Decree No. 79/2024/ND-CP amends and supplements certain Articles of Decree No. 121/2016/ND-CP dated August 24, 2016, which has been amended and supplemented by Decree No. 74/2020/ND-CP dated July 1, 2020, and Decree No. 82/2021/ND-CP dated September 6, 2021, of the Government on piloting the management of labor and wages for the Military Industry - Telecommunications Group.

DECREE

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF DECREE NO. 121/2016/ND-CP OF AUGUST 24, 2016, AS AMENDED AND COMPLEMENTED BY DECREE NO. 74/2020/ND-CP OF JULY 1, 2020 AND DECREE NO. 82/2021/ND-CP OF SEPTEMBER 6, 2021 OF THE GOVERNMENT ON TRIAL MANAGEMENT OF LABOR AND WAGES FOR THE MILITARY INDUSTRY AND TELECOMMUNICATIONS GROUP

Pursuant to 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 promulgates this Decree amending and supplementing certain articles of Decree No. 121/2016/ND-CP dated August 24, 2016, which has been amended and supplemented by Decree No. 74/2020/ND-CP dated July 1, 2020 and Decree No. 82/2021/ND-CP dated September 6, 2021 of the Government on trial management of labor and wages for the Military Industry and Telecommunications Group.

Article 1. Amend and supplement certain articles of Decree No.121/2016/ND-CP dated August 24, 2016, which has been amended and supplemented by Decree No. 74/2020/ND-CP dated July 1, 2020 and Decree No. 82/2021/ND-CP dated September 6, 2021 of the Government.

1. Amend Clause 2, Article 4 of Decree No. 121/2016/ND-CP dated August 24, 2016 (hereinafter referred to as Decree No. 121/2016/ND-CP) as follows:

“2. The subjects specified in Clause 1, Article 2 of this Decree shall not be officers or professional military personnel implementing salary according to the salary scale established by the enterprise in accordance with Clause 2, Article 2 of Decree No. 21/2024/ND-CP dated February 23, 2024 of the Government amending and supplementing certain provisions of Decree No. 51/2016/ND-CP dated June 13, 2016 of the Government on labor management, wage and bonus management for employees in a joint-stock company with 100% state capital and Decree No. 52/2016/ND-CP dated June 13, 2016 of the Government on wage, remuneration, and bonus management for managers in a joint-stock company with 100% state capital.”

2. Amend and supplement Clause 4, Article 5 of Decree No. 121/2016/ND-CP, which has been amended at Clause 1, Article 1 of Decree No. 74/2020/ND-CP dated July 1, 2020 (hereinafter referred to as Decree No. 74/2020/ND-CP) as follows:

a) Amend the phrase "Implementing security and defense tasks assigned by the State and the Ministry of National Defense" to "Implementing security and defense tasks assigned by the State and the Ministry of National Defense or conducting research and production of security and defense products and services without revenue or yet to generate revenue."

b) Amend the phrase "State price adjustment (for products priced by the State)" to "producing and supplying products and services priced by the State but the price does not cover costs as prescribed by laws on pricing and related laws, or the State adjusts prices lower than the contracted price, ordered price, or assigned task."

c) Add before the phrase "; natural disasters, fires, epidemics, wars, and other unforeseeable and irresistible factors" the following: "; assigned additional volume of security and defense products and services compared to the previous year by competent state authorities; directly affected when implementing restructuring plans as stipulated by competent state authorities; adjusted or newly extracted reserve funds as prescribed when there are external factors in the host country where the company invests projects; adjusted operational policies according to requirements of competent state authorities, pursuant to international agreements signed on behalf of the Socialist Republic of Vietnam with foreign signatories; due to changes in policy of the host country where the company invests projects; market impact directly affecting basic production input factors of the company;"

3. Add to the end of Point a, Clause 5, Article 6 of Decree No. 121/2016/ND-CP, which has been amended and supplemented at Clause 2, Article 1 of Decree No. 74/2020/ND-CP, Clause 6, Article 1 of Decree No. 82/2021/ND-CP dated September 6, 2021 (hereinafter referred to as Decree No. 82/2021/ND-CP) the following:

"For the fiscal year immediately following the year of merger, the actual wage fund for employees of the merged company shall be determined based on the average number of employees actually employed and the average wage level of employees at the merging company or the company being merged prior to the merger.

In cases where new production and business tasks arise after the merger (beyond the existing production and business tasks of the merging company and the company being merged and new tasks received from the Parent Company - Military Industry and Telecommunications Group), the actual wage fund for employees performing these new tasks shall be determined based on the average number of employees actually employed and the average wage level decided by the company to ensure parity within the Group.

After the period calculated from the time point of receiving new production and business tasks from the Military Industry - Telecommunications Corporation or receiving mergers or generating new production and business tasks at the company after mergers to the end of the fiscal year immediately following the year of receiving production and business tasks from the parent company or receiving mergers or generating new production and business tasks at the company after mergers as stipulated in paragraph 1 and paragraph 2 of this point, the annual wage fund for employees performing these production and business tasks shall be determined based on the actual average number of workers used and the average wage level implemented according to labor productivity and profit performance compared to the immediately preceding year in accordance with the principles prescribed in Clause 3 and Clause 4 of this Article.

