Decree 44/2025/ND-CP on the management of labor, wages in state-owned enterprises

DECREE

On the management of labor, wages, remuneration, and bonuses
in state-owned enterprises

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Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 20, 2019 Labor Code;

Pursuant to the June 17, 2020 Law on Enterprises;

Pursuant to November 26, 2014 Law on Management and Use of State Capital Invested in Production and Business at Enterprises;  

At the proposal of the Minister of Labor, Invalids and Social Affairs;

The Government promulgates the Decree on the management of labor, wages, remuneration, and bonuses in state-owned enterprises.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes the management of labor, wages, remuneration, and bonuses in state-owned enterprises, including:

1. Enterprises in which the State holds 100% of charter capital as prescribed in Clause 2, Article 88 of the Law on Enterprises.

2. Enterprises in which the State holds more than 50% of the charter capital or the total number of voting shares as prescribed in Clause 3, Article 88 of the Law on Enterprises.

The enterprises specified in Clauses 1 and 2 of this Article are below collectively referred to as "enterprises."

Article 2. Subjects of application

1. Employees working under labor contracts; employees who are officers, professional soldiers, defense workers and officials, officers, non-commissioned officers, police workers, and cipher personnel.

2. The General Director, Director, Deputy General Director, Deputy Director, and Chief Accountant (below collectively referred to as the Executive Board).

3. The Chairman and members of the Members' Council or the Chairman of the Company, the Chairman and members of the Board of Directors, excluding independent members of the Board of Directors (below collectively referred to as Board Members).

4. The Head of the Supervisory Board, Supervisors, and members of the Supervisory Board (below collectively referred to as Supervisors).

5. The representative of the state capital invested in the enterprise and the agency representing the state owner as prescribed in the Law on Management and Use of State Capital Invested in Production and Business at Enterprises.

6. Agencies, organizations, and individuals related to the implementation of the provisions of this Decree.

Article 3. Principles of management of labor, wages, remuneration, and bonuses

1. Labor, wages, remuneration, and bonuses in enterprises are determined in connection with duties, labor productivity, and business efficiency, in accordance with the industry and nature of the enterprise's operations, aiming to ensure wage levels are competitive with the market; implementing an appropriate wage mechanism to enable enterprises to attract and incentivize high-tech human resources in priority high-tech fields designated by the State for development.

2. The State manages labor, wages, and bonuses in enterprises that the State holds 100% of charter capital by assigning tasks and responsibilities to the agency representing the state owner and the direct representative of the state owner at the enterprise; for enterprises that the State holds more than 50% of the charter capital or the total number of voting shares, management is carried out through the agency representing the state owner by assigning tasks and responsibilities to the representative of the state capital to participate, vote, and make decisions at meetings of the Members' Council, Board of Directors, or General Meeting of Shareholders.

3. Based on the provisions of this Decree, labor and employment laws, the enterprise's Charter of operations, and its production and business strategy and plans, enterprises shall decide on the recruitment and use of labor, the development of wage scales, wage tables, labor norms, the determination of wage and bonus funds, and the payment of wages and bonuses to employees based on their positions or job roles, ensuring fair and reasonable remuneration, without imposing a maximum limit on wages and bonuses for experts, talented individuals, or highly skilled professionals that make significant contributions to the enterprise.

4. Separating the wages and remuneration of Board Members and Supervisors from the wages of the Executive Board, specifically:

a) For the Executive Board, wages are included in the overall wage fund of employees. The wages paid to the Executive Board are linked to business performance and are subject to a maximum limit, ensuring that the wage of the General Director or Director does not exceed a specified multiple of the average wage of employees (except in cases that Executive Board members are hired under a labor contract, their wages are paid according to the terms agreed upon in the labor contract);

b) For full-time Board Members and Supervisors, wages are determined based on the basic wage level, with additional wage increments linked to the scale, complexity of management, business performance, and the efficiency of state capital utilization; non-full-time Board Members and Supervisors receive remuneration based on their actual working time. If Board members concurrently hold the positions of Executive Board, they shall receive wages according to their Executive Board positions and remunerations according to their role as non-full-time Board members; if the Chairman of the company concurrently holds the position of General Director or Director, they shall receive a wage according to the position of Chairman of the company; if the Supervisory Board consists of only one Supervisor, as prescribed in Article 103 of the Law on Enterprises, the Supervisor shall receive the wage and remuneration applicable to the position of Head of the Supervisory Board.

5. When determining the wages of employees, the Executive Board, Board Members, and Supervisors, if there are objective factors prescribed in Article 4 of this Decree that directly impact the increase or decrease of labor productivity, profit, the return on equity or the return on contributed capital (below referred to as the profit ratio), the enterprise shall calculate and exclude these factors to ensure that wages are genuinely linked to labor productivity and the actual business performance of the enterprise. The labor productivity indicator is determined by the enterprise based on total output, production volume (including converted products and output) or total revenue or total revenue minus total costs excluding wages, profit, or other indicators that reflect the characteristics, nature, and labor costs of employees. The profit indicator used to determine wages and the profit ratio is the profit before corporate income tax, if an enterprise is established and operates not for profit, the indicator of total revenue minus total costs, after excluding the impact of objective factors (if any), may be used instead of the profit indicator to calculate the profit ratio when determining wages; for enterprises assigned by the State to perform the tasks of market stabilization, the costs incurred to ensure the implementation of these tasks shall be excluded; enterprises providing public utility products and services and public non-business services funded by the State through orders or task assignments (below referred to as public products and services) must accurately and fully calculate wage costs, ensuring the alignment with market levels, and include them in the cost and pricing of public products and services in accordance with law regulations.

Article 4. Objective factors excluded when determining wages

1. Factors arising from state mechanisms and policies, including: Adjustments to mechanisms and policies by the State; adjustments to the prices of products and services set by the State; reduction in production and business quotas (for products and services subject to state-regulated production and business limits) or reduction in the volume of products and services (excluding public products and services) ordered or assigned for production by the State; corporate income tax incentives; increase or decrease in state capital; requirements for enterprises to relocate or downsize their production and business locations.

