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MINISTRY
OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No.
06/2024/TT-BLDTBXH
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Hanoi,
July 30, 2024
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CIRCULAR
ON AMENDMENTS TO CIRCULAR NO. 26/2016/TT-BLDTBXH DATED
SEPTEMBER 1, 2016 OF THE MINISTER OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS ON
GUIDELINES FOR THE MANAGEMENT OF LABOR, SALARY AND INCENTIVES FOR EMPLOYEES IN
WHOLLY STATE-OWNED SINGLE-MEMBER LIMITED LIABILITY ENTERPRISES AND CIRCULAR NO.
27/2016/TT-BLDTBXH DATED SEPTEMBER 1, 2016 OF LABOR, WAR INVALIDS AND SOCIAL
AFFAIRS ON GUIDELINES FOR THE SALARY, REMUNERATION, BONUSES FOR MANAGERS IN
WHOLLY STATE-OWNED SINGLE-MEMBER LIMITED LIABILITY ENTERPRISES
Pursuant to the Government’s
Decree No. 62/2022/ND-CP dated September 12, 2022 on the functions, missions,
authority and organizational structure of the Ministry of Labor, Invalids and
Social Affairs;
Pursuant to the Government’s
Decree No. 51/2016/ND-CP dated June 13, 2016 on the management of labor, salary
and incentives for employees in wholly state-owned single-member limited
liability enterprises;
Pursuant to the Government’s
Decree No. 52/2016/ND-CP dated June 13, 2016 on the salary, remuneration, and
incentives for managers in wholly state-owned single-member limited liability
enterprises;
Pursuant to Decree No.
21/2024/ND-CP dated February 23, 2024 of the Government on amendments to the
Government’s Decree No. 51/2016/ND-CP dated June 13, 2016 on the management of
labor, salary and incentives for employees in wholly state-owned single-member
limited liability enterprises and the Government’s Decree No. 52/2016/ND-CP
dated June 13, 2016 on the salary, remuneration, and incentives for managers in
wholly state-owned single-member limited liability enterprises;
At the request of the Director
of the Department of Labor Relations and Wages;
The Minister of Labor, War
Invalids and Social Affairs issues a Circular on amendments to Circular No.
26/2016/TT-BLDTBXH dated September 1, 2016 of the Minister of Labor, War
Invalids and Social Affairs on guidelines for the management of labor, salary
and incentives for employees in wholly state-owned single-member limited
liability enterprises (hereinafter referred to as Circular No.
26/2016/TT-BLDTBXH) and Circular No. 27/2016/TT-BLDTBXH dated September 1, 2016
of the Minister of Labor, War Invalids and Social Affairs on guidelines for the
salary, remuneration, and incentives for managers in wholly state-owned
single-member limited liability enterprises (hereinafter referred to as
Circular No. 27/2016/TT-BLDTBXH).
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1. Amendments to clause 3 Article
8:
“3. The evaluation of
responsibilities for execution of labor plans forms the basis for the
assessment of managers’ completion of missions according to the Government’s
Decree No. 159/2020/ND-CP dated December 31, 2020 of the Government, amended by
Decree No. 69/2023/ND-CP dated September 14, 2023 of the Government on amendments
to Decree No. 159/2020/ND-CP dated December 31, 2020 of the Government on the
management of office holders and representatives of state capital in wholly
state-owned single-member limited liability enterprises.”
2. Amendments of the name of
Section 3:
“PAY
SCALE, PAYROLL, DETERMINATION OF PLANNED SALARY BUDGET AND ADVANCES FROM SALARY
BUDGET”
3. Adding Article 9a before Article
9, Section 3 as follows:
“Article 9a: Pay scale, payroll,
and allowances
1. Based on the production
organization and labor organization, the company shall review and decide on
continuing to maintain, modify, supplement, or develop and issue new pay scale,
payroll, and allowances (accompanied by applicable standards), ensuring
compliance with Clause 2 of this Article as the basis for classifying salaries,
paying salaries and providing benefits for employees in accordance with labor
law.
2. The salary levels in the pay
scale, payroll, and allowances shall be determined by the company, ensuring
that the salary fund determined based on the total annual salaries of all
employees calculated according to the salary levels within the company's pay
scale, payroll, and allowances does not exceed the planned salary fund for
employees as prescribed in this Circular.