4. Supplement the end of paragraph b, Clause 5, Article 6 of Decree No. 121/2016/ND-CP, which has been amended and supplemented by Clause 2, Article 1 of Decree No. 74/2020/ND-CP, and Clause 6, Article 1 of Decree No. 82/2021/ND-CP, as follows:

"After the period calculated from the time point of generating new production and business activities to the end of the fiscal year immediately following the year of generating new production and business activities, the annual wage fund for employees performing these production and business tasks shall be determined based on the actual average number of workers used and the average wage level implemented according to labor productivity and profit performance compared to the immediately preceding year in accordance with the principles prescribed in Clause 3 and Clause 4 of this Article."

5. Amend paragraph c, Clause 5, Article 6 of Decree No. 121/2016/ND-CP, which has been amended and supplemented by Clause 2, Article 1 of Decree No. 74/2020/ND-CP, and Clause 6, Article 1 of Decree No. 82/2021/ND-CP, as follows:

"c) When determining the annual wage fund as prescribed in paragraph 1 and paragraph 2 of paragraph a and paragraph 1 of paragraph b of this clause, the company must ensure: completing the defense and security tasks assigned by the Party and State; paying taxes to the state budget in accordance with the law, achieving profits, and reporting to the Military Industry - Telecommunications Corporation for comments before implementation."

6. Supplement Clause 6 to Article 6 of Decree No. 121/2016/ND-CP, which has been amended and supplemented by Clause 1, Article 1 of Decree No. 74/2020/ND-CP, and Clause 8, Article 1 of Decree No. 82/2021/ND-CP, as follows:

"6. For newly established companies or those that were established previously but have only recently resumed operations, the annual wage fund of the company shall be determined as follows:

a) From the time of new establishment or resuming operations until the end of the fiscal year immediately following the year of establishment or resumption of operations, the annual wage fund shall be determined based on the actual average number of workers used and the average wage level set by the company ensuring general parity within the Group.

b) After the period specified in paragraph a of this clause, the annual wage fund shall be determined based on the actual average number of workers used and the average wage level implemented according to labor productivity and profit performance compared to the immediately preceding year in accordance with the principles prescribed in Clause 3 and Clause 4 of this Article. In case the company incurs losses, the average wage level for calculating the wage fund shall be equal to the average wage level stipulated in the labor contract for employees working under labor contracts, the salary grade, rank, and subsistence allowance for officers, professional military personnel, workers, and civil servants in national defense, and the daily wage for holidays, festivals, paid leave days, and additional wages for night work and overtime work as prescribed by the Labor Code. In case the company reduces its losses compared to the previous year's performance, before implementation, the company shall determine the average wage level based on the degree of loss reduction, report to the Military Industry - Telecommunications Corporation for comments, and ensure general parity within the Group.

c) When determining the annual wage fund as prescribed in paragraph a of this clause, the company must ensure: completing the defense and security tasks assigned by the Party and State; paying taxes to the state budget in accordance with the law, and reporting to the Military Industry - Telecommunications Corporation for comments before implementation."

7. Amend the provision "for companies established from 2020, the determination of the annual wage fund from 2021 for such companies shall be carried out in accordance with the principles prescribed in Clause 3 of this Article" in Clause 4, Article 7 of Decree No. 121/2016/ND-CP, which has been amended and supplemented by Clause 3, Article 1 of Decree No. 74/2020/ND-CP, and Clause 7, Article 1 of Decree No. 82/2021/ND-CP, to read: "for companies established in 2020, the determination of the annual wage fund during the period 2021-2023 shall be carried out in accordance with the principles prescribed in Clause 3 of this Article, from 2024 onwards, the annual wage fund shall be determined based on the actual average number of workers used and the average wage level implemented according to labor productivity and profit performance compared to the immediately preceding year in accordance with the principles prescribed in paragraph b, Clause 6 of this Decree."

8. Supplement Clause 5 to Article 7 of Decree No. 121/2016/ND-CP, which has been amended and supplemented by Clause 3, Article 1 of Decree No. 74/2020/ND-CP, and Clause 8, Article 1 of Decree No. 82/2021/ND-CP, as follows:

"5. For companies newly established from 2024 onwards, the representative of the capital of the Military Industry - Telecommunications Corporation shall participate in the Board of Members or the Board of Directors, and the General Shareholders' Meeting to decide the annual wage fund of the company in accordance with the principles prescribed in Clause 6 of Article 6 of this Decree."

Article 2. Effectiveness and responsibility for implementation

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

The provisions in Clause 2, Clause 3, and Clause 6 of Article 1 of this Decree shall be applied to determine the annual wage fund from 2023.

2. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government, Chairmen, General Directors, Directors of the Parent Company - Military Industry and Post & Telecommunications Corporation, wholly state-owned limited liability companies held 100% by the Parent Company - Military Industry and Post & Telecommunications Corporation, and representatives of the Parent Company - Military Industry and Post & Telecommunications Corporation's capital shall be responsible for implementing this Decree.