State enterprise "bosses" receive maximum salary of more than 150 million/month

Unlike civil servants, public employees or managers at state agencies, the salaries of managers at state-owned enterprises (SOEs) are calculated based on the scale and profits of the unit, corresponding to the basic salary and an additional adjustment coefficient based on business results.

Based on the added coefficient and the profits earned by the enterprise, "big bosses" at state-owned enterprises can receive salaries of hundreds of millions of dong per month.

State-owned enterprise "boss" receives maximum salary of more than 150 million/month

Currently, salaries, remuneration, and bonuses of employees and managers at enterprises with State-controlled shares and capital contributions are regulated in Decree 53/2016.

Accordingly, in the role of enterprise management, the "big bosses" of state-owned enterprises are only entitled to a maximum basic salary of no more than 36 million VND/month for companies with planned profits of less than 50 billion VND. However, for companies with planned profits greater than 50 billion, managers will be applied a salary adjustment coefficient to increase their basic salary from 0.5 to 2.5 times.

Specifically, for companies with profits from 50 billion to less than 100 billion VND, managers will receive an additional coefficient of 0.5 basic salary, equivalent to a salary of 54 million VND/month.

Meanwhile, if a business in the banking, finance, and telecommunications sectors has a planned profit of 100-500 billion, the leader of that business will receive an additional coefficient of 1, equivalent to 72 million VND/month. The higher the planned profit, the higher the salary coefficient will be, up to the maximum of 2.5 times, equivalent to 126 million VND/month if the planned profit is over 1,500 VND.

The salary of state-owned enterprise managers based on profits in the fields of oil and gas exploitation and processing, minerals, electricity, trade and services is divided according to the planned profit level of 100-300 billion; 300-700 billion; 700-1,000 billion and over 1,000 billion, corresponding to the additional coefficient levels of 1; 1.5; 2 and 2.5 times, respectively.

For state-owned enterprises in the remaining sectors, if a manager wants to receive a salary of 126 million VND/month, the company must have a planned profit of over 700 billion VND.

However, 126 million VND/month is not the final figure. According to regulations, for companies with a scale and profit much larger than the limit, or due to the nature of operations in some fields, managers will receive an additional 2% of salary for every 1% of profit exceeding the plan, but not exceeding 20% ​​of salary. Equivalent to the maximum salary a senior leader in a state-owned enterprise can receive is up to 151.2 million VND/month.

Bonus not exceeding 1.5 months salary

Decree 53 also stipulates the maximum bonus for employees and managers at state-owned enterprises after the enterprise has fulfilled its obligations to the State and shareholders...

Specifically, if the company's profit exceeds the plan, after distributing benefits to shareholders, the manager will receive a maximum bonus of no more than 1.5 months of average salary, equivalent to no more than VND 226.8 million. In case the actual profit is lower than the planned profit, the maximum bonus will not exceed 1 month of average salary.

Meanwhile, the bonus and welfare fund for employees at state-owned enterprises shall not exceed 3 months of average realized salary if the realized profit is equal to the planned profit. In case the realized profit exceeds the planned profit, an additional bonus fund equal to 20% of the realized profit exceeding the plan shall be allocated, but not exceeding 3 months of average realized salary.

Previously, the State Audit report mentioned that the parent company - Saigon Beer, Alcohol and Beverage Corporation - Sabeco had paid excessive bonuses to managers in 2015 (when the State still held controlling power).

Specifically, Sabeco paid bonuses for the 2015 fiscal year (spent in 2016) to the Chairman of the Board of Directors, General Director, Deputy General Director, Head of the Board of Supervisors and Chief Accountant of more than 12 billion VND, equal to 20.3 months of the average salary of a manager.

Meanwhile, the maximum bonus that a business can receive under Decree 71 of 2013 is only 1.5 months' salary. And the bonus that Sabeco paid was more than 12.7 billion VND higher than the bonus approved by the Ministry of Industry and Trade.