A draft decree to regulate the salaries of high-ranking officials at State-owned and partially State-owned enterprises has been introduced for review by the Ministry of Labour, Invalids and Social Affairs (MOLISA).
The draft decree is designed to regulate salaries for members of the boards of directors, director generals, directors and head accountants.
It also aims to allocate individuals' salaries with respect to the enterprises' performance and profitability. Top leaders' salaries, which range from VND40 million (US$1,800) to VND100 million (US$4,600), would be determined based on the enterprises' profitability.
A MOLISA study indicated the average salary of top officials in small-to-medium sized enterprises (SMEs) was between VND45 million (US$2,100) to VND70 million (US$3,200), while CEOs at larger enterprises were paid up to VND120 million (US$5,600).
MOLISA's draft decree aims to reduce the salary gap between bosses and other employees, as well as the average salary of the country's labour market.
The decree would also allow a salary bonus of 15-20% if an enterprise exceeds its projected financial goals as a growth incentive. On the other hand, enterprises which fail to achieve their targets would not be entitled to a bonus.
A recent survey by the ministry of 345 State-owned and partially State-owned SMEs showed the average salary for regular employees was VND10 million (US$460), while top officials earned VND25 million (US$1,150).
The gap is even higher in larger enterprises, with top CEO salaries ranging from VND70 million (US$3,200) to VND155 million (US$7,200). Notably, many enterprises that failed to produce positive financial performances, or in some cases, even made financial losses, still rewarded their top CEOs with salaries of VND45 million (US$2,100), some 14 times greater than an employee's salary.