Vietnam: 06 principles of formulation of salary scale, salary table in state-owned enterprises

According to Circular No. 17/2015/TT-BLĐTBXH of the Ministry of Labor - Invalids and Social Affairs of Vietnam, the formulation of salary scale, salary table, salary allowance and salary change and grading for employees in one member limited liability company owned by the state must comply with the following principles:

- Salary scale and salary table applied to employees are formulated on the basis of evaluation of the complexity of work of employees directly involved in production and business, professional employees, executors and managers.

- When formulating salary scale and salary table, companies need to define the relation between the lowest, the me average and the highest salary rate to ensure the balanced relation between types of labor in companies.

- Based on business and production organization, labor organization, companies shall formulate their salary scale, salary table and salary allowance in accordance with the nature and labor use requirements of such companies and ensure the principles specified in Article 7 of Decree No. 49/2013/NĐ-CP dated 14 May 2013 of Vietnam’s Government detailing the implementation of some articles of the Labor Code on salary.

- The salary change and grading from salary scale and salary table stipulated by the state to salary scale and salary table formulated by the companies must base themselves on titles and work assumed by the employees. For persons with lots of achievements and contributions to companies, upon salary change and grading, consider and deal with each specific case in case of any difficulty.

- The formulation of salary scale, salary table, salary allowance and salary change and grading must ensure the publicity, transparency with discussion and agreement with grassroots union at the same level and must be reported to the competent state authorities for opinions before application.

- When applying new salary scale, salary table, salary allowance, companies must make periodical review and evaluation for supplementation and modification in accordance with production organization and labor organization and ensure regulations of law on labor.

View more details at Circular No. 17/2015/TT-BLĐTBXH of the Ministry of Labor - Invalids and Social Affairs of Vietnam, effective from June 10, 2015.

Le Hai

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