Thông tư 26/2016/TT-BLĐTBXH hướng dẫn thực hiện quản lý lao động, tiền lương và tiền thưởng đối với người lao động trong công ty trách nhiệm hữu hạn một thành viên do Nhà nước nắm giữ 100% vốn điều lệ do Bộ trưởng Bộ Lao động - Thương binh và Xã hội ban hành

MINISTRY OF LABOR – INVALIDS AND SOCIAL AFFAIRS --------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ----------------
No. 26/2016/TT-BLDTBXH	Hanoi, September 01, 2016

 

CIRCULAR

ON GUIDELINES FOR THE MANAGEMENT OF LABOR, SALARY AND INCENTIVES FOR EMPLOYEES IN WHOLLY STATE-OWNED SINGLE-MEMBER LIMITED LIABILITY ENTERPRISES

Pursuant to the Government’s Decree No. 106/2012/ND-CP dated December 20, 2012 on the functions, missions, authority and organizational structure of the Ministry of Labor - Invalids and Social affairs;

Pursuant to the Government’s Decree No. 51/2016/ND-CP dated June 13, 2016 on the management of labor, salary and incentives for employees in wholly state-owned single-member limited liability enterprises (hereinafter referred to as “wholly state-owned single-member limited liability enterprises).

At the request of the Head of the Department of Labor - Salary;

Minister of Labor - Invalids and Social affairs promulgates the Circular on guidelines for the management of labor, salary and incentives for employees in wholly state-owned single-member limited liability enterprises.

Part 1. GENERAL

Article 1. Scope

1. This Circular provides guidelines for the management of labor, salary and incentives for employees working on a contract basis (except General Director or Director, Deputy General Directors or Vice Directors, Chief accountant employed on a contract basis) in wholly state-owned single-member limited liability enterprises according to the Government’s Decree No. 51/2016/ND-CP dated June 13, 2016 on the management of labor, salary and incentives for employees in wholly state-owned single-member limited liability enterprises (hereinafter referred to as the Decree No. 51/2016.ND-CP).

2. Wholly state-owned single-member limited liability enterprises are those defined in Article 1 of the Decree No. 51/2016/ND-CP (hereinafter referred to as the enterprises).

Article 2. Regulated entities

The entities governed by this Circular are specified in Article 2 of the Decree No. 51/2016/ND-CP.

Part 2. LABOR MANAGEMENT

Article 3. Scrutinizing and arranging the organizational structure and workforce

General Director (Director) shall organize the revision in the organizational structure and workforce then report therefor to the Chairperson of the Board of Directors or the Chairperson of the enterprise;

1. Review and revise the organizational structure and managerial contacts in line with streamlined and non-overlapping business functions, missions and demands so as to connect units, teams, workshops and departments (divisions) with the aim of direct management and reduction in intermediary phases.

2. Rearrange the workforce in each unit, team, workshop or department (division); thus, managerial personnel, specialized workers, technicians and servicing employees shall be organized by position or title while workers directly engaged in business activities on technology lines of machinery and equipment or under work procedures shall be defined and arranged by productivity norm.

3. Scrutinize and devise productivity norms for workers engaged directly in production and business activities in conformity to the Government’s Decree No. 49/2013/ND-CP dated May 14, 2013 on the execution of certain articles of the Labor Code on salary.

Article 4. Labor planning

1. Enterprises shall plan annual labor according to the organizational structure as stated in Article 3 of this Circular and demands for workload, quality, business missions, previous years’ labor usage, positions or titles and productivity norms.

2. A labor plan shall consist of the total number of female employees required, quantity and quality of new recruits by title or position; professional training schemes for each worker category.

3. If the workload and business missions planned or the enterprise’ managerial contacts and business facilities do not overtake those actualized in the immediately preceding year, the average quantity of workers planned shall not exceed that actually employed in the immediately preceding year by more than 5%. The average number of workers employed and the average quantity of workers planned shall be determined according to the Appendix to this Circular.

Article 5. Reporting and verification of labor plans

1. General Director (Director) shall formulate and present labor plans to the Members’ Council or the Chairperson of the enterprise for approval. Members’ Council or Chairperson of the enterprise, before approving a labor plan, shall report to the entity representing the owner (referred to as the owner’s representative entity) for opinions.

