Ministry wants wages, bonuses at State-controlled firms tightened

VietNamNet Bridge – The Ministry of Labor, Invalids and Social Affairs is gathering comments on a draft decree on enhancing management of employees, wages and bonuses at joint stock companies with majority State ownership.

The ministry said some State-controlled enterprises offer managers wages and bonuses not corresponding to their business results and much higher than those of staff at the same firms and wholly-owned enterprises.

Data of the ministry showed monthly salaries of employees at 345 joint stock companies with majority State ownership in 2013, mainly medium and small firms, were VND10-11 million but the wages of managers were 2.3-2.5 times higher, VND25-26 million per month.  

At major and profitable companies, the monthly wages of managers ranged from VND70 million to VND90 million and probably up to VND155 million for certain positions. These are many times higher than the average levels of employees and managers at 100% State-owned enterprises as pays at these enterprises are capped at VND40-45 million per month.

Surprisingly, some enterprises paid managers up to VND45 million per person per month compared to the monthly amount of VND3 million for normal employees despite poor business results.

Therefore, the ministry drafted the decree to correct the situation.

The draft decree requires companies with profits lower than VND500 billion not to pay managers wages 5-9 times higher than the average salaries all employees can earn and not higher VND40-80 million per month.

At companies with profits from VND500 billion to VND1 trillion, the monthly pays of managers could be increased by no more than VND5 million, or VND45-85 million.

Meanwhile, the respective wages for managers at companies whose profits are VND1-2 trillion and higher than VND2 trillion would be no more than VND55-95 million and VND60-100 million per month.  

The ministry said the ceilings aim to ensure reasonable pay for managers equivalent to market levels at VND45-70 million per month on average and VND70-120 million per month at large and profitable companies.

State-controlled firms, wages, bonuses