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| Regulations on building the latest salary scale 2023. |
Is it mandatory to build a salary scale?
According to Clause 1, Article 93 of the 2019 Labor Code, enterprises must develop salary scales, payrolls and labor norms as a basis for recruiting and employing workers, agreeing on salary levels according to the job or position stated in the labor contract and paying wages to employees.
In particular, the labor rate must be an average level that ensures the majority of workers can perform without having to extend normal working hours and must be tested before being officially issued.
Are businesses required to publicly disclose their salary scales?
Pursuant to Clause 3, Article 93 of the 2019 Labor Code, it is necessary to consult the opinion of the organization representing employees at the grassroots level when developing the salary scale, salary table and labor norms where there is an organization representing employees at the grassroots level.
Salary scales, salary tables and labor rates must be publicly announced at the workplace before implementation.
L note the minimum wage when building a salary scale
When building a salary scale or payroll, it is necessary to note that the lowest salary according to the job or position paid to employees in the salary scale or payroll must not be lower than the minimum salary according to regulations.
According to Article 91 of the 2019 Labor Code, the minimum wage is the lowest wage paid to employees doing the simplest work under normal working conditions to ensure the minimum living standard of employees and their families, in accordance with socio-economic development conditions.
Minimum wage is determined by region, monthly and hourly.
The minimum wage is adjusted based on the minimum living standards of workers and their families; the correlation between the minimum wage and market wages; the consumer price index, economic growth rate; the relationship between labor supply and demand; employment and unemployment; labor productivity; and the ability of enterprises to pay.
What is the minimum wage?
Pursuant to Article 3 of Decree 38/2022/ND-CP, the minimum monthly wage and minimum hourly wage for employees working for employers by region are as follows:
Region | Minimum monthly wage (Unit: VND/month) | Minimum hourly wage (Unit: VND/hour) |
Region I | 4,680,000 | 22,500 |
Region II | 4,160,000 | 20,000 |
Region III | 3,640,000 | 17,500 |
Region IV | 3,250,000 | 15,600 |
The list of regions I, II, III, and IV is specified in the Appendix issued with Decree 38/2022/ND-CP.
The application of the regional area is determined according to the employer's place of operation as follows:
- Employers operating in a region shall apply the minimum wage prescribed for that region.
- If an employer has units or branches operating in areas with different minimum wages, the unit or branch operating in the area will apply the minimum wage prescribed for that area.
- Employers operating in industrial parks and export processing zones located in areas with different minimum wages shall apply the area with the highest minimum wage.
- Employers operating in an area that has changed its name or split shall temporarily apply the minimum wage prescribed for the area before the name change or split until the Government has new regulations.
- Employers operating in a newly established area from one or more areas with different minimum wages shall apply the minimum wage according to the area with the highest minimum wage.
- Employers operating in a provincial city newly established from one or more localities in region IV shall apply the minimum wage prescribed for the remaining provincial city in Clause 3 of the Appendix issued with Decree 38/2022/ND-CP.
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