The Ministry of Labour, Invalids, and Social Affairs is drafting a decree on labour management, salaries, fees, and bonuses in state-owned enterprises.
According to the Ministry, regarding the salaries, fees, and bonuses of the Members’ Council and Supervisory Board, it is prescribed that the Members of the Members’ Council and Supervisory Board shall be entitled to a basic salary and additional salary based on production and business efficiency, capital usage efficiency, and shall be separated from the salaries and bonuses of the Management Board. The owner evaluates and decides on the specific salary and bonus for each person according to the “who hires and appoints, evaluates, and pays” management hierarchy mentioned in Resolution No. 27-NQ/TW.
The basic salary of full-time Members of the Council and Supervisory Board is as follows:
Basic salary table
The basic salary consists of 8 levels, divided into 2 groups of enterprises (Group I: applied to corporations and economic groups; Group II: applied to independent enterprises). The highest basic salary level for the Chairman (level 1) is 80 million VND (this salary in the Project when reported to the Central Committee is expected to be implemented from 2021 at 70 million VND/month, up to now, according to the increase in the consumer price index expected to be applied from January 1, 2025, is about 80 million VND) and the lowest for the Chief Accountant (level 8) is 25 million VND/month.
The basic salary is stipulated based on 3 indicators of capital, revenue, and profit divided by industry and field (not based on ranking as currently) according to the Appendix issued together with this Decree.
Annually, enterprises base themselves on the planned business production indicators to determine the entitled basic salary according to the principle that they must ensure sufficient 3 corresponding indicators to apply the corresponding basic salary level.
The maximum additional coefficient is 1 time to calculate the entitled salary associated with profit, profit margin on capital.
Thus, enterprises with higher profits and profit margins on capital than the previous year’s performance will have a maximum planned salary of twice the basic salary (the Chairman’s salary can reach a maximum of 160 million VND/month) and leave it to the owner to evaluate and decide on the specific salary of each person.
This maximum salary (160 million VND for the Chairman of the Board) is about 18% higher than the maximum salary (135 million VND for the Chairman of the Board) according to the provisions from 2016 to now in Decree No. 53/2016/ND-CP and Decree No. 21/2024/ND-CP of the Government.
Enterprises with higher profits and profit margins on capital than the previous year’s performance will have a maximum income of 160 million VND/month for their leaders
Regulations on bonus deductions from post-tax profits for the Members’ Council and Supervisory Board according to the classification of enterprises A, B, and C are a maximum of 2 months (corresponding to a maximum bonus deduction for employees of 3 months for two funds of rewards and welfare), higher than the current regulations (1.5 months salary).
Subjects of Application
Parent company of economic groups; corporations; parent company converted from state corporations; independent state-owned enterprises that are currently ranked, ranked, and applied for ranking according to the rank of Special Corporation, Corporation under the provisions of Decree No. 52/2016/ND-CP dated June 13, 2016 of the Government regulating salaries, fees, and bonuses for managers of limited liability companies.
one member holds 100% of the charter capital.
Enterprises belonging to Group II in Section II of this Appendix, which meet the conditions prescribed for Level 3 Group I or higher and play an important role in the economy, shall consider and apply the corresponding salary level of Group I according to the achieved results.
Enterprises base on the industry and field of production and business activities and planned business production indicators to determine the basic salary as follows:
Enterprises in any industry or field shall apply according to that industry or field. In case the enterprise has many fields of production and business activities, it shall be based on the main field of production and business activities or the field with the largest revenue to choose the industry and field.
Enterprises that meet all 3 indicators (capital, revenue, profit) of levels 1, 2, 3, and 4 shall apply the corresponding basic salary level of that level. For newly established or newly operated enterprises, in the first year of establishment or new operation, if they meet the capital indicator of levels 1, 2, 3, and 4, they shall apply the corresponding basic salary level of that level.
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