Vietnam’s new regulation on salaries in companies having more than 50% of charter capital held by the State

10:03, 16/06/2016

This is a content specified in Decree No. 53/2016/NĐ-CP of Vietnam’s Government stipulating the regulation of management of employees, salaries, remunerations and bonuses by joint-stock companies with State controlling stakes.

The budgeted average pay rate is determined according to the amount of salary prescribed in labor contracts, the realized average pay rate by productivity or business performance of immediately preceding year, and production quota and business/production plan of the company as follows:

- For profitable companies, the budgeted average pay rate is determined according to the realized average pay rate by production or business performance of the immediately preceding year and the estimated productivity decrease/ increase compared with that in the immediately preceding year to ensure the amount of average salary increase is lower than that of the average productivity.

- In case of losses or break-even (except for objective factors), the budgeted average pay rate is determined according to the average salary in labor contracts including days-off or holidays, overtime pay or night shift pay.

Decree No. 53/2016/NĐ-CP of Vietnam’s Government also stipulates salaries and remunerations of managers, bonuses and welfares for employees.

Decree No. 53/2016/NĐ-CP of Vietnam’s Government takes effect from August 01, 2016.

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