2. Chairperson of the Members’ Council or Chairperson of the enterprise, after approving a labor plan, shall report the enterprise’s labor plan and the salary budget plan (along with the data specified in Form No. 1 annexed to this Circular) to the representative entity for examination and supervision. Parent enterprises of state-owned conglomerates, special-rated corporations, Vietnam Air Traffic Management Corporation, Northern Vietnam Maritime Safety Corporation, Southern Vietnam Maritime Safety Corporation and Vietnam Post Corporation shall also deliver such plans and information to the Ministry of Labor - Invalids and Social affairs for cooperative summarization and supervision.

3. General Director (Director) shall be held liable to the Members’ Council or Chairperson of the enterprise while the Member's Council or Chairperson of the enterprise is held accountable to the representative entity for the enterprise’s labor plants.

Article 6. Execution of labor plans

1. General Direct (Director) shall dispose workers, recruit and contract new employees according to the labor plans approved.

2. The recruitment and deployment of workers shall be overt and transparent as per relevant laws and regulations and the enterprise’s charter.

3. General Director’s (Director’s) recruitment of new workers shall be subsequent to the approval by the Chairperson of the Members' Council or the Chairperson of the enterprise of the labor plan. General Director (Director) shall be held liable to the Members’ Council or the Chairperson of the enterprise for the efficiency of recruitment and deployment.

Article 7. Evaluation of worker deployment

1. Members’ Council or Chairperson of the enterprise, on annual basis, shall direct the General Director (Director) to evaluate the deployment of workers according to the labor plans approved.

2. The evaluation shall give a manifest analysis of strengths, obstacles and limitations in the recruitment and deployment of workers, subjective and objective causes, responsibilities of the General Director (Director) and remedial measures.

3. Evaluation reports on worker deployment shall deliver to the Members' Council or Chairperson of the enterprise and to the representative entity. Reports from state-owned conglomerates and corporations specified in Section 2, Article 5 of this Circular shall also be submitted to the Ministry of Labor - Invalids and Social affairs.

Article 8. Responsibility for recruitment and deployment of workers

1. General Director (Director) shall carry out measures for reassignment or training when workers do not qualify or jobs are depleted.   If contract termination is inevitable as job arrangement fails despite all of the enterprise's measures, benefits for workers shall be settled in full as per the legislation on labor.

2. If recruitment outpacing or mismatching the plan results in job deprivation and contract termination, General Director (Director), members of the Member’s Council or Chairperson of the enterprise shall be subjected to bonus cut, salary reduction, invalidation or deferment of salary raise according to their assignments and consequences.

3. The evaluation of responsibilities for execution of labor plans constitutes the assessment of managerial personnel’s completion of missions according to the Government’s Decree No. 97/2015/ND-CP dated October 19, 2015 on the management of office holders in wholly state-owned single-member limited liability enterprises.

Part 3. DETERMINATION OF PLANNED SALARY BUDGET AND ADVANCES FROM SALARY BUDGET

Article 9. Planned average salary

Based on the average salary imposed in the immediately preceding year and planned business targets, the enterprise shall calculate the planned average salary (per month) so as to determine the planned salary budget in line with labor output and profit planned in comparison with those attained in the immediately preceding year:

1. If the enterprise’s average labor output surpasses that attained in the immediately preceding year, the planned average salary shall be calculated as follows:

TL_bqkh = TL_bqthnt + TL_bqthnt x  x H_tlns          (1)

Where:

- TL_bqkh: The planned average salary.

- TL_bqthnt : The average salary imposed in the immediately preceding year is the result of the division of the salary budget allotted by the average number of workers employed in the immediately preceding year according to the guideline annexed to this Circular.

- W_kh: The planned average labor productivity; W_thnt: average labor productivity attained in the immediately preceding year according to the guideline annexed to this Circular.

- H_tlns: The coefficient of salary increase consistent with the increase in average labor productivity planned in comparison with that attained in the immediately preceding year. The enterprise sets the value of such coefficient in line with the planned profit: if the profit planned is higher than that attained in the immediately preceding year, H_tlns does not exceed 1.0. If the former is equal to the latter, H_tlns does not exceed 0.8. If the former is lower than the latter, H_tlns does not exceed 0.5.

