Decree No. 65/2011/ND-CP on piloting salary for the Parent Company - Military Telecommunications Group during the period of 2011-2013

DECREE

Implementing pilot wage management for the Parent Company - Military Group

Telecommunications Corporation during the period 2011-2013

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Labor Code dated June 23, 1994; the Law Amending and Supplementing Certain Provisions of the Labor Code dated April 2, 2002; the Law Amending and Supplementing Certain Provisions of the Labor Code dated June 29, 2006;

Pursuant to the Enterprise Law dated November 29, 2005;

Considering the proposal of the Minister of Labor, War Invalids and Social Affairs and the Minister of National Defense,

DECREE

This Decree stipulates the implementation of a pilot program for wage management for the Parent Company - Military Group Telecommunications Corporation (hereinafter referred to collectively as the Military Group Telecommunications Corporation) during the period 2011-2013.

Article 2. Applicability

1. General Director, Deputy General Director, Chief Accountant, and Auditor.

2. Officers, professional military personnel, defense civil servants, and workers employed under labor contracts as prescribed by the Labor Code (hereinafter referred to collectively as workers).

3. Organizations and individuals specified in Article 6, Article 7, Article 8, and Article 9 of this Decree.

The General Director, Deputy General Director, Chief Accountant, Auditor, and employees of the Military Group Telecommunications Corporation shall continue to be classified under the wage scales, salary tables, and salary allowances prescribed in Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on the wage system for cadres, civil servants, public officials, and armed forces personnel, Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government on the wage scale system and salary allowance system in state-owned companies, and Decree No. 141/2007/NĐ-CP dated September 5, 2007 of the Government on the wage system for parent companies owned by the State and subsidiaries within economic groups until the Military Group Telecommunications Corporation establishes wage scales and salary tables in accordance with Clause 3, Article 6 of this Decree or the Government issues new regulations.

Article 4. Management of Salaries for Workers

1. Labor Management

a) Based on the volume, quality, requirements, and production and business tasks, each year, the Military Group Telecommunications Corporation shall determine the labor utilization plan and report it to the Ministry of National Defense for comments before implementation.

b) On the basis of the labor utilization plan that has been commented on by the Ministry of National Defense, the Military Group Telecommunications Corporation shall directly recruit employees according to its recruitment regulations and enter into employment contracts in accordance with labor laws.

2. Salary Management

a) The Ministry of National Defense shall take the lead and coordinate with the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Finance to set a stable unit price for salaries based on the total revenue minus total costs without salaries for the Military Communication Group during the 2014-2015 period. The stable unit price for salaries shall be determined based on the actual unit price for salaries implemented according to the total revenue minus total costs without salaries of the Military Communication Group during the 2011-2013 period.

- Fulfilling well the national defense and security tasks assigned by the Party and State.

- Paying taxes to the state budget in accordance with the law.

- The average salary increase must be lower than the average productivity increase.

- Annual profit must be at least 5% higher than the previous year's profit.

c) The annual salary fund of the Military Communication Group shall be determined based on the unit price for salaries prescribed in points a and b of this clause and the actual total revenue minus total costs without salaries. In case the Military Communication Group fails to meet the profit and productivity targets prescribed in point b of this clause, it must reduce the salary fund to ensure compliance with the prescribed conditions.

c) The annual wage fund of the Military Group Telecommunications Corporation shall be determined based on the unit wage rate prescribed in point a and point b of this clause and the actual total revenue minus total expenses without wages. In case the Military Group Telecommunications Corporation fails to meet the profit and labor productivity targets specified in point b of this clause, it must reduce the wage fund to ensure compliance with the conditions as prescribed.

When establishing the wage payment regulation, the Military Group Telecommunications Corporation must seek opinions from the Trade Union Executive Committee of the Corporation, report to the Ministry of National Defense for comments before implementation, and disseminate it to all employees.

Article 5. Management of salaries for the General Director, Deputy General Directors, Chief Accountant, and Auditors

1. The wages and salary allowances of the General Director, Deputy General Director, Chief Accountant, and Auditor shall be included in the unit wage rate of the Military Group Telecommunications Corporation as prescribed in Clause 2, Article 4 of this Decree.

2. Based on the implemented wage fund prescribed in point c of Clause 2, Article 4 of this Decree, the Military Group Telecommunications Corporation shall determine the wage fund and implement wage payments for the General Director, Deputy General Director, Chief Accountant, and Auditor according to the Corporation's wage payment regulation, ensuring that wages are linked to the level of completion of production and business tasks, the management responsibilities of the General Director, Deputy General Director, Chief Accountant, and Auditor, and reasonable parity among different types of labor within the Corporation. The wage payment regulation for the General Director, Deputy General Director, Chief Accountant, and Auditor shall be established together with the wage payment regulation for employees as prescribed in point d of Clause 2, Article 4 of this Decree and reported to the Ministry of National Defense for comments before implementation.

Article 6. Responsibilities of the Military Telecommunications Corporation

1. By the first quarter of each year, develop the labor utilization plan, the total revenue minus total expenses without wages plan, the profit plan, and the annual wage fund plan; compile the results of production and business operations, profits, labor, wages, and bonuses of the previous year of the Corporation; report to the Ministry of National Defense, the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Finance for supervision and inspection.

2. Determine the annual implemented wage fund; establish the wage payment regulation as prescribed in point d of Clause 2, Article 4 and Clause 2, Article 5 of this Decree.

Article 7. Responsibilities of the Ministry of National Defense

1. Take the lead and coordinate with the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Finance to assign the stable unit wage rate as prescribed in point a and point b of Clause 2, Article 4 of this Decree; implement supervision and inspection of the implementation of the pilot wage management program for the Military Group Telecommunications Corporation as prescribed in this Decree.

2. Provide comments on the labor utilization plan, salary scales, and salary regulations of the Military Telecommunications Corporation.

Article 8. Responsibilities of the Ministry of Labor, Invalids and Social Affairs

1. Coordinate with the Ministry of National Defense to inspect and supervise the implementation of piloting salary management for the Military Telecommunications Corporation as prescribed in this Decree.

2. Guide the Military Group Telecommunications Corporation to establish wage scales and salary tables as prescribed in Clause 3, Article 6 of this Decree.

Article 9. Effective Date

2. The Ministry of Labor, Invalids and Social Affairs shall take the lead and coordinate with the Ministry of National Defense, Ministry of Finance, and relevant ministries to guide the implementation of this Decree.

3. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, and the General Directors of the Military Post and Telecommunications Group are responsible for implementing this Decree./.