Decree No. 51/2013/ND-CP dated May 14, 2013 of the Government promulgating wages, remunerations, bonuses for the Member Assembly’s members, the company’s President, the Controller, the General Director or director, the Deputy General Director or Deputy Director, and the Chief Accountant of one member state owned limited companies

THE GOVERNMENT

Decree No. 51/2013/ND-CP dated May 14, 2013 of the Government promulgating wages wages, remunerations, bonuses for the Member Assembly’s members, the company’s President, the Controller, the General Director or director, the Deputy General Director or Deputy Director, and the Chief Accountant of one member state owned limited companies

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to the Law on Enterprises dated November 29, 2005;

At the request of the Minister of Labor, War Invalids and Social Affairs;

The Government issues the Decree promulgating wages wages, remunerations, bonuses for the Member Assembly’s members, the company’s President, the Controller, the General Director or director, the Deputy General Director or Deputy Director, and the Chief Accountant of one member state owned limited companies,

Article 1. Scope of regulation

This Decree specifies wages wages, remunerations, bonuses for the Member Assembly’s members, the company’s President, the Controller, the General Director or director, the Deputy General Director or Deputy Director, and the Chief Accountant of one member state owned limited companies (hereinafter referred to as companies)

Article 2. Subjects of application

1. The President and full-time members of the Member assembly, or the full-time President, the full-time controller, the General Director or Director, the Deputy General Director or Deputy Director, and the Chief accountant (hereinafter referred to as specialized managers).

The full-time managerial positions in this Article 1 do not include General Directors or Directors, Deputy General Directors or Deputy Directors, and Chief accountants that work under labor contracts.

2. The President and part-time members of the Member assembly or the part-time President, and the part-time controllers (hereinafter referred to as part-time managers).

3. The organizations assigned to exercise the owners’ rights and fulfill the obligations to the companies (hereinafter referred to as owners)

Article 3. Wages arrangement for specialized managers

Wages if specialized managers shall be paid according to the rank of their companies in Appendix I to this Decree. It is the basis for paying and claiming social insurance, health insurance, and enjoying other interests until new regulations are issued by the Government.

Article 4. Principles of wages, remunerations and bonuses payment

1. Wages of specialized managers are determined and paid based on the efficiency of the business, the management, and are limited.

2. Remunerations for part-time managers shall be calculated according to their works and working durations, and shall not exceed 20% of wages of specialized managers; for managers that represent the company to contribute capital to other companies (hereinafter referred to as state capital representatives), the remunerations paid by other companies shall be given to the company, and they shall be paid according to the fulfillment of their tasks. Such remunerations shall not exceed 50% of the actual wages paid by the company. The remaining amount (if any) shall be included in other incomes of the company.

3. The wage and remuneration fund for managers shall be determined every year and separate from the wage fund for employees. This fund shall be established by the company and approved by the owner. Every month, each shall receive an advanced payment of 80% of the tentative wage or remuneration in that month; the remaining 20% shall be paid at the end of the year.

4. Wages and remunerations of managers shall be included prices or business costs, and expressed as an item in annual financial statements of the company.

5. Bonuses of managers shall be calculated annually in proportion to the business or managerial efficiency. Part of it shall be paid at the end of year, and the residual amount shall be paid at the end of the tenure.

6. Wages, remunerations and bonuses of the controller calculated in accordance with this Decree must be extracted and remitted to the owner to establish a common fund. On that basis, the owner shall pay the controller for the fulfillment of their tasks. For financial controllers of state-owned corporations, these amounts shall be remitted to the Ministry of Finance for assessment and payment.

Article 5. Principles of the planned wage and remuneration fund

According to the annual business plan and the planned achievement of targets as prescribed in Article 6 of this Decree, the company shall decide the planned wage and remuneration fund to make advance payments to managers.

Article 6. Principles of the actual wage fund and remuneration fund

1. The actual wage fund depends on the number of specialized managers and the actual average wage.

2. The actual average wage used for calculating the wage fund is determined based on the wages in Appendix II to this Decree (hereinafter referred to as minimum wages) and the fulfillment of business targets in the year as follows:

a) If state capital is conserved and developed, the actual profit in the current year is higher than that in the previous year, and the productivity does not decrease in comparison with that of the previous year, then the actual average wage shall be increased up to 0.5 times higher than minimum wages.

b) If state capital is conserved and developed, and the actual profit in the current year is equal to that in the previous year, then the actual average wage shall equal the minimum wages. If the actual profit in the current year is lower than that in the previous year, or there is not profit at all, the actual average wage must be lower than the minimum wages.