2. Factors arising from the enterprise's implementation, including: Enterprises participating in the implementation of political tasks, ensuring social welfare, and balancing supply and demand for the economy as decided by the Prime Minister; implementing economic support measures as required by competent state authorities; carrying out security and defence tasks assigned by the State, the Ministry of National Defence, or the Ministry of Public Security; enterprises directly serving national defense and security and enterprises combining economic activities with national defense and security that are assigned by state agencies to increase the volume of national defense and security products and services or independently conducting research and production of national defense and security products and services without revenue or with no current revenue; enterprises carrying out investment, acquisition, or transfer of state capital ownership representation as directed by the Government or the Prime Minister; receiving, purchasing, selling, rescheduling, deferring, and handling debts and assets, as well as purchasing and selling products and services in accordance with law regulations or at the request of competent state authorities; implementing retroactive provisions as prescribed by the Government; increasing depreciation to accelerate capital recovery in accordance with tax laws; adjusting equity capital or the owner's contributed capital; adjusting operational policies in accordance with the requirements of competent state authorities, international treaties to which the Socialist Republic of Vietnam is a signatory, or regulations of international organizations of which Vietnam is a member; implementing enterprise restructuring plans; increasing or divesting capital investments in other enterprises; making new investments or expanding production and business activities; adjusting or newly making provisions for financial and credit risks in accordance with law regulations; providing products and services with state-regulated pricing and price adjustment mechanisms, but prices have not been timely adjusted to fully cover reasonable costs of actual production and business when pricing factors change according to the Law on Prices or the State adjusts prices lower than the prices agreed upon in contracts, orders, or assigned tasks; allocating costs for unsuccessful oil and gas exploration and extraction projects in accordance with Government regulations, determining corporate income tax under petroleum contracts for enterprises engaged in oil and gas exploration and extraction, in accordance with tax laws; debt purchase and settlement transactions that have not been recorded as revenue or profit for debt trading enterprises, in accordance with law regulations;  revenue fluctuations from activities related to organizing securities trading markets and securities custody operations; differences in prize payouts compared to the previous year for lottery businesses; changes in the environment and mining conditions for mining enterprises; enterprises investing abroad where the host country changes its policies, directly affecting the enterprise’s projects in that country or due to objective conditions in the host country, the enterprise must adjust or establish new provisions in accordance with regulations.

3. Other factors, including: Market fluctuations directly affecting key input factors for enterprises producing products listed in the State-regulated pricing category, as prescribed in the Law on Prices; natural disasters, fires, epidemics, wars, and other force majeure events as prescribed by laws.

Chapter II

MANAGEMENT OF LABOR, WAGE SCALES
AND WAGE TABLES

Article 5. Labor management

1. Enterprises shall recruit and employ labor in accordance with labor organization, production organization, business requirements, and assigned tasks, ensuring transparency and compliance with law regulations, internal rules, regulations, and the enterprise's charter.

2. Annually, the General Director or Director must develop a labor plan and submit it to the Members' Council, Board of Directors, or Chairman of the company for approval as a basis for recruiting and employing labor; fully implementing all regimes and policies for employees in accordance with labor laws.

3. In case the number of recruited employees exceeds the employment demand, thus leading to labor surplus and termination of labor contracts, and leading to an increase in the company’s expenses, the General Director, Director, and Board Members shall be held accountable before the state ownership representative agency and this issue shall also be considered as a criterion for evaluating the performance of the General Director, Director, and Board Members.

Article 6. Wage scales and wage tables

1. Pursuant to the management structure, labor organization, and production organization, the enterprise shall develop and issue wage scales, wage tables, and wage-based allowances for employees, wage tables for the Executive Board, wage tables for full-time Board Members and Supervisors, serving as the basis for wage classification, wage agreements in labor contracts, implementation of social insurance, health insurance, unemployment insurance, and other entitlements in accordance with labor laws.

2. The wage levels in the wage scales, wage tables, and wage allowances are determined by the enterprise, ensuring that the total wages of employees, the Executive Board, full-time Board Members, and full-time Supervisors, calculated based on the established wage structures and any additional allowances (if applicable), do not exceed the corresponding planned total wage fund for these groups, and the salary of the General Director or Director must not exceed the limit specified at Point b, Clause 1, Article 19 of this Decree.

3. When newly developing or amending, supplementing wage scales, wage tables, and wage-based allowances, the enterprise must consult the representative organization of employees at the workplace, conduct workplace dialogues in accordance with labor laws and publicly announce the changes within the enterprise before implementation. Before issuance, the enterprise must report to the representative state ownership agency for approval regarding the wage tables for full-time Board Members and full-time Supervisors in enterprises of which the State holds 100% of charter capital, seek opinions from the representative state ownership agency on the payroll tables for full-time Board Members and full-time Supervisors in enterprises of which the State holds more than 50% of charter capital or total voting shares.

4. For employees, the Executive Board, full-time Board Members, and full-time Supervisors who are officers, professional soldiers, national defense workers and officials, officers, non-commissioned officers, police workers, and cipher personnel, their wages shall continue to be classified according to the wage scales and wage-based allowance regimes prescribed by the Government for the armed forces and cipher personnel.

Chapter III

WAGES OF EMPLOYEES AND EXECUTIVE BOARD

Section 1
METHOD FOR DETERMINING THE WAGE FUND

Article 7. Method of determination

The wage fund for employees and the Executive Board is determined by the following methods:

1. Determining the wage fund based on the average wage level, as specified in Section 2 and Section 4 of this Chapter.

2. Determining the wage fund based on the stable wage unit price as specified in Section 3 and Section 4 of this Chapter. This method is only applicable to enterprises that have been in operation for at least the minimum period corresponding to the expected duration of applying the stable wage unit price, as prescribed in Clause 1, Article 12 of this Decree.

Article 8. Selection of determination method

1. Depending on the tasks, nature of the industry, and conditions of production and business operations, enterprises shall decide to choose one of the two methods for determining the wage fund as prescribed in Article 7 of this Decree.

2. Enterprises engaged in multiple fields of production and business activities where labor and financial indicators can be clearly separated to calculate labor productivity and business efficiency for each specific field may select an appropriate method as stipulated in Article 7 of this Decree to determine the wage fund corresponding to each field of activity.

3. Enterprises that choose to determine the wage fund using the stable wage unit price method must maintain this method throughout the period in which the selected stable wage unit price is applied (Except in case objective factors or changes in business strategy, functions, tasks, or organizational structure significantly affect the enterprise's production and business activities) and must report to the representative agency of the owner along with the stable wage unit price before implementation.

Section 2
DETERMINATION OF THE WAGE FUND THROUGH THE AVERAGE WAGE LEVEL

Article 9. Planned average wage level

Pursuant to the actual average wage level of employees and the Executive Board in the preceding year, linked to labor productivity and planned profit (including safety bonuses for enterprises implementing a safety bonus regime, if applicable), the planned average wage level is determined as follows:

1. For enterprises generating profit, the average wage level is linked to the increase or decrease in labor productivity and planned profit compared to the previous year, following these principles:

a) If labor productivity increases and profit does not decrease, wages may increase by a maximum amount not exceeding the increase in labor productivity;

b) If labor productivity increases but profit decreases, wages may increase by a maximum amount not exceeding 80% of the increase in labor productivity;

c) If labor productivity and profit remain the same as in the previous year, the maximum wage level shall be equal to that of the previous year;

d) If labor productivity decreases while profit remains the same as in the previous year, wages shall decrease in proportion to the decline in labor productivity;

dd) If labor productivity remains the same as in the previous year and profit increases or decreases, or if both labor productivity and profit decrease, wages shall be adjusted downward in proportion to labor productivity and may increase or decrease by a maximum of 20% of the increase or decrease in profit;

e) If labor productivity decreases while profit increases, wages shall be adjusted downward by a maximum of 80% of the decrease in labor productivity and may increase by a maximum of 20% of the increase in profit.

The average wage level determined under this clause must not be lower than the statutory wage level prescribed in Clause 2 of this Article.

2. For enterprises that do not generate profit or incur losses, the average wage level shall be equal to the statutory wage level.

