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THE GOVERNMENT
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 52/2016/ND-CP
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Hanoi, June 13,
2016
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DECREE
PROVIDING
FOR SALARY, REMUNERATION AND BONUS PAYMENT TO MANAGERS OF SINGLE-MEMBER LIMITED
LIABILITY COMPANIES OF WHICH CHARTER CAPITAL IS WHOLLY OWNED BY THE STATE
Pursuant to the Law on Government Organization
dated June 19, 2015;
Pursuant to the Labor Code dated June 18, 2012;
Pursuant to the Corporate Law dated November 26,
2014;
Pursuant to the Law on Management and Use of
state-owned capital invested in production and trading activities of
enterprises dated November 26, 2014;
Upon the request of the Minister of Labor, War
Invalids and Social Affairs;
The Government
hereby introduces the Decree providing for salary, remuneration and bonus
payment to managers of single-member limited liability companies of which
charter capital is wholly owned by the State (hereinafter referred to as wholly
state-owned SMLLC).
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This Decree sets out regulations on salary,
remuneration and bonus payment to managers of wholly state-owned SMLLCs,
including:
1. Wholly state-owned SMLLCs which are parent
companies of state-owned economic corporations, parent companies of state-owned
incorporations and parent companies that belong to the group of parent -
subsidiary companies.
2. Wholly state-owned single-member private LLCs.
SMLLCs referred to in Clause 1 and Clause 2 of this
Article (hereinafter referred to as Company).
Article 2. Subject of
application
1. Full-time and part-time executive officers,
including Chairpersons of the Board of Members (BOM) or company President,
Members of BOM, Heads of the Control Board, Comptrollers, Directors General,
Directors, Deputy Directors General, Deputy Directors, Chief Accountants
(excluding Directors General, Directors, Deputy Directors General, Deputy
Directors and Chief Accountants hired under an employment contract).
2. Ministries, Ministry-level agencies, Government
bodies, People's Committees of centrally-affiliated cities and provinces, or
organizations established under laws and regulations which are designated by
the Government to exercise rights and take on duties as the owner’s
representatives to companies (hereinafter referred to as the owner’s
representative entity).
3. Entities, organizations and individuals related
to salary, remuneration and bonus payments to company managers.
Article 3. Classification of
pay bands by full-time company managers
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Article 4. Principles of
determination, payment of salaries, remunerations and bonuses
1. Salaries paid to full-time company managers
shall be determined in relation to production and business performance,
outcomes achieved from management, administration and control efforts, and be
restricted to maximum payment levels as well as ensure due proportion to
salaries paid to company employees
2. Remunerations awarded to part-time company
managers working in other companies shall be calculated in relation to work
duties and working hours and do not exceed 20% of salary amount paid to
full-time company managers. With regard to company managers that may be
appointed as representatives for contributed capital in many other companies or
enterprises, remunerations paid by these companies or enterprises shall be
remitted to their designating companies to decide payment of these
remunerations in proportion to their performance, but restricted to a maximum
of 50% of the actual amount of salaries paid by these designating companies.
The remaining portion of remunerations (if any) shall be recorded as other
earnings in the designating companies’ financial reports.
3. The payroll and total remuneration for company
managers shall be determined on a yearly basis, separated from the payroll for
employees, established and submitted by designating companies at their
discretion to owners for approval. Company managers shall be paid monthly
salary in advance which equals 80% of the temporarily calculated amount of
salaries or remunerations in that month; 20% of the remaining amount shall be
subject to year-end financial settlements and payments.
4. Salaries and remunerations paid to company
managers shall be accounted for in the business cost or expense and posted as
separate entries in annual financial statements prepared by their designating
companies.
5. Bonuses awarded company managers shall be
determined by years in proportion to their production, business performance,
outcomes produced from their management, administration or control efforts, and
shall be partially paid at the end of a year and fully paid at the end of their
terms of office.
6. If a company President holds his/her second
office as a Director General or Director, (s)he shall only be eligible to
receive salary applicable to the highest position.
7. After deducting amounts paid for social
insurance and health insurance contributions and other payables to insurance
agencies from salary, bonus and remuneration paid to the Head of the Control
Board and Comptroller as provided for by this Decree, the designating company
shall remit the difference to the owner’s representative entity to establish a
general fund and pay comptrollers in proportion to their performance. As for
financial comptrollers working at state-owned economic corporations, that
difference shall be subject to transfer to the Ministry of Finance that will
consider and decide to pay these comptrollers.
