What are the factors that must be excluded when determining the average salary, salary fund, and planned remuneration of managers and controllers of the company?

Pursuant to Clause 6, Article 5, Decree 52/2016/ND-CP, amended by Clause 7, Article 2, Decree 21/2024/ND-CP, stipulating objective factors affecting labor productivity and planned profits compared to the performance of the preceding year that a limited liability company with 100% charter capital held by the State must be excluded when determining the average salary and cash fund. Planned salaries and remunerations of full-time company managers and controllers are as follows:

Determine salary fund and remuneration plan

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6. When determining the average salary, salary fund, and planned remuneration of managers and controllers, the company excludes objective factors (if any) that affect labor productivity and planned profits compared to the performance of the immediately preceding year. Objective factors are specified in Points a, b and c, Clause 3, Article 5 of Decree No. 51/2016/ND-CP dated June 13, 2016 of the Government regulating labor management, wages and bonuses for employees working in single-member limited liability companies with 100% charter capital held by the State.

Thus, objective factors are excluded when determining the average salary, salary fund, and planned remuneration of managers, controllers, limited liability companies with 100% charter capital held by the State including:

The State adjusts prices, production and business limits (for products and services priced by the State or regulates production and business limits), corporate income tax incentives, increases or decreases state capital, requires companies to relocate, narrow production and business locations, adjust mechanisms and policies that directly affect labor productivity targets and company profits. ty;

Companies participating in:

Carrying out political tasks, national security and defense, ensuring social security, balancing supply and demand for the economy according to the Prime Minister’s decision;

Make investments, receive or transfer the right to represent state capital owners under the direction of the Government or the Prime Minister;

Receive, buy, sell, freeze, defer and handle debts and assets, buy and sell products and services according to the provisions of law or requests of competent state agencies;

Implement provisions on retroactivity according to Government regulations; Increase depreciation to recover capital quickly according to tax laws;

Adjust operating policies according to the requirements of competent state agencies, agreements, treaties or regulations of international organizations of which Vietnam is a member;

Implement restructuring projects, supplement or divest investment capital in other enterprises;

New investment, expansion of production and business;

Adjust or create new provisions for financial and credit risks according to the provisions of law;

Providing products and services that are priced by the state and have a price adjustment mechanism but the price has not been adjusted enough to compensate for reasonable actual production and business costs when price formation factors change according to the provisions of the Price Law;

Allocating costs of unsuccessful oil and gas search, exploration and exploitation projects according to Government regulations, determining corporate income tax according to oil and gas contracts for oil and gas search, exploration and exploitation companies according to the provisions of tax law;

Debt purchase and debt settlement sales have not been recorded in revenue and profits for debt trading companies according to the provisions of law;

Fluctuations in revenue from securities trading market organization and securities depository operations;

Difference in bonus payment compared to previous year’s performance for lottery companies;

Changing the environment and mineral exploitation conditions for mineral mining companies.

How are full-time managers and controllers of one-member limited liability companies with 100% charter capital ranked by the state?

Pursuant to Article 3 of Decree 52/2016/ND-CP as amended by Clause 2, Article 2 of Decree 21/2024/ND-CP, it stipulates salary rankings for managers and controllers of specialized companies as follows:

Based on the organizational and management structure, the Board of Members or the Chairman of the company develops and issues salary tables and salary rankings for managers and full-time Controllers as a basis for implementing social insurance, health insurance, unemployment insurance and other regimes according to the provisions of labor law.

The salary levels in the salary table are decided by the Board of Members or the President of the company, but must ensure that the salary fund calculated according to the salary levels in the salary table must not exceed the planned salary fund of managers and specialized controllers according to the provisions of Decree 52/2016/ND-CP.

When constructing or amending or supplementing the salary schedule of managers, controllers, Board of members or company President, it is necessary to consult with the employee representative organization at the facility, organize dialogue at the workplace according to regulations, report to the owner’s representative agency for approval and publicize it at the company before implementation.

Thus, a single-member limited liability company with 100% charter capital held by the state must base salaries on full-time managers and controllers of the company on the management organizational structure, the Board of Members or the Chairman of the construction company and must ensure that the salary levels in the payroll do not exceed the planned salary fund of the full-time managers and controllers.

What are the salary transfer and grading regulations for full-time company managers and controllers?

Pursuant to Article 4 of Circular 27/2016/TT-BLDTBXH stipulating salary changes for full-time company managers and controllers as follows:

Full-time company managers have their salaries transferred according to the position held and company class according to the salary coefficient table of full-time company managers in Appendix I issued with Decree 52/2016/ND-CP.

The salary coefficient in Appendix I multiplied by the base salary prescribed by the Government from time to time (hereinafter referred to as the salary level) is the basis for implementing social insurance, health insurance and other benefits according to the provisions of law. When the Government adjusts the base salary or has new regulations, it will comply with the Government’s new regulations.

For companies with the position of Head of the Supervisory Board, the salary step change is based on the salary coefficient currently being enjoyed according to the principle: ranking to level 1, if the salary coefficient currently being enjoyed is equal to or lower than the salary coefficient of level 1.

The time to upgrade the salary level is calculated from the time the salary level is ranked to level 1.

In case the difference between the salary coefficient being enjoyed is level 1. and the salary coefficient of level 1 is less than 70% of the difference between the salary coefficient of level 1 and level 2, then the time to increase the next salary level is calculated from the date of calculating the salary coefficient currently being enjoyed; classified into level 2, if the current salary coefficient is higher than the level 1 salary coefficient.

Decree 21/2024/ND-CP takes effect from April 10, 2024. As for the salary fund, salary payment, remuneration and bonuses specified in Clause 2, Article 1, Clauses 3, Clause 4, Clause 6, Clause 7 and Clause 10, Article 2, Decree 21/2024/ND-CP will be implemented from January 1 2024.