The statutory wage level is determined based on the wage level specified in labor contracts for employees working under labor contracts, the wage level of the Executive Board (in which the average wage level of the Executive Board shall not exceed the average wage level of the Members of the Board) and additional wages paid for night shifts and overtime work as prescribed by the Labor Code. The statutory wage level for employees and the Executive Board who are officers, professional soldiers, national defense workers and officials, police officers, non-commissioned officers, police workers, and cipher personnel is determined based on their position, title, rank, grade, level, wage-based allowances as prescribed by the law regulations and policies applicable to officers, professional soldiers, national defense workers and officials, police officers, non-commissioned officers, police workers, and cipher personnel, in specific cases, the representative agency of the owner shall decide based on labor productivity, the annual production and business performance of the enterprise, and other legally supported financial sources, while ensuring the availability of funds and the preservation and development of state capital.

3. For enterprises reducing losses (including cases where there is no profit in the planned year), the average wage level shall be determined based on the extent of loss reduction, ensuring overall balance. The enterprise must report to the representative agency of the owner for review and feedback before making a final decision.

4. For newly established enterprises or those newly commencing operations, the average wage level in the first year of establishment or operation and the following year shall be determined based on the production and business plan and the prevailing wage levels of enterprises in the same industry in the market.

5. For enterprises established through the merger of multiple enterprises, the planned average wage level in the first year of establishment and the following year shall be determined based on the production and business plan, the prevailing wage levels in the year preceding the merger of the merged enterprises, the wage levels of enterprises in the same industry on the market, but not exceeding the wage level of the enterprise with the highest wage among the merged enterprises.

6. An enterprise adjusting its production and business plan must review the planned average wage level for employees and the Executive Board to ensure compliance with the conditions prescribed in this Article.

Article 10. Actual average wage level

The actual average wage level is determined based on the planned average wage level taking into account fluctuations in labor productivity and actual profit compared to the planned labor productivity and profit, following the same principles as those used for the planned average wage level specified in Article 9 of this Decree.

Article 11. Determination of the wage fund

1. The planned wage fund is determined based on the planned average number of employees (including the Executive Board) and the planned average wage level as prescribed in Article 9 of this Decree.

2. The actual wage fund is determined based on the actual average number of employees (including the Executive Board) and the actual average wage level as prescribed in Article 10 of this Decree.

3. For enterprises that achieve actual profits exceeding the planned target, additional wages may be added to the wage fund prescribed in Clause 2 of this Article following the principle that for every 1% increase in profit beyond the plan, the wage fund may increase by up to 2%, but the additional wages must not exceed 20% of the excess profit and must not exceed the equivalent of two months' average wage as prescribed in Article 10 of this Decree.

Section 3
DETERMINATION OF THE WAGE FUND THROUGH A STABLE WAGE UNIT PRICE

Article 12. Stable wage unit price

1. The stable wage unit price is applied over a period (calculated by fiscal year) of at least 2 years and at most 5 years, determined based on the total actual wages (including safety bonuses for enterprises implementing a safety bonus regime, if applicable) paid to employees and the Executive Board in accordance with legal regulations and the total value of production and business performance indicators, calculated based on the actual wage unit price (corresponding to the fiscal year) immediately preceding the first year of the period in which the stable wage unit price is applied.

2. The production and business performance indicators used to calculate the stable wage unit price are selected by the enterprise, consisting of total product output, production volume (including converted products and volumes), total revenue, total revenue minus total costs excluding wages, profit, or other indicators that reflect the enterprise's characteristics, nature, and operational efficiency.

3. During the period of applying the stable wage unit price, if there is a change in state policies that leads to a modification in the calculation of the selected production and business performance indicators used for determining the wage unit price, the enterprise must report to the representative agency of the owner for review and adjustment of the wage unit price accordingly.

Article 13. Determination of the wage fund

1. The planned wage fund is determined based on the stable wage unit price and the annual planned production and business performance indicators selected by the enterprise for calculating the stable wage unit price, as stipulated in Clause 2, Article 12 of this Decree.

2. The actual wage fund is determined in relation to annual labor productivity and actual profit compared to the average labor productivity and average profit of the years preceding the determination of the stable wage unit price (below referred to as average labor productivity and average profit), as follows:

a) The actual wage fund is determined based on the stable wage unit price and the annual production and business performance indicators used for calculating the actual wage unit price, ensuring that the wage increase does not exceed the increase in actual labor productivity for that year compared to the average labor productivity, and the actual profit for that year is not lower than the average profit;

b) For enterprises with actual profits exceeding the average profit, additional wages may be added to the actual wage fund specified at Point a of this Clause, following the principle that for every 1% increase in profit beyond the average profit, the wage fund may increase by up to 2%, but the additional wages must not exceed 20% of the excess profit beyond the planned target and must not exceed the equivalent of two months' average wage, determined based on the actual wage fund specified at Point a of this Clause.

c) For enterprises with actual profits lower than the average profit, the actual wage fund must be reduced accordingly, either proportionally (%) or by the absolute value of the shortfall in actual profit compared to the average profit, ensuring that the reduced actual wage fund is not lower than the wage fund calculated based on the actual average number of employees and the statutory wage level stipulated in Clause 2, Article 9 of this Decree;

d) For enterprises that do not generate profit or incur losses in the year of implementation, the actual wage fund shall be calculated based on the actual average number of employees and the statutory wage level stipulated in Clause 2, Article 9 of this Decree. In cases where losses are reduced (including years with no profit) compared to the average profit, the wage fund shall be determined based on the extent of loss reduction, ensuring overall balance. The enterprise must report to the representative agency of the owner for review and feedback before making a final decision.

Section 4

DETERMINATION OF THE WAGE FUND FOR SPECIFIC CASES

Article 14. Determination of the wage fund for public products, services, or state-regulated production sectors

1. For enterprises engaged in public product and service provision or those that operate both in public product and service provision and other production and business activities (outside of public products and services), the portion of the wage fund corresponding to public products and services shall be determined based on the volume of public products and services ordered or assigned by the State. The portion of the wage fund corresponding to production and business activities shall be determined in accordance with this Decree.

2. For enterprises operating in sectors where the State imposes production and business limits lower than the enterprise's actual operational capacity, resulting in labor productivity not increasing or increasing at a rate lower than the consumer price index growth rate as prescribed in the National Assembly’s Resolution on the annual Socio-Economic Development Plan, an additional increase in the average wage level shall be applied, provided that it does not exceed the increase in the consumer price index.

Article 15. Determination of the wage fund for newly arising tasks

1. For enterprises that have chosen to determine the wage fund through a stable wage unit price, if new production or business tasks arise outside the scope of the previously calculated stable wage unit price during the period of applying the stable wage unit price and the stable wage unit price cannot be applied, a separate wage fund shall be determined for employees carrying out these new production and business tasks using the method of determining the wage fund through the average wage level, in which the wage fund for employees in the year the new task arises and the following year shall be determined according to the principles applicable to newly established enterprises or those newly commencing operations, as stipulated in Clause 4, Article 9 of this Decree.

2. Enterprises that must assign employees to work night shifts or overtime to carry out unplanned tasks in response to the consequences of natural disasters, fires, epidemics, wars, or other force majeure events as prescribed by law regulations, in addition to the actual wage fund determined according to the provisions in Section 2 or Section 3, Chapter III of this Decree, the enterprise may add to the actual wage fund the additional wages that must be paid for night shifts and overtime work (if applicable) as prescribed by the Labor Code.

