Vietnam: Determination of salaries of direct workers, specialized workers

According to Article 4 of Circular No. 17/2019/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, salaries of direct workers, specialized workers, clerks and attendants that constitute the price of a public product/service shall be determined by adopting the following formula:

Where:

- Vlđ: Salaries of each group of direct workers, specialized workers, clerks and attendants, which constitute the price of a public product/service.

- n: The number of job titles or positions of each group of direct workers, specialized workers, clerks and attendants, which constitute the price of a public product/service.

- Tlđi: Total labor productivity norm-based working days of the job title or position i of each group of workers engaged in the production or service supply, which is determined on the basis of the labor consumption rate accounted for the public product or service and converted into working days according to volume and job requirements for each specific public product or service and labor productivity norms adopted by Ministries, regulatory authorities and provincial People’s Committees.

- MLthi: The monthly salaries of the job title or position i of each group of workers which constitute the price of a public product or service, and shall be determined by adopting the following formula:

MLthi = (Hcbi + Hpci) x MLcs x (1 + Hđc)        (2)

Where:

+ Hcbi: The grade or rank-based salary coefficient of the job title or position i of each group of workers, which is determined according to economic-technical norms promulgated by the relevant Ministry or provincial People's Committee on the basis of salary coefficient of each group of workers prescribed in Section I and Section II of the Appendix enclosed herewith.

+ MLcs: The statutory pay rate announced by the Government in each period.

+ Hđc: The indexing factor which is decided by the relevant Ministry or provincial People’s Committee and shall not exceed 1.2, 0.9, 0.7 or 0.5 for employees working in region I, region II, region III or region IV respectively. Regions I, II, III and IV are those in which the minimum region-based wages are applied as prescribed by the Government in each period.

When determining MLthi by adopting the formula (2), if the determined MLthi for a job title or position is lower than the minimum region-based wage announced by the Government, MLthi shall be equal to the minimum region-based wage.

More details can be found in Circular No. 17/2019/TT-BLDTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, which takes effect from December 21, 2019.

Thu Ba

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