In accordance with the Decree No. 53/2016/ND-CP dated June 13, 2016 of the Government regulating on management of employees, salaries, remunerations and bonuses by joint-stock companies with State controlling stakes. Employee salaries are according to payroll budget and the reality, every company shall determine the piece rate for production/business operation and salary advance. The realized payroll is determined according to the payroll budget and the fulfillment of business/production targets.
The realized payroll for full-time managers is determined according to the payroll budget and other criteria, and the fulfillment of profit targets. If the actual profit overshoots the profit target, the full-time manager salary shall be added 2% for every 1% profit growth rate but not exceeding 20% of the budgeted average pay rate. The salary budget of part- time managers is determined according to the number of such managers and their actual working time; and their maximum salary shall not exceed 20% that of full-time managers.
According to the annual profit after deduction from financial obligations to the State and capital contributors, every company shall award bonuses and welfares to employees and managers. The budget for employee awards or welfares shall not exceed 03-month realized payroll in case the actual profit reaches the profit target. In case the actual profit overshoots the profit target, the budget for awards and welfare is added 20% of the excessive of actual profit but not exceeding 03-month realized payroll. The award budget for manager shall not exceed one- and-a-half-month realized payroll in case the actual profit reaches the profit target. In case of failure to reach the profit target, the bonus shall not exceed one-month realized payroll.
This Decree takes effect on August 01, 2016.