SYNTHESIS OF PROVISIONS OF WAGES
SYNTHESIS OF CAPITAL TYPES
24/07/2018
COMPLIANCE WITH REGULATIONS ON ELECTRONIC INVOICE FROM NOVEMBER 01, 2020
05/10/2018SYNTHESIS OF PROVISIONS OF WAGES
I. DEFINE
Wage is a monetary amount which is paid by an employer to an employee to do a job as agreed by the two parties.
Wage includes:
- A wage amount which is based on the work or title;
- Wage allowance(s);
- Other additional payments.
1.1 The type of salary:
|
NO. |
NAME |
SALARY RATE |
|
1 |
THE COMMON MINIMUM WAGE LEVEL |
290,000 VND/month |
|
2 |
THE BASIC WAGE LEVEL |
1,150,000 VND/month |
|
3 |
THE REGION-BASED MINIMUM WAGE LEVEL OF LOCAL COMPANY |
540,000 VND/month |
|
4 |
THE REGION-BASED MINIMUM WAGE LEVEL OF FOREIGN COMPANY |
800,000 VND/month |
|
5 |
THE REGION-BASED MINIMUM WAGE LEVEL APPLIED GENERALLY |
1,400,000 VND/month |
1.2 The type salary current:
|
NO. |
NAME |
SALARY RATE |
|
1 |
THE BASIC WAGE LEVEL |
1,390,000 VND/month
|
|
2 |
THE REGION-BASED MINIMUM WAGE LEVEL |
2.760,000 VND/month 3,090,000 VND/month 3,530,000 VND/month 3,980,000 VND/month |
WHY MUST WAGES BE DIVIDED INTO THE BASIC WAGE AND THE REGION-BASED MINIMUM WAGE?
The purpose of applying two types of wages:
|
No |
NAME |
PURPOSE |
|
1 |
THE BASIC WAGE LEVEL
|
Applying for public officials and public employees, employees on payroll, and employees (hereinafter referred to as employees on payroll) who have worked in public sector entities of the Vietnam Communist Party, the Government, or in state-funded socio-political organizations and associations that operate in the central, in central-affiliated cities and provinces (the provincial-level), in suburban districts, urban districts, district-level towns, provincial-affiliated cities, cities affiliated to central-affiliated cities (the district level), in commune, ward, or district-level towns (the commune level), in special administrative and economic units and the armed forces |
|
2 |
THE REGION – BASED MINIMUM WAGE LEVEL |
Applying for employee working for enterprises, cooperatives, cooperative groups, farms, households and individuals and agencies, organizations using employee under the labor contract and the provisions of labor code. The wage paid to an employee who works under normal working conditions, meets the number of working hours per month and has fulfilled the predetermined labour productivity norm or agreed-upon duties shall: – not be lower than the region-based minimum wage paid to an unskilled worker who performs simplest duties; – be at least 7% higher than the region-based minimum wage paid to skilled workers |
1.3 Specific allowances:
(i) Position, titles allowance;
(ii) Responsibility allowance;
(iii)Heaviness, hazardousness, dangerousness allowance;
(iv)Seniority allowance;
(v)The regional allowance;
(vi)The mobility allowance;
(vii)The attraction allowance;
(viii) Other allowances of a similar nature.
II. THE WAGE PAID TO EMPLOYEE
The wage paid to an employee must not falls below the region-based minimum pay rates prescribed by the government.
III. THE CURRENCY PAID TO EMPLOYEE
The wage in the contract labor and the wage paid to employees shall be specified in Vietnam Dong except salaries and allowances paid to non-residents, foreigner residents under provisions of the law on foreign exchange.
Resident, non-resident is a foreinger shall be agreed under Labor Contract about salary, bonus, allowances through foreign currency transfer or cash by the organization where he/she is working.
IV. METHOD OF PAYMENT
Method of payment: 03 methods of payments are time-based wages, piece rates and fixed wage.
- Time-based wages: Time-based wages (monthly, weekly, daily, or hourly) are paid to employees for their actual working time by month, week, day, or hour or as agreed upon by the parties, but at least 15 days must be paid in lump sum; Monthly wage shall be paid once or twice a month within the month in which the employee works. Both parties shall reach an agreement on a fixed time of wage payment in the month.
- Piece rates; and Fixed wage: Piece rates are paid to employees who are paid by the piece, the fixed is paid as agreed by the two parties. If the job has to be done for several months, the monthly wage will be paid according to the work done in the month.
V. WAGE DURING THE WORKING
5.1 Wage during the probation period:
The wage for an employee during the probation period must be agreed upon by the two parties but must be at least equal to 85% of the wage for the job.
5.2 Wage during the period of apprenticeship or on-the-job training:
During the period of apprenticeship or on-the-job training, if the apprentice or the on-the-job trainee directly makes, or participates in the making of, qualified products, he/she must be paid with a wage by the employer at a level agreed by the two parties.
5.3 Overtime pay, pay for night work:
(i) Overtime pay;
(ii) An employee who performs night work (is from 22:00 to 6:00 the following day);
(iii) An employee who performs overtime work at night.
5.4 Wage when temporary job transfer:
The employee is entitled to a wage for the new job; if the wage for the new job is lower than the previous wage, he/she is entitled to the previous wage for 30 working days. The wage for the new job must be at least 85% of the previous wage but not lower than the regional minimum wage stipulated by the Government.
5.5 Wage in employee is absent from work and covered by social insurance:
When an employee is absent from work and covered by social insurance, the employer is not required to pay a wage to the employee.
For an employee who is not covered by compulsory social insurance, compulsory health insurance and unemployment insurance, the employer shall simultaneously pay to the employee a wage and an amount which is equivalent to the level of contribution to compulsory social insurance, compulsory health insurance and unemployment insurance, and annual leave payments in accordance with regulations.
5.6 Advance of wage:
An employee may be given a wage in advance according to the conditions agreed upon by the two parties.
An employer shall advance a wage amount to an employee corresponding to the number of days off which the employee takes to perform citizens’ obligations from 1 week to 1 month at most. The employee shall refund this advance amount, except the case that he/she performs military services.
5.7 Deductions from wages:
An employer may only make deductions from the wage of an employee for compensation for damage of tools and equipment of the employer in accordance of the law.
An employee is entitled to know the reasons for his/her wage deductions.
Monthly deductions must not exceed 30% of the monthly wage of an employee after having paid compulsory social insurance, health insurance and unemployment insurance premiums and income tax.
5.8 Bonuses:
Bonus is a sum of money paid by an employer to his/her employees on the basis of annual business results and the level of work performance of employees.
Bonus regulations must be decided and publicly announced by the employer at the workplace after consultation with the representative organization of the grassroots-level employees’ collective.
