund implements ranking and re-ranking to determine the basic salary level in accordance with Articles 6 and 7 of Circular No. 27/2016/TT-BLDTBXH. The ranking criteria for the Fund are temporarily implemented according to the ranking criteria for financial companies (No. 56. Financial Company) issued together with Circular No. 23/2005/TTLT-BLDTBXH-BTC dated August 31, 2005, issued by the Minister of Labor, War Invalids, and Social Affairs - Ministry of Finance guiding the ranking and grading of dedicated members of the Board of Directors, General Director, Director, Deputy General Director, Deputy Director, Chief Accountant of state-owned companies. Among them, the Chairman of the Management Board of the Fund calculates the basic salary based on the position of Chairman of the Board of Members; members of the Management Board of the Fund calculate their basic salary based on the position of member of the Board of Members.

Article 6. Determination of salary fund, remuneration, and bonus fund

1.[3] The determination of average salary level, planned salary fund, planned remuneration; actual salary fund, actual remuneration; bonus fund; payment of salary, remuneration, and bonuses for Fund managers 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 average salary level, planned salary fund, and actual salary fund of 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 revenue minus expense indicator, wherein:

a) In the case where the Fund meets all conditions: ensuring the preservation and development of state capital; paying taxes and other budget contributions, setting aside risk reserve funds in accordance with the provisions of the law; having growth in loan disbursements; average labor productivity not decreasing and the planned revenue minus expense indicator being higher than that of the immediately preceding year, then the planned average salary level of dedicated management personnel shall be determined as follows:

TL_bqkh = T_Lcb x (1 + H_In)

Where:

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

- TL_cb : Basic salary of dedicated management personnel determined according to 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 revenue minus expense indicator as follows: if the difference is less than three billion VND, H_In is calculated at a maximum of 0.1; if the difference is from three billion VND to less than ten billion VND, H_In is calculated at a maximum of 0.3; if the difference is from ten billion VND to less than twenty billion VND, H_In is calculated at a maximum of 0.5; if the difference is from twenty billion VND to less than thirty billion VND, H_In is calculated at a maximum of 0.7; if the difference is thirty billion VND or more, H_In is calculated at a maximum of 1.0.

b) In the case where the Fund does not have growth in loan disbursements, the average salary level shall not exceed the basic salary.

Article 7. Exclusion of Objective Factors when Determining Salary and Remuneration

1. When determining the salary fund and remuneration fund (planned and actual) of management personnel, if there are objective factors directly affecting labor productivity and revenue minus expense indicators, these must be excluded to ensure that salaries are linked to labor productivity and the actual performance of the Fund.

2. The objective factors to be excluded when determining the salary fund and remuneration fund include those specified in Clause 1 of Article 13 of Circular No. 27/2016/TT-BLDTBXH and Clause 3 of Article 44 of Decision No. 04/2021/QĐ-TTg.

3. The impact of objective factors on labor productivity and revenue minus expense differences of the Fund must be quantified with specific values.

Chapter IV. RESPONSIBILITY FOR IMPLEMENTATION AND EFFECTIVE DATE OF ENFORCEMENT[4]

Article 8. Responsibilities for Implementation

1. Responsibilities of the Fund:

a) The Management Board is responsible for implementing the tasks prescribed in Article 18, Clause 4 of Circular No. 26/2016/TT-BLDTBXH; Article 20, Clause 4 of Circular No. 27/2016/TT-BLDTBXH. When submitting the salary and bonus report to the agency representing the owner, it simultaneously submits to the Ministry of Labor, Invalids, and Social Affairs for general monitoring, inspection, and supervision;

b) The Director of the Fund is responsible for implementing the tasks prescribed in Circular No. 26/2016/TT-BLDTBXH;

c) The Inspector is responsible for implementing the tasks prescribed 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's operation of the Fund.

2. The agency representing the owner of the Fund is responsible for implementing the tasks prescribed in Article 20 of Circular No. 26/2016/TT-BLDTBXH; Article 19, Article 22 of Circular No. 27/2016/TT-BLDTBXH. When sending opinions to the Fund regarding the annual salary and bonus fund, it simultaneously sends to the Ministry of Labor, Invalids, and Social Affairs for general monitoring and supervision.

Article 9. Effective Date

This Circular takes effect from August 15, 2022.

During the implementation process, if there are any difficulties, please reflect them to the Ministry of Labor, Invalids, and Social Affairs for research, timely amendment, 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 10 Circulars guiding the management of labor, salary, remuneration, and bonuses for the Vietnam Deposit Insurance Corporation, the Vietnam Asset Management Company Limited, Vietnam Television, Local Investment Development Fund, State Capital Investment Corporation, Small and Medium Enterprise Guarantee Fund, Small and Medium Enterprise Development Fund, National Science and Technology Innovation Fund, Cooperative Development Support Fund, and guiding the management of labor, salary, remuneration, and bonuses for Vietnam Asset Management Joint Stock Company, effective from December 29, 2024, is promulgated based on the following grounds:

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, salary, 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 salary, 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 on the functions, tasks, and operational mechanisms of Vietnam Asset Management Joint Stock Company.

At 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 Credit Guarantee Fund for Small and Medium Enterprises, 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.

[2] This is amended and supplemented in Clause 1, Article 8 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

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

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

"Article 11. Effective Date

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

2. The provisions on wage funds, salary payment, 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, 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, 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."