3. When amending or developing and
issuing new pay scale, payroll, and allowances, the company must consult with
the employee representative body at the establishment and hold dialogues at the
workplace as prescribed by the Labor Code and guiding documents. The proposed
pay scale, payroll, and allowances shall be reported to the representative of
the owner for comments, and publicly announced within the company before
implementation.
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“4. If the enterprise suffers
losses or breaks even (after excluding objective factors that may exist), the
average salary planned shall be equal to that defined in the labor contract
(composed of the salary, allowance(s) and supplement(s) specified in a labor
contract according to point a, section b1 point b and section c1 point c of
Clause 5, Circular No. 10/2020/TT-BLDTBXH dated November 12, 2020 of the
Ministry of Labor, Ward Invalids and Social affairs on guidelines for the
implementation of certain articles on labor contract, collective bargaining
councils and professions, work with adverse effects on reproductive function,
child rearing).”
5. Amendments to clause 1 Article
11:
“1. The objective factors affecting
an enterprise's labor output and profit excluded from the calculation of the
employees' salary are specified in Point a, Point b, Clause 3, Article 5 of
Decree No. 51/2016/ND-CP as amended in Clause 2, Article 1 of Decree No.
21/2024/ND-CP dated February 23, 2024 of the Government on amendments to the
Government’s Decree No. 51/2016/ND-CP dated June 13, 2016 on the management of
labor, salary and incentives for employees in wholly state-owned single-member
limited liability enterprises and the Government’s Decree No. 52/2016/ND-CP
dated June 13, 2016 on the salary, remuneration, and incentives for managers in
wholly state-owned single-member limited liability enterprises and Point c,
Clause 3, Article 5, Decree No. 51/2016/ND-CP.”
Article 2.
Amendments to Circular No. 27/2016/TT-BLDTBXH
1. Replace the term “người quản lý”
(managers) in the title, and the terms “người quản lý” (managers) or “người quản
lý công ty” (company’s managers) tin the articles and clauses of the Circular,
as well as the term “người quản lý” (managers) in Forms 1, 2, and 3 attached to
the Circular, with the term "“người quản lý, Kiểm soát viên” (managers,
controller).
2. Amendments of the name of
Section 2:
“DEVELOPING
PAYROLLS, SALARY ADJUSTMENTS, COMPANY RANKING TO DETERMINE THE BASIC SALARY OF
MANAGERS AND SPECIALIZED CONTROLLERS”
3. Amendments to Article 4:
“Article 4. Developing payrolls
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2. The salary levels in the payroll
for managers and specialized controllers shall be determined by the Board of
Members or the President of company. The total annual salary fund for all
managers and specialized controllers, calculated based on the salary levels in
the payroll, must not exceed the planned salary fund for managers and specialized
controllers as prescribed in this Circular.
3. When establishing, amending, or
supplementing the payroll for managers and controllers, the Board of Members or
the President of company shall consult with the employee representative body at
the workplace and engage in workplace dialogue as prescribed by the Labor Code
and its guiding documents. The proposed payroll shall be reported to the
owner's representative for approval and publicly announced within the company
before implementation.”
4. Amendments to Article 5:
“Article 5. Salary adjustments,
advancement of salary steps
The Board of Members or the
President of company shall determine the salary adjustments and advancement of
salary steps (if any) for managers and specialized controllers in accordance
with the payroll established as per Article 4 of this Circular."
5. Amendments of the name of
Article 6:
"Article 6. Company ranking
for determining base salary"
6. Amendments to point c clause 2
Article 6:
‘c) The parent company in a
parent-subsidiary company model shall meet the following criteria: play a
significant role in the economy; have state capital (including capital from the
state budget, capital received from the state budget, capital from development
investment funds in the company, government-guaranteed credit, state
development investment credit, and other capital invested by the State in the
company) of VND 2,500 billion or more; have a profit (or total revenue minus
total costs for non-profit organizations) of VND 200 billion or more; have at
least 10 subsidiaries (including dependent accounting units and independent
accounting units in which the company holds 100% of the charter capital and
holds controlling shares or stakes)or have production and business operations
nationwide; and fulfill all state budget payment obligations as prescribed. The
indicators of capital, profit, or total revenue minus total costs for
non-profit organizations shall be calculated as a three-year average.
Companies meeting these criteria shall submit a written proposal to the
owner's representative for concurrence with the Ministry of Labor, Invalids and
Social Affairs and the Ministry of Finance before submitting it to the Prime
Minister for consideration and decision."
