Decree No. 82/2021/ND-CP on extending the implementation period and 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, of the Government on piloting management of labor and wages for the Military Industry Telecommunications Group.

DECREE

ON EXTENDING THE IMPLEMENTATION PERIOD AND AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF DECREE NO. 121/2016/NĐ-CP DATED AUGUST 24, 2016, AS AMENDED AND COMPLEMENTED BY DECREE NO. 74/2020/NĐ-CP DATED JULY 1, 2020 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; the Law Amending and Supplementing Certain Provisions of the Law on Government Organization and the Law on Local Administration Organization 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 on extending the implementation period and amending and supplementing certain provisions of Decree No. 121/2016/NĐ-CP dated August 24, 2016 (hereinafter referred to as Decree No. 121/2016/NĐ-CP), which has been amended and supplemented by Decree No. 74/2020/NĐ-CP dated July 1, 2020 of the Government (hereinafter referred to as Decree No. 74/2020/NĐ-CP) on trial management of labor and wages for the Military Industry and Telecommunications Group.

Article 1. Amending and supplementing the name and certain provisions of Decree No. 121/2016/NĐ-CP dated August 24, 2016, which has been amended and supplemented by Decree No. 74/2020/NĐ-CP dated July 1, 2020 of the Government, as follows:

1. Amending the name of Decree No. 121/2016/NĐ-CP, which has been amended and supplemented by Decree No. 74/2020/NĐ-CP, to be "On Trial Management of Labor and Wages for the Military Industry and Telecommunications Group."

2. Amending Clause 1 of Decree No. 121/2016/NĐ-CP, which has been amended and supplemented by Clause 1 of Article 1 of Decree No. 74/2020/NĐ-CP, as follows:

"Article 1. Scope of Regulation

This Decree stipulates the trial management of labor and wages for the Parent Company of the Military Industry and Telecommunications Group; limited liability companies wholly owned by the Parent Company of the Military Industry and Telecommunications Group; joint-stock companies and companies held over 50% of the charter capital by the Parent Company of the Military Industry and Telecommunications Group.”

3. Amending Clause 3 and Clause 4 of Article 4 of Decree No. 121/2016/NĐ-CP, as follows:

“3. The objects regulated under Clauses 2 and 3 of Article 2 of this Decree are defense workers with salaries determined according to Decree No. 19/2017/NĐ-CP dated February 24, 2017 of the Government on wage systems for defense workers and seniority allowances for defense civil servants. The objects regulated under Clauses 2 and 3 of Article 2 of this Decree are defense civil servants with salaries determined according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government on wage systems for officials, civil servants, and armed forces personnel.

4. Objects not falling within the categories specified in Clauses 1, 2, and 3 of this Article shall have their salaries and wage supplements determined based on the wage scale and wage table established and decided upon by the company in accordance with Clause 1 of Article 93 of the Labor Code.”

4. Amending Clause 1 of Article 5 of Decree No. 121/2016/NĐ-CP, which has been amended and supplemented by Clause 1 of Article 1 of Decree No. 74/2020/NĐ-CP, as follows:

“1. The Parent Company of the Military Industry and Telecommunications Group is assigned to stabilize the wage rate (calculated based on the total revenue minus total costs excluding wages) during the period from 2016 to 2020 and thereafter, based on the average wage rate implemented during the period from 2011 to 2015, provided that all conditions are met: Successfully completing national defense and security tasks assigned by the Party and State; paying taxes in accordance with the law; the annual average wage increase rate must be lower than the annual average productivity increase rate; and the annual profit realized must be at least 3% higher than the profit realized in the previous year.”

5. Amending Clause 1 of Article 6 of Decree No. 121/2016/NĐ-CP, which has been amended and supplemented by Clause 1 of Article 1 of Decree No. 74/2020/NĐ-CP, as follows:

“1. Limited liability companies wholly owned by the Parent Company of the Military Industry and Telecommunications Group are assigned to stabilize the wage rate (calculated based on the total revenue minus total costs excluding wages or based on the total product or converted total product) during the period from 2016 to 2020 and thereafter, based on the average wage rate implemented during the period from 2011 to 2015, provided that all conditions are met: Successfully completing national defense and security tasks assigned by the Party and State; paying taxes in accordance with the law; the annual average wage increase rate must be lower than the annual average productivity increase rate; and the annual profit realized must not be lower than the profit realized in the previous year.”

The average wage rate implemented during the period from 2011 to 2015 is calculated based on the wage fund implemented and the total revenue minus total costs excluding wages or total product or converted total product implemented annually during the period from 2011 to 2015.”

