CIRCULAR

GUIDING THE MANAGEMENT OF EMPLOYMENT, WAGES AND BONUSES FOR EMPLOYEES WORKING IN VIETNAM ASSET MANAGEMENT COMPANY

Pursuant to the Decree No. 106/2012/ND-CP dated December 20, 2012 by the Government, defining the functions, tasks, powers and organizational structure of the Ministry of Labor, War Invalids and Social Affairs;

Pursuant to Decree No. 53/2013/ND-CP dated May 18, 2013 by the Government on the establishment, organization and operation of Vietnam Asset Management Company; Pursuant to Decree No. 34/2015/ND-CP dated March 31, 2015 amending a number of articles of Decree No. 53/2013/ND-CP dated May 18, 2015 by the Government on the establishment, organization and operation of Vietnam Asset Management Company;

Pursuant to Decree No. 50/2013/ND-CP dated May 14, 2013 by the Government providing for the management of employment, wages and bonuses for employees working in state-owned single member limited companies;

Pursuant to Decree No. 51/2013/ND-CP dated May 14, 2013 by the Government providing for wages, remunerations and bonuses for members of Member assembly or company's President, Controller, General Director or Director, Deputy General Director or Deputy Director and Chief accountant of state-owned single member limited companies;

At the request of Director of Department of Labor and Wage;

The Minister of Labor, War Invalids and Social Affairs promulgates the Circular guiding the management of employment, wages and bonuses for employees working in Vietnam Asset Management Company.

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Article 1. Scope of regulation

This Circular provides for the management of employment, wages, remunerations and bonuses for employees, the President of the Member assembly, members of the Member assembly, the General Director, the Deputy General Director, the Chief accountant, the Leader of the Control Board and members of the Control Board in Vietnam Asset Management Company according to regulations in Decree No. 53/2013/ND-CP dated May 18, 2013 by the Government on the establishment, organization and operation of Vietnam Asset Management Company (hereinafter referred to as VAMC).

Article 2. Regulated entities

1. Any employees working under labor contract according to regulations in the Labor Code.

2. The President of the Member assembly and members of the Member assembly, the General Director, the Deputy General Director, the Chief accountant, the Leader of the Control Board and members of the Control Board.

3. Any agencies, organizations and individuals relevant to the management of employment, wages, remunerations and bonuses prescribed in this Circular.

Section 2. MANAGEMENT OF EMPLOYMENT, WAGES AND BONUSES FOR EMPLOYEES

Article 3. Management of employment, planned wage funds, wage unit prices, wage advances, implemented wage funds and distribution of wages and bonuses

1. VAMC carries out the management of employment, determination of planned wage funds, wage unit prices, wage advances, implemented wage funds and distribution of wages and bonuses of employees as prescribed in Section 2; Articles 5, 6 and 7, Clauses 1 and 2 Article 8, Article 8, Sections 3 and 4 of Circular No. 18/2013/TT-BLDTBXH dated September 09, 2013 by the Ministry of Labor, War Invalids and Social Affairs guiding the management of employment, wages and bonuses for employees in state-owned single member limited companies (hereinafter referred to as Circular No. 18/2013/TT-BLDTBXH).

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a) The average productivity (in the mentioned year or the preceding year) equals (=) the total revenues after deducting the total expenditure exclusive of wages divided by (:) the average number of employees of the year, where:

- Total revenues after deducting total expenditure exclusive of wages is determined  according to the total revenues as prescribed in Clause 1 Article 23 of Decree No. 53/2013/ND-CP, Clause 13 Article 1 Decree No. 34/2015/ND-CP by the Government; total expenditure exclusive of wages prescribed in Clause 2 Article 23 of Decree No. 53/2013/ND-CP by the Government (excluding the wages, allowances for officials and employees specified in point g) and the guidance of the Ministry of Finance on financial regime applicable to VAMC;

- Average employees in a year shall be determined according to regulations in Clause 1 Appendix I enclosed with Circular No. 18/2013/TT-BLDTBXH by the Ministry of Labor, War Invalids and Social Affairs.

b) "Profit" (in the mentioned year or the directly previous year) is replaced by “collected debts bought with special bonds”, which is determined according to the guidance of the State Bank of Vietnam.

Article 4. Exclusion of objective factors when determining implemented wage funds for employees

1. When determining implemented wage funds for employees, VAMC may exclude the objective factors affecting their productivity, collected money and bad debts bought with special bonds, to be specific:

a) The State have the intervention decision directly affecting the amount of collected bad debts bought with special bonds or directly affect the purchase of bad debts and security property; adjust the ratio calculated according to the amount collected from bad debts bought by VAMC with special bonds and adjust the ratio calculated according to the remaining balance of the debts VAMC bought with special bonds.

b) VAMC provides new investments in business (excluding investments, repair and upgrading of security properties VAMC has bought for building headquarters); increases the depreciation to quickly recover capital at the request of competent agencies; receives enterprise income tax preferences.