Article 5. Determination of
payroll and total remuneration budget
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2. The budgeted average pay rate shall be
determined on the basis of the pay rates referred to in the Appendix II hereto
(hereinafter referred to as basic pay rate) and the salary increase factor
associated with the increment of planned profit compared with the profit
realized in the immediately preceding year as provided for in the following
regulations:
a) Where designating companies have managed to
conserve and develop state-owned capital, discharge their debt obligations to
the state budget in accordance with laws and regulations, prevent any reduction
in labor productivity and have planned profits greater than that earned in the
immediately preceding year, the maximum salary increase factor of 0.5 by which
the basic pay rate is multiplied shall be applied to those operating in the
sector of banking, finance, telecommunications gaining the profit of under VND
500 billion, or those operating in the area of oil and gas extraction and
processing, minerals, electricity, commerce and service gaining the profit of
under VND 300 billion, or those operating in the remaining industries with the
planned profit of less than VND 200 billion; that of 0.7 shall be applied with
respect to those operating in the field of banking, finance, telecommunications
with the profit ranging from VND 500 billion to less than VND 1,000 billion, or
those operating in the oil and gas extraction and processing, minerals,
electricity, commerce and service industry with the profit ranging from VND 300
billion to below VND 700 billion, or those operating in other industries with
the profit ranging from VND 200 billion to less than VND 500 billion; that of
1.0 shall be applied to those operating in the field of banking, finance,
telecommunications gaining the profit of at least VND 1,000 billion, or those
operating in the oil and gas extraction and processing, minerals, electricity,
commerce and service industry having the planned profit of at least VND 700
billion, or those operating in other industries gaining the profit of at least
VND 500 billion.
b) If designating companies have managed to
conserve and develop state-owned capital, and fulfilled payment obligations to
the state budget in accordance with laws and regulations, planned profit equal
to the profit earned in the immediately preceding year, the budgeted average
pay rate shall be equal to the base pay rate. If the planned profit is less
than the profit earned in the immediately preceding year or there is no profit,
the budgeted average pay rate must be lower than the base pay rate.
c) If the designating company is running at a loss
(except in unexpected events referred to in Clause 6 of this Article), the
budgeted average pay rate shall be equal to the pay rate paid as a statutory
benefit contingent on salary factors referred to in Article 3 hereof and the
base pay rate.
d) If the designating company has a reduction in
its loss compared with that recognized in the previous year, or is newly
established, the degree of reduction in such loss or the production and
business plan must be taken into account to determine the payroll required to
be proportional and report to the owner's representative entity for its
consideration and decision.
If the planned profit is equal to or greater than
the profit earned in the immediately preceding year, but the budgeted average
pay rate determined under Point a and b mentioned above is the average pay rate
recognized in the immediately preceding year, the budgeted average pay rate
shall be equal to the average pay rate recognized in the immediately preceding
year.
3. If the designating company has its labor
productivity and planned profit which has not increased in comparison with that
realized in the immediately preceding year because of respectively producing or
trading goods or services subject to the State’s production or business limits,
the maximum amount of average salary increase shall not exceed the amount of
increase in the consumer price index forecast in a year in accordance with the
National Assembly’s Resolution on the annual socio-economic development plan.
4. If the designating company delivers public
sector products or perform public services respectively under the State’s
commissioning or plan authorization, or operating to meet non-profit
objectives, with respect to which the profit standard is replaced by the
product, service and task volume standard to the extent that such volume is not
less than the immediately preceding year's recognized volume thereof, the
average realized pay rate shall be equal to the base pay rate multiplied by the
consumer price index forecast in a year in accordance with the National
Assembly’s Resolution on the annual socio-economic development plan. The specific
pay rate shall be decided by the owner’s representative entity at its
discretion provided that it is aligned with the locality pay level.
5. Total remuneration budget for part-time company
managers shall be calculated on the basis of the number of part-time company
managers, work hours and remuneration rates referred to in Clause 2 Article 4
hereof.
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a) Price adjustment by the State (with respect to
products or services subject to the State's pricing), corporate income tax
incentives, state-owned capital increases or decreases, regulatory policy
modifications, or company relocation requests, production or business site
contraction, that directly affect labor productivity and profit standards of
the company.
b) The company’s involvement in discharge of
political, social welfare assurance, economic demand-supply balancing tasks
under the Prime Minister’s decisions, acquisition or transfer of interests in
representing the owner of state-owned capital with respect to those enterprises
subject to restructuring, debt treatment and restructuring under the direction
of the Prime Minister, investment in establishment or expansion of production
and business projects, increase in amortization for the purpose of fast capital
recovery as approved by competent authorities, and difference in lottery
payouts compared with those realized in the previous year with respect to
lottery companies.
c) Natural disasters, fires, epidemic diseases,
wars and any other force majeure events.