6. Amending and supplementing Clause 5 of Article 6 of Decree No. 121/2016/NĐ-CP, which was added by Clause 2 of Article 1 of Decree No. 74/2020/NĐ-CP, as follows:

“5. In 2020 and thereafter, when expanding production and business operations, implementing the restructuring plan of the Military Industry and Telecommunications Group as decided by the Prime Minister, if a limited liability company wholly owned by the Parent Company of the Military Industry and Telecommunications Group must take on new production and business tasks from the Parent Company of the Military Industry and Telecommunications Group or merge with another limited liability company wholly owned by the Parent Company of the Military Industry and Telecommunications Group or engage in new production and business activities, then the wage fund for employees will be handled as follows:

a) In the case of accepting new production and business tasks from the Parent Company or receiving the merger of a limited liability company with one member held 100% of the charter capital by the Parent Company, from the time of accepting new production and business tasks or receiving the merger, the wage fund for employees performing these tasks shall be determined based on the average number of actual employees used and the maximum wage level equal to the average wage of employees who have performed these tasks at the transferring company or the merged company in the year immediately preceding the transfer or merger; if this average wage is lower than the average wage of employees performing similar tasks at the merging company, it shall be calculated at most equal to the average wage in the year immediately preceding the merger at the merging company.

b) In the case of newly arising production and business activities (outside the stable wage unit price tasks assigned and outside the new production and business tasks received from the Parent Company as stipulated in point a of this clause), from the time of arising new production and business activities, the wage fund for employees performing these tasks shall be determined based on the average number of actual employees used and the average wage level decided by the company to ensure general proportionality but not exceeding the wage of employees doing similar jobs in the Group.

When determining the wage fund according to the provisions of points a and b of this clause, the company must ensure: completing well the national defense and security tasks assigned by the Party and State; paying taxes to the state budget as prescribed by law, achieving profits, and reporting to the Parent Company - Military Industry and Telecommunications Corporation for comments before implementation.

7. Supplement Clause 4 to Article 7 of Decree No. 121/2016/NĐ-CP amended and supplemented at Clause 3, Article 1 of Decree No. 74/2020/NĐ-CP as follows:

"4. From 2021 onwards, for production and business tasks that have been assigned a stable wage unit price during the period 2016-2020, continue to implement this wage unit price according to the principle stipulated in Clause 1 of this Article; for production and business tasks received from the Parent Company - Military Industry and Telecommunications Corporation, the determination of the wage fund for these tasks shall be carried out according to the provisions of Clause 2 of this Article; for newly arising production and business tasks (outside the stable wage unit price production and business tasks assigned as stipulated in Clause 1 and outside the new production and business tasks received from the Parent Company - Military Industry and Telecommunications Corporation as stipulated in Clause 2 of this Article), the determination of the wage fund for these tasks shall be carried out according to the provisions of point b, Clause 5, Article 6 of this Decree; for companies established from 2020, the determination of the wage fund from 2021 for these companies shall be carried out according to the principle stipulated in Clause 3 of this Article."

8. Remove the phrase "up to December 31, 2020" in Clause 1, Article 10 of Decree No. 121/2016/NĐ-CP and Clause 1, Article 2 of Decree No. 74/2020/NĐ-CP.

Article 2. Effectiveness and responsibility for implementation

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

2. The provisions of this Decree shall be implemented from January 1, 2021 until the Government issues a new Decree regulating labor management, wages, remuneration, and bonuses in state-owned enterprises according to Resolution No. 27-NQ/TW dated May 21, 2018 of the Seventh Plenary Session of the Central Committee of the Communist Party of Vietnam's Twelfth Congress on reforming salary policies for cadres, civil servants, public officials, armed forces personnel, and workers in enterprises.

3. From 2021 onwards, for companies held 100% of the charter capital or more than 50% of the total voting shares by the Parent Company - Military Industry and Telecommunications Corporation, when they have been assigned a stable wage unit price and their productivity or profit indicators decrease mainly due to objective factors leading to the average wage of employees receiving the assigned stable wage unit price being less than 65% of the average wage in 2020 of those employees, then the wage can be increased up to 65% of the average wage in 2020 and must not be lower than the wage determined according to the wage scale, pay table, and allowances stipulated in Article 4 of Decree No. 121/2016/NĐ-CP amended at Clause 3, Article 1 of this Decree. When determining the average wage according to this provision, the company must ensure: completing well the national defense and security tasks assigned by the Party and State; paying taxes to the state budget as prescribed by law, and must report to the Parent Company - Military Industry and Telecommunications Corporation for comments before implementation.

4. The Chairperson of the Supervisory Board, Supervisory Board Members of the Parent Company - Military Industry and Telecommunications Corporation, and companies held 100% of the charter capital or more than 50% of the total voting shares by the Parent Company - Military Industry and Telecommunications Corporation shall continue to apply wages, remuneration, and bonuses according to the provisions of Decree No. 121/2016/NĐ-CP amended and supplemented by Decree No. 74/2020/NĐ-CP, and shall not apply the provisions on wages, remuneration, and bonuses in Clause 2, Article 8 of Decree No. 47/2021/NĐ-CP dated April 1, 2021 of the Government detailing some articles of the Enterprise Law until the Government issues a new Decree regulating labor management, wages, remuneration, and bonuses in state-owned enterprises.

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