Decree 64/2023/ND-CP stipulating that Vietnamese pilots at VNA will receive a salary increase under the new salary mechanism.
Will Vietnamese Pilots at VNA Receive Salary Increases Under the New Salary Mechanism?
On August 23, 2023, the Government of Vietnam issued Decree 64/2023/ND-CP, supplementing Decree 87/2021/ND-CP regarding the extension of implementation time and amendments to certain provisions of Decree 20/2020/ND-CP on pilot management of labor, salaries, and bonuses for certain state economic groups and general corporations.
The content of Decree 64/2023/ND-CP supplements the regulation on determining additional salary sources to pay extra for Vietnamese pilots.
Specifically, Article 1 of Decree 64/2023/ND-CP clarifies:
For the Parent Company - Vietnam Airlines Corporation (VNA), after paying salaries to Vietnamese pilots working under labor contracts for VNA from the labor salary fund in accordance with Decree 20/2020/ND-CP and clauses 3 and 4, Article 2 of Decree 64/2023/ND-CP, if the salary of Vietnamese pilots is lower than that of foreign pilots working at VNA, additional salary sources will be determined to pay extra for Vietnamese pilots as follows:
- The maximum annual additional salary source is based on the difference between the Vietnamese pilot's pre-supplementation salary and the average salary (including basic salary, flight hour salary, and teaching hour salary) of foreign pilots, calculated correspondingly by group title in the same fleet and actual working time.
- The pre-supplementation salary for Vietnamese pilots is the annual salary from the implemented salary fund according to VNA's salary regulation.
The allocation of the annual implemented salary fund to pay for Vietnamese pilots is based on the percentage (%) of the actual 2022 salary paid to Vietnamese pilots compared to the 2022 salary fund.
- The determination of additional salary sources must align with VNA's financial capacity, ensuring that VNA meets the planned profit targets set annually by the State Capital Management Committee (if VNA incurs a loss, it should reduce the loss compared to the previous year).
- The additional salary source is accounted into VNA's production and business costs according to legal regulations and used to pay for Vietnamese pilots working under labor contracts with VNA at the time of extra salary payment, not for other individuals or purposes.
The extra salary payment for Vietnamese pilots is based on their title and actual working time according to VNA's regulations.
Decree 64/2023/ND-CP on extra salary for Vietnamese pilots at VNA?
When Should a Plan for Supplementary Salary for Vietnamese Pilots be Made?
Article 2 of Decree 64/2023/ND-CP specifies the responsibilities of the state capital representative at VNA as follows:
Responsibility for Implementation Organization
1. The state capital representative at VNA shall:
a) Before January 31 each year, develop a plan for supplementary salary for Vietnamese pilots of the previous year, clearly stating the plan's suitability with the financial capacity and VNA's profit targets, and report to the State Capital Management Committee for opinions.
b) Participate in discussions and votes at the Board of Directors or General Meeting of Shareholders according to the plan approved by the State Capital Management Committee to decide on the supplementary salary for Vietnamese pilots.
c) Participate in discussions and votes to let the CEO or Board of Directors of VNA issue the regulation for extra salary payment from the supplementary salary source for Vietnamese pilots.
d) Report the results of the supplementary salary payment and extra salary payment to the State Capital Management Committee.
2. The State Capital Management Committee shall:
a) Direct the state capital representative at VNA to perform the tasks specified in clause 1 of this Article.
b) Review and provide written opinions to notify the state capital representative at VNA about the supplementary salary plan for Vietnamese pilots and send a copy to the Ministry of Labor, Invalids, and Social Affairs for monitoring and general supervision.
The state capital representative at VNA is responsible for, before January 31 each year, developing a plan for supplementary salary for Vietnamese pilots of the previous year, stating the plan's suitability with the financial capacity and VNA's profit targets, and reporting to the State Capital Management Committee for opinions.
When Does the Supplementary Salary Regulation for Vietnamese Pilots at VNA Take Effect?
According to Article 3 of Decree 64/2023/ND-CP:
Effective Date
1. This Decree takes effect from the date of signing.
2. The supplementary salary as stipulated in Article 1 of this Decree shall be implemented from January 01, 2023.
3. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government of Vietnam, Chairpersons of the People's Committees of provinces and centrally-run cities, and relevant organizations and individuals are responsible for implementing this Decree.
The supplementary salary regulation for Vietnamese pilots at VNA takes effect from January 01, 2023.
LawNet