Updated at 04/07/2024 - 11:57 am
On June 12, 06, the Government issued Decree 2022/38/ND-CP with many notable changes related to regional minimum wages, accordingly there was also an adjustment in the monthly salary for which social insurance premiums are based. for employees, therefore, enterprises need to build and re-issue the system of salary scales and tables to suit this change.
In this article, Expertis will guide you on how to build the latest salary scale and payroll in accordance with current regulations.
Regulations on regional minimum wage increase from July 01, 07 #
Regional minimum wage increase from July 01, 7 according to Decree 38/2022/ND-CP with specific levels as follows:
How to build a salary scale and payroll from July 01, 07 #
Increasing the regional minimum wage from July 01, 07 according to Decree 2022/38/ND-CP also leads to an adjustment in the minimum monthly salary for which compulsory social insurance is paid. Accordingly, enterprises need to build and update the salary scale and table in accordance with the provisions of the labor law and relevant regulatory documents.
Pursuant to Clauses 1 and 2, Article 4 of Decree 38/2022/ND-CP stipulates:
- The minimum monthly salary is the lowest salary as the basis for negotiating and paying wages to employees applying the form of monthly salary payment, ensuring the salary according to the job or title of the employee who works enough. normal working hours in a month and completing agreed labor norms or jobs must not be lower than the monthly minimum wage.
- The hourly minimum wage is the lowest salary as the basis for negotiating and paying wages to employees who apply the form of hourly pay, ensuring the salary according to the job or title of the employee working in the field. an hour and complete the agreed labor or work norm which must not be lower than the hourly minimum wage.”
Pursuant to Decision 595/QD – Social insurance as follows:
- For employees who are doing the simplest job or title in normal working conditions: Not lower than the regional minimum wage at the time of closing.
- For employees doing jobs or titles that require workers to be trained or apprenticed (even if the enterprise self-trains): The minimum monthly salary for which compulsory social insurance premiums are based is at least 7% higher than the level. Region minimum wage.
The specific way to write Level 1 is as follows: #
- The minimum salary for participation in social insurance paid to employees who do the simplest jobs in normal working conditions is: Not lower than the regional minimum wage.
Thus, the lowest salary to be recorded in Tier 1 for employees doing simple jobs (Housekeepers and cleaners) is VND 4.680.000/month for Region I; 4.160.000 VND/month for Region II; 3.640.000 VND/month for Region III, 3.250.000 VND/month for Region IV.
- The minimum salary for participation in social insurance to be paid to employees who do jobs that require workers to have undergone vocational training or vocational training is: At least 7% higher than the regional minimum wage.
Thus, for employees who have undergone vocational training or vocational training, the lowest salary to be recorded in Level 1 is as follows:
| Region | Lowest salary of employees through vocational training and vocational training |
| Region I | = 4.680.000 +(4.680.000 x 7%) = 5.007.600 VND/month |
| Region II | = 4.160.000 + (4.160.000 x 7%) = 4.451.200 VND/month |
| Region III | = 3.640.000 + (3.640.000 x 7%) = 3.894.800 VND/month |
| Region IV | = 3.250.000 + (3.250.000 x 7%) = 3.477.500 VND/month |
How to write the following Tiers (From Tier 2 onwards) #
On December 14, 12, the Government issued Decree 2020/145/ND-CP detailing and guiding the implementation of a number of articles of the Labor Code on working conditions and labor relations, replacing Decree No. Decree 2020/49/ND-CP no longer stipulates the gap between salary levels, but enterprises build their own salary scales and payroll and must consult with the collective representative organization of employees at the enterprise. and publicly disclosed in the workplace.
Thus, when building steps from Tier 2 onwards, enterprises can apply according to the old regulations in Decree 49, the distance between the steps is at least 5% or enterprises can build their own difference. The difference between levels depends on the nature and complexity of the job and the title required. The number of steps is usually from 5-7 steps.
Profile of the latest salary scale construction #
- Salary chart system
- Decision to promulgate salary scale system
- Minutes of consultation of the representative of the collective of employees (for enterprises with employee representative organizations)
- The table specifies the standards and conditions of application
- Regulations on salary, bonus and allowance
A remarkable point in Decree 145/2020/ND-CP is that enterprises no longer have to submit the salary scale to the Department of Labor, Invalids and Social Affairs, but only need to build and store it at the enterprise so that when state agencies request, explain.
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