Salary scales and payrolls of employees in wholly state-owned single-member limited liability company in Vietnam

Salary scales and payrolls of employees in wholly state-owned single-member limited liability company in Vietnam

Circular 06/2024/TT-BLDTBXH will supplement regulations on salary scales, payrolls, and salary allowances for employees working in wholly state-owned single-member limited liability company. Specifically:

(i) Based on production organization and labor organization, the company reviews and decides on the continuation, amendment, supplementation, or creation and issuance of new salary scales, payrolls, and salary allowances (along with applicable standards), ensuring the regulations in (ii) are the basis for salary classification, salary payment, and implementation of policies for employees in accordance with labor law.

(ii) Salary levels in the salary scales, payrolls, and salary allowances decided by the company must ensure that the total annual salary fund for all employees calculated based on these scales and allowances does not exceed the planned salary fund for employees as stipulated in Circular 26/2016/TT-BLDTBXH.

(iii) When amending, supplementing, or creating and issuing new salary scales, payrolls, and salary allowances, the company must consult with the employee representative organization at the workplace, conduct discussions at the workplace according to the provisions of the Labor Code 2019 and its guiding documents, report to the owner's representative agency for comments, and publicly announce within the company before implementation.

More details can be found in Circular 06/2024/TT-BLDTBXH, which takes effect in Vietnam from September 15, 2024.

Policies on salary funds, salary payments, remuneration, bonuses as stipulated in Clauses 4 and 5, Article 1; Clauses 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 17, Article 2 of Circular 06/2024/TT-BLDTBXH will be implemented from January 1, 2024. The regulations in Clause 3, Article 1 and Clauses 3, 4, Article 2 of Circular 06/2024/TT-BLDTBXH will be implemented from April 10, 2024.

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