The planned profit and the profit attained in the immediately preceding year are specified after the determination of the salary of the Members' Council or Chairperson of the enterprise, Head of the Control Committee, Controllers, General Director (Director), Deputy General Directors (Vice Directors), and Chief accountant.

2. If the enterprise’s average labor output is equal to that attained in the immediately preceding year, the planned average salary shall be calculated as follows:

a) If the profit planned is higher than that attained in the immediately preceding year, the following formula for planned average salary shall apply:

TL_bqkh = TL_bqthnt + TL_ln        (2)

Where:

- TL_bqkh: The planned average salary.

- TL_bqthnt: The average salary imposed in the immediately preceding year.

- TL_ln: The profit-dependent salary increase, as calculated below:

TL_ln = TL_{bqthnt x}  x 0.2             (3)

P_kh: Planned profit; P_thnt: profit attained in the immediately preceding year.

b) If the profit planned is equal to that attained in the immediately preceding year, the average salary planned is equal to that imposed in the immediately preceding year.

c) If the profit planned is lower than that attained in the immediately preceding year, the following formula for planned average salary shall apply:

TL_bqkh = TL_bqthnt - TL_ln             (4)

Where:

- TL_bqkh: The planned average salary.

- TL_bqthnt: The average salary imposed in the immediately preceding year.

- TL_ln: The profit-dependent salary decrease, as calculated below:

TL_ln = TL_bqthnt x  x 0.2          (5)

P_kh: The planned profit; P_thnt: profit attained in the immediately preceding year.

3. If the enterprise’s average labor output is lower than that attained in the immediately preceding year, the planned average salary shall be calculated as follows:

a) If the profit planned is higher than that attained in the immediately preceding year, the following formula for planned average salary shall apply:

TL_bqkh = TL_bqthnt - TL_ns + TL_ln        (6)

Where:

- TL_bqkh: The planned average salary.

- TL_bqthnt: The average salary imposed in the immediately preceding year.

- TL_ns: The salary decrease dependent on the average labor output, as determined below:

TL_ns = TL_bqthnt x   x 0.8           (7)

W_kh: The planned average labor productivity; W_thnt: average labor productivity attained in the immediately preceding year.

- TL_ln: The profit-dependent salary increase, as calculated in (3):

b) If the profit planned is equal to that attained in the immediately preceding year, the average salary planned is equal to that imposed in the immediately preceding year minus the salary decrease dependent on the average labor output (TL_ns) as calculated in (7).

c) If the profit planned is lower than that attained in the immediately preceding year, the following formula for planned average salary shall apply:

TL_bqkh = TL_bqthnt - TL_ns - TL_ln       (8)

Where:

- TL_bqkh: The planned average salary.

- TL_bqthnt: The average salary imposed in the immediately preceding year.

- TL_ns: The salary decrease dependent on the average labor output, as calculated in (7).

- TL_ln: The profit-dependent salary decrease, as calculated in (5).

4. If the enterprise suffers losses or breaks even (after excluding objective factors that may exist), the average salary planned shall be equal to that defined in the labor contract (composed of the salary, allowance(s) and supplement(s) specified in a labor contract according to Section 1, Point a of Section 2 and Point a of Section 3, Article 4 of the Circular No. 47/2015/TT-BLDTBXH dated November 16, 2015 by the Ministry of Labor - Invalids and Social affairs on guidelines for the implementation of certain articles on labor contract, labor discipline and material liabilities in the Government’s Decree No. 05/2015/ND-CP dated January 12, 2015 on the clarification of and guidelines for certain articles of the Labor Code).  The enterprise shall therefor scrutinize and re-arrange the workforce to improve labor output, business efficiency and employees’ salary.

5. In regard to profitable enterprises (after objective factors that may exist are excluded), if the planned average salary, as calculated according to Section 1, 2 and 3 of this Article, is lower than the average salary defined in the labor contract as stated in Section 4 of this Article, the average salary planned shall be equal to that defined in the labor contract. If the average labor output and profit planned are higher than those attained in the immediately preceding year though the average salary planned is lower than the average salary defined in the labor contract, the average salary planned shall be based on that defined in the labor contract and adjust to the superiority in labor output and planned profit to those attained in the immediately preceding year.

