Guidance on the actual salary fund for professional managers of companies with state-owned shares and capital contributions in Vietnam

Guidance on the actual salary fund for professional managers of companies with state-owned shares and capital contributions in Vietnam

According to Article 15 of Circular 28/2016/TT-BLĐTBXH, the guidance on the actual salary fund for professional managers of companies with state-owned shares and capital contributions is as follows:

1. The actual salary fund is determined on the basis of the actual number of professional company managers (calculated on a monthly average) and the average actual salary.

2. The average actual salary is determined on the basis of the average planned salary linked to the level of production and business targets specified in Articles 13 and 14 of this Circular as follows:

a) If the company completes the production and business plan and the actual profit is equal to the planned profit, the average actual salary is determined equal to the planned average salary.

b) If the company completes the production and business plan and the actual profit exceeds the plan, then for every 1% of the actual profit exceeding the planned profit, the average actual salary is calculated to be added up to 2%, but not more than 20% compared to the average planned salary.

c) If the company has an actual profit lower than the planned profit, then for every 1% of the actual profit decreasing from the plan, the average actual salary of the company's manager who is the representative of the state capital must be reduced by 1% compared to the average planned salary.

In case the actual profit decreases and is lower than the lowest profit in each field when determining the average planned salary specified in Clause 2 Article 13 of this Circular, then the average actual salary can only be calculated according to the additional adjustment coefficient in the specified frame corresponding to the profit mentioned in Clause 2 Article 13 of this Circular.

For company managers who are not representatives of state capital, the average actual salary is determined by the company, ensuring reasonable balance with the salary of the company's manager who is the representative of state capital.

Guidance on the actual salary fund for professional managers of companies with state-owned shares and capital contributions in Vietnam - Source: Internet

Bonus fund for non-professional managers of companies with state-owned shares and capital contributions in Vietnam

According to Article 16 of Circular 28/2016/TT-BLĐTBXH, the bonus fund for non-professional managers of companies with state-owned shares and capital contributions is as follows:

1. The planned bonus fund is determined on the basis of the number of non-professional company managers, working time and the bonus level (calculated monthly) determined by the company, up to 20% of the average planned salary of the professional company manager.

2. The actual bonus fund is determined on the basis of the actual number of non-professional company managers at different times of the year, working time and the bonus level (calculated monthly) determined by the company, up to 20% of the actual salary of the professional company manager.

Payment of salaries and bonuses to managers of companies with state-owned shares and capital contributions in Vietnam

Based on Article 17 of Circular 28/2016/TT-BLĐTBXH, the payment of salaries and bonuses to managers of companies with state-owned shares and capital contributions is as follows:

1. The payment of salaries and bonuses to managers is carried out according to the company's salary and bonus regulations.

2. The salary and bonus regulations are built by the company, linked to the level of contribution to production and business efficiency and the management, management or control results of each manager, ensuring the provisions of the law, democracy, transparency, public participation, with the participation of the Board of Directors of the company's trade union before implementation.

Best regards!