Article 16. Determining the wage fund for additional labor as required by the competent authority

For enterprises providing products and services for flight management and operation, needing to arrange additional labor to ensure aviation security and safety objectives according to the requirements of the competent state authorities, if the enterprise applies the method of determining the wage fund through a fixed wage unit price, the wage of the additional labor that is expected to be added will be included in the fixed wage unit price as the basis for determining the wage fund for employees and the Executive Board.

Article 17. Determine the wage fund for high-tech labor.

If enterprises employing workers who are aircraft pilots, individuals classified as high-tech human resources under the Law on High Technology related to hydrogen energy, and jobs listed in the high-tech investment priority category as prescribed by the Government and the Prime Minister; information technology and digital technology personnel directly engaged in research, development, design, assembly, manufacturing, testing, and quality assurance of semiconductor products, artificial intelligence products, and key digital technology products as prescribed by relevant laws, deem it necessary to have a separate wage fund to provide competitive wages in order to attract, encourage, and retain these workers, the wages for these workers may be accounted for separately from the wage fund for other employees and the executive board. The annual wages for these workers shall be determined based on the market wage levels but must ensure that profits do not decrease compared to the previous year, if a stable wage unit price is established, it must not result in a decrease in profits compared to the average profit. The enterprise must report to the representative ownership authority for review and approval before implementation.

Section 5

ADVANCE PAYMENT, PROVISION, AND
DISTRIBUTION OF WAGES

Article 18. Advance payment and wage provision

1. Pursuant to the planned wage fund determined in accordance with the provisions of Sections 2, 3, and 4 of Chapter III of this Decree, the enterprise shall decide on advance payments for monthly wage disbursement to employees and the executive board. If the advance payment exceeds the actual wage fund, the excess amount must be reimbursed from the wage fund of the following year.

2. Based on the actual wage fund determined in accordance with the provisions of Sections 2, 3, and 4 of Chapter III of this Decree, the enterprise may utilize the entire wage fund for full disbursement within the year to employees and the executive board or allocate a portion to establish a wage reserve fund for the following year after ensuring full payment of statutory wages and additional wages for night shifts and overtime as prescribed by the Labor Code. The maximum allocation to the wage reserve fund shall not exceed 17% of the actual wage fund for that year and must be fully disbursed by June 30 of the following year; after this deadline, if the enterprise has not fully disbursed the reserved wages, the remaining undistributed amount must be reversed into the enterprise’s other income.

Article 19. Wage distribution

1. Employees and the executive board shall be paid according to the wage policy issued by the enterprise, in which:

a) Employees' wages shall be determined based on their job position or role, linked to labor productivity and each individual's contribution to the enterprise's production and business performance;

b) The wages of the executive board shall be determined based on their title, position, and the enterprise’s production and business performance, particularly the wage of the General Director or Director (except in cases that the General Director or Director is hired under an employment contract) shall not exceed ten times the average wage of the employees.

2. When developing the wage policy, the enterprise must consult the representative organization of employees at the workplace, conduct workplace dialogue in accordance with labor laws, report to the representative ownership authority for inspection and supervision, and publicly disclose the policy within the enterprise before implementation.

Chapter IV
WAGES AND REMUNERATION OF BOARD
MEMBERS AND SUPERVISORS

Article 20. Basic wage

The basic wage of full-time Board Members and Supervisors is determined as follows:

BASIC WAGE TABLE

Unit: Million VND/month

2. The subjects and conditions for applying Levels 1, 2, 3, and 4 of Group I and Group II shall be implemented in accordance with the Appendix issued with this Decree.

3. Annually, pursuant to the planned production and business targets, the enterprise shall determine the basic salary to establish the planned wage level for each Board Member and Supervisor.

Article 21. Planned wage level

The planned salary level for full-time Board Members and Supervisors shall be determined based on the basic wage and planned profit targets, as well as the planned profit margin, as follows:

1. If the enterprise is profitable, the planned wage level shall be linked to the planned profit targets and profit margin compared to the actual profit and profit margin of the previous year, as follows:

a) If the planned profit and profit margin are not lower than the actual figures of the previous year, the maximum wage shall be equal to twice the basic wage;

b) If either the planned profit or the planned profit margin is lower than the previous year, or if both the planned profit and the planned profit margin are lower than the previous year, the maximum planned wage shall be calculated as 70% multiplied by twice the basic wage, further multiplied by the lower ratio of planned profit or planned profit margin compared to the previous year. The planned wage level, after being adjusted based on profit or profit margin, shall not be lower than 80% of the basic wage.

2. If the enterprise is not profitable, the maximum planned wage shall be equal to 70% of the basic wage.

3. In case of loss-making enterprises, the planned wage level shall be determined at a maximum of 50% of the basic wage. In the case of loss reduction (including when the enterprise does not generate a profit in the planned year), the planned wage level shall be determined at a maximum of 80% of the basic wage, based on the extent of loss reduction compared to the actual loss of the previous year.

4. If the enterprise's planned profit and profit margin are not lower than the actual figures of the previous year, and the planned profit is significantly higher than the minimum profit target associated with the basic wage, the implementation shall be conducted as follows:

a) For enterprises eligible to apply basic wage Level 1, Level 2, or Level 3 of Group I and Group II, if the planned profit is at least 50% higher than the minimum profit target corresponding to the basic wage level the enterprise is eligible to apply; the enterprise shall apply basic wage Level 4 of Group I and Group II, provided that its planned profit is not lower than the minimum profit target required for basic wage Level 3 within the same industry or sector, as specified in the Appendix issued with this Decree, an additional wage increase may be applied to the maximum planned wage, not exceeding 10% of the planned wage level determined according to Point a, Clause 1 of this Article;

b) For enterprises whose planned profit is significantly higher than the minimum profit target required for Level 1 of Group I, corresponding to their industry or sector as specified in the Appendix issued with this Decree, playing a key role in the national economy, and the wage level of Board Members and Supervisors, as determined under Point a, Clause 1 of this Article, is lower than that of equivalent positions in enterprises operating in the same sector on the market, and the enterprise deems it necessary to apply a higher wage level than the wage specified in Point a, Clause 1 of this Article, the enterprise shall report to the representative ownership authority for review and decision-making, after consulting the Ministry of Labor, Invalids, and Social Affairs, to ensure overall balance.

5. For enterprises whose planned profit or profit margin is not lower than the actual figures of the previous year, but the planned wage level, after being determined according to Clause 1 and Clause 4 of this Article, is lower than the actual wage of the previous year, the planned wage shall be set equal to the actual wage of the previous year.

6. For newly established enterprises or enterprises that have just commenced operations, the maximum planned wage in the first year of establishment or operation shall not exceed the basic wage. In the case of a newly established enterprise formed through the merger of multiple enterprises, if the planned salary level is lower than the highest actual salary for the corresponding positions in the member enterprises prior to the merger, the planned wage shall be set equal to the wage of those corresponding positions.

