For employees working in 100% state-owned one-member limited liability companies
The government recently issued Decree No. 21/2024/ND-CP amending Decree No. 51/2016/ND-CP on the management of labor, wages, and bonuses for employees working in one-member limited liability companies with 100% state-owned charter capital.
Accordingly, the salary, allowances, and bonuses for employees working in one-member limited liability companies with 100% state-owned charter capital will be implemented as follows:
Based on production organization, labor organization, construction companies, and the issuance of salary scales, wage tables, and salary allowances as a basis for salary grading, payment, and implementation of labor regimes according to the provisions of labor law.
The salary levels in the salary scales, wage tables, and salary allowances are decided by the company but must ensure that the salary fund calculated based on the salary levels in the salary scales, wage tables, and salary allowances does not exceed the planned salary fund of employees.
When developing or amending, supplementing salary scales, wage tables, and salary allowances, the company must consult the opinions of labor representative organizations at the grassroots level, conduct dialogues at the workplace as prescribed, report to the representative owner agency for opinions, and publicly announce it in the company before implementation.
Illustrative image. Source: Son La Labor Union
What objective factors are excluded when determining the planned salary fund?
Based on clause 3 of Article 5 of Decree No. 51/2016/ND-CP amended by clause 2 of Article 1 of Decree No. 21/2024/ND-CP, when determining the planned salary fund, the company excludes objective factors affecting labor productivity, planned profit compared to the previous contiguous year, including:
State-adjusted prices, production and business limits (for products and services priced or limited by the state);
Enterprise income tax incentives;
Increased or decreased state capital;
Company relocation requirements, reduction of production and business locations;
Adjustments to mechanisms, policies directly affecting labor productivity and profit of the company.
Amending regulations on salary grading for managers, controllers
In addition, Decree No. 21/2024/ND-CP also amends and supplements Decree No. 52/2016/ND-CP regulating the salary, remuneration, and bonuses for managers of one-member limited liability companies with 100% state-owned charter capital.
Specifically, the phrase “managers” in the title and the phrases “managers” or “company managers” in the articles, clauses, and appendices of Decree No. 52/2016/ND-CP are replaced by the phrase “managers, controllers”.
Regarding salary grading for managers, controllers, according to the 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 establish and issue wage scales and grade salaries for managers, 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 wage scales are decided by the Board of members or the Chairman of the company, but must ensure that the salary fund calculated based on the salary levels in the wage scales does not exceed the planned salary fund of managers, controllers as prescribed.
When developing or amending, supplementing the salary scale for managers, controllers, the Board of members or the Chairman of the company must consult the opinions of labor representative organizations at the grassroots level, conduct dialogues at the workplace as prescribed, report to the representative owner agency for approval, and publicly announce it in the company before implementation.
Decree No. 21/2024/ND-CP also supplements regulations: In cases where the Control Committee of the company has only 01 Controller as prescribed in Article 103 of the Enterprise Law, the Controller is entitled to the salary, remuneration, and bonuses of the Chief Controller position.
When does Decree No. 21/2024/ND-CP take effect?
According to Article 3 of Decree No. 21/2024/ND-CP on the effective date of enforcement from April 10, 2024.
The regimes on salary fund, wage payment, remuneration, and bonuses prescribed in clause 2 of Article 1, and clauses 3, 4, 6, 7, and 10, of this Decree are implemented from January 1, 2024.
