How to Construct a Corporate Salary Scale?

Question:I would like to ask about the contributions to Social Insurance (BHXH), Unemployment Insurance (BHTN), and Health Insurance (BHYT) for employees, which the company contributes at a rate 7% higher than the regional minimum wage (2,400,000 VND/month). However, the total salary the company pays to some employees can be up to 15 million VND/month. How should the contract be written reasonably so that both the insurance agency and the tax office agree?

Answer:

According to Article 90 of the Labor Code 2012:

Article 90. Salary

1. Salary is the amount that the employer pays to the employee to perform work as agreed.

Salary includes the wage based on the job or position, allowances, and other additional amounts.

The wage of the employee must not be lower than the minimum wage prescribed by the Government of Vietnam. Thus, the salary includes both wage allowances and other additional amounts. According to legal regulations, the wage must not be lower than the minimum wage prescribed by the Government. If your company pays a higher wage, it depends on the company's capacity and the quality of the employee's work.

The construction of salary scales and tables is based on the Labor Code 2012 in Article 93. Construction of salary scales, salary tables, and labor norms

1. Based on the principles for constructing salary scales, salary tables, and labor norms prescribed by the Government of Vietnam, the employer is responsible for constructing salary scales, salary tables, and labor norms as the basis for recruitment, labor use, agreement on the wage recorded in the labor contract, and payment of wages to employees.

2. When constructing salary scales, salary tables, and labor norms, the employer must consult the opinions of the organization representing the collective labor at the grassroots level and publicly disclose them at the workplace before implementation, and at the same time, submit them to the district-level state labor management agency where the production or business establishment of the employer is located.

The construction of salary scales and tables is done by the employer based on consultation with collective labor and public disclosure at the workplace before implementation, and at the same time, submitted to the district-level state labor management agency.

Article 102. Allowance, assistance, grade promotion, and wage increase regime

Allowance, assistance, grade promotion, and wage increase policies and other encouragement policies for employees are agreed upon in the labor contract, collective labor agreement, or specified in the employer's regulations.

Your company should construct salary scales and tables as a basis for agreeing on wages in the labor contract. According to Article 44 of the Labor Code 2012, the content of the labor contract includes point e: "Wage level, form of wage payment, wage payment period, wage allowances, and other additional amounts."

According to Lao Dong Newspaper

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