Decree No. 64/2023/ND-CP supplements Decree No. 87/2021/ND-CP dated September 29, 2021, of the Government on extending the implementation period and amending and supplementing certain articles of Decree No. 20/2020/ND-CP dated February 17, 2020, of the Government on piloting the management of labor, wages, and bonuses for some state-owned economic groups and corporations.

DECREE

AMENDING AND SUPPLEMENTING DECREE NO. 87/2021/NĐ-CP OF SEPTEMBER 29, 2021 ISSUED BY THE GOVERNMENT ON EXTENDING THE IMPLEMENTATION PERIOD AND AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 20/2020/NĐ-CP OF FEBRUARY 17, 2020 ISSUED BY THE GOVERNMENT ON TRIAL MANAGEMENT OF LABOR, SALARIES, AND BONUSES FOR SOME STATE ENTERPRISES AND GROUPS

WHEREAS, the Law on Government Organization dated June 19, 2015; and the Law Amending and Supplementing Certain Provisions of the Law on Government Organization and the Law on Local Administration dated November 22, 2019;

Pursuant to the Labor Code issued on November 20, 2019;

Pursuant to the Enterprise Law dated June 17, 2020;

Pursuant to the Law on Management and Use of State Capital for Production and Business Investment in Enterprises dated November 26, 2014;

Decree No. 07/2021/NĐ-CP

THE GOVERNMENT ISSUES THE DECREE AMENDING AND SUPPLEMENTING DECREE NO. 87/2021/NĐ-CP OF SEPTEMBER 29, 2021 ON EXTENDING THE IMPLEMENTATION PERIOD AND AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 20/2020/NĐ-CP OF FEBRUARY 17, 2020 ON TRIAL MANAGEMENT OF LABOR, SALARIES, AND BONUSES FOR SOME STATE ENTERPRISES AND GROUPS.

Article 1. Supplementing Decree No.87/2021/NĐ-CP of September 29, 2021 issued by the Government on extending the implementation period and amending and supplementing certain provisions of Decree No. 20/2020/NĐ-CP of February 17, 2020 issued by the Government on trial management of labor, salaries, and bonuses for some state enterprises and groups

Supplement Clause 6 to Article 2 as follows:

"6. For the Parent Company - Vietnam Airlines Corporation (hereinafter referred to as VNA), after paying salaries to Vietnamese pilots working under labor contracts with VNA from the annual performance-based salary fund according to Decree No. 20/2020/NĐ-CP of February 17, 2020 issued by the Government and Clause 3, Clause 4 of Article 2 of this Decree (hereinafter referred to as the annual performance-based salary fund), if the salary level of Vietnamese pilots is lower than that of foreign pilots working for VNA, then the additional salary source for Vietnamese pilots shall be determined as follows:

a) The maximum additional salary source annually shall be based on the difference between the salary level before supplementation of Vietnamese pilots and the salary level (including basic salary, hourly flight salary, and hourly teaching salary) of foreign pilots, averaged according to the corresponding job title group within the same flight team and the actual working time of the pilots.

b) The salary level before supplementation of Vietnamese pilots is the salary received from the annual performance-based salary fund, according to VNA's salary payment regulations. The allocation of the annual performance-based salary fund to pay salaries to Vietnamese pilots shall be based on the ratio (%) of the actual salary paid to Vietnamese pilots in 2022 compared to the annual performance-based salary fund of 2022.

c) Determination of the additional salary source must be consistent with VNA's financial capacity, ensuring that VNA completes the profit target set by the State Capital Management Committee each year (if VNA incurs losses, it must reduce losses compared to the previous year).

d) The additional salary source shall be recorded as production and business costs of VNA in accordance with the law and used to pay additional salaries to Vietnamese pilots currently working under labor contracts with VNA at the time of salary supplementation, not to be paid to other individuals or used for other purposes. Additional salary payments to Vietnamese pilots shall be based on their job titles and actual working time according to VNA's regulations."

Article 2. Responsibility for Implementation

1. The State Capital Representative at VNA is responsible for:

a) Before January 31 each year, develop a plan for supplementing the salary source for Vietnamese pilots of the previous year, clearly stating the consistency of the plan with VNA's financial capacity and the degree of completion of the profit target, report to the State Capital Management Committee for comments.

b) Participate in providing opinions and voting in the Board of Directors or General Shareholders' Meeting according to the plan already commented by the State Capital Management Committee to decide on supplementing the salary source for Vietnamese pilots.

c) Participate in opinions and voting to have the General Director or the Board of Directors of VNA issue regulations to pay additional salary from the supplementary salary source for Vietnamese pilots.

d) Report the results of implementing the supplementation of the salary source and payment of salary for Vietnamese pilots to the State Capital Management Committee.

2. The State Capital Management Committee shall be responsible for:

a) Directing the state capital representative at VNA to perform the tasks prescribed in Clause 1 of this Article.

b) Examine and provide written comments to inform the State Capital Representative at VNA about the plan for supplementing the salary source for Vietnamese pilots, while sending to the Ministry of Labor, Invalids, and Social Affairs for general monitoring and supervision.

Article 3. Effectiveness

1. This Decree takes effect from the date of issuance.

2. The supplementation of the salary source as stipulated in Article 1 of this Decree shall be implemented from January 1, 2023.

3. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, and related organizations and individuals are responsible for implementing this Decree./.