Article 6. Determination of
realized payroll and total remuneration
1. The realized payroll for full-time company
managers shall be established on the basis of the number of full-time company
managers and the budgeted average pay rates associated with the degree of
conformity to standards referred to in Article 5 hereof, whereby a company
manager will get a maximum 1% pay raise per a 1% by which the realized profit
(without taking into account objective elements) exceeds the planned profit.
2. Realized total remuneration paid to part-time
company managers shall be calculated on the basis of the number of part-time
company managers, work hours and remuneration rates referred to in Clause 2
Article 4 hereof.
3. On determining its realized payroll or total
remuneration, the company must take into account objective elements that may
cause impacts on the labor productivity, or the realized profit compared with
the planned profit.
4. On consulting the realized payroll, total
remuneration and these paid in advance to company managers, the company shall
determine the remaining payroll or total remuneration that must be paid. In the
event that advance payments exceed the realized payroll or total remuneration,
the excess portion of payroll or remuneration paid within an accounting year
must be refunded.
Article 7. Total bonus
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2. 90% of total bonus as provided for in Clause 1
of this Article shall be set aside for payment of bonuses at the end of each
year. The remaining portion of bonus (10%) shall be used for payment of bonuses
determined in proportion to company managers’ performance upon expiration of
their term of office.
Article 8. Payment of salaries,
remunerations and bonuses
1. Salaries or bonuses paid to company managers
shall be associated with their contribution to production and business
performance, and outcomes achieved from their management, administration and
control efforts, as provided for in the company’s regulations on salary,
remuneration and bonus payment.
2. Regulations on salary, remuneration and bonus
payment shall be established in accordance with laws, ensure democracy, public
access and transparency with the involvement of the Executive Committee of
Trade Union of the company and consent of the owner’s representative entity
before being implemented.
Article 9. Implementation
responsibility
1. The Board of Members or the President of the
company:
a) In the first quarter every year, formulate the
payroll and total remuneration budget for company managers associated with the
production and business plan, which ensures due proportion to the payroll for
employees, for submission to the owner’s representative entity for its
approval.
b) With reference to the outcomes achieved from
efforts to meet production and business standards, determine the realized
payroll, total remuneration and total bonus, and report to the owner’s representative
entity for its approval no later than the first quarter of the immediately
following year. With respect to a parent company – state-owned economic
corporation, a parent company of specially-ranked incorporation, and an
incorporation, which performs public duties and play key economic roles, send
it through to the Ministry of Labor, War Invalids and Social Affairs for its
supervision.
c) Identify and remit a portion of salary,
remuneration and bonus paid to the head of Control Board or Comptrollers to the
owner’s representative entity under the provisions of this Decree.
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dd) Establish rules for paying salaries,
remunerations and bonuses to company managers and report to the owner’s
representative entity before implementation of these rules.
e) Provide relevant documents and reports
concerning implementation of payroll, remuneration and bonus policies upon the
request of the Head of Control Board and Comptrollers.
g) In the second quarter every year, consolidate
salaries, remunerations and bonuses and earnings paid on a monthly basis in the
immediately preceding year to each company manager to report to the owner's
representative entity; make relevant information available on the company's
Website in accordance with laws.
2. The Head of Control Board and Comptrollers:
a) Inspect and monitor compliance of the Board of
Members or the company President, the Director General and the Director with
this Decree.
b) Make any recommendation to the Board of Members
or the company President, the Director General and the Director, or report to
the owner's representative agency on any violation against the State's
regulations.
3. The owner’s representative entity:
a) In the first quarter every year, consider and
approve the previous year’s realized payroll, total remuneration and total
bonus, and the payroll and total remuneration budget for company managers. With
regard to the payroll and total remuneration for managers of parent companies –
economic corporations, the owner’s representative entity shall approve it after
obtaining consent from the Ministry of Labor, War Invalids and Social Affairs.
b) Submit to the Ministry of Labor, War Invalids
and Social Affairs the approved payroll, total remuneration, total bonus for
managers of parent companies – state-owned economic corporations, parent
companies of specially-ranked incorporations, and incorporations, which perform
public duties and play key economic roles for consolidation and monitoring
purposes.