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c) The parent company in a
parent-subsidiary company model shall meet the following criteria: play a
significant role in the economy; have state capital (including capital from the
state budget, capital received from the state budget, capital from development
investment funds in the company, government-guaranteed credit, state
development investment credit, and other capital invested by the State in the
company) of VND 1,800 billion or more; have a profit (or total revenue minus
total costs for non-profit organizations) of VND 100 billion or more; have at
least 5 subsidiaries (including dependent accounting units and independent
accounting units in which the company holds 100% of the charter capital and
holds controlling shares or stakes)or have production and business operations
nationwide; and fulfill all state budget payment obligations as prescribed. The
indicators of capital, profit, or total revenue minus total costs for non-profit
organizations shall be calculated as a three-year average. Companies meeting
these criteria shall submit a written proposal to the owner's representative
for consideration and decision after obtaining concurrence with the Ministry of
Labor, Invalids and Social Affairs and the Ministry of Finance."
8. Amendments to Article 8:
"Article 8. Base salary
adjustment upon change in company ranking or position
When the company's ranking changes
or when the manager or specialized controller changes their position or title,
the base salary of such manager or controller shall be determined based on the
new company ranking or their new position or title, and the base salary based
on the previous ranking or position or title shall not be retained."
9. Amendments to Article 10:
“Article 10. Planned average
salary
The planned average monthly salary
of managers or specialized controllers shall be determined based on the
company's labor productivity and production and business efficiency as follows:
1. For companies with non-declining
average labor productivity and profits, where the planned profit exceeds the
actual profit of the previous year, the planned average salary shall be
determined based on the basic salary and an additional coefficient linked to
the planned profit level. The specific coefficient shall be determined
according to the business sector in the Increase coefficient table as
stipulated in Clause 4, Article 2 of Government Decree No. 21/2024/ND-CP of the
Government on amendments to the Government’s Decree No. 51/2016/ND-CP dated
June 13, 2016 on the management of labor, salary and incentives for employees
in wholly state-owned single-member limited liability enterprises and the
Government’s Decree No. 52/2016/ND-CP dated June 13, 2016 on the salary, remuneration,
and incentives for managers in wholly state-owned single-member limited
liability enterprises.
2. For companies that achieve a
profit where the planned profit does not exceed the actual profit of the
previous year, the maximum increase coefficient shall be applied as calculated
by the following formula:
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=
Hln
x
Pkh
x
0,7
Pthnt
Where:
- Htt: Maximum increase coefficient
compared to the basic salary.
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- Pkh: Planned profit; Pthnt:
Actual profit of the previous year.
3. If the company has no profit,
the planned average salary shall be determined based on a comparison of the
planned and actual production and business results of the previous year. This
planned average salary must be lower than the base salary but shall not be less
than 50% of the base salary.
4. If the company incurs a loss,
the planned average salary shall be set at 50% of the base salary.
5. For companies that have reduced
their losses compared to the previous year, newly established companies, or
companies that have just started operations, the planned average salary shall
be determined based on the extent of loss reduction or the production and
business plan. This determination must ensure overall consistency and be
reported to the owner's representative for consideration and decision.”
10. Amendments to clause 1 Article
11:
"1. If a company generates a
profit, and the planned profit is equal to or higher than the actual profit of
the previous year, but the planned average salary (after being determined in
accordance with Clauses 1, 2, and 3 of Article 10 and Clause 2 of Article 11 of
this Circular) is lower than the actual average salary of the previous year, the
planned average salary shall be equal to the actual average salary of the
previous year."
11. Amendments to clause 4 Article
11:
For companies providing public
goods or services as ordered by the State, the planned average salary shall be
determined based on the planned volume of products, services, or tasks instead
of the planned profit. If the planned volume of products, services, or tasks is
equal to or higher than the actual volume of the previous year, the planned
average salary shall be calculated as a maximum of the base salary multiplied
by the projected consumer price index for the year as specified in the National
Assembly's Resolution on the annual socio-economic development plan. The
specific salary level shall be determined by the owner's representative to
ensure it is commensurate with the salary level of managers and controllers in
the locality. If the company is profitable and the planned profit is
higher than the actual profit of the previous year, the planned average salary
shall be determined in accordance with Clause 1 of Article 10 of this Circular,
with the increase coefficient calculated based on the company being classified
in group 3.
For companies providing specialized
public goods or services as ordered by the State, the salaries of managers and
controllers shall be determined based on the average salary of managers and
controllers included in the price of the public goods or services as set by the
competent authority.”