6. In regard to not-for-profit enterprises, profit is replaced by the planned quantity of products, services and missions in the calculation of the planned average salary. The planned average salary shall be equal to the average salary imposed in the immediately preceding year then adjust (increase or decrease) to the fluctuation of the labor output which is based on the quantity of products, services and missions planned in comparison with that actualized in the immediately preceding year.

7. If the enterprise's loss is lower than that incurred in the immediately preceding year or the enterprise, as newly founded, lacks comparable data for salary calculation, the average salary shall be determined according to the loss decrease or the business plan, respectively, in congruence with general circumstances then shall be reported to the representative entity for review before imposition.

Article 10. Planned salary budget

1. The salary budget planned for employees shall be determined as follows:

V_kh = TL_bqkh x L_khbq x 12 + V_dt          (9)

Where:

- V_kh: The planned salary budget.

- TL_bqkh: The planned average salary as determined according to Article 9 of this Circular.

- L_khbq: The average quantity of workers planned, as determined according to the Appendix to this Circular.

- 12: the amount of months in a year; however, this number shall adjust to the quantity of active months of the enterprise if newly founded.

- V_dt: The difference in the salary for personnel specialized in and remunerated by unions and associations, as determined according to the planned average quantity of personnel specialized in unions and associations, and the difference between the higher average salary paid by the enterprise to such personnel and the average salary paid by unions and associations. The average salary paid by the enterprise to personnel specialized in unions and associations shall be subject to the average salary that forms the basis for the calculation of the difference in the immediately preceding year's salary for such personnel as per government regulations and shall adjust to the average labor output and profit planned in comparison with those attained in the immediately preceding year pursuant to Article 9 of this Circular.

2. If the enterprise amends its business plan after the planned salary budget is determined (or approved) according to Section 1 of this Article, it shall review and revise the average salary and planned salary budget in conformity with Article 9 of this Circular.

Article 11. Objective factors in determining salary

1. The following objective factors affecting an enterprise's labor output and profit shall be excluded from the calculation of the employees' salary:

a) The government adjusts the pricing of products and services under price control, revises corporate income tax incentive, adjusts state capital, amends policies or demands the enterprise to relocate or shrink its business premises, which makes direct impacts on the enterprise's labor output and profit.

b) The enterprise undertakes political missions, maintains social welfare, balances economic supply and demand at Prime Minister’s discretion, receives or transfers the right of representation of holders of state capital in enterprises restructured or undergoing debt settlement and restructuring according to Prime Minister's instructions, makes new investments (including the sale, purchase or conversion of debts to equity in restructured enterprises), expands business and production, increases depreciation to accelerate capital recovery with competent authorities’ approval. In addition, the prize payout of the enterprise, if selling lottery, differs from that in the previous year.

c) Natural disasters, fire, plague, war and force majeure.

2. When determining the average salary and planned salary budget, the enterprise shall calculate and quantify objective factors altering the labor output and profit to diminish such factors that cause an increase in labor output and profit or to aggrandize such factors that cause a decrease.

Article 12. Planned salary budget in specific circumstances

1. In regard to enterprises trading in pubic products and services that the Government orders, plans and assigns or solicits through tender, the planned salary budget shall correspond with the quantity of public products and services ordered, assigned or solicited by the Government.

2. If statutory limits on the production and/or trading public products and services that the enterprise manufactures or provides causes the labor output planned not to surpass that attained in the immediately previous year or to increase at a lower level than the consumer price index forecasted in the relevant year according to the National Assembly's Resolution on planning of annual economic and social development, the planned average salary shall take in an additional amount not exceeding the increase in the consumer price index anticipated annually according to the National Assembly's resolution.

Article 13. Prepayment of salary and pay rate

1. An enterprise shall consider its business plan to decide salary advances; however, such advances cannot occupy more than 85% of the monthly salary budget planned for employees.

2. The enterprise shall consider actual circumstances to base the pay rate on the total revenue or the total turnover minus total salary-excluded expenses or the profit or the product unit or other business efficiency indicators in line with the nature of the enterprise's business operations.

Part 4. DETERMINATION OF SALARY BUDGET ALLOTED AND APPORTIONMENT OF REMUNERATIONS

Article 14. Allocation of salary budget

1. The salary budget allotted for employees shall be determined as follows:

V_th = TL_bqth x L_thbq x 12 + V_dt        (10)

Where:

- V_th: The salary budget allotted.

