What are regulations on determination of salary, remuneration, and bonus funds for employees in Vietnam?

What are regulations on determination of salary, remuneration, and bonus funds for employees in Vietnam?

Pursuant to Article 7 of Circular 13/2022/TT-BLDTBXH (effective from August 15, 2022) on determining salary, remuneration and bonus funds of employees specifically as follows:

1. Determination of average salary, salary fund, and planned remuneration; salary and performance remuneration fund; bonus fund; Payment of salaries, remunerations and bonuses to Fund managers is carried out in accordance with the provisions of Articles 3, 9, 11, 12, 14, 15, 16, 17, 18, 19 and in Clauses 1, 3, 4, 5, 6 Article 10 Circular No. 27/2016/TT-BLDTBXH.

2. When determining the average salary, planned salary fund, and actual salary fund of a full-time manager according to the provisions of Clause 1 of this Article, the profit target (planned profit, actual profit current year and realized profit of the immediately preceding year) is calculated by the difference between revenue and expenditure, in which:

a) In case the Fund ensures all conditions: preservation and development of state capital; Pay taxes and other budget payments, deduct risk reserve funds in accordance with the provisions of law; There is growth in outstanding loans; If the average labor productivity does not decrease and the difference between planned revenue and expenditure is higher than that of the previous year, the planned average salary of a full-time manager is determined as follows:

TL _bqkh = TL _cb x (1 + H _ln )

In there:

TLbqkh: The planned average salary of a full-time manager;

TLcb: The basic salary of a full-time manager is determined according to Clause 1, Article 10 of Circular No. 27/2016/TT-BLDTBXH;

Hln: The increase in salary coefficient compared to the basic salary is associated with the difference in income minus expenses as follows: if the difference is less than 10 billion VND, Hln is calculated at a maximum of 0.1; If the difference is from 10 billion VND to less than 20 billion VND, Hln is calculated at a maximum of 0.3; If the difference is from 20 billion VND to less than 30 billion VND, Hln is calculated at a maximum of 0.5; If the difference is from 30 billion VND to less than 50 billion VND, Hln is calculated at a maximum of 0.7; If the difference is 50 billion VND or more, Hln is calculated at a maximum of 1.0.

b) In case the Fund does not have loan outstanding growth, the average salary is determined not to exceed the basic salary.

3. When determining the remuneration of a part-time manager, in case the Fund does not have a corresponding full-time manager, determine the remuneration of the part-time manager as prescribed in Clause 2, Article 3 of the Circular. No. 27/2016/TT-BLDTBXH, proceed as follows:

a) Determine the salary of each full-time manager according to the provisions of Clause 2 of this Article.

b) Determine the remuneration of the part-time manager according to job and working time, but not exceeding 20% ​​of the salary of the corresponding full-time manager according to Point a, Clause 3 of this Article.

What are regulations on determination of salary, remuneration, and bonus funds for employees in Vietnam? (Image from the Internet)

What are regulations on exclusion of objective factors when determining salary and remuneration funds for managers in Vietnam?

In Article 8 of Circular 13/2022/TT-BLDTBXH (effective from August 15, 2022) on eliminating objective factors when determining salary and remuneration funds for managers, accordingly:

1. When determining the salary fund and remuneration fund (planning and implementation) of the manager, if there are objective factors that directly impact labor productivity or the difference between income and expenses, the type must be determined to deduct and ensure salaries are linked to labor productivity and actual performance of the Fund.

2. Objective factors to exclude when determining salary and remuneration funds include factors specified in Clause 1, Article 13 of Circular No. 27/2016/TT-BLDTBXH and Clause 2, Article 45 of Decree No. 45/2021/ND-CP.

3. Excluding the influence of objective factors on labor productivity, the difference between the Fund's revenue and expenditure must be quantified by specific value.

Best regards!