Decree 64/2023/ND-CP supplement Decree 87/2021 amending Decree 20/2020 pilot management of labor, wages of a number of state economic groups

DECREE

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

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

Pursuant to the Labor Code dated November 20, 2019;

Pursuant to the Law on Enterprises dated June 17, 2020;

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

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

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

Article 1. Supplementing the Decree No. 87/2021/ND-CP dated September 29, 2021 of the Government on extending the duration of implementation, and amending and supplementing a number of articles of the Government’s Decree No. 20/2020/ND-CP dated February 17, 2020, on the pilot management of labor, wages and bonuses of a number of state economic groups and corporations.

To add Clause 6 to Article 2 as follows:

“6. For the parent company - Vietnam Airlines Corporation (hereinafter referred to as VNA for short), after paying wages to Vietnamese pilots working under a labor contract for VNA from the paid wage funds for employees and Executive Boards specified in the Government’s Decree No. 20/2020/ND-CP dated February 17, 2020 and Clauses 3 and 4 Article 2 of this Decree (hereinafter referred to as the paid wage funds), if the wage paid to Vietnamese pilots is lower than the one paid to foreign pilots working for VNA, the source of additional wage used to pay extra to Vietnamese pilots shall be determined according to the following regulations:

a) The maximum annual source of additional wage shall be determined based on the difference between the wage paid to Vietnamese pilots before payment of additional wage and the wage (including base wage, flight hour-based wage, teaching hour-based wage) paid to foreign pilots, calculated by the average corresponding to the group of titles in the same crew and the actual working time of the pilots.

b) Vietnamese pilots’ wage before payment of additional wage shall be the wage from the annual paid wage funds, in accordance with VNA’s payment regulations. The annual paid wage funds for Vietnamese pilots shall be allocated according to the ratio (%) of the actual wage amount paid to Vietnamese pilots in 2022 to the paid wage funds of the year 2022.

c) The determination of additional wage source must be consistent with the financial responsiveness of VNA, ensure that VNA fulfills the planned profit target assigned annually by the Commission for the Management of State Capital at Enterprises (if VNA has a loss, such loss must be reduced in comparison with the performance of the preceding year).

d) The additional wage source shall be accounted into VNA's production and business expenses in accordance with the law and used to pay Vietnamese pilots working under labor contracts for VNA at the time of paying extra wages, not pay other objects or be used for other purposes. The payment of additional wage applicable to Vietnamese pilots shall be based on their title and actual working time in accordance with VNA’s regulations.”

Article 2. Responsibility of implementation organization

1. The representative of the state capital amount at VNA shall

a) Before January 31 of each year, prepare a plan to supplement the wage source for Vietnamese pilots of the preceding year, clearly stating the suitability of the plan for VNA’s financial responsiveness and completion of planned profit target, report to the Commission for the Management of State Capital at Enterprises for opinions.

b) Give the opinions, participate in voting in the Board of Directors or General Meeting of Shareholders according to the plan with opinions of the Commission for the Management of State Capital at Enterprises for decision on supplementation of salary source for Vietnamese pilots.

c) Give the opinions, participate in voting for VNA’s Director General or Board of Directors to promulgate the regulation on extra payment from additional wage source for Vietnamese pilots.

d) Report on the results of supplementation of the wage source and payment of wage for Vietnamese pilots to the Commission for the Management of State Capital at Enterprises.

2. The Commission for the Management of State Capital at Enterprises shall

a) Direct the representative of the state capital amount at VNA to carry out the tasks specified in Clause 1 of this Article.

b) Consider and give written opinions to notify the representative of the state capital amount at VNA about the plan to supplement the salary source for Vietnamese pilots, and send it to the Ministry of Labor, Invalids and Social Affairs for general supervision and monitoring.

Article 3. Effect

1. This Decree takes effect on the signing date.

2. The supplementation of the additional wage source specified in Article 1 of this Decree shall be implemented from January 01, 2023.

3. Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies and Chairpersons of People’s Committees of provinces and centrally-run cities and relevant organizations, individuals shall take responsibility for the implementation of this Decree./.