7. For enterprises engaged in providing public products and services, the planned wage level shall be determined as follows:

a) If the enterprise exclusively provides public products and services, the volume of public products and services shall be considered as a key indicator to evaluate and determine the planned wage level, in which: If the volume of public products and services is not lower than the actual volume of the previous year, the maximum planned wage shall be equal to the basic wage; If the volume of public products and services is lower than the actual volume of the previous year, the maximum planned salary shall be calculated as basic salary multiplied by the ratio between planned volume of public products and services and actual volume of public products and services performed in the previous year, if the volume of public products and services is less than 50% of the actual volume in the previous year, the maximum planned wage shall be equal to 50% of the basic wage; If the volume of public products and services is lower than the actual volume of the previous year due to the implementation of State policies or being affected by objective factors as prescribed in Article 4 of this Decree, the representative ownership authority shall review and decide on the specific wage level, with a maximum limit equal to the basic wage;

b) For enterprises that engage in both public product and service provision and commercial production and business activities (in addition to providing public products and services), the enterprise may choose to determine the planned wage level based on its commercial production and business activities, in accordance with the provisions of Clauses 1, 2, 3, 4, and 5 of this Article or based on its public product and service provision activities, as prescribed at Point a of this Clause.

8. The planned wage level for Board Members and Supervisors who are officers, professional soldiers, national defense officials, officers, non-commissioned officers, and cipher personnel, when determined in accordance with Clauses 1, 2, 3, and 7 of this Article, shall not be lower than the wage level prescribed for the respective position, title, rank, grade, and wage-based allowances as regulated by the Government for Board Members and Supervisors that are officers, professional soldiers, national defense officials, officers, non-commissioned officers, and cipher personnel.

9. In case the enterprise adjusts its production and business plan, it must review and reassess the planned wage salary of full-time Board Members and Supervisors to ensure compliance with the conditions prescribed in this Article.

Article 22. Actual wage level

1. The annual actual wage of full-time Board Members and Supervisors shall be determined based on the planned wage level, the achievement of profit targets, and the planned profit margin, in which:

a) If the enterprise is profitable and the profit margin is not lower than the planned target, the maximum actual wage shall be equal to the planned wage;

b) If the enterprise's profit or profit margin is lower than the planned target, the wage shall be reduced based on the principle that for every 1% decrease in profit or profit margin, the wage shall be reduced by 1%. If both profit and profit margin are lower than the planned target, the wage shall be reduced based on the lower value between the two, following the principle that for every 1% decrease in profit or profit margin, the salary shall be reduced by 1%. The actual wage, after being reduced based on profit or profit margin, shall not be lower than 80% of the basic wage;

c) If the enterprise has no profit, incurs a loss, reduces its loss compared to the plan, or if Board Members and Supervisors are officers, professional soldiers, national defense officials, officers, non-commissioned officers, or cipher personnel, the actual wage shall be determined based on the same principles as the planned wage, as prescribed in Clauses 2, 3, and 8 of Article 21 of this Decree.

2. If the actual profit and profit margin exceed the planned targets, an additional wage amount shall be added to the actual wage specified in Point a, Clause 1 of this Article, based on the principle that for every 1% increase in profit beyond the plan, the wage may increase by 2%, but the total additional wage shall not exceed 20% of the actual wage specified at Point a, Clause 1 of this Article.

3. For enterprises engaged in public product and service provision that choose to determine their planned wage level based on commercial production and business activities (in addition to public product and service provision), the actual wage shall be determined in accordance with Clauses 1 and 2 of this Article. If the enterprise chooses to determine the planned wage level based on the volume of public products and services, the actual wage shall be determined based on the planned wage, linked to the level of completion of the public product and service volume compared to the plan, following the same principles as those applied to determining the planned wage for public product and service provision activities.

Article 23. Remuneration level

The remuneration for non-executive Board Members and Supervisors shall be determined based on their actual working time, but shall not exceed 20% of the corresponding wage of full-time Board Members and Supervisors.

Article 24. Advance payment of wage and remuneration

Based on the planned wage and remuneration levels, the enterprise shall make monthly advance payments of wage and remuneration to Board Members and Supervisors. If the advance payment exceeds the actual wage or remuneration, the excess amount must be reimbursed no later than June 30 of the following year.

Article 25. Decision on wage and remuneration levels

1. For enterprises in which the State holds 100% of charter capital, the representative ownership authority shall approve the planned wage and remuneration levels. The actual wage and remuneration levels shall be determined based on the performance and task completion of each Board Member and Supervisor and shall be communicated to the enterprise for disbursement to the respective Board Members and Supervisors.

2. For enterprises in which the State holds more than 50% of the charter capital or the total number of voting shares, the representative ownership authority shall approve the planned wage and remuneration levels, as well as the actual wage and remuneration levels, for Board Members and Supervisors that are State capital representatives, provide opinions on the maximum wage and remuneration levels for Board Members and Supervisors that are not State capital representatives and direct the State capital representative to participate in discussions and voting so that the Members' Council, Board of Directors, or General Meeting of Shareholders can decide on the specific wage and remuneration levels and arrange payment for Board Members and Supervisors.

Chapter V
BONUSES AND WELFARE

Article 26. Bonuses and welfare for enterprises with 100% state-owned charter capital

1. Bonuses and welfare for employees (including members of the Executive Board hired under employment contracts):

a) The bonus and welfare fund for employees shall be determined, managed, and utilized in accordance with Government regulations on State capital investment in enterprises and the management and utilization of capital and assets within the enterprise and the financial regulations applicable to credit institutions and foreign bank branches and the financial supervision and assessment of the efficiency of State capital investment in credit institutions that the State holds 100% of the charter capital and credit institutions with State capital participation;

b) The bonus fund shall be allocated from the employee bonus and welfare fund, as decided by the enterprise. Pursuant to this fund, the enterprise shall grant bonuses to employees in accordance with its bonus policy;

c) The bonus policy shall be developed and issued by the enterprise after consulting the employee representative organization at the workplace and conducting workplace dialogue in accordance with labor laws and publicly disclosed within the enterprise before implementation.

2. Bonuses for the Executive Board, Board members, and Supervisors

a) The bonus fund for Executive Board members appointed under the appointment regime, full-time and part-time Board Members, and Supervisors (referred to as the bonus fund of enterprise manager and supervisor) shall be determined, managed, and utilized in accordance with Government regulations on State capital investment in enterprises and the management and utilization of capital and assets within the enterprise and the financial regulations applicable to credit institutions and foreign bank branches and the financial supervision and assessment of the efficiency of State capital investment in credit institutions that the State holds 100% of the charter capital and credit institutions with State capital participation;

b) Pursuant to the annual bonus fund of enterprise manager and supervisor, the enterprise shall grant bonuses to Executive Board members, Board Members, and Supervisors, linked to their contribution to business performance and the effectiveness of management, administration, or supervision, in accordance with the enterprise’s bonus policy;

c) The bonus policy shall be developed and issued by the enterprise in accordance with law regulations, ensuring democracy, transparency, and public disclosure, after being reviewed by the employee representative organization at the workplace and approved by the representative ownership authority before implementation.

