The Ministry of Home Affairs clarifies regulations on wages in state-owned enterprises

HƯƠNG NHA |

The Ministry of Home Affairs clarifies the regulations on wages according to Decree No. 44/2025 of the Government on labor management and wages in state-owned enterprises.

Ms. Bui Thi Thi (character's name has been changed) is a representative of a joint stock company with state capital accounting for over 50% of charter capital. She said that in the process of implementing Decree No. 44/2025/ND-CP dated February 28, 2025 of the Government on labor and salary management in state-owned enterprises, enterprises are facing some difficulties and hope to receive specific guidance from competent authorities.

According to Ms. Thi, the first problem is related to the provisions in Article 6 of the Decree, which refers to the construction of salary scales and salary tables as a basis for salary classification, salary negotiation, and implementation of social insurance regimes for employees.

Enterprises are wondering whether the salary levels prescribed in Article 6 are required to match the basic salary used to build a planned salary fund for the Board of Directors, Head of the Supervisory Board, Executive Board and employees.

The second issue raised by Ms. Thi is that the company builds a planned salary for the Chairman of the Board of Directors and the Head of the Supervisory Board based on the indicators of production and business, costs, profits, job position and the complexity of the job. However, in some cases, the planned salary is lower than the basic salary prescribed in Article 20 of Decree 44. Meanwhile, Article 21 only stipulates the maximum salary level without clearly stating whether the mandatory minimum wage must be equal to the basic salary or not.

"Is there any regulation requiring the planned salary not to be lower than the basic salary?" - Ms. Thi wondered.

Regarding the reflection and recommendation of Mr./Ms. Bui Thi Thi, the Ministry of Home Affairs has responded on the Electronic Information Portal

According to Clause 2, Article 6 of Decree 44/2025/ND-CP, the salary levels in the salary scale, salary table, and salary allowances are decided by the enterprise but must ensure the total salary of employees, Executive Board, Council Members, and full-time inspectors calculated according to the salary levels in the salary scale, salary table, salary allowances, and other supplements (if any) not exceeding the total planned salary of employees, Executive Board, Council Members, and full-time inspectors.

Regarding the planned salary level: Enterprises determine the planned salary level based on the basic salary level and profit indicators, the plan rate for each specific case is stipulated in Article 21 of Decree 44/2025/ND-CP.

In which, the basic salary is determined based on the planned production and business targets according to the provisions of Article 20 of this Decree.

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