- TL_bqth: The average salary imposed, as determined according to the planned average salary subject to the variation in the average labor output or profit attained in comparison with those planned under the principle applied to the determination of the planned average salary on the basis of the average salary imposed in the immediately previous year in congruence with the variation in the average labor output and profit planned in comparison with those attained in the immediately previous year as per Article 9 of this Circular.

- L_thbq: The average number of workers employed, which is determined according to the guideline annexed to this Circular, in congruence with the planned quantity of workers approved by the Members' Council or Chairperson of the enterprise, under the principle that the average number of workers employed as for salary budget calculation does not exceed the average quantity of workers planned when the business workload or the quantity of the enterprise’s managerial contacts and business facilities does not increase more than those planned.

- 12: the amount of months in a year; however, this number shall adjust to the quantity of active months of the enterprise if newly founded.

- V_dt: The difference in the salary paid by unions and associations to specialized personnel, as defined in Article 10 of this Circular.

If the enterprise suffers losses or breaks even (after excluding objective factors that may exist), the salary budget allotted shall be based on the average salary defined in the labor contract plus the wage applied to regulated holidays and paid leave (if not yet included) and the additional pay for nightshift and overtime as per the Labor Code.

2. The enterprise shall reassess the progress of objective factors affecting the labor output and profit attained in comparison with those planned with the aim of excluding such factors upon determining the salary budget allotted according to Section 1 of this Article.  In the enterprises whose products and services are bound by production and trading limits defined by the government, the average salary imposed shall also be founded on the difference between the increase in the year’s actual consumer price index and that anticipated.

3. The enterprise shall specify the remaining salary budget accessible based on the salary budget allotted and advanced to employees. If salary prepayment overtakes the size of the salary budget allotted, the amount of advances over-prepaid shall be reimbursed from the salary budget of the immediately subsequent year.

Article 15. Apportionment of salary

1. The enterprise shall establish a fund of provisions for the immediately subsequent year’s salary based on the salary budget allotted in order to maintain salary payment without interruption.  General Director (Director), after consulting the Executive Committee of the enterprise’s labor union, shall decide the ratio of annual provisions which, however, shall not exceed 17% of the salary budget allotted according to Article 14 of this Circular.

In the enterprises producing and providing agricultural products, forestry products, industrial plants, aquatic products and salt, the proportion of the annual provisions fund to the salary budget allotted shall not be more than 20%.

2. The enterprise shall regulate salary payment by position and title in abidance by the laws, democracy, impartiality, openness and transparency. Moreover, such regulation shall consist in business performance, quality and efficiency while assuring satisfactory remunerations (without a maximum cap) for employees who have aptitude and expertise, work productively and contributes greatly to the enterprise. Executive Committee of the enterprise's labor union and employees shall participate in the regulation of salary payment.

3. The enterprise shall remunerate employees according to the salary budget allotted and salary payment regulation(s). The enterprise cannot exploit the employee salary budget to remunerate the Members’ Council or Chairperson of the enterprise, Head of the Control Committee, Controllers, General Director or Director, Deputy General Directors or Vice Directors, and Chief accountant or to serve other purposes.

Article 16. Incentive budget and apportionment of incentives

1. The annual incentive budget shall be founded on the enterprise’s bonus and welfare fund in accordance with the Government’s regulations on the investment of state capital in enterprises and financial governance of wholly state-owned enterprises, and with the Ministry of Finance’s guidelines.

2. The enterprise shall regulate incentives as per the laws and in honor of democracy, openness and transparency. Moreover, such regulation shall consist in business performance, quality and efficiency while encouraging employees who possess aptitude and expertise, work productively and contributes greatly to the enterprise. Executive Committee of the enterprise's labor union and employees shall participate in the regulation of incentives.

3. The enterprise shall grant incentives to employees according to the incentive budget and incentive regulation(s).

Part 5. EXECUTIVE RESPONSIBILITY

Article 17. Responsibility of General Director (Director)

1. Review or formulate the productivity norm and labor plan, evaluate the deployment of workers; formulate and promulgate regulations on recruitment and worker deployment and organize recruitment activities as per regulations.

2. Determine the salary budget planned and the salary budget allotted in the immediately preceding year, aggregate data defined in Form No. 2 annexed to this Circular and report to the Members’ Council or Chairperson of the enterprise for approval by the first quarter of each year.

