The new regulations on payrolls, salaries, and allowances in state-owned enterprises

On 23/2/2024, the Government issued 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 the management of labor, salaries 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 salaries, remunerations, and bonuses for managers of single-member limited liability companies with 100% charter capital held by the State.

The Decree No. 21/2024/ND-CP amending Article 4 of Decree No. 51/2016/ND-CP on wage scale, payroll, salary allowance for employees working in single-member limited liability companies members with 100% charter capital held by the State. Specifically: Based on the production organization and labor organization, the company builds and promulgates wage scale, payroll, and salary allowance as a basis for ranking salaries, paying salaries, and implementing regimes for employees according to the provisions of labor law.

The salary levels in the wage scale, payroll, and salary allowance are decided by the company, but ensure that the salary fund calculated according to the salary levels in the wage scale, payroll, and salary allowance must not exceed the planned salary fund of workers.

When developing or amending or supplementing wage scale, payroll, and salary allowance, the company must consult with the employees' representative organization at the facility and organize dialogue at the workplace according to regulations, report to the owner's representative agency for comments and publicize it at the company before implementation.

The Decree No. 21/2024/ND-CP stipulates that when determining the planned salary fund, the company excludes objective factors affecting labor productivity and planned profits compared to the performance of the immediately preceding year, including: The State adjusts prices, production and business limits (for products and services priced by the State or regulates production and business limits), corporate income tax incentives, increasing or reducing state capital, requiring companies to relocate, narrowing production and business locations, adjusting 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 transfering the right to represent state capital owners under the direction of the Government or the Prime Minister; receiving, buying, selling, freezing, defering and handling debts and assets, buying and selling products and services according to the provisions of law or requests of competent state agencies; implementing provisions on retroactivity according to Government regulations; increasing depreciation to recover capital quickly according to tax laws; adjusting operating policies according to the requirements of competent state agencies, the Agreements, Treaties or regulations of international organizations of which Vietnam is a member; performing restructuring projects, supplementing or divesting investment capital in other enterprises; new investment, expansion of production and business; adjusting or creating new provisions for financial and credit risks according to the provisions of law; providing products and services that are priced by the state and making a price adjustment mechanism, but the price has not been adjusted sufficiently to compensate for reasonable actual production and business costs when factors forming prices change according to regulations of the Price Law; allocating costs of unsuccessful oil and gas search, exploration and exploitation projects according to Government regulations, determining corporate income tax according to oil and gas contracts for oil and gas search, exploration and exploitation companies according to tax laws; the debt purchase and debt settlement sales have not been recorded in revenue and profits for debt trading companies according to the provisions of law; fluctuations in revenue from securities trading market organization and securities depository operations; the difference in bonus payment compared to previous year's performance for lottery companies; changes in the environment and mineral exploitation conditions for mineral mining companies.

The Decree No. 21/2024/ND-CP also amends and supplements Decree No. 52/2016/ND-CP regulating salaries, remunerations, and bonuses for managers of single-member limited liability companies with 100% charter capital held by the State.

Specifically, the phrase "manager" in the name and the phrases "manager" or "company manager" in the articles, clauses, and appendices of Decree No.52/2016/ND-CP are replaced by the phrase "manager, controller".

The Decree No. 21/2024/ND-CP stipulates: based on the organizational and management structure, the Board of Members or the Company President shall build and issue a payroll and salary ranking for managers and specialized controllers serving 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 payroll are decided by the Board of Members or the Company President, but ensure that the salary fund calculated according to the salary levels in the payroll does not exceed the planned salary fund of the manager or specialized controller according to regulations.

When developing or amending or supplementing the payroll of managers, controllers, the Board of Members or Company President, it is necessary to consult with the representative organization of workers at the facility or hold dialogue at the workplace according to regulations, report to the owner's representative agency for approval and publicize at the company before implementation.

The Decree No. 21/2024/ND-CP also supplements regulations as follows: In case the company's supervisory board has only 01 controller as prescribed in Article 103 of the Law on Enterprises, the controller is entitled to a salary, remuneration and bonus for the position of Head of the supervisory board.

This Decree takes effect from April 10, 2024.