Vietnam: How are the salary budget planned for employees determined?

According to Circular No. 26/2016/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, the salary budget planned for employees shall be determined as follows:

Vkh = TLbqkh x Lkhbq x 12 + Vdt

Where:

- Vkh: The planned salary budget.

- TLbqkh: The planned average salary.

- Lkhbq: The average quantity of workers planned.

- 12: the amount of months in a year; however, this number shall adjust to the quantity of active months of the enterprise if newly founded.

- Vdt: The difference in the salary for personnel specialized in and remunerated by unions and associations, as determined according to the planned average quantity of personnel specialized in unions and associations, and the difference between the higher average salary paid by the enterprise to such personnel and the average salary paid by unions and associations. The average salary paid by the enterprise to personnel specialized in unions and associations shall be subject to the average salary that forms the basis for the calculation of the difference in the immediately preceding year's salary for such personnel as per government regulations and shall adjust to the average labor output and profit planned in comparison with those attained in the immediately preceding year pursuant to Article 9 of this Circular.

View details at Circular No. 26/2016/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, effective from October 15, 2016.

-Thao Uyen-

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