How to calculate the levels of payment compulsory social insurance by employees receiving piece rate pay in Vietnam?
What are the salary payment forms in Vietnam?
According to the provisions of Article 54 of Decree 145/2020/ND-CP, regulations on salary payment forms are as follows:
Salary payment forms
The forms of salary payment prescribed in Article 96 of the Labor Code are elaborated as follows:
1. The form of salary payment shall be specified in the employment contract on the basis of consensus between the employer and the employee. To be specific:
a) Time-based salary shall be paid to the employee monthly, weekly, daily or hourly as agreed in the employment contract. To be specific:
a1) Monthly salary is the salary for a month’s work;
a2) Weekly salary is the salary for a week’s work. In case monthly salary is specified in the employment contract, the weekly salary equals (=) the monthly salary multiplied by (x) 12 months and divided by (:) 52 weeks;
a3) Daily salary is the salary for a days’ work. In case monthly salary is specified in the employment contract, the daily salary equals (=) the monthly salary divided by (:) the number of normal working days in a month as decided by the employer. In case weekly salary is specified in the employment contract, the daily salary equals (=) the weekly salary divided by (:) the number of working days in a week as specified in the employment contract;
a4) Hourly salary is the salary for an hour’s work. In case monthly, weekly or daily salary is specified in the employment contract, the hourly salary equals (=) the daily salary divided by (:) the number of normal working hours in a day as prescribed by Article 105 of the Labor Code.
b) Piece rate pay is paid to piece workers according to the quantity and quality of products, productivity norms and unit prices of the products.
c) Fixed salary is paid according to the quantity and quality of works and time needed for completion of these works.
2. Payment of salaries in the forms specified in Clause 1 of this Article shall be made transferred to the employees’ bank accounts. In the latter case, the employers shall pay the fees for opening accounts and transferring salaries.
Accordingly, the form of salary payment shall be specified in the employment contract on the basis of consensus between the employer and the employee. Piece rate pay is paid to piece workers according to the quantity and quality of products, productivity norms and unit prices of the products..
How to calculate the levels of payment compulsory social insurance by employees receiving piece rate pay in Vietnam? (Image from the Internet)
How to calculate the levels of payment compulsory social insurance by employees receiving piece rate pay in Vietnam?
The social insurance payment rate of employees calculated based on product is specified in Clause 5, Article 85 of the Law on Social Insurance 2014 as follows:
Levels and methods of payment by employees covered by compulsory social insurance
1. Employees defined at Points a, b, c, d, dd and h, Clause 1, Article 2 of this Law shall monthly pay 8% of their monthly salary to the retirement and survivorship allowance fund.
Employees defined at Point i, Clause 1, Article 2 of this Law shall monthly pay an amount equal to 8% of the statutory pay rate to the retirement and survivorship allowance fund.
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5. Employees who enjoy product-based or piecework-based salaries at enterprises, cooperatives, individual business households or cooperative groups engaged in the fields of agriculture, forestry, fishery or salt making shall pay monthly social insurance premiums at the levels specified in Clause 1 of this Article; payment may be made every month, every 3 months or every 6 months.
….
Thus, employees who enjoy product-based or piecework-based salaries at enterprises, cooperatives, individual business households or cooperative groups engaged in the fields of agriculture, forestry, fishery or salt making shall pay monthly social insurance premiums at the levels specified in Clause 1 of this Article; payment may be made every month, every 3 months or every 6 months.
How to calculate the overtime pay for employee receiving piece rate pay in Vietnam?
Overtime wages for employees receiving product-based wages are specified in Clause 2, Article 55 of Decree 145/2020/ND-CP as follows:
Employees receiving piece rate pay will be receive overtime pay for working outside of the normal working hours in order to increase the quantity or volume of products according to the productivity norms under agreement with the employer. Overtime pay will be calculated as follows:
Overtime pay | = | Piece rate in a normal working day (normal piece rate) | x | At least 150% or 200% or 300% | x | Additional quantity of products |
Where:
- At least 150% of the normal piece rate in case of overtime work on normal days;
- At least 200% of the normal piece rate in case of overtime work during weekly breaks;
- At least 300% of the normal piece rate in case of overtime work during public holidays or paid leave.
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