3. Formulate or review positions, titles, jobs, pay scale, payroll, allowances, title-based and job-based salary, title criteria, job criteria, corporate regulations on salary raise, salary payment and incentives.

4. Validate salary advances, make decisions on pay rate and salary provisions; process remunerations for employees according to the enterprise's regulations on salary payment and incentives.

5. Make periodic reports to the Members' Council or Chairperson of the enterprise about labor, salary and incentives; furnish adequate reports and data on labor, salary and incentives when requested by the Head of the Control Committee or Controllers.

Article 18. Responsibility of Members' Council or Chairperson of the enterprise

1. Consider and present business and production plans for approval by the first quarter of each year; verify the productivity norm, labor plan, salary budget planned and salary budget allotted in the immediately preceding year according to this Circular.

2. Report to the owner's representative entity and inform the Controllers of the productivity norm, labor plan, salary budget planned and salary budget allotted in the previous year via Form No. 2 annexed to this Circular in no later than 10 days after the approval of such data for examination and supervision.

State-owned conglomerates and corporations defined in Section 2, Article 5 of this Circular, when reporting to the owner’s representative entity, shall also send such report to the Ministry of Labor - Invalids and Social affair for general supervision.

3. Direct the General Director (Director) to improve the system and personnel in charge of labor and salary for administrating labor, salary and incentives as per the Government's regulations and this Circular.

4. Disclose the total quantity of workers, salary budget, incentive budget, employees’ salary and average income in previous years on the enterprise’s website as per the laws, and report to the owner’s representative entity about such information.

5. Provide documents and reports regarding the implementation of salary and incentive policies when requested by the Head of the Control Committee or Controllers; scrutinize information at the request of the Head of the Control Committee and Controllers (if any) then instruct the General Director (Director) to make amendments as per regulations.

Article 19. Responsibilities of the Head of the Control Committee and Controllers

1. Examine and supervise the management by the Members’ Council or Chairperson of the enterprise and the General Director or Director of workers, salary and incentives, and report thereof to the owner's representative entity as per the Government’s regulations and this Circular.

2. Request the Members' Council or Chairperson of the enterprise to direct amendments to noncompliant details uncovered during review and examination. The non-compliance of the Members’ Council or Chairperson of the enterprise shall be reported to the owner’s representative entity for timely solutions.

3. Assess the determination of the salary budget then report to the owner’s representative entity in 15 days upon receiving report(s) from the Members' Council or the Chairperson of the enterprise; assume liability for the accuracy and integrity of assessment reports.

Article 20. Responsibility of the entity representing the owner

1. Provide guidelines to enterprises designated to represent the owner with regard to the implementation of policies and regulations on labor, salary and incentives as per this Circular

2. Receive, supervise and examine reports from the Members’ Council or Chairperson of the enterprise and Controllers about productivity norm, labor plan, salary budget planned and salary budget allotted in the previous year; state views on objective factors that affect the productivity output and profit (if any).

3. Request the Members’ Council or Chairperson of the enterprise in writing, in 30 days upon the receipt of reports, to amend or rectify noncompliant details

4. Decide disciplinary actions against the Chairperson of the Members’ Council or the enterprise, such as suspension or deferment of pay raise, reduction of remunerations, lowering of pay grade, reprimanding, warning, removal from office, termination of employment.

5. Lead and cooperate with the Ministry of Labor - Invalids and Social affairs in inspecting and supervising the salary regime of parent enterprises in state-owned conglomerates and corporations according to Section 2, Article 5 of this Circular.

6. Inspect and supervise the implementation of the labor and salary policies of the enterprise in which it acts as the representative of the owner, assume liabilities thereof to the Government and Prime Minister.

7. Aggregate information on labor, salary and incentives in the immediately preceding year and on the establishment of the planned salary budget in enterprises under its management and report to the Ministry of Labor - Invalids and Social affairs via Form 3 annexed to this Circular by no later than the 5^th of each year.

Article 21. Responsibility of Ministry of Labor - Invalids and Social affairs

1. Carry out missions in relation to the rights and obligations of the owner over wholly state-owned single-member limited liability enterprises as designated by the Government.

2. Cooperate with the owner’s representative entity in supervising the remunerations and incentives for employees of parent enterprises in state-owned conglomerates and corporations according to Section 2, Article 5 of this Circular.

