How to Record Salary on an Employment Contract

Mrs. Bui Ngoc Kim Chi (HCMC) has worked at a private company for more than 2 years. Upon starting, the company agreed on a wage rate of 500,000 VND/workday (8 hours/day). However, the employment contract only specifies: a basic salary of 5,720,000 VND/month, with wages paid according to the working time. Rest policies along with social insurance (BHXH), health insurance (BHYT), and unemployment insurance (BHTN) are implemented in accordance with regulations.

In the section for other agreements, it is mentioned that income based on work performance is regulated according to the company's wage and reward policy.

Fixed salary = Basic salary/26 days x actual working days (1);

Variable salary (performance salary) = Fixed salary x salary coefficient (2);

Total monthly salary = (1) + (2).

The salary coefficient is adjusted to align with the initial agreement of 500,000 VND/workday. If in that particular month there are 30 working days, the salary would be 15 million VND, or if working 26 days, it would be 13 million VND (consistent monthly work of 26 days or more). If in 2018 the basic salary is adjusted upwards according to regulations, Mrs. Chi's salary coefficient will automatically be adjusted downwards to align with the agreed 500,000 VND/day.

Mrs. Chi inquires whether the employment contract signed with the company is correct. If not, how should she request adjustments? From January 1, 2018, at what salary level should she contribute to BHXH, BHYT, and BHTN accurately?

Regarding this issue, HCMC Social Insurance responds as follows:

Based on Article 23 of the Labor Code 2012, the employment contract must include salary, salary payment method, salary payment term, salary allowances, and other additional amounts.

Based on Article 30 of Circular 59/2015/TT-BLDTBXH of the Ministry of Labor, Invalids and Social Affairs; Official Dispatch 1734/BHXH-QLT dated August 16, 2017, by HCMC Social Insurance on guiding the collection of BHXH, BHYT, BHTN, and occupational accident and disease insurance; management of social insurance books and health insurance cards, stipulating for workers applying salary set by their unit, the salary basis for contributions includes:

- The salary stated in the employment contract.- Salary allowances: position allowance, job title allowance; responsibility allowance; heaviness, hazardous, danger allowances; seniority allowance; regional allowance; mobility allowance; attraction allowance; and other similar allowances.- Additional amounts determinable with specific amounts together with the agreed salary in the employment contract and regularly paid in each salary payment period from January 1, 2018.

Whether the employment contract is conformable or not, she is advised to contact the local Labor Department for guidance.

As reported by the Government of Vietnam

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