Guidelines for building salary payment regulations in enterprises

Updated at 20/06/2022 - 05:01 pm

The article provides complete and detailed instructions on how to organize a Payroll Management System (also known as a salary system) in an enterprise.

Understanding salary regulations #

Salary regulation is a document developed by enterprises on the basis of the provisions of the Labor Code and the Government's Decrees guiding the formulation of salary regulations in enterprises, which is published and applied used in business. 

The salary regulation regulates wages, salary-related issues and other payables to employees such as bonuses, allowances, welfare policies, etc. Thereby determining the basis and How to calculate salary for employees working at the enterprise.

Building a salary payment system in the enterprise #

In this article, Expertis will guide you to build salary and bonus regulations according to the most standard regulations in the following order:

1. Determine the unit price and salary plan for the whole year

What is the plan salary fund? Regulation on salary fund and salary fund planning. The steps to build a salary fund are concepts that any business needs to understand before going into operation.

a) What is the planned salary fund?

Wage fund is the total amount of salary that an enterprise pays for various types of employees under its management and use, including main salary, allowances, bonuses, welfare costs, etc., built on on the legal basis of the Labor Law and related regulations.

Planned salary fund is a salary fund that is estimated before actual revenue and expenditure of the enterprise based on current business results and upcoming business goals of the enterprise. The determination of the salary fund is the basis for the enterprise to decide to increase or decrease the number of employees, the existing bonuses and the needs of the enterprise.

b) How to set up a plan salary fund?

The salary fund is the entire salary paid by the enterprise to all employees under the management and use of the enterprise, including the following principal items:

  • Salary by time, salary by package, salary by product.
  • Money for lunch, meals
  • Wages paid to employees during production shutdown, production stoppage due to objective reasons, during dispatching to study, work, vacation or public holidays.
  • Overtime pay
  • Overtime allowance, night shift
  • The allowances are of a regular nature.
  • Payments for allowances and benefits for employees: sickness, maternity, labor accident, birthday, filial piety, etc.

To build the salary budget plan of each month and year. The person in charge of planning the salary fund must understand the company's goals and strategy and must understand the market salary and must work with other departments in the company to build a scale. salary in line with business goals with the number of employees, bonuses need to increase in the next month/year.

The finance department will rely on the planned salary fund to build the expenses for the next month/year of the business, ensuring that the total of all expenditure categories does not exceed the enterprise's budget. At the same time, the person in charge of setting up the planned salary fund needs to compare the official salary fund with the planned salary fund to learn from experience and comment on the establishment of the salary fund for the next month/year.

2. Building a system of titles and spacing coefficients

It is necessary to list and group jobs with the same nature, complexity and responsibility in the work into a group. This requires businesses to have a job description and detailed requirements for each position, job title.

3. Determine how to calculate salary

Depending on the nature of the labor, the enterprise can apply the appropriate salary calculation. For example, a fixed salary can be applied to office administration, a package salary can be applied to positions that directly produce products or generate revenue or can apply both forms of salary calculation above. for the same worker…

4. Building a system of job completion evaluation, reward and punishment

In order to ensure fairness in salary calculation and encourage employees, enterprises need to develop standards for job completion, especially for the office sector. This requires the job description to be built relatively close to reality, the work of making and monitoring work plans in each department and individual is strictly implemented.

5. Regulation on time and process for calculating salary and special policies

Employees need to be well informed about the payroll process and when they are paid monthly. In addition, the regulations should clearly stipulate the case of paying wages when employees work overtime, are sent by the company to train, take paid leave, take sick leave, maternity leave, etc.

6. Promulgating, applying and continuously evaluating, amending and supplementing regulations on salary and bonus

The salary regulation should be written briefly, concisely and disseminated and consulted by employees before officially promulgating. The clearer and more transparent the mechanism, the higher the morale and motivation of employees. Do not keep the salary regulations secret or write riddles for readers. The agreed salary for each employee is confidential, but the salary calculation method specified in the salary regulations must be clear and easy to understand. Employees need to know how the enterprise pays them, the company's incentive and treatment policies for them.

Note: The salary payment mechanism or salary policy cannot be fixed, but it needs to be continuously reviewed, evaluated and modified to suit the business situation of the enterprise, changes in labor law and changes in labor law. new request

Salary regulation form #

Regulation on salary payment is a document that summarizes and shows in general the salary policy of the enterprise. Each type and size of employee will have a different template of salary regulations. Contact us for assistance with the Payroll Regulation Form.

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