Article 27. Bonuses and welfare for enterprises with more than 50% state-owned charter capital or voting shares

Based on the actual profits after fulfilling obligations to the State, the capital-contributing members, and the company's charter, the enterprise determines the bonuses and welfares for employees, the Executive Board, Board members, and Supervisors as follows:

1. Bonuses and welfares for employees (including members of the executive board hired under labor contracts)

a) The maximum bonus and welfare fund for employees is as follows: No more than 03 months of the average actual wage, if the actual profit is not lower than the planned profit; no more than 03 months of the average actual wage multiplied by the ratio of actual profit to planned profit, if the actual profit is lower than the planned profit;

b) Based on the bonus and welfare fund prescribed in point a of this section, the enterprise decides to allocate into the bonus fund and the welfare fund, particularly the bonus fund is used for year-end bonuses, regular bonuses, unexpected bonuses, and bonuses in accordance with the law on emulation and rewards for employees within the enterprise (including members of the executive board hired under labor contracts), bonuses for individuals and units outside the enterprise that have made significant contributions to the business operations and management activities of the enterprise. The employee bonus fund shall not be used to award bonuses to members of the executive board working under the appointment system, board members, or supervisors of the enterprise (except for bonuses in accordance with the law on emulation and rewards). The welfare fund is used for investing in the construction or repair of the enterprise's welfare facilities and for expenses related to welfare activities for employees within the enterprise (including members of the executive board, board members, and supervisors), contributing part of the capital to invest in the construction of common welfare facilities or with other units under a contract, using part of the welfare fund to provide emergency hardship assistance to employees (including those who are retired or have lost their ability to work) facing difficult circumstances, lacking support, or engaging in social charity work;

c) Based on the bonus fund specified in point b of this section, the enterprise rewards employees according to the bonus regulation. The bonus regulation is developed and issued by the enterprise after consulting with the representative organization of employees at the workplace, conducting dialogue at the workplace in accordance with labor law, and being publicly disclosed within the enterprise before implementation.

2. Bonuses for the Executive Board, Board Members, and Supervisors

a) The maximum bonus fund for members of the executive board working under the appointment system, board members, and supervisors is as follows: No more than 02 months of the average actual wage or remuneration, if the actual profit is not lower than the planned profit; no more than 02 months of the average actual wage or remuneration multiplied by the ratio of actual profit to planned profit, if the actual profit is lower than the planned profit;

b) Based on the bonus fund prescribed in point a of this section, the enterprise rewards members of the executive board, board members, and supervisors linked to their level of contribution to production, business performance, and management, administration, or supervision results, in accordance with the enterprise’s bonus policy;

c) The bonus regulation is developed and issued by the enterprise in accordance with law provisions, ensuring democracy, transparency, and public disclosure, after consulting with the representative organization of employees at the workplace and the opinions of the owner’s representative agency before implementation.

Chapter VI
RESPONSIBILITY FOR IMPLEMENTATION

Article 28. The responsibility of the enterprise with 100% of its charter capital owned by the State

1. General Director, Director shall:

a) Develop and report to the Board of Members or the Chairman of the company on: The labor plan, the wage fund of employees, the executive board, and the wage level of each member of the executive board must be reported before March 31 of each year; the bonus fund for employees, the bonus fund for enterprise managers, and the supervisors must be reported before May 30 of each year; The wage scale, wage table, stable wage rates, wage payment regulations for employees and the executive board, bonus regulations for employees, and bonus regulations for enterprise managers and supervisors;

b) Decide on advance payment of wages, wage reserve deduction, wage payments for employees and the executive board, and bonus payments for employees. Recruit, use labor, classify, increase wages and implement other policies for employees in accordance with labor law;

c) Regularly report to the Board of Members or the Chairman of the company on the situation of labor, wages, and bonuses; provide complete reports, documents, and data on labor, wages, and bonuses as required by the Head of the Supervisory Board and the supervisors. Implement the public disclosure of wages and bonuses for the executive board in accordance with the law regulations;

d) Consolidate the labor, wage, remuneration, and bonus situation of the previous year and the plan for the upcoming year for the enterprise and its subsidiaries (if any), and submit the report to the owner’s representative agency and the Ministry of Labor, Invalids, and Social Affairs before July 15 of each year.

2. Board of members or Chairman of the company shall:

a) Report to the owner’s representative agency on: The wage and remuneration levels of each board member, supervisor, the wage fund for employees and the executive board of the previous year before April 15 of each year; The employee bonus fund, the bonus fund for enterprise managers, and the supervisors before June 15 of each year; stable wage unit prices; The wage table for full-time board members and supervisors; the bonus regulations for enterprise managers and supervisors;

b) Approve the labor plan, the wage funds for employees and the executive board before April 15 of each year; the employee bonus fund before June 30 of each year; Issue the wage scale, wage table for employees, the executive board, and the wage table for full-time board members and supervisors; the regulations on wage payment and bonuses; decisions on wage classification and wage increases for the executive board, full-time board members, and supervisors;

c) Submit the report to the owner's representative agency and the supervisors on the labor plan, wage scale, wage table for employees, the executive board, wage fund, bonus fund, the regulations on wage payment and bonuses for employees, the level of wages and bonuses for members of the executive board, the bonus regulations for enterprise managers, and supervisors within 15 days from the date of approval or issuance for inspection and supervision. Implement the public disclosure of wages and bonuses for board members in accordance with the law regulations.

3. Heads of Supervisory Boards, and supervisors shall assist the owner's representative agency in inspecting and supervising the implementation conducted by the Board of Members, Chairman of the company, General Director, and Director in accordance with the law regulations and the provisions of this Decree.

Article 29. The responsibility of the representative of the state-owned capital in enterprises that the State holds more than 50% of the charter capital or the total number of voting shares

1. Taking part in providing opinions so that the enterprise specifies the responsibilities of the Board of Directors, the Board of Members, the Head of the Supervisory Board, supervisors, the General Director, and the Director, corresponding to the responsibilities of the Board of Members, the Head of the Supervisory Board, supervisors, the General Director, and the Director of enterprises that the State holds 100% of the charter capital, in implementing the contents prescribed in Article 28 of this Decree.

2. Reporting to seek the opinions of the owner's representative agency regarding the wage table for full-time board members and supervisors, the stable wage unit prices, the wage funds for employees and the executive board;  the wage and remuneration levels of each board member and supervisor; the bonus fund for employees, the bonus fund and the bonus regulations for managers and supervisors to participate in providing opinions, voting in the Board of Directors, Board of Members, or General Assembly of Shareholders, and report to the owner's representative agency after approval.

 3. Annually, evaluating the responsibility in performing the management tasks related to labor, wages, remuneration, and bonuses for the enterprise, in case of failure to complete the tasks, the reasons must be clearly identified, and proposals for accountability measures and solutions must be provided.

Article 30. Responsibilities of the owner's representative agency

1. For enterprises that the State holds 100% of the charter capital

a) Approving the planned wage and remuneration levels, as well as the actual wage and remuneration levels for each board member and supervisor for the previous year, before April 30 of each year; the bonus fund for enterprise managers and supervisors before June 30 of each year; the stable wage unit prices. Approving the wage table for full-time board members and supervisors.

b) Providing opinions on the planned wage fund (for enterprises that determine the wage fund based on the average wage level), the actual wage fund for employees and the executive board of the previous year, before April 30 of each year; the bonus fund for employees before June 30 of each year; the bonus regulations for enterprise managers and supervisors.

