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How Is the Average Salary of Managers in 100% State-Owned Enterprises Determined?

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Quick answer: The average salary of managers and Supervisors in enterprises 100% owned by the State is determined in line with the enterprise’s production and business efficiency. Key factors include: profit, profit margins, enterprise scale, management complexity and the degree of completion of assigned tasks (Decree 159/2020/ND-CP).

Legal Basis

  • Decree 159/2020/ND-CP — management of labor, salaries, remuneration and bonuses in enterprises 100% owned by the State.

Factors Determining Average Salary

  • Actual profit versus plan: the decisive factor for salary levels;
  • Profit margins on capital and on revenue;
  • Enterprise scale: charter capital, total assets, number of employees;
  • Management complexity: number of member units, operating areas, industry characteristics;
  • Degree of completion of tasks assigned by the owner-representative authority;
  • General salary levels of the labor market.

Payment Principles

  • Salaries linked to efficiency: if the enterprise incurs losses or fails to complete tasks, managers’ salaries are reduced accordingly;
  • Fair and transparent distribution with approved regulations;
  • A salary fund is set aside as prescribed, with annual finalization;
  • The owner-representative authority inspects and supervises implementation.

Distinguishing Salary from Remuneration and Bonuses

  • Salary: paid monthly at the determined average level;
  • Remuneration: applies to non-full-time members of the Members’ Council/Board of Directors;
  • Bonuses: linked to exceeding profit plans, drawn from the reward and welfare fund.

If you need to determine the appropriate approach for your specific situation, you should consult a lawyer first to have your dossier reviewed and receive advice on handling options.

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