Additional regulations on salary management for wholly-owned limited liability company of Viettel in Vietnam

Additional regulations on salary management for wholly-owned limited liability company of Viettel in Vietnam (Image from Internet)

Additional regulations on salary management for wholly-owned limited liability company of Viettel in Vietnam

Decree 121/2016/ND-CP issued by the Government of Vietnam regulates a pilot implementation from January 01, 2016, on labor management and salaries for the period 2016 - 2020 for the Parent company - Military Telecommunications Group; single-member limited liability companies wholly owned by the Parent company - Military Telecommunications Group; corporations and companies in which the Parent company - Military Telecommunications Group holds over 50% of the charter capital.

On July 02, 2024, the Government of Vietnam issued Decree 79/2024/ND-CP amending and supplementing several provisions of Decree 121/2016/ND-CP as amended by Decree 74/2020/ND-CP and Decree 82/2021/ND-CP on the pilot implementation of labor and salary management for the Viettel Telecommunications Group.

Regarding salary management for single-member limited liability companies wholly owned by the Parent company - Military Telecommunications Group (Viettel), Clause 6, Article 1 of Decree 79/2024/ND-CP supplements Clause 6, Article 6 of Decree 121/2016/ND-CP, stipulating that for newly established companies or companies resuming operations after a suspension, the implemented salary fund of the company is determined as follows:

(1) From the new establishment or resumption of activities until the end of the fiscal year immediately following the year of establishment or resumption, the implemented salary fund is determined based on the average actual number of employees used and the average salary level determined by the company, ensuring general correlation within the Group.

(2) After the period specified in point (1) above, the annual implemented salary fund is determined based on the average actual number of employees used and the average implemented salary level calculated according to labor productivity and actual profit targets compared to the previous year, as prescribed in Clauses 3 and 4, Article 6 of Decree 121/2016/ND-CP.

- In case the company incurs losses, the average salary level implemented to calculate the salary fund is determined by the average salary in the labor contract for employees working under labor contracts, the rank and position salary for officers, professional soldiers, workers, public defense employees, and salary for holiday, Tet, paid leave, night work, and overtime pay as stipulated by the Labor Code.

- In case the company reduces losses compared to the previous year, before implementation, the company must base on the degree of loss reduction to determine the average salary level, report to the Parent company - Military Telecommunications Group for comments, ensuring general correlation within the Group.

(3) When determining the implemented salary fund according to point (1) above, the company must ensure: completing defense and security tasks assigned by the Communist Party and the State; submitting state budget according to legal regulations and report to the Parent company - Military Telecommunications Group (Viettel) for comments before implementation.

Tran Trong Tin

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