2. For enterprises that the State holds more than 50% of the charter capital or the total number of voting shares, direct the state capital representative to provide opinions so that the Board of Members, Board of Directors, or the General Assembly of Shareholders of the enterprise make specific decisions on the planned wage and remuneration levels, the actual wage and remuneration levels of the previous year for both state capital representatives and non-state capital representatives, the planned wage fund (for enterprises determining the wage fund based on the average wage level), and the actual wage fund for employees and the executive board before April 30 of each year; the bonus funds for employees, managers and supervisors before June 30 of each year; the stable wage unit prices; the wage table for full-time board members and supervisors; the bonus regulations for enterprise managers and supervisors.

3. Approving or providing opinions after consulting with the Ministry of Labor, Invalids, and Social Affairs regarding the wages of the enterprise, which is an economic group (including the stable wage unit prices, the employee wage fund, and the wage levels of board members and supervisors); the wages of high-tech labors as specified in Article 17 of this Decree; applying the wage levels for board members and supervisors as prescribed at Point b, Clause 4, Article 21 of this Decree.

4. Within 15 days from the date of approval or providing opinions on the wage funds for employees and the executive board, the wage and remuneration levels for board members and supervisors, the bonus funds for employees, managers and supervisors for enterprises applying the basic wage level of Group I in the Appendix to this Decree, a report must be submitted to the Ministry of Labor, Invalids, and Social Affairs for monitoring, inspection, and supervision.

5. Receiving reports on labor, wages, and bonuses from enterprises for inspection and supervision; consolidate and submit a report to the Ministry of Labor, Invalids, and Social Affairs on the implementation of labor, wages, remuneration, and bonuses of the previous year and the planned year for enterprises under management before July 30 of each year.

Article 31. Responsibilities of the Ministry of Labor, Invalids, and Social Affairs

1. Providing guidance on the management of labor, wages, remuneration, and bonuses for enterprises in accordance with the provisions of this Decree.

2. Assuming the prime responsibility for, and coordinating with relevant ministries and sectors to submit to the Government for consideration and adjustment of the basic wage level to align with the actual circumstances of each period.

3. Coordinating with relevant ministries, sectors, and the owner's representative agency to organize inspections, scrutiny, and supervision of the implementation of regulations on labor management, wages, remuneration, and bonuses in enterprises.

Chapter VII
IMPLEMENTATION PROVISIONS

Article 32. Transitional provisions

Enterprises that have established wage scales and wage tables for employees, the executive board, the Board of Members, and supervisors in compliance with the provisions of Article 6 of this Decree; bonus regulations (or the content of bonus distribution within the wage and bonus payment regulations of the enterprise) for managers and supervisors continue to implement according to the current wage scale, wage table, and bonus regulations of the enterprise.

Article 33. Effect

1. This Decree takes effect from April 15, 2025. The policies prescribed in this Decree shall be implemented starting from January 1, 2025.

2. For enterprises that the State holds 100% of the charter capital and has an organizational structure managed under the model of the Chairman of the company also serving as the General Director, and that the Government allows the wage of the Chairman of the company and the wage of the supervisors to be included in the general wage fund along with employees and the executive board, the wage of the Chairman of the company and the wage of the inspectors shall continue to be determined within the general wage fund along with employees and the executive board, in accordance with the provisions of Chapter III of this Decree. Based on the wage payment regulations, the enterprise shall annually report to the owner's representative agency for review and decision on the specific wage levels of the Chairman of the company and the Supervisors.

3. The following documents are repealed:

a) The Government’s Decree No. 51/2016/ND-CP of June 13, 2016 prescribing the management of labor, wages, and bonuses for employees working in single-member limited liability companies with 100% charter capital owned by the State;

b) The Government’s Decree No. 52/2016/ND-CP of June 13, 2016 prescribing wages, remuneration, and bonuses for managers of single-member limited liability companies with 100% charter capital owned by the State;

c) The Government’s Decree No. 53/2016/ND-CP of June 13, 2016 prescribing labor, salaries, remuneration, and bonuses for companies in which the State holds controlling shares or capital contributions;

d) The Government’s Decree No. 21/2024/ND-CP of February 23, 2024 amending and supplementing a number of articles of The Government’s Decree No. 51/2016/ND-CP of June 13, 2016 prescribing the management of labor, wages, and bonuses for employees working in single-member limited liability companies with 100% charter capital owned by the State and the Government’s Decree No. 52/2016/ND-CP of June 13, 2016 prescribing wages, remuneration, and bonuses for managers of single-member limited liability companies with 100% charter capital owned by the State;

dd) The Government’s Decree No. 20/2020/ND-CP of February 17, 2020  on the pilot management of labor, wages and bonuses of a number of state economic groups and corporations;

e) The Government’s Decree No. 87/2021/ND-CP of September 29, 2021  on extending the duration of implementation, and amending and supplementing a number of articles, of the Government’s Decree No. 20/2020/ND-CP of February 17, 2020, on the pilot management of labor, wages and bonuses of a number of state economic groups and corporations;  

g) The Government’s Decree No. 64/2023/ND-CP of August 23, 2023 supplementing the Government’s Decree No. 87/2021/ND-CP of September 29, 2021 on extending the duration of implementation, and amending and supplementing a number of articles, of the Government’s Decree No. 20/2020/ND-CP of February 17, 2020, on the pilot management of labor, wages and bonuses of a number of state economic groups and corporations;

h) The Government’s Decree No. 121/2016/ND-CP of August 24, 2016 on the pilot management of labor, wages of the Viettel Group during the 2016 - 2020 period;

i) The Government’s Decree No. 74/2020/ND-CP of July 01, 2020 amending and supplementing a number of articles of the Government’s Decree No. 121/2016/ND-CP of August 24, 2016 on the pilot management of labor, wages of the Viettel Group during the 2016 - 2020 period;

k) The Government’s Decree No. 82/2021/ND-CP of September 06, 2021 on extending the duration of implementation, and amending and supplementing a number of articles of the Government’s Decree No. 121/2016/ND-CP of August 24, 2016 which was amended and supplemented by the Government’s Decree No. 74/2020/ND-CP of July 01, 2020 on the pilot management of labor, wages of the Viettel Group;  

l) The Government’s Decree No. 79/2024/ND-CP of July 02, 2024 amending and supplementing a number of articles of the Government’s Decree No. 121/2016/ND-CP of August 24, 2016, as amended and supplemented in the Government’s Decree No. 74/2020/ND-CP of July 01, 2020 and the Government’s Decree No. 82/2021/ND-CP of September 06, 2021 on the pilot management of labor, wages of the Viettel Group.

4. Repeal the following provisions:

a) Clause 2, Article 32 of the Government’s Decree No. 151/2013/ND-CP of November 1, 2013, as amended and supplemented by Clause 12, Article 1 of the Government’s Decree No. 147/2017/ND-CP of December 25, 2017, amending and supplementing a number of articles of the Government’s Decree No. 151/2013/ND-CP of November 01, 2013, defining the functions, tasks, and operational mechanisms of the State Capital Investment Corporation;

b) Clause 2, Article 30 of the Government’s Decree No. 129/2020/ND-CP of October 27, 2020, defining the functions, tasks, and operational mechanisms of the Vietnam Debt and Asset Trading Corporation;

c) Article 29 of the Government’s Decree No. 53/2013/ND-CP of May 18, 2013, on the establishment, organization, and operation of the Vietnam Asset Management Company.