2. The exclusion of objective factors specified in Clause 1 of this Article shall be carried out as follows:

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b) Any objective factors decreasing (or increasing) the productivity and/or the recovered amount of bad debts bought with special bonds is eligible for the addition (or deduction) of the corresponding productivity and/or the recovered amount of bad debts bought with special bonds decreased (or increased) to the productivity standard and/or the recovery amount of bad debts bought with special bonds in the year.

Section 3. MANAGEMENT OF WAGES, REMUNERATION AND BONUSES OF MEMBER ASSEMBLY, GENERAL DIRECTOR, DEPUTY GENERAL DIRECTOR, CHIEF ACCOUNTANT AND THE CONTROL BOARD MEMBERS

Article 5. Determination of wages of President of the Member assembly and full-time members of Member assembly, General Director, Deputy General Director, Chief accountant

Wages of the President of the Member assembly and full-time members of Member assembly, the General Director, the Deputy General Director and Chief accountant of VAMC are determined according to regulations in Section 2 Circular No. 19/2013/TT-BLDTBXH by the Ministry of Labor, War Invalids and Social Affairs.

Article 6. Determination of wages, amount of wages, remuneration and bonuses for members of the Control Board

1. Leader of the Control Board and full-time members of the Control Board of VAMC may rate the wages according to the positions of the Controller according to the rates specified by VAMC in Appendix I enclosed with Decree No. 51/2013/ND-CP dated May 14, 2013 by the Government.

The change in the determination of wages and the wage increase for the Leader and members of the Control Board of VAMC shall comply with guidance in Section 2 of Circular No. 19/2013/TT-BLDTBXH dated September 09, 2013 by the Ministry of Labor, War Invalids and Social Affairs.

2. Wages and bonuses for Leader and members of the Control Board determined according to regulations in this Circular shall be partially paid to the Owner of VAMC (the State Bank of Vietnam) to formulate a general fund and pay to each person according to their performance according to regulations in Clause 7 Article 7 of Circular No. 19/2013/TT-BLDTBXH by the Ministry of Labor, War Invalids and Social Affairs.

Article 7. Determination of funds for wages, remuneration, bonuses and payment of wages, remuneration and bonuses

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2. Requirements of determination of the fund for wages/remuneration under plan, fund for wages/remuneration for implementation specified in Clause 1 of this Article:

a) The average productivity and profits as the basis for the determination of funds for wages/remuneration and the average wages shall be calculated according to regulations in Clause 2 Article 3 of this Circular;

b) Wages of the Leader and full-time members of the Control Board for the determination of funds for wages shall depend on the minimum wages for Controller specified in Appendix II enclosed with Decree No. 51/2013/ND-CP by the Government according to the rating of VAMC;

c) The exclusion of objective factors affecting the productivity and the recovery amount of bad debts bought with special bonds shall comply with regulations in Article 4 of this Circular.

Section 4. IMPLEMENTARY CLAUSE

Article 8. Organization of implementation

1. Responsibilities of the General Director of VAMC:

a) Fulfill the tasks specified in Article 12 of Circular No. 18/2013/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs.

b) Determine the expenses of mid-shift meals for employees, the President and full-time members of the Member assembly, the General Director, the Deputy General Director, the Chief accountant, the Leader and members of the Control Board as prescribed in Clause 6 Article 17 of Circular No. 18/2013/TT-BLDTBXH and Clause 5 Article 18 of Circular No. 19/2013/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs.

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a) Fulfill the tasks specified in Article 12 of Circular No. 18/2013/TT-BLDTBXH and Article 13 of Circular No. 19/2013/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs. Send the reports on wages and bonuses to the owner and the Ministry of Labor, War Invalids and Social Affairs for general monitor.

b) Determine the amount of wages/bonuses for the Leader and members of the Control Board as prescribed in this Circular and submit a part of it to pay to the owner according to the performance of each person.

3. The Leader and members of the Control Board shall conduct inspection, supervision, appraisal and shall make proposal for the management of employees, wages, bonuses like the Controller according to regulations in Article 14 of Circular No. 18/2013/TT-BLDTBXH and Article 14 of Circular No. 19/2013/TT-BLDTBXH by the Ministry of Labor, War Invalids and Social Affairs and provisions of Charter of organization and operation of VAMC regulated by the State Bank of Vietnam.

4. Responsibilities of the owner of VAMC:

a) Fulfill the tasks specified in Article 15 of Circular No. 18/2013/TT-BLDTBXH and Article 15 of Circular No. 19/2013/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs.

b) Carry out the management and assessment, pay wages, remuneration and bonuses and comply with policies applicable to the Leader and members of the Control Board of VAMC like the Controller according to regulations in Article 15 of Circular No. 19/2013/TT-BLDTBXH by the Ministry of Labor, War Invalids and Social Affairs.

Article 9. Effect

This Circular comes into effect from October 16, 2015. Policies specified in this Circular are applicable from January 01, 2015.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Labor, War Invalids and Social Affairs for consideration./.

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PP. THE MINISTER
THE DEPUTY MINISTER




Pham Minh Huan