Consolidated Document number 470/VBHN-BLDTBXH guides the management of labor, wages, remuneration, and bonuses for the cooperative development support fund.

CIRCULAR

Guidelines for managing labor, wages, remuneration, and bonuses for the Cooperative Development Support Fund

Circular No. 13/2022/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 Cooperative Development Support 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 Investment Development Fund, 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 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. 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 with 100% state-owned charter capital;

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 with 100% state-owned charter capital;

Pursuant to Decree No. 45/2021/NĐ-CP dated March 31, 2021, of the Government on the establishment, organization, and operation of the Cooperative Development Support 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 Cooperative Development Support Fund[1].

Chapter I. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of labor, wages, remuneration, and bonuses for employees, Chairperson, General Director or Director, Deputy General Director or Deputy Director, Chief Accountant, and Auditor of the Cooperative Development Support Fund, as stipulated in Decree No. 45/2021/NĐ-CP dated March 31, 2021, of the Government on the establishment, organization, and operation of the Cooperative Development Support Fund (hereinafter referred to as Decree No. 45/2021/NĐ-CP), including:

1. The Vietnam Cooperative Development Support Fund.

2. Cooperative Development Support Funds at provincial and centrally-administered city levels operating under the model of a joint-stock limited company with 100% state-owned charter capital.

The Cooperative Development Support Funds specified in Clause 1 and Clause 2 of this Article hereinafter referred to as the Fund.

Article 2. Applicability

1. Employees working under labor contracts.

2. Chairperson, General Director or Director, Deputy General Director or Deputy Director, 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.

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

Article 3. Salary Scale, Payroll, and Allowances

The fund for establishing the salary scale, payroll, and allowances for employees as stipulated in 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, salaries, and bonuses for employees working in state-owned limited liability companies with 100% state capital 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 certain provisions 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, salaries, and bonuses for employees working in state-owned limited liability companies with 100% state capital 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 with 100% state capital (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 fund shall implement labor management, determine the planned salary fund, actual salary fund, advance payment, and distribution of salaries and bonuses for employees according to the provisions of Section 2; Articles 9, 10, and 13 of Section 3 and Section 4 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, salaries, and bonuses for employees working in state-owned limited liability companies with 100% state capital (hereinafter referred to as 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 actual salary fund according to the provisions of Articles 9 and 14 of Circular No. 26/2016/TT-BLDTBXH, the profit indicator (planned profit, profit realized in the year, and profit realized in the immediately preceding year) is calculated based on the difference between total income and total expenses (hereinafter referred to as income minus expense difference) of the Fund. The determination of the income minus expense difference indicator is carried out in accordance with the guidelines of the Ministry of Finance.

Article 5. Exclusion of Objective Factors when Determining Employee Salary Funds

1. When determining the employee salary funds (planned and actual), if there are objective factors directly affecting labor productivity and the income minus expense difference, these must be excluded to ensure that salaries are linked to labor productivity and the actual performance of the Fund.

2. Objective factors to be excluded when determining salary funds include those specified in Clause 1 of Article 11 of Circular No. 26/2016/TT-BLDTBXH and Clause 2 of Article 45 of Decree No. 45/2021/NĐ-CP.

3. The impact of objective factors on labor productivity and the income minus expense difference of the Fund must be quantified by specific values.

Chapter III. SALARIES, REMUNERATION, AND BONUSES FOR MANAGERS

Article 6. Establishing salary scales, grading, increasing pay grades, and ranking the Fund to determine the basic wage level [3]

1. Establishing salary scales, grading, and increasing pay grades

The Chairman of the Fund shall establish the salary scale, grading, and increasing pay grades for the 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 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 Clause 3 and Clause 4 of Article 2 of Circular No. 06/2024/TT-BLDTBXH.

2. Ranking the Fund to determine the basic wage level

Based on the criteria for ranking established in the Appendix to this Circular, the rank will serve as the basis for determining the basic wage level for specialized 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 wage shall be determined according to the position of Chairman of the Board of Members.

Article 7. Determining the wage fund, remuneration, and bonuses

1.[4] The determination of the average wage level, wage fund, planned remuneration; actual wage fund and remuneration; bonus fund; payment of wages, remuneration, and bonuses for Fund managers shall be implemented in accordance with Articles 3, 9, 11, 12, 14, 15, 16, 17, 18, 19, 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 wage level, planned wage fund, and actual wage fund for specialized 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 expenditure, wherein:

a) In cases where the Fund meets all conditions: ensuring and developing state capital; paying taxes and other payments to the budget, setting aside risk reserves in accordance with the provisions of the law; having loan growth; average labor productivity not decreasing; and the planned income-expenditure difference being higher than that of the immediately preceding year, the planned average wage level for specialized management personnel shall be determined as follows:

TL_bqkh = TL_cb x (1 + H_ln)

Where:

TL_bqkh: Planned average wage level for specialized management personnel;

