New regulations on the determination of salary budgets for employees working in Vietnam Asset Management Company

Circular No. 04/2018/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam amends regulations on exclusion of objective factors when determining planned and realized wage fund for employees, specifically as follows:

1. When determining planned and realized salary budgets for employees, VAMC may disregard objective factors that may cause impacts on labor productivity or the difference between revenues and expenses, including:

- Impacts of objective factors specified in Article 11 of Circular No. 26/2016/TT-BLĐTBXH.

- The State decides to make intervention that directly affects the difference between revenues and expenses, or the purchase or sale of bad debts and collaterals; adjust the ratio calculated according to the amount collected from bad debts bought by VAMC with special bonds; adjust the ratio calculated according to the closing balance of the debts bought by VAMC with special bonds.

- VAMC makes new investments in business.

2. The exclusion of objective factors shall be carried out as follows:

- The labor productivity or the difference between revenues and expenses that is affected by such objective factors must be quantified and expressed in specific figures.

- When calculating the annual labor productivity or the difference between revenues and expenses, VAMC may add (or deduct) the amount of labor productivity or the difference between revenues and expenses decreased (or increased) due to such objective factors.

- On determining its realized salary budget, VAMC must take into account the objective factors that may cause impacts on the labor productivity or the difference between revenues and expenses compared with the planned ones.

View more details at Circular No. 04/2018/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, effective from August 15, 2018.

- Thanh Lam -

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