To extend the pilot of salary management with a number of state-owned corporations

Published on 04 - 10 - 2021
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On 29/9/2021, the Government has just issued the Decree No. 87/2021/ND-CP on extending the implementation time and amending and supplementing a number of articles of the Decree No. 20/2020/ND-CP dated 17/2/2020 of the Government on piloting the management of labor, wages and bonuses for a number of economic groups and state corporations.

The Decree amends the first paragraph of Article 1 as follows: “This Decree stipulates the pilot implementation of labor management, the development of wage scales and payrolls; salaries and bonuses of employees and the General Director, Deputy General Director, Chief Accountant; salaries, remuneration and bonuses of members of the Members' Council, Board of Directors, Head of Supervisory Board, Supervisors at the groups or corporations:

The Decree supplements as follows: Based on the implemented salary fund, the company decides to use the entire salary fund to pay salaries in the year or deduct a part to establish a reserve fund to supplement the salary fund of the following year but not exceed 17% of the implemented salary fund.

Also according to the Decree, in case companies with labor productivity, profits and profit-to-equity ratios decrease mainly due to the direct impact of objective factors, when determining the salary fund of employees, the Executive Board according to the criteria for calculating the flat unit price and the salary and remuneration levels of members of the Members' Council, Board of Directors, the Head of Supervisory Board, and Supervisors as prescribed in Clause 1, 3 Article 8 and Clause 2 Article 12, Article 13 of the Decree No. 20/2020/ND-CP dated February 17, 2020 of the Government, that the average salary of the Executive Board and employees on the list is lower than 65% of the average salary (including safety bonus, if any) of these employees in 2019; the salaries and remuneration of members of the Members' Council, Board of Directors, Head of the Supervisory Board, and Supervisors are lower than 65% of the actual salary and remuneration of each respective title in 2019 then the company determines and reports to the owner's representative agency for consideration and decision on the average salary of the Executive Board and employees up to 65% higher than the actual average salary (including safety bonus, if any) of these employees in 2019; the salaries and remuneration of members of the Members' Council, Board of Directors, Head of the Supervisory Board, and Supervisors are up to 65% higher than the actual salary and remuneration of each respective title in 2019.

When determining salary and remuneration according to the above provisions, the company must complete the profit plan (after excluding objective factors) assigned by the agency representing the owner. The average salary of employees and the Executive Board is not lower than the one determined according to the salary scale and payrolls developed and promulgated by the company in accordance with the provisions of Article 6 of the Decree No. 20/2020/ND- CP dated February 17, 2020 of the Government.

The Head of the Supervisory Board, the Supervisors of the company continue to be applied the salary, remuneration and bonus according to the provisions of the Decree No. 20/2020/ND-CP dated February 17, 2020 of the Government, not applicable the regulations on salary, remuneration and bonus in Clause 2, Article 8 of the Government's Decree No. 47/2021/ND-CP dated April 1, 2021 detailing a number of articles of the Enterprise Law until the Government promulgates a new Decree on management of labor, salary, remuneration and bonus in State-owned enterprises, which takes effect.

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