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Where the Head of Control Board or any Comptroller
fails to fulfill their assigned duties, depending on the severity or type of
violation, disciplinary actions may be imposed, including refusal to offer a
pay raise, extended time limit for salary grade increase, reductions in
salaries, remunerations or bonuses, pay grade decrease, reprimand, warning,
dismissal or forced termination of term of office in accordance with laws.
d) Give its comments on salary, remuneration and
bonus payment regulations of the company; publish the realized payroll, total
remuneration, total bonus and pay, remuneration and bonus rate, and monthly
earnings of each company manager in the immediately preceding year on the
website of the owner’s representative entity in accordance with laws, and
consolidate these comments for submission to the Ministry of Labor, War
Invalids and Social Affairs for aggregation and monitoring purposes.
dd) Assume accountability to the Government, the
Prime Minister for implementation of payroll, remuneration and bonus policies
in companies within its jurisdiction.
4. The Minister of Labor, War Invalids and Social
Affairs:
a) Take charge of and cooperate with relevant
ministries in provision of guidance on regulations on salary, remuneration and
bonus laid down in this Decree.
b) Take charge of and cooperate with relevant
ministries or agencies in making recommendations to the Government for its
consideration of approval of or adjustment in base pay rate paid to company managers
so that the adjusted pay rate conforms to practical conditions over periods of
time.
c) Confer with the owner’s representative entity
about the decision on the payroll and total remuneration paid to managers of
parent companies – economic corporations; collaborate with the owner’s
representative entity in monitoring salaries, remunerations or bonuses paid to
managers of parent companies of specially-ranked incorporations and
incorporations performing public duties and playing key economic roles.
d) Take charge of and collaborate with the Ministry
of Finance in introducing standards for categorization of companies as the
basis for salary classification and identification of base pay rate for company
managers as provided by this Decree.
dd) Collaborate with the owner’s representative
entity in conducting inspections, audits and examinations of compliance of
companies with payroll, remuneration and bonus policies. Where determination of
the payroll and total remuneration is in violation of regulations, it must make
recommendations to the owner's representative entity that directs the
designating company to carry out any adjustment to or disallowance of violating
payroll or remunerations in accordance with laws and regulations.
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5. The Ministry of Finance:
a) Take charge of and collaborate with relevant
Ministries or agencies in provision of guidance on creation and management of
the payroll, total remuneration and total bonus paid to the Head of Control
Board, Comptrollers under the provisions of this Decree; accept, manage and pay
salaries, remunerations and bonuses to financial comptrollers remitted by state-owned
economic corporations.
b) Collaborate with the Ministry of Labor, War
Invalids and Social Affairs in introducing standards for ranking of companies
as the basis for salary classification and identification of base pay rate for
company managers.
Article 10. Effect
1. This Decree shall enter into force from August
1, 2016. Policies on salaries, remunerations and bonuses referred to in this
Decree shall take effect from January 1, 2016.
2. This Decree shall supersede the Government’s
Decree No. 51/2013/ND-CP dated May 14, 2013 providing for salary, remuneration
and bonus policies for members of the Board of Members or the company
President, Comptrollers, Directors General or Directors, Vice Directors General
or Vice Directors, Chief Accountants in wholly state-owned SMLLCs.
3. As for a person designated by the owner’s
representative entity to act as a part-time representative of portion of
contributed capital invested in companies which have state-owned shares or
contributed capital, after receiving remunerations, bonuses paid by these
companies, such representative must remit them to the owner's representative
entity for state-owned capital to establish a general fund used for paying this
representative in proportion to his fulfillment of assigned duties.
4. Viettel Group shall continue to pilot salary
management for company managers in accordance with the Government's
regulations.
5. The Board of Members or the President of the
companies referred to in Article 1 hereof shall refer to regulations set out in
this Decree to implement salary, remuneration and bonus policies for managers
of SMLLCs of which the charter capital is wholly owned by parent companies.
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7. Political organizations or socio-political
organizations shall consider and decide application of regulations laid down
herein to managers of SMLLCs of which the charter capital is wholly owned by
these organizations.
8. Ministers, Heads of Ministry-level agencies,
Heads of Government agencies, Presidents of the People’s Committees of
centrally-affiliated cities and provinces and of the Boards of Member, or
Presidents of wholly state-owned SMLLCs, shall be responsible for implementing
this Decree./.
