Vietnam: The salary rate in state-owned enterprises must not be lower than the regional minimum salary rate

14:47, 25/04/2015

This is a notable content specified in Circular No. 17/2015/TT-BLĐTBXH of the Ministry of Labor - Invalids and Social Affairs of Vietnam guiding 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 under Decree No. 49/2013/NĐ-CP of Vietnam’s Government detailing the implementation of some articles of labor code on salary.

Mức lương trong DNNN không được thấp hơn mức lương tối thiểu vùng, 17/2015/TT-BLĐTBXH

According to Circular No. 17/2015/TT-BLĐTBXH of the Ministry of Labor - Invalids and Social Affairs of Vietnam, the state-owned one member limited liability company shall define the relation between the lowest salary rate, the average salary rate and the highest salary rate as follows:

- The lowest salary rate applies to the titles and work with the lowest complexity degree in normal working conditions but not lower than the regional minimum salary rate specified by the Government (coefficient 1).

- The average salary rate applies to titles and work with the average complexity degree defined for titles and work that require university degree or equivalent level with passed probation time and is defined in the range between 1.5 to 2.34 times compared with the lowest salary rate, equivalent to level 3 or 4 in the salary scale of 6 or 7 levels of employees directly involved in production and business.

- The highest salary rate applies to the management title or title or work with required highest level professional and technical level in the companies. The company shall base themselves on the salary coefficient of management officers as per company rating specified in Annex 1 issued with Decree No. 51/2013/NĐ-CP dated 14 May 2013 of Vietnam’s Government for comparing and defining the highest salary coefficient upon formulation of salary scale and salary table to ensure the salary coefficient of employees is lower than that of management officers, except for employees with high level technical and professional skills, specialists and craftsmen of the companies.

Moreover, based on the salary scale and salary table for each type of labor, title or work the employees are assuming, the companies shall carry out the salary change and grading under the principles specified in Clause 4, Article 3 of this Circular.

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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