When starting up, many businesses often forget to build salary scale. This is a mandatory requirement under the law and is an effective human resource management tool. Failure to comply can lead to many unnecessary legal risks. This article will guide you step by step to build a salary scale that is easy to understand and apply.
I. What is a salary scale?
A salary scale is a system of salary levels divided into many levels, applied to each position or job group in the company, used as a basis for negotiating salary levels in contracts and paying salaries to employees.
Payroll is a summary of the actual amount paid to employees, including basic salary, allowances, bonuses, subsidies, etc., over a given period of time.
II. Why are businesses required to have a salary scale?
- Legal regulations: Article 93 Labor Code 2019 Require all employers to establish a salary scale.
- Better human resource management: Have a basis for salary payment, salary increase, reward, and violation handling.
- Avoid legal risks: Businesses can be fined from 5 to 20 million VND by labor inspectors if they do not have a salary scale.
- Motivate employees: Employees see a clear path for salary increases and promotions.
III. Principles when building a salary scale
When building a salary scale, businesses need to pay attention to the following principles:
- The law does not limit the maximum number of salary grades, but at least 2 grades must be established: To create motivation for employees to increase their salaries. Businesses usually establish from 5 to 15 salary grades.
- Lowest level (level 1): Not below the regional minimum wage.
- Reasonable and fair: Higher positions should have higher salaries.
- Have employees consulted: If the company has a union or collective labor representative.
- Transparency: Post at workplace before applying.
IV. Steps to build a salary scale
➡️ Step 1: Determine the regional minimum wage
According to Decree 74/2024/ND-CP, the regional minimum wage in 2025 is:
|
Region |
Minimum monthly wage |
Minimum hourly wage |
|
I |
4,960,000 đ |
23,800 đ |
|
II |
4,410,000 đ |
21,200 đ |
|
III |
3,860,000 đ |
18,600 đ |
|
IV |
3,450,000 đ |
16,600 đ |
👉 The lowest level in the salary scale must be equal to or higher than the above levels.
➡️ Step 2: List job titles
The job title is name of each position in a business, associated with specific tasks and responsibilities. List job titles that can be based on Corporate organizational structure or actual operation: any job that has people must have a title in the salary scale.
For example: Director, Department Head, Accountant, Sales staff, General worker...
➡️ Step 3: Build salary scales for each position
- Each title should have 2 – 7 levels (depending on scale).
- Enterprises have the right to decide the salary difference between salary levels according to the economic situation of the enterprise.
➡️ Step 4: The business director issues a Decision to issue
The decision must be signed, stamped and attached with the salary scale.
➡️ Step 5: Consult the opinion of the employee representative organization in the enterprise.
➡️ Step 6: Publicly announce the salary scale at the workplace before applying it.
➡️ Step 7: Save the file at the company
To serve the inspection work at the enterprise. When there is an inspection, present the following documents:
- Salary scale system;
- Decision to issue;
- Minutes of employee consultation (if any);
- Table of standards and conditions for applying job titles.
V. Do businesses have to register salary scales?
Before: Enterprises must submit registration documents to the Department of Labor, War Invalids and Social Affairs.
Currently: No need to register anymore. The company only needs to build, issue and keep the records at the company. When the labor inspection team comes to inspect, you present the records as valid.
VI. Some important notes
- If the company changes its size, structure, salary level or the Government regulates a change in the minimum wage → the business needs to update salary scale.
- The method can be applied. 3P salary (Position – Person – Performance) if you want modern management.
In short, salary scales are not only a requirement to comply with the 2019 Labor Code but also a management lever to help standardize salary payments, create motivation and reduce legal risks. Enterprises need to update the starting level according to the current regional minimum wage, publicly disclose it internally and keep full records. A methodical roadmap—standardizing job titles, designing grades based on capacity/performance, issuing and controlling implementation—will optimize human resource costs and enhance long-term competitiveness.