PP. THE
GOVERNMENT
THE PRIME MINISTER
Nguyen Xuan Phuc
APPENDIX I
TABLE OF PAY FACTORS FOR FULL-TIME COMPANY MANAGERS
(Annexed to the Government’s Decree No. 52/2016/ND-CP dated June 13, 2016)
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Company rank
Title
PAY FACTOR
Economic
corporation
Specially-ranked
incorporation
Incorporation
and equivalents
Company
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II
III
1. Full-time President of the Board of Members or
full-time company President
8.80 – 9.10
8.20 – 8.50
7.78 – 8.12
6.97 – 7.30
6.31 – 6.64
5.65 – 5.98
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8.50 – 8.80
7.85 – 8.20
7.45 – 7.78
6.64 – 6.97
5.98 – 6.31
5.32 – 5.65
3. Head of the Control Board
8.10 – 8.40
7.53 – 7.83
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6.08 – 6.41
5.42 – 5.75
4.76 – 5.09
4. Full-time member of the Board of Members,
full-time comptroller, Vice Director General or Vice Director
7.90 – 8.20
7.33 – 7.66
6.97 – 7.30
5.98 – 6.31
5.32 – 5.65
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5. Chief Accountant
7.60 – 7.90
7.00 – 7.33
6.64 – 6.97
5.65 – 5.98
4.99 – 5.32
4.33 – 4.66
Note: The above-mentioned pay factors
are calculated on the basis of base pay rates stipulated by the Government.
2. Company ranking:
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b) The rank of a specially-ranked incorporation
shall be applicable to parent companies in the parent-subsidiary company model
that meet such conditions as playing key economic roles; having state-owned
capital contributions of at least VND 2,500 billion, gaining the profit of at
least VND 200 billion, remitting an amount of at least VND 200 billion to the
state budget (capital, profit and state budget contribution standards which are
measured on average within 3 years) and having at least 10 affiliated units, or
hiring at least 10,000 employees in total working for parent companies and
their affiliates.
Those companies that meet the aforesaid conditions
shall request the owner’s representative entity to agree with the Ministry of
Labor, War Invalids and Social Affairs and the Ministry of Finance on making a
final report to the Prime Minister for his consideration and determination.
c) The rank of an incorporation or equivalent shall
be applicable to parent companies transformed from state-owned incorporations
or from state-owned companies of which salaries are classified by the category
of an incorporation; parent companies belonging to the parent-subsidiary
company model that meet such conditions as playing key economic roles; having
state-owned capital contributions of at least VND 1,800 billion, gaining the
profit of at least VND 100 billion, remitting an amount of at least VND 100
billion to the state budget or having at least 10 affiliated units, or hiring
at least 7,000 employees in total working for parent companies and their
affiliates.
Those parent companies belonging to the
parent-subsidiary company model that meet the aforesaid conditions shall
request consideration or decision from the owner’s representative entity after
obtaining consent from the Ministry of Labor, War Invalids and Social Affairs
and the Ministry of Finance.
d) The rank of Company I, II, III shall be
applicable to those companies that meet conditions under standards specified by
the Ministry of Labor, War Invalids and Social Affairs and decided by the
owner’s representative entity.
dd) Re-ranking of specially-ranked companies or
incorporations:
Parent companies belonging to the parent-subsidiary
company model shall, after 3 years from the date upon which the rank of
specially-ranked incorporation or incorporation is determined, be subject to
review of ranking standards for the purpose of company re-ranking. Where they
continue to meet conditions set out for such ranks, the owner's representative
entity must be notified in writing to decide continuation of the existing rank
of specially-ranked incorporation or incorporation after obtaining consent from
the Ministry of Labor, War Invalids and Social Affairs. Where they fail to meet
specified conditions for such ranks, the owner's representative entity shall
decide lower ranks in accordance with laws.
APPENDIX II
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Unit: million
dong/month
Company rank
Title
Pay rate
Economic
corporation
Specially-ranked
incorporation
Incorporation
and equivalents
Company
I
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III
1. Full-time President of the Board of Members or
full-time company President
36
33
31
27
25
22
2. Director General or Director
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32
30
26
24
21
3. Head of the Control Board
33
30
28
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22
19
4. Full-time member of the Board of Members,
full-time comptroller, Vice Director General or Vice Director
32
29
27
23
21
18
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29
27
25
21
19
16