From April 10, new salary policy officially applied to State-owned enterprises

From April 10, Decree No. 21/2024/ND-CP 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 officially took effect.

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.

Eliminate objective factors when 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, balancing supply and demand for the economy according to the Prime Minister's decision; making investments, receiving or transferring the right to represent the ownership of State capital according to the direction of the Government or the Prime Minister; receiving, purchasing, selling, freezing, extending and handling debts, assets, purchasing and selling products and services according to the provisions of law or the requirements of competent State agencies; implementing retroactive provisions according to the Government's regulations; increasing depreciation to recover capital quickly according to the provisions of tax law; adjusting operating policies according to the requirements of competent State agencies, Agreements, Treaties or regulations of international organizations of which Vietnam is a member; implementing restructuring projects, supplementing or divesting investment capital in other enterprises; making new investments, expanding production and business; adjusting or creating 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 compensate for actual and reasonable production and business costs when price formation factors change according to the provisions of the Law on Prices; allocating costs of unsuccessful oil and gas exploration and exploitation projects according to the Government's regulations; determining corporate income tax according to oil and gas contracts for oil and gas exploration, exploitation and exploitation companies according to the provisions of the law on taxes; debt purchase and debt settlement turnover not yet recorded in revenue and profit for debt trading companies according to the provisions of law; fluctuations in revenue from securities trading market organization activities and securities depository activities; difference in bonus payment compared to the previous year for lottery companies; changes in the environment and conditions for mineral exploitation 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.

Additional coefficient to calculate the planned average salary

Accordingly, the change in the regulation on the planned average salary level is determined based on the basic salary level according to the company class specified in Appendix I and Appendix II issued with this Decree and the increase coefficient compared to the basic salary level according to the planned profit increase compared to the implementation of the previous year.

Specifically, companies with labor productivity that does not decrease and planned profits that are higher than those of the previous year will be subject to an additional coefficient that does not exceed the additional coefficient prescribed as follows:

Profitability by business sector	Bonus factor
Profitability by business sector	0.5	1.0	1.5	2.0	2.5
Group 1: Banking, finance (excluding securities trading market organization, securities depository), telecommunications	Under 500 billion VND	From 500 to under 1,500 billion VND	From 1,500 to under 2,000 billion VND	From 2,000 to under 3,000 billion VND	From 3,000 billion VND or more
Group 2: Exploitation and processing of oil and gas, minerals, electricity, trade and services	Under 300 billion VND	From 300 to under 1,000 billion VND	From 1,000 to under 1,500 billion VND	From 1,500 to under 2,000 billion VND	From 2,000 billion VND or more
Group 3: Organizing securities trading markets, securities depository and other fields	Under 200 billion VND	From 200 to under 700 billion VND	From 700 to under 1,000 billion VND	From 1,000 to under 1,500 billion VND	From 1,500 billion VND or more

In case the company has a planned profit that is many times higher than the lowest profit corresponding to the additional coefficient of 2.5 in the Additional Coefficient Table, plays an important role in the national economy, operates in a field where enterprises in the market are paying higher salaries to management workers than equivalent positions of the company, and it is necessary to apply a higher additional coefficient according to regulations to encourage management workers, then report to the owner's representative agency when considering and deciding on the salary fund of managers and Controllers in accordance with the salary level of equivalent positions in the same field of operation in the market, after consulting with the Ministry of Labor - Invalids and Social Affairs to ensure general balance.

A company whose planned profit is not higher than the realized profit of the previous year shall be entitled to apply an additional coefficient not exceeding 70% of the additional coefficient corresponding to the profit level in the Additional Coefficient Table specified in Point a of this Clause multiplied by the ratio between the planned profit and the realized profit of the previous year.

If the company is not profitable, the planned average salary must be lower than the basic salary, but not lower than 50% of the basic salary. In case of loss, the planned average salary is equal to 50% of the basic salary.

If the company reduces losses compared to the previous year, the newly established or newly operating company shall base on the level of loss reduction or production and business plan to determine salary, ensure general correlation and report to the owner's representative agency for consideration and decision.

In case the planned profit is equal to or higher than the realized profit of the previous year, after determining according to the above provisions, if the planned average salary is lower than the realized average salary of the previous year, the planned average salary is calculated by the realized average salary of the previous year.

Modify the company class used to determine base salary

In the appendix, Decree 21/2024/ND-CP amends the company class used to determine the basic salary of managers and specialized controllers as prescribed in Appendix 1 of Decree No. 52/2016/ND-CP.

Specifically, amend and supplement the content "profit from 200 billion VND or more, payment to the State budget from 200 billion VND or more (capital, profit and budget payment indicators are calculated on average for 3 years) and have 10 member units or have a total number of employees of the parent company and member units from 10,000 people or more" in section b, point 2 to: "profit (or total revenue minus total expenses for companies operating not for profit) from 200 billion VND or more, have 10 member units (independent and dependent accounting) or have production and business organizations nationwide, fully perform the obligation to pay to the State budget according to regulations. Indicators on capital, profit or total revenue minus total expenses for companies operating not for profit, are calculated on average for 3 years".

Amend and supplement the content "profit from 100 billion VND or more, paying the State budget from 100 billion VND or more and having 5 member units or having a total number of employees of the parent company and member units from 7,000 people or more" in section c, point 2 to: "profit (or total revenue minus total expenses for companies operating not for profit) from 100 billion VND or more, having 5 member units (independent and dependent accounting) or having production and business organizations nationwide, fully performing the obligation to pay the State budget according to regulations. The capital, profit or total revenue minus total expenses for companies operating not for profit are calculated on average for 03 years".

After the amendment, enterprises with 100% state capital are divided into 6 classes with specific conditions for ranking.

Wisdom

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