For the companies that provide public products and services ordered by the State, and non-profit companies, the targets for profits shall be replaced with targets for volume of products, services, and tasks.

c) If the company suffers from a loss, the actual average wage shall equal the wage coefficient according to Article 3, and the minimum wages.

When calculating the actual average wage as prescribed in Point a and Point b above, if the actual profit in the current year is equal to or higher than that in the previous year, but the actual average wage is lower than that in the previous year, the actual average wage shall be equal to the actual average wage of the previous year (this regulation is not applicable to the calculation of actual wages in 2013).

3. The actual remuneration fund for part-time managers is calculated based on the number of part-time managers, their working duration, and their remunerations according to Clause 2 Article 4 of this Decree.

4. When determining the wage fund and remuneration fund as prescribed in Clause 1, Clause 2 and Clause 3 of this Article, if the company manages to eliminate the objective factors that affect the actual profit, such as: the State decides to make intervention to stabilize the market, enterprise income tax incentives, increase or decrease of state capital, increase of depreciation to quickly recoup investment; the company provides products or services of which prices are fixed or managed by the State, the Government’s social security programs, new investments, the production or business expansion, the difference between actual bonuses and those of the previous year for lottery companies.

5. Based on the actual wage fund or remuneration fund and advanced payments prescribed in Article 5 of this Article, the company shall determine the remaining amount of wages or remuneration. If the advanced payments exceed the actual wage fund or remuneration fund, the excess amount that is paid in the year must be returned.

Article 7. Bonus fund

1. The annual bonus fund for full-time and part-time managers shall comply with the Regulation on financial management, supervision and assessment of enterprises issued by the Government.

2. 90% of the bonus fund in Clause 1 of this Article shall be extracted to give year-end bonuses. The remaining amount (10%) shall be used to give bonuses at the end of tenure according to the achievement of targets during the tenure.

Article 8. Payment of wages, remunerations, and bonuses

1. Wages, remunerations, and bonuses shall be paid to managers based on their contributions to the efficiency of business and management, in accordance with the regulations on wages, remunerations, and bonuses of the company.

2. The regulations on wages, remunerations, and bonuses shall comply with law, ensure the democracy, openness, participation of the grassroots union, and be approved by the owner.

3. The full-time President of the Member assembly or the full-time President of the company cum General Director or Director shall receive the wage of the highest position.

Article 9. Responsibility for implementation organizations

1. The Member assembly or the President shall:

a) Decide the planned wage fund, remuneration fund and advance payments of wages and remunerations for managers based on the business plan.

b) Decide the actual wage fund, remuneration fund, and bonus fund based on the achievement of targets, and request the owner to grant approval on the 15th of January of the succeeding year at the latest. For state-owned corporations, parent companies of special-class corporations, and public service corporations that play essential roles in the economy, these funds shall also be monitored by the Ministry of Labor, War Invalids and Social Affairs.

c) Determine and remit part of wages, remunerations, and bonuses of the controller to the owner as prescribed in this Decree.

d) Assess the fulfillment of tasks as the basis for deciding remunerations of state capital representatives.

dd) Formulate regulations on wages, remunerations, and bonuses of managers and send reports to the owner.

e) Provide documents and reports relating the wages, remunerations, and bonuses at the request of the controller.

g) Report the wage, remuneration, bonus, and average monthly income of the previous year of every manager to the owner and post them on the company’s website in Q1 every year.

2. The controller shall:

a) Inspect and supervise the adherence to this Decree of the Member assembly or the President or the General Director or Director.

b) Report the inconformity with the State’s regulation to the Member assembly or the President or the Director or the owner.

3. The owner shall:

a) Examine and approve the actual wage fund, remuneration fund and bonus fund for the manager under their management on the 31st of January of the succeeding year at the latest; give opinions about the regulations on wages, remunerations and bonuses; approve the actual wage fund and remuneration fund for managers of parent companies – corporations after reaching an agreement with the Ministry of Labor, War Invalids and Social Affairs.

b) Send the Ministry of Labor, War Invalids and Social Affairs the approved actual wage fund and remuneration fund for managers of parent companies – state-owned corporations, parent companies of special-class corporations, and public service corporations that play essential roles in the economy.

c) Formulate regulations on assessing controllers and state capital representatives; receive and manage wages, remunerations and bonuses of controllers and state capital representatives that are paid by other companies; assess the fulfillment of their tasks, pay them wages, remunerations and bonuses according to the fulfillment of their tasks.

d) Post the actual wage fund, remuneration fund, bonus fund, and average monthly income of the previous year of every manager on the company’s website in Q1 every year, and send reports to the Ministry of Labor, War Invalids and Social Affairs.

dd) Take responsibility to the Government and the Prime Minister for the wages, remunerations, and bonuses of the companies under their management.

