Updated at 20/06/2022 - 04:12 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 Payroll Scale System #
Salary scale (More precisely, the salary scale system) is a system of salary groups, salary ranges and salary levels designed as a basis for paying wages to employees. Depending on the capacity, job position and complexity of the job, the enterprise will pay the employee salary based on the built salary scale.
Building a salary scale helps businesses ensure fairness in salary payments, helping employees know their actual income and have expectations of striving to achieve higher-paying positions in the salary scale.
The payroll scale also shows the professionalism in the enterprise's labor management system, helping businesses easily plan their salary budget and manage salary costs extremely effectively.
Building a salary scale is the responsibility of the enterprise. When developing the salary scale, the employer must consult the representative organization of the labor collective at the grassroots level and make it public at the employee's workplace before implementation.
The process of building a salary scale for enterprises #
- Employers must develop a salary scale, wage table and labor norms as the basis for recruiting, employing employees, agreeing on salary levels according to the job or title stated in the labor contract and paying wages to employees. workers.
- The level of labor must be the average level to ensure the number of employees can perform without having to prolong the normal working hours and must be tested before being officially issued.
- The employer must consult with the employee representative organization at the grassroots level for the place where the representative organization is located when developing the salary scale, wage table and labor norms.
- Salary scale, salary table and labor rate must be publicly announced at the workplace before implementation.
Note: From January 01, 01, enterprises no longer have to register payroll scales with state agencies.
Regional minimum wage as the basis for building the salary scale in 2021
The salary scale is the basis for enterprises to negotiate a salary according to the job or title stated in the labor contract with the employee, in which the minimum wage is the lowest salary paid to the employee doing the job. simplest under normal working conditions. Therefore, when building a salary scale, enterprises need to base themselves on the regional minimum wage to strictly comply with regulations on salary payment principles.
The regional minimum wages from January 01, 01 are specified in Decree 2021/90/ND-CP as follows:
Areas of application
4.420.000 VND / month
Enterprises operating in the area of I
3.920.000 VND / month
Enterprises operating in the area of Region II
3.430.000 VND / month
Enterprises operating in the area of Region III
3.070.000 VND / month
Enterprises operating in the area of region IV
The construction of a salary scale system to ensure that salaries are paid according to positions and titles should be determined in the following order:
a. Job analysis:
Job analysis aims to collect detailed information about each specific job position, identify key tasks, relationships, job responsibilities, professional requirements, education qualifications, knowledge. , experience, necessary working conditions of each job
b. Evaluate the value of work
On the basis of job analysis, conduct a job value assessment to identify similar job positions that can be grouped into groups as the basis for determining the salary scale and salary table for each group.
c. Classification (rank) of work
After analyzing and evaluating the value of each job, grouping jobs with similar functions, requiring similar knowledge and skills. Each work group is specified into a rank (rank) for the job depending on the importance of the work group.
d. Set up the scale and salary table for each job grade (grade)
Setting up the salary scale and salary table on the basis of collected information and considered influencing factors, the setting up of the salary scale and salary table is carried out in the following order:
- Determining the salary ranges in the enterprise through obtaining information from the job division stage.
- Determining the number of salary grades in each tier is based on the calculation of advantage points according to work results and considering the complexity required for the salary scale and payroll.
- Set salary by grade and by grade.
These are the steps to build a basic salary scale according to the guidance of the law. In fact, businesses will sometimes arise many other methods of salary management depending on the characteristics of that business.
FAQ - Frequently asked questions about Payroll Scale #
According to Clause 1, Article 16 of Decree 28/2020/ND-CP stipulating penalties for administrative violations in the field of labor and social insurance, sending Vietnamese workers to work abroad under contracts, as follows: after:
1. A fine ranging from VND 2.000.000 to VND 5.000.000 shall be imposed on the employer who commits one of the following acts:
a) Failure to publicly announce the salary scale, payroll, labor norms and bonus regulations at the workplace;
b) Failure to make a salary book and present it at the request of a competent authority;
c) When changing the form of payment, the employer fails to notify the employee at least 10 days before the implementation;
d) Failure to set up wage scales, payrolls and labor norms;
dd) Using the wage scale, payroll, and labor norms in contravention of regulations when having amended and supplemented comments of the district-level state management agency in charge of labor;
e) Failure to consult the representative organization of the labor collective at the grassroots level when preparing the salary scale, payroll, labor norms and bonus regulations.
Thus, if the enterprise does not build a salary scale, it will be penalized according to the above provisions.
Pursuant to the provisions of Article 93 of the Labor Code 2019, the employer no longer has to register the salary scale and table with the state agency, but when building the salary scale and table, the employer must right:
– Consult with the representative organization of employees at the grassroots level for the place where there is a representative organization of employees at the establishment.
– Publicly announce at work before implementation
If enterprises violate the above regulations, they will be fined from VND 2.000.000 to VND 5.000.000.
When building a salary scale, the enterprise's salary table must be based on the current regional minimum wage to stipulate the salary level for each title, job, and job group so that it is consistent with the principles prescribed by law. . Specifically:
- The lowest salary for the simplest job or title in normal working conditions must not be lower than the regional minimum wage;
- The lowest salary for jobs and titles that require trained or apprenticed workers (including those taught by enterprises themselves) must be at least 7% higher than the regional minimum wage;
- Compared with the salary of jobs or titles of equivalent complexity, working under normal working conditions, the salary of jobs or titles with heavy, hazardous or dangerous working conditions must be at least 5% higher; jobs and titles with particularly heavy, hazardous or dangerous working conditions must be at least 7% higher.
An increase in the regional minimum wage does not mean that businesses have to redo the salary scale. The adjustment or not depends on the current salary scale of the enterprise: There are 2 cases as follows:
Case 01: The lowest salary of the simplest job in the scale, the current salary of the enterprise is equal to or higher than the regional minimum wage. In this case, the enterprise is not required to adjust the salary scale and salary table because this salary has met the condition that it is not lower than the regional minimum wage.
The lowest salary of the simplest job in the ladder, the current salary of the enterprise is lower than the regional minimum wage. Accordingly, when there is a change in the regional minimum wage and the minimum wage in the salary scale is lower than the current regional minimum wage, enterprises must also rebuild the salary scale to match the minimum wage. region minimization.
Pursuant to the provisions of Clause 2, Article 7 of Decree 49/2013/ND-CP, the gap between two adjacent salary grades must ensure that employees are encouraged to improve their professional, technical and professional qualifications. , accumulate experience, develop talent but at least by 5%.
The number of steps of the salary scale and salary table is decided by the enterprise based on the complexity of management, job level or required title.
The law does not stipulate that each enterprise can only build one salary scale and payroll. So, a business can build many salary scales, payroll.
For example, an enterprise can set up a salary sheet for management employees, a salary table for professional and technical workers and workers directly in production, business and service.