5. Amend the first and second bullet points under Point b, Clause 1, Article 12 of the Government’s Decree No. 60/2021/ND-CP of June 21, 2021, prescribing the financial autonomy mechanism for public non-business units to “Group 1 and Group 2 units: Based on the financial situation, public service units are allowed to implement the wage autonomy mechanism (including the determination of the wage fund, wage payment to civil servants and employees) according to the unit’s operational results, similar to state-owned enterprises”.

Article 34. Organization of implementation

1. The owner's representative agency organizes the management of labor, wages, remuneration, and bonuses for enterprises assigned to exercise the owner's representative rights in accordance with the provisions of this Decree.

2. Pursuant to the provisions on labor management, wages, and bonuses in this Decree, the Board of Members or the Chairman of the company in the enterprise prescribed in Clause 1, Article 1 of this Decree shall organize the management of labor, wages, and bonuses for employees, the executive board, board members, and supervisors in subsidiaries that the enterprise holds 100% of the charter capital; decide to apply this Decree in accordance with the actual conditions of subsidiaries that the enterprise holds more than 50% of the charter capital or the total number of voting shares, in order to develop and issue regulations on labor management, wages, remuneration, and bonuses for these subsidiaries. The regulations must clearly specify the contents of the application of this Decree, any other relevant content (if any), and must be submitted to the owner's representative agency and the Ministry of Labor, Invalids, and Social Affairs for inspection and supervision.

3. The representative of state-owned capital in the enterprise prescribed in Clause 2, Article 1 of this Decree provides opinions for the Board of Directors or the Board of Members of the enterprise to decide on the application of the provisions of this Decree in accordance with the actual conditions of subsidiaries that the enterprise holds 100% of the charter capital or more than 50% of the charter capital or the total number of voting shares, in order to develop and issue regulations on labor management, wages, remuneration, and bonuses for these subsidiaries. The regulations must clearly specify the contents of the application of this Decree, any other relevant content (if any), and must be submitted to the owner's representative agency and the Ministry of Labor, Invalids, and Social Affairs for inspection and supervision.

4. For enterprises (excluding subsidiaries prescribed in Clauses 2 and 3 of this Article) that more than 50% of the charter capital is the total capital contribution from the State and the capital contribution from the enterprise in Clauses 1 and 2 Article 1, or the total capital contribution from enterprises in Clauses 1 and 2 Article 1 of this Decree, the state capital representative agency and the enterprise with a total capital contribution of more than 50% of that capital shall consult and decide on the application of the provisions of this Decree in accordance with the actual conditions to develop and issue regulations on labor management, wages, remuneration, and bonuses for the enterprise. The regulations must clearly specify the contents of the application of this Decree, any other relevant content (if any).

5. Organizations established and operating under the model of a single-member limited liability company with 100% charter capital owned by the State, as prescribed by the Law on Credit Institutions, the Law on Deposit Insurance, and state financial funds outside the budget, which are applying the wage mechanism according to the model of a single-member limited liability company with 100% state-owned capital, along with the Vietnam Bank for Social Policy and the Vietnam Development Bank, shall implement the management of labor, wages, remuneration, and bonuses according to the provisions of this Decree, in line with the specific nature of these organizations, particularly the wage level of board members and supervisors of state financial funds outside the budget shall not exceed 1.5 times the basic wage. The Ministry of Labor, Invalids, and Social Affairs is assigned with providing guidance on the management of labor, wages, remuneration, and bonuses for these organizations; Annually, receive, review, inspect, and supervise reports on the labor plan, the wage funds for employees and the executive board, approve the level of wages, remuneration, and bonuses for each board member and supervisor of the Vietnam Bank for Social Policy, after consulting with the Ministry of Finance and the State Bank of Vietnam. The Ministry of Finance is assigned with annually receiving, reviewing, inspecting, and supervising reports on the labor plan, the wage funds for employees and the executive board, approving the level of wages, remuneration, and bonuses for each board member and supervisor of the Vietnam Development Bank, after consulting with the Ministry of Labor, Invalids, and Social Affairs.

6. When determining the wage funds for employees and the executive board, as well as the wages and remuneration of board members and supervisors, if there are objective factors prescribed in Article 4 of this Decree and Points b and c, Clause 2, Article 6 of the Government’s Decree No. 59/2021/ND-CP of June 18, 2021, prescribing some specific contents on financial management mechanisms and performance evaluation for the Vietnam Stock Exchange, the Vietnam Securities Depository and Clearing Corporation, causing a revenue fluctuation of more than 7% increase or more than 3% decrease, the Stock Exchanges and the Vietnam Securities Depository and Clearing Corporation shall exclude the portion of revenue that exceeds a 7% increase (for cases that revenue increases by more than 7%) or include the portion of revenue that decreases by more than 3% (for cases that revenue decreases by more than 3%) in the revenue criteria used as the basis for determining labor productivity, profit, profit margin, and the wage fund for employees and the executive board, as well as the wages and remuneration for board members and supervisors.

7. When the State Capital Investment Corporation implements this Decree and the provisions on wages in Clause 1, Article 32 of Decree No. 151/2013/ND-CP of November 1, 2013, as amended and supplemented by Clause 12, Article 1 of the Government’s Decree No. 147/2017/ND-CP of December 25, 2017, amending and supplementing a number of articles of the Government’s Decree No. 151/2013/ND-CP of November 1, 2013, defining the functions, tasks, and operational mechanisms of the State Capital Investment Corporation, if there are objective factors prescribed in Article 4 of this Decree, which cause a revenue fluctuation (after deducting the cost of capital from asset sales) of more than a 7% increase or more than a 3% decrease, this fluctuation shall be excluded from the revenue criteria (after deducting the received capital value) according to the principles as prescribed in Clause 6 of this Article, serving as the basis for determining labor productivity, profit, profit margin, and the wage fund for employees and the executive board, as well as the wages and remuneration for board members and supervisors.

8. For the Vietnam Television, based on Clause 9, Article 2 of the Government’s Decree No. 60/2022/ND-CP of September 8, 2022, defining the functions, tasks, powers and organizational structure of the Vietnam Television and relevant law regulations, the Ministry of Labor, Invalids, and Social Affairs is assigned to guide the management of wages for the Vietnam Television in accordance with the wage mechanism prescribed in Chapter III of this Decree, linked to labor productivity and operational efficiency, while being suitable for the unique characteristics of the station.

9. The mid-shift meals or allocated meals for employees, the executive board, board members, and supervisors shall be provided according to the agreement in the collective labor agreement or the internal regulations and rules of the enterprise in accordance with the Labor Code.

10. Political organizations and socio-political organizations shall review and decide on the application of the provisions of this Decree to enterprises that the political organization or socio-political organization holds 100% of the charter capital or more than 50% of the charter capital or the total number of voting shares.

11. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.

* All Appendices are not translated herein.