Vietnam's labor ministry plans to limit SOE salaries

TN News

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The Ministry of Labor, Invalids and Social Affairs plans to cap salaries of senior executives at state-owned enterprises at VND36 million (US$1,730) per month and ban bonuses for those at companies which register losses.

The maximum monthly salary will be applied for chairmen of major economic groups while other managers and chief accountants can be paid up to VND34 million per month, news website VnExpress reported, citing a decree being drafted by the labor ministry.

According to the decree, expected to take effect next January, executives will not receive any bonus if their companies lose money or fail to achieve assigned targets.

Official statistics released early this year showed that senior managers at state oil group PetroVietnam, power utility EVN and coal mining firm Vinacomin were receiving monthly salaries of VND40 million.

State enterprises are currently allowed to determine salaries on their own, VnExpress reported, citing state regulations.

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