Circular 34 of Vietnam: Determination of pay and bonus packages for managers

According to the Circular No. 34/2019/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, pay and bonus packages for managers are determined as follows:

1. Budgeted pay and remuneration package; earned pay and remuneration package; payment of wages, remuneration and bonuses to managers of the Fund shall be governed by regulations laid down in Article 3, Article 9, Clause 1, 3, 4, 5, 6 of Article 10, Article 11, Article 12, Article 14, Article 15, Article 16, Clause 2, Clause 3 of Article 17, Article 18 and Article 19 of the Circular No. 27/2016/TT-BLĐTBXH.

2. When determining the  budgeted and earned pay and remuneration packages as prescribed in Clause 1 of this Article, the Fund shall determine the average labor productivity and profit indices as prescribed in Clause 2 of Article 5 of this Circular,  including the following situation:

If the Fund fully conforms to regulatory requirements; ensuring  state assets are conserved and grown, its revenues are remitted into the state budget; it retains its revenues to establish   a fund for provision against risks under regulations; its average labor productivity is not decreased and the difference between total revenue and total expense is higher than that realized in the preceding year, the budgeted average pay rate  of managerial personnel shall be determined according to the following formula:

TLbqkh = TLcb + TLcb x Hln

Where:

- TLbqkh: Budgeted average pay rate of  managerial personnel.

- TLcb: Base pay rate of managerial personnel, which is determined according to Clause 1 Article 10 of Circular No. 27/2016/TT-BLĐTBXH.

- Hln: Factor showing increase in wage or salary of managerial personnel in proportion to their base pay rate in relation to the difference between total revenue and total expense, which is calculated in the following situations:  if the difference between total revenue   total expense is less than 50 billion dong, Hln will be 0.3 at maximum;  if the difference between total revenue and total expense is from 50 billion dong to less than 100 billion dong, Hln will be 0.5 at maximum; if the difference between total revenue and total expense is from 100 billion dong to less than 150 billion dong, Hln will be 0.7 at maximum; if the difference between total revenue and total expense is  150 billion dong or more, Hln will be 1.0 at maximum.

3. When determining their budgeted and realized pay package, the Fund shall exclude uncontrollable factors affecting the labor productivity and the difference between total revenue and total expense as prescribed in Article 13 of the Circular No. 27/2016/TT-BLĐTBXH and Clause 3 Article 55 of the Decree No. 39/2019/ND-CP.

Thuy Tram

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