Decree No. 87/2021/ND-CP on extending the implementation period and amending and supplementing some 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 certain state-owned economic groups and corporations.

DECREE

Regarding the extension of the implementation period and amendment and supplementation of some articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government on piloting the management of labor, wages, and bonuses for certain state-owned corporations and companies.

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

Pursuant to the Labor Code on November 20, 2019;

Pursuant to the Enterprise Law dated June 17, 2020; the Law on Management and Use of State Capital for Production and Business Investment dated November 26, 2014;

Decree No. 07/2021/NĐ-CP

The Government promulgates this Decree on extending the implementation period and amending and supplementing some articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government on piloting the management of labor, wages, and bonuses for certain state-owned corporations and companies.

Article 1. Amending and supplementing some articles of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government on piloting the management of labor, wages, and bonuses for certain state-owned corporations and companies.

1. Amending the first paragraph of Article 1 as follows:

"This Decree stipulates the pilot implementation of labor management, wage scale construction; wages and bonuses for employees and General Directors, Deputy General Directors, Chief Accountants; remuneration, fees, and bonuses for Members of the Board of Members, Board of Directors, Heads of Supervisory Boards, and Supervisors at the following corporations and companies:"

2. Supplementing Clause 5 to Article 8 as follows:

"5. Based on the actual wage fund, the company decides to use the entire wage fund to pay wages for the year or set aside a portion to establish a supplementary reserve fund for the next year's wage fund, but it shall not exceed 17% of the actual wage fund."

3. Removing the phrase "up to December 31, 2020" from Clause 2 of Article 20.

Article 2. Effective Date

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

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 salary reform policies for cadres, civil servants, public officials, and workers in enterprises which becomes effective.

3. For cases where the company's labor productivity, profit, and return on equity mainly decrease due to direct impacts from external factors, when determining the wage fund for employees, the Management Board shall determine based on the unit price quota and the level of wages and remuneration for Members of the Board of Members, Board of Directors, Heads of Supervisory Boards, and Supervisors as stipulated in Clause 1, Clause 3 of Article 8 and Clause 2 of Article 12, Article 13 of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government, if the average wage of the Management Board and employees on the payroll is lower than 65% of the average wage (including safety bonuses, if any) of these employees in 2019; the level of wages and remuneration for Members of the Board of Members, Board of Directors, Heads of Supervisory Boards, and Supervisors is lower than 65% of the actual wages and remuneration of each corresponding position in 2019, then the company shall determine and report to the agency representing the owner for consideration and decision on the average wage of the Management Board and employees higher than 65% of the actual average wage (including safety bonuses, if any) of these employees in 2019; the level of wages and remuneration for Members of the Board of Members, Board of Directors, Heads of Supervisory Boards, and Supervisors higher than 65% of the actual wages and remuneration of each corresponding position in 2019.

4. When determining wages and remuneration as prescribed in Clause 3 of this Article, the company must complete the profit plan (excluding external factors) assigned by the agency representing the owner. The average wage of employees and the Management Board shall not be lower than the wage determined according to the wage scale constructed and issued by the company in accordance with Article 6 of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government.

5. The Head of the Supervisory Board and Supervisor of the company continue to apply wages, remuneration, and bonuses according to the provisions of Decree No. 20/2020/NĐ-CP dated February 17, 2020 of the Government, not applying the provisions on wages, remuneration, and bonuses in Clause 2 of Article 8 of Decree No. 47/2021/NĐ-CP dated April 1, 2021 of the Government detailing some provisions of the Enterprise Law until the Government issues a new Decree regulating labor management, wages, remuneration, and bonuses in state-owned enterprises which becomes effective.