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"5. For non-profit companies,
when determining salaries in accordance with Articles 10 and 11 of this
Circular, the profit indicator shall be replaced by the indicator of total
revenue minus total costs."
13. Amendments to clause 1 Article
13:
“1. The objective factors affecting
an enterprise's labor output and profit excluded from the calculation of the
employees' salary are specified in Point a, Point b, and Point c Clause 6,
Article 5 of Decree No. 52/2016/ND-CP as amended in Clause 7, Article 2 of
Decree No. 21/2024/ND-CP dated February 23, 2024 of the Government on
amendments to the Government’s Decree No. 51/2016/ND-CP dated June 13, 2016 on
the management of labor, salary and incentives for employees in wholly
state-owned single-member limited liability enterprises and the Government’s
Decree No. 52/2016/ND-CP dated June 13, 2016 on the salary, remuneration, and
incentives for managerial personnel in wholly state-owned single-member limited
liability enterprises.”
14. Amend the phrase “Clause 2” in
Clause 2, Article 11 to the phrase “Clause 1, Clause 2”; the phrase “Clause 2”
in Point c, Clause 1, Article 15 to the phrase “Clause 1, Clause 2”.
15. Amendments to clause 1 Article
20:
"1. Request the owner's
representative to approve the payroll for managers and specialized controllers
and issue any payroll, salary adjustments, or advancement of salary steps for
managers and specialized controllers as prescribed in this Circular."
16. Amendments to clause 2 Article
22:
"2. Receive and provide
comments on the payroll for managers and specialized controllers of the company
under management.”
17. Amendments to clause 3 Article
22:
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Article 3.
Entry in force
1. This Circular comes into force
as of September 15, 2024. From the effective date of this Circular, the
following provisions are annulled:
a) Clause 3, Article 3 of Circular
No. 26/2016/TT-BLDTBXH.
b) Article 24, Clause 6, Article
25, and certain provisions of Circular No. 27/2016/TT-BLDTBXH, including:
the phrase “chỉ tiêu phát triển vốn nhà nước, nộp ngân sách” (“indicator
of state capital growth, state budget contribution”) in Clause 2, Article 11;
the phrase “Đối với Kiểm soát viên tài chính tại tập đoàn kinh tế nhà nước thì
tập đoàn kinh tế nhà nước chuyển cho Bộ Tài chính để hình thành quỹ chung, đánh
giá, chi trả.” (“For finance controllers in state-owned economic groups, the
state-owned economic groups will transfer the management of their salaries to
the Ministry of Finance. The Ministry of Finance will establish a common fund
to manage these salaries, evaluate their performance, and determine their
remuneration.”) in Clause 7, Article 3; the phrase “(hoặc Bộ Tài chính đối với
Kiểm soát viên tài chính tại tập đoàn kinh tế nhà nước)” “(or the Ministry of
Finance for financial controllers at state-owned economic groups)” in Clause 2,
Article 14 and Clause 1, Article 19; the phrase “(or the Ministry of Finance)”
in Clause 3, Article 20; the phrase “kéo dài thời hạn nâng bậc lương, hạ bậc
lương,” (“prolong the period for advancement or demotion of salary steps”) in
Clause 7, Article 22.
c) Circular No. 31/2016/TT-BLDTBXH
dated October 25, 2016, issued by the Minister of Labor, War Invalids and
Social Affairs on guidelines for the management of labor, wages, and bonuses in
organizations established and operating under the model of wholly state-owned
single-member limited liability enterprises, as prescribed by the Securities
Law.
d) Circular No. 36/2016/TT-BLDTBXH
dated October 25, 2016, issued by the Minister of Labor, War Invalids and
Social Affairs on guidelines for remuneration for managers of the Vietnam Oil
and Gas Group who perform the roles of experts, consultants, and technicians in
oil and gas exploration and production.
2. The regulations on salary funds,
payment of salaries, remuneration, and bonuses as stipulated in Clauses 4 and
5, Article 1; Clauses 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, Article 2 of this
Circular shall be implemented from January 1, 2024. The regulations in Clause
3, Article 1 and Clauses 3, 4, Article 2 of this Circular shall be implemented
from April 10, 2024.
Difficulties that arise during the
implementation of this Circular should be reported to the Ministry of Labor,
War Invalids and Social Affairs (via the Department of Labor Relations and
Wages) for consideration and amendments./.
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