Amending regulations on wages, payrolls, salary scales, salary grades, and allowances from April 10, 2024

Decree No. 21/2024/ND-CP takes effect from April 10, 2024, amending regulations on determining planned salary funds; salary scales, salary tables, salary allowances for employees; amending regulations on salary classification for managers and specialized controllers.

Illustration photo. (Source: Internet)

On behalf of the Government, signing on behalf of the Prime Minister, Deputy Prime Minister Le Minh Khai signed and issued Decree No. 21/2024/ND-CP, dated February 23, 2024 of the Government amending and supplementing a number of articles of Decree No. 51/2016/ND-CP dated June 13, 2016 regulating labor management, wages and bonuses for employees working in single-member limited liability companies with 100% charter capital held by the State and Decree No. 52/2016/ND-CP dated June 13, 2016 regulating wages, remuneration and bonuses for managers of single-member limited liability companies with 100% charter capital held by the State.

Decree No. 21/2024/ND-CP takes effect from April 10, 2024.

Amending regulations on salary scales, payrolls, and salary allowances for employees

Decree No. 21/2024/ND-CP amending Article 4 of Decree No. 51/2016/ND-CP on salary scales, salary tables, and salary allowances for employees working in single-member limited liability companies with 100% state capital.

Specifically, based on production organization and labor organization, the company builds and issues salary scales, salary tables, and salary allowances as the basis for salary arrangement, salary payment, and implementation of regimes for employees according to the provisions of labor law.

The salary levels in the salary scale, salary table, and salary allowances are decided by the company, but must ensure that the salary fund calculated according to the salary levels in the salary scale, salary table, and salary allowances does not exceed the planned salary fund of employees according to regulations.

When building or amending and supplementing salary scales, salary tables and salary allowances, the company must consult with the organization representing employees at the facility, organize dialogues at the workplace according to regulations, report to the owner's representative agency for comments and make it public at the company before implementation.

Amending and supplementing regulations on determining planned salary fund

At the same time, Decree No. 21/2024/ND-CP also amends and supplements Point a and Point b, Clause 3, Article 5 of Decree No. 51/2016/ND-CP on determining the planned salary fund.

Specifically, when determining the planned salary fund, the company excludes objective factors affecting labor productivity and planned profits compared to the implementation of the previous year, including:

The State adjusts prices, production and business limits (for products and services whose prices are set by the State or whose production and business limits are regulated by the State), provides corporate income tax incentives, increases or decreases state capital, requires companies to relocate or reduce production and business locations, and adjusts mechanisms and policies that directly affect the company's labor productivity and profit targets.

The company participates in performing political tasks, national security and defense, ensuring social security, and balancing supply and demand for the economy according to the Prime Minister's decision;

Carry out investment, receive or transfer the right to represent the ownership of state capital under the direction of the Government or the Prime Minister;

Receive, buy, sell, defer, extend and handle debts, assets, buy and sell products and services according to the provisions of law or the requirements of competent state agencies;

Implement retroactive provisions as prescribed by the Government; increase depreciation to recover capital quickly as prescribed by tax laws;

Adjust operating policies according to the requirements of competent state agencies, Agreements, Treaties or regulations of international organizations of which Vietnam is a member;

Implement restructuring projects, supplement or divest capital in other enterprises; make new investments, expand production and business; adjust or create new provisions for financial and credit risks according to the provisions of law;

Providing products and services with prices set by the State and price adjustment mechanism but the price has not been adjusted to cover actual and reasonable production and business costs when price formation factors change according to the provisions of the Law on Prices;

Allocate costs of unsuccessful oil and gas exploration and exploitation projects according to Government regulations, determine corporate income tax according to oil and gas contracts for oil and gas exploration and exploitation companies according to tax laws;

Sales of debt purchase and debt settlement have not been recorded in revenue and profit for debt trading companies according to the provisions of law; fluctuations in revenue from activities of organizing securities trading markets and securities depository operations;

Difference in bonus payment compared to previous year's implementation for lottery business companies; change in environment and mineral exploitation conditions for mineral exploitation companies.

Amending regulations on salary classification for managers and specialized controllers

In addition, Decree No. 21/2024/ND-CP also amends and supplements Decree No. 52/2016/ND-CP regulating salaries, remuneration, and bonuses for managers of single-member limited liability companies in which the State holds 100% of the charter capital.

Specifically, the phrase "manager" in the name and the phrases "manager" or "company manager" in the articles, clauses, and appendices of Decree 52/2016/ND-CP are replaced by the phrase "manager, Controller".

Regarding salary arrangement for managers and full-time Controllers, according to new regulations in Decree No. 21/2024/ND-CP, based on the management structure, the Board of Members or the Chairman of the company shall develop, issue salary tables and salary arrangements for managers and full-time Controllers as a basis for implementing social insurance, health insurance, unemployment insurance and other regimes according to the provisions of labor law.

The salary levels in the salary table are decided by the Board of Members or the Chairman of the company, but must ensure that the salary fund calculated according to the salary levels in the salary table does not exceed the planned salary fund of the manager and specialized Controller according to regulations.

When building or amending and supplementing the salary table of the manager, the Controller, the Board of Members or the Chairman of the company must consult with the organization representing employees at the facility, organize a dialogue at the workplace according to regulations, report to the owner's representative agency for approval and make it public at the company before implementation.

Decree No. 21/2024/ND-CP also adds the following provision: In case the company's Board of Supervisors has only 01 Supervisor as prescribed in Article 103 of the Law on Enterprises, the Supervisor shall receive salary, remuneration, and bonus of the position of Head of the Board of Supervisors.

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