3. Inspect the implementation of labor and remuneration policies of the enterprises; inform the owner's representative entity of incorrect details of the salary budget, if detected, to adjust or cancel out accounts as per regulations.

4. Aggregate information on the enterprises' remunerations and report to the Prime Minister on periodic basis.

Part 6. IMPLEMENTATION

Article 22. Effect

1. This Circular takes effect from October 15, 2016. Policies defined in this Circular come into force as of January 01, 2016.

2. Circular No. 18/2013/TT-BLDTBXH dated September 09, 2013 by the Ministry of Labor - Invalids and Social affairs on guidelines for the management of labor, salary and incentives for employees in state-owned single-member limited liability enterprises shall lose effect on the date that this Circular comes into force.

3. The enterprises having approved the 2016’s salary budget plan prior to the effect of this Circular shall scrutinize the planning of the 2016's salary budget as the basis of the determination of the salary budget allotted in 2016 according to this Circular.

4. The enterprises shall spend the maximum amount of VND 730,000 per person per month on employees’ mid-shift meals. The mid-shift meal regime shall be subject to the guidelines in the Circular No. 22/2008/TT-BLDTBXH dated October 15, 2008 by the Ministry of Labor - Invalids and Social affairs on the provision of mid-shift meals in state-owned enterprises.

5. Parent enterprise - Vietnam Military Telecommunications Group shall continue its pilot management of employees' salary as per the Government's regulations.

Article 23. Implementation

1. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees shall be responsible for directing, expediting and inspecting enterprises under their management with regard to the abidance by this Circular.

2. Members’ Council or Chairperson of parent enterprises as stated in Article 1 of this Circular shall manage labor and remunerations for employees of enterprises in which such parent enterprises hold the entirety of the charter capital according to this Circular.

3. Political organizations and socio-political organizations shall consider and apply this Circular for employees of the enterprises in which such organizations hold the entirety of the charter capital.

Organizations and enterprises shall report difficulties and opinions that ensue during the implementation of this Circular to the Ministry of Labor - Invalids and Social affairs for timely guidelines and amendments./.

 

p.p. MINISTER DEPUTY MINISTER Pham Minh Huan

 

APPENDIX

DETERMINATION OF AVERAGE QUANTITY OF WORKERS AND AVERAGE LABOR OUTPUT
(Enclosed to the Circular No. 26/2016/TT-BLDTBXH dated September 01, 2016 by the Ministry of Labor - Invalids and Social affairs)

1. Determination of the average quantity of workers

The average number of workers employed and the quantity of workers planned shall be determined as follows:

a) The average quantity of workers working under a labor contract and receiving salary from the salary budget defined in this Circular. It does not include the managerial personnel and the specialized officials remunerated by unions and associations.

b) The following formula applies to the average quantity of workers in a month:

                       (11)

Where:

L_i: The average quantity of workers in month i of the year.

Xj: The number of workers on day j of the month, including those at work and on paid leave for illness, maternal care of sick children, occupational accident, annual leave, education and personal matters as shown in the enterprise’s employee timesheet. The quantity of workers in a day-off shall be the actual number of workers at work in the immediately preceding day or, if such day is a day-off, the working day immediately preceding that day.

: The quantity of workers in each day of a month.

n: The number of calendar days in the month (whether the enterprise operates every day in the month);

c) The following formula applies to the average quantity of workers in a year:

                        (12)

Where:

L_bq: The average quantity of workers in the year.

li: The average quantity of workers in month i of the year.

i: A positive integer, from 1 to 12, which indicates the order of month i in the year.

: The average sum of workers in all months of the year.

t: The amount of months in the year. Newly operated enterprises shall input the actual number of months in operation in the year.

The average number of workers in a year, if decimal, shall be arithmetically rounded by 1 if the fractional part is higher than 0.5. The average number of workers in a month, if decimal, shall not be rounded and its fractional part shall retain two digits.

2. Determination of the average labor output

The average labor output shall be based on the total turnover minus the total salary-excluded expenses or on the gross product sold (including the converted data). It shall be determined on a yearly basis as follows:

a) The following formula applies to the planned average labor output:

Where:

W_kh: The average labor output planned.

ST_kh: Total turnover planned.

SC_kh: Total salary-excluded expenses planned.

