Additional regulation on determination of additional salary sources for Vietnam Airlines to provide additional payment for Vietnamese pilots

According to the Decree, if the salary of a Vietnamese pilot is lower than the salary of a foreign pilot after Vietnam Airlines (VND) has paid them under labor contracts from the realized salary budget of employees and executives according to Decree No. 20/2020/ND-CP and Clause 3 and Clause 4 Article 2 of Decree No. 64/2023/ND-CP (hereinafter referred to as “realized salary budget”), VNA may determine an additional salary source for additional payment to that Vietnamese pilot under the following regulations:

- The maximum annual additional salary source shall be based on the difference between the salary before any supplement of the Vietnamese pilot and the salary (base salary, salary by flight hours, and salary by teaching hours) of the foreign pilot and averagely calculated corresponding to the group of titles in the same flight crew and actual working time of the pilots.

- The salary before any supplement of the Vietnamese pilot is the salary paid by the annual realized salary budget under the salary payment regulations of VNA.

The allocation of the annual realized salary budget for paying salaries to Vietnamese pilots shall be based on the percentage (%) between the actual salaries in 2022 paid to Vietnamese pilots compared to the actual realized salary budget in 2022.

- The determination of the additional salary source shall conform with the financial responsiveness of VNA, ensuring that VNA achieves the profit targets according to plans assigned annually by the Committee for the Management of State Capital at Enterprises (if VNA has a loss, it must reduce its loss compared to the previous year).

- The additional salary source shall be recorded to the costs of production and trading of VNA according to laws and used for paying Vietnamese pilots under labor contracts with VNA when providing additional salary payment. Such a source shall not be used for payments to other subjects or purposes.

Additional payments to Vietnamese pilots shall be based on the titles and actual working time of such pilots under the regulations of VNA.

See more details in Decree No. 64/2023/ND-CP, which comes into force as of August 23, 2023.

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