4. The Ministry of Labor, War Invalids and Social Affairs:

a) Cooperate with relevant Ministries in adjusting minimum wages when consumer price index increases by 10% or more in comparison to the latest adjustment, as the basis for companies to decide their wage funds; provide guidance on wages, remunerations, and bonuses as prescribed in this Decree.

b) Provide opinions for the owners to decide the actual wage fund and remuneration fund for managers of parent companies –corporations; cooperate with the owners in supervising the wages, remunerations, and bonuses of managers of parent companies of special-class corporations, and public service corporations that play essential roles in the economy.

c) Cooperate with the Ministry of Finance in establishing criteria for ranking companies as the basis for determining minimum wages of managers as prescribed in this Decree.

d) Cooperate with the owners to inspect and supervise the wages, remunerations, and bonuses of the companies. Request the owners to make adjustments when the wages, remunerations or bonuses are found not conformable with law.

dd) Send periodic report on wages, remunerations, and bonuses of managers of companies to the Prime Minister.

5. The Ministry of Finance shall:

a) Cooperate with relevant Ministries and agencies in providing guidance on the establishment of the wage fund, remuneration fund, and bonus fund for controllers and state capital representatives as prescribed in this Decree.

b) Formulate regulations on assessing controllers; receive and manage wages, remunerations and bonuses of controllers paid by state-owned corporations; assess the fulfillment of controller’s tasks, pay wages, remunerations and bonuses according to the fulfillment of their tasks.

c) Cooperate with the Ministry of Labor, War Invalids and Social Affairs in establishing criteria for ranking companies as the basis for determining minimum wages of managers.

6. The Ministry of Home Affairs:

Cooperate with relevant Ministries and agencies in requesting the Government to establish criteria for assessing state capital representatives as the basis for determining the remunerations and bonuses associated with the fulfillment of the representatives’ tasks as prescribed in this Decree.

Article 10. Implementation effect

1. This Decree takes effect on July 01, 2013, and is applicable from May 01, 2013.

2. This Decree supersedes the regulations on the management of wages, remunerations, and bonuses in the following Decrees:

a) Article 26 and Article 30 Section II of the Government s Decree No. 25/2010/ND-CP dated March 19, 2010 on converting state-owned companies into one member state owned limited companies, and the management of one member state owned limited companies.

b) Clause 9 Article 30 Section II of the Government s Decree No. 101/2009/ND-CP dated November 05, 2009 on the experimental establishment, organization, operation, and management of state-owned corporations.

c) The payroll of full-time members of the Board of Directors and the payroll of the General Director, Director, Deputy General Director, Deputy Director, and Chief accountant enclosed with the Government s Decree No. 205/2004/ND-CP dated December 14, 2004 on the wage scales, payrolls, and benefits of state-owned companies.

3. After the state capital representatives receive wages and remunerations from the contributed companies, they must remit such amounts to the owner to establish a common fund, as the basis for paying the capital representatives according to the fulfillment of their tasks.

4. Viettel shall keep applying the Government s Decree No. 65/2011/ND-CP dated July 29, 2011 on experimental management of wages in Viettel during 2011 – 2013 to calculate wages in 2013.

5. The organizations that applying the wage regime applicable to state-owned companies or one member state owned limited companies shall follow the regime for wages, remunerations, and bonuses of managers as prescribed in this Decree.

6. The Member assemblies or presidents of the parent companies in Article 1 of this Decree shall implement the regime for wages, remunerations, and bonuses of managers of the single-member limited liability companies under their ownership in accordance with this Decree.

7. The Ministry of Labor, War Invalids and Social Affairs shall provide guidance on wages, remunerations, and bonuses of managers of the one member state owned limited companies established and operating by the Law on Securities to suit their characteristics after reaching an agreement with the Ministry of Finance.

8. Political organizations and socio-political organizations shall consider and decide the application of this Decree to the managers of the single-member limited companies under their ownership.

9. The organizations that represent the state capital at the companies of which capital is contributed by the State shall request the capital representative to decide or request the Board of Directors or the Member assembly to decide the wages, remunerations, and bonuses of managers of the companies of which capital is contributed by the state to suit the reality in accordance with this Decree.

10. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces, the Member assemblies and presidents of one member state owned limited companies are responsible for the implementation of this Decree./.

For the Government

The Prime Minister

Nguyen Tan Dung