T_spkh: Planned gross product sold (including the converted data).

L_bqkh:  The average quantity of workers planned, as calculated according to Section 1 of this Appendix.

b) The average labor output attained in the year (or in the immediately preceding year) shall be determined as follows:

Where:

W_th: The average labor output attained in the year (or in the immediately preceding year).

ST_th: The total turnover attained in the year (or in the immediately preceding year).

SC_th: The total salary-excluded expenses incurred in the year (or in the immediately preceding year).

T_spth: Gross product sold (included the converted data) in the year (or in the immediately preceding year).

L_bqth: The average quantity of workers employed in the year (or in the immediately preceding year), as calculated according to Section 1 of this Appendix.

The total turnover and total expenses shall be determined in accordance with the Government’s regulations on the investment of state capital in enterprises and financial governance of wholly state-owned enterprises, and with the Ministry of Finance’s guidelines. In regard to State Capital Investment Corporation, the total expenses as a constituent of the labor output that determines salary according to this Circular shall be based on the re-assessed value of capital acquired from the enterprises whose stakes are sold by the Corporation according to Article 8 of the Government’s Decree No. 151/2013/ND-CP dated October 01, 2013 when the total expenses is are still founded on the value of loan principal debt acquired from the enterprises whose stakes are sold by Corporation according to Article 31 of the Government's Decree No. 151/2013/ND-CP dated November 01, 2013 on the functions, missions and operational mechanism of State Capital Investment Corporation.

 

Form No. 1

Name of the entity representing the owner ….

…. single-member limited liability enterprise

REPORT ON THE DEPLOYMENT OF WORKERS IN THE PREVIOUS YEAR AND WORKER DEPLOYMENT PLAN FOR THE YEAR OF .…
(Enclosed to the Circular No. 26/2016/TT-BLDTBXH dated September 01, 2016 by the Ministry of Labor - Invalids and Social affairs)

Unit: person

No.	Quantity of workers	Deployment of workers in the previous year							Worker deployment plan for the year of ….
		Number of workers planned	Number of workers employed on December 31	Including			Average number of workers employed	Number of workers resigning, discharged and retired	Number of workers planned	Including		Number of workers resigning, discharged and retired
				From the previous year	Retrained in the year	Recruited in the year				From the previous year	Newly recruited
1	2	3	4	5	6	7	8	9	10	11	12	13
1	Managerial personnel
2	Specialized workers
3	Workers directly engaged in production and trading
4	Auxiliary workers
Total

 

……… [day] … [month] … [year] Tabulator (sign, write full name and position)

Head of the enterprise (sign and seal)

 

Name of the entity representing the owner …………………. …………… single-member limited liability enterprise

Form No. 2

 

REPORT ON THE EMPLOYEE SALARY BUDGET ALLOTTED IN THE PREVIOUS YEAR AND PLANNED FOR THE YEAR OF …. (Enclosed to the Circular No. 26/2016/TT-BLDTBXH dated September 01, 2016 by the Ministry of Labor - Invalids and Social affairs)

No.	Entry	Unit	Reported for the year of ...		Planned for the year of …
			Planned	Allotted
1	2	3	4	5	6
I	PRODUCTION AND TRADING
1	Gross product (including standardized data)
2	Total turnover	Million dongs
3	Total expenses (salary excluded)	Million dongs
4	Profit	Million dongs
5	Payables to the state budget	Million dongs
II	SALARY
1	Number of workers planned	person
2	Average number of workers employed	person
3	Average salary as shown in labor contracts	1,000 dongs/ month
4	Planned average salary	1,000 dongs/ month
5	Average salary imposed	1,000 dongs/ month
6	Average labor output (1) planned.	Million dongs/ year
7	Average labor output attained	Million dongs/ year
8	Difference in the salary for officials specialized in unions and associations	Million dongs
9	Planned salary budget	Million dongs
10	Salary budget allotted	Million dongs
11	Incentive and welfare fund directly apportioned to employees	Million dongs
12	Average income (based on the average number of workers employed)	1,000 dongs/ month

Notes: (1) Indicate that the labor output is based on the total turnover minus total expenses (salary excluded) or based on the gross product sold.

 

Tabulator (sign, write full name and position)

……… [day] … [month] … [year] Head of the enterprise (sign and seal)