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

H_ln: Additional wage coefficient compared to the basic wage linked to the income-expenditure difference as follows: for an income-expenditure difference below 10 billion VND, H_ln is calculated at a maximum of 0.1; for an income-expenditure difference from 10 billion VND to less than 20 billion VND, H_ln is calculated at a maximum of 0.3; for an income-expenditure difference from 20 billion VND to less than 30 billion VND, H_ln is calculated at a maximum of 0.5; for an income-expenditure difference from 30 billion VND to less than 50 billion VND, H_ln is calculated at a maximum of 0.7; for an income-expenditure difference of 50 billion VND or more, H_ln is calculated at a maximum of 1.0.

b) In cases where the Fund does not have loan growth, the average wage level shall not exceed the basic wage.

3. When determining the remuneration for non-specialized management personnel, in cases where there is no corresponding specialized management personnel to determine the remuneration for non-specialized management personnel as stipulated in Clause 2 of Article 3 of Circular No. 27/2016/TT-BLDTBXH, it shall be carried out as follows:

a) Determine the wage level of each specialized management personnel in accordance with Clause 2 of this Article.

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

Article 8. Exclusion of Objective Factors When Determining the Salary Fund and Remuneration for Managers

1. When determining the salary fund and remuneration fund (planning and implementation) for managers, 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 and remuneration fund include those specified in Clause 1, Article 13 of Circular No. 27/2016/TT-BLDTBXH and Clause 2, Article 45 of Decree No. 45/2021/NĐ-CP.

3. The impact of objective factors on labor productivity and the income minus expense difference of the Fund must be quantified by specific values.

Chapter IV. RESPONSIBILITY FOR IMPLEMENTATION AND EFFECTIVE DATE OF ENFORCEMENT[5]

Article 9. Responsibility for Implementation

1. Responsibilities of the Fund:

a) The Chairman of the Fund shall be responsible for performing the tasks prescribed in Article 18 and Clause 4, Article 22 of Circular No. 26/2016/TT-BLDTBXH; Article 20 and Clause 4, Article 25 of Circular No. 27/2016/TT-BLDTBXH. When submitting the salary and bonus report to the representative body of the owner, it shall simultaneously submit to the Ministry of Labor, Invalids and Social Affairs for monitoring, inspection, and general supervision.

b) The General Director and Director of the Fund shall be responsible for performing the tasks prescribed in Article 17 of Circular No. 26/2016/TT-BLDTBXH.

c) The Auditor shall be responsible for performing 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 on the organization and operation of the Fund.

2. Responsibilities of the Representative Body of the Owner for the Fund shall be responsible for performing the tasks prescribed in Article 20 of Circular No. 26/2016/TT-BLDTBXH; Article 19 and Article 22 of Circular No. 27/2016/TT-BLDTBXH. When submitting comments to the Fund regarding the annual salary and bonus fund, it shall simultaneously submit to the Ministry of Labor, Invalids and Social Affairs for general monitoring and supervision.

Article 10. Effective Date

This Circular takes effect from August 15, 2022.

During the implementation process, if there are difficulties, agencies and organizations are requested to reflect them to the Ministry of Labor, Invalids and Social Affairs for research, timely revision, and supplementation.

ANNEX

CRITERIA FOR RANKING THE FUND TO SUPPORT COOPERATIVE DEVELOPMENT
(Annexed to Circular No. 13/2022/TT-BLDTBXH dated June 30, 2022 issued by the Minister of Labor, Invalids and Social Affairs)

Rating Score Range

[1] 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, salaries, remuneration, and bonuses for Vietnam Deposit Insurance Corporation, Vietnam Asset Management Company Limited, Vietnam Television, Local Investment and 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, salaries, remuneration, and bonuses 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;

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 with 100% state-owned charter capital;

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 with 100% state-owned charter capital;

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, salaries, and bonuses for employees working in limited liability companies wholly owned by the state with 100% capital contribution and Decree No. 52/2016/NĐ-CP dated June 13, 2016 of the Government stipulating salaries, remuneration, and bonuses for managers of limited liability companies wholly owned by the state with 100% capital contribution;

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

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 amending and supplementing 10 Circulars guiding the management of labor, salaries, remuneration, and bonuses for Vietnam Deposit Insurance Corporation, Vietnam Asset Management Company Limited, Vietnam Television, Local Investment and 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, salaries, remuneration, and bonuses for Vietnam Asset Recovery Company Limited.

[2] This provision was amended by Clause 1, Article 9 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[3] This provision was amended and supplemented by Clause 2, Article 9 of Circular No. 12/2024/TT-BLDTBXH, effective from December 29, 2024.

[4] This clause was amended by Clause 3, Article 9 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 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 salary scales, pay grades, and salary classification 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, 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 documents cited in this Circular are amended, supplemented, or replaced, they shall be implemented according to the newly issued documents.”