Principles for formulation of wage scales and payroll in enterprises in Vietnam

- The lowest wage for the simplest job or position under normal working conditions must not be lower than the region-based minimum wage specified by the Government of Vietnam.

Currently, the region-based minimum wage is applied according to Decree 156/2016/ND-CP:

Example: For jobs without requiring training such as cleaning, loading and unloading staff, etc., the lowest wage (in Region I) is 3,750,000 VND/month.

- The lowest wage for jobs or positions requiring trained or skilled labor should be at least 7% higher than the region-based minimum wage.

Example: For an accountant, the lowest wage is: 3,750,000 + 3,750,000 x 7% = 4,012,500 VND.

- The wage gap between two adjacent wage levels must ensure that it encourages workers to improve their professional skills, technical knowledge, and experience, but must be at least 5%.

Example: The wage at level 1 for an accountant is 4,012,500 VND, so the minimum wage at level 2 must be 4,012,500 + 4,012,500 x 5% = 4,213,125 VND.

- The wage for jobs or positions with heavy, hazardous, or dangerous working conditions must be at least 5% higher; for jobs or positions with particularly heavy, hazardous, or dangerous working conditions, it must be at least 7% higher than the wage for a job or position of equivalent complexity under normal working conditions.

Example: An industrial sewing worker (a job listed in the hazardous, dangerous job category Group IV, according to Decision 1629/LDTBXH dated December 26, 1996) must have a minimum wage of 4,012,500 + 4,012,500 x 5% = 4,213,125 VND.

- According to Clause 4, Article 7 of Decree 49/2013/ND-CP: When formulating and applying wage scales and tables, equality must be ensured, without discrimination based on gender, ethnicity, skin color, social composition, marital status, belief, religion, HIV infection, disability, or reasons related to the establishment, joining and operation of trade unions for workers. Standards must also be created to rank salaries, conditions for salary upgrades.

Example: Female employees or employees who do not join the trade union must not be assigned a lower wage.

- The wage scales and payroll must be periodically reviewed to amend and supplement in line with actual conditions regarding technological innovations, production organization, labor organization, the average wage in the labor market, and compliance with labor laws. They must especially be updated and adjusted in line with the region-based minimum wage adjustment schedule by the Government of Vietnam.

Documents for wage scales and payroll

When formulating or revising, supplementing, or adjusting the enterprise's labor standards, the enterprise must consult the representative organization of the employees at the unit and publicly announce it at workers' workplaces before implementation, and send the following documents to the Department of Labor, Invalids, and Social Affairs:

- The company's proposal letter regarding the acceptance of revisions, adjustments, or new formulation of wage scales, payrolls, and labor standards;

- The opinion of the grassroots trade union on the implementation of the wage scales and payroll system. If a trade union has not been established or the conditions for forming a grassroots trade union are not met, contact the local labor union for confirmation;

- The system of wage scales, payrolls, and salary allowances;

- The table of standards for salary ranking, conditions for salary upgrades, and standards for job titles and jobs for employees at the company.

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