Currently, many people are still confused between Base Salary and Regional Minimum Wage; So, to help you better understand these two salaries,
Base salary
Base salary is the salary used as a basis:
– Calculating the salary in the salary tables, allowance levels and implementing other regimes as prescribed by law for the following subjects: cadres, civil servants, public employees, officers…;
– Calculation of operating and living expenses according to the provisions of law;
– Calculate deductions and benefits according to the base salary.
The regional minimum wage is the lowest level as a basis for enterprises and employees to negotiate and pay wages, in which the salary paid to employees working in normal working conditions, ensuring adequate working hours. normal work in a month and complete the agreed labor norm or work.
Object
– Cadres and civil servants from central to district level specified in Clauses 1 and 2, Article 4 of the Law on Cadres and Public Employees 2008;
– Commune-level cadres and civil servants specified in Clause 3, Article 4 of the 2008 Law on Cadres and Civil servants;
– Public employees in public non-business units as prescribed in the Law on Public Employees 2010;
– People working under the salary-based labor contract regime according to Decree No. 204/2004/ND-CP on the salary regime for cadres, civil servants, public employees and the armed forces, including:
Persons working under the labor contract regime in agencies and units of the Party, the State, socio-political organizations specified in Decree 68/2000/ND-CP on the implementation of the one-to-one contract regime Types of jobs in state administrative agencies, non-business units and Decree 161/2018/ND-CP amending and supplementing a number of regulations on recruitment of civil servants and public employees, promotion of civil servant ranks, promotion rank of public employees and perform contractual regimes for a number of jobs in state administrative agencies and public non-business units.
– People working in the quota of staff in associations are supported by the state budget for operating expenses specified in Decree No. 45/2010/ND-CP on organization, operation and management of associations;
– Officers, professional soldiers, non-commissioned officers, soldiers and workers, defense officers, contract workers of the Vietnam People’s Army;
– Salary officers, non-commissioned officers, non-commissioned officers, conscripts, public security workers and contract workers of the People’s Public Security;
– People working in cipher organizations;
– Part-time workers at commune, village and residential levels.
– Employees work under the labor contract regime in accordance with the provisions of the Labor Code.
– Enterprises established, organized, managed and operated in accordance with the Law on Enterprises.
– Cooperatives, unions of cooperatives, cooperative groups, farms, households, individuals and other organizations of Vietnam that employ labor under labor contracts.
– Foreign agencies, organizations, international organizations and foreign individuals in Vietnam that hire workers under labor contracts (except in the case of international treaties to which the Socialist Republic of Vietnam is a contracting party). members have provisions different from those of Decree 157/2018/ND-CP).
Regional minimum wage
From July 1, 2019, the base salary is VND 1,490,000/month
Regional minimum wages are regulated by region (the list of geographical areas divided by regions is specified in the Appendix issued together with Decree 157/2018/ND-CP), specifically:
– The level of 4,180,000 VND/month, applicable to enterprises operating in the area of region I;
– The level of 3,710,000 VND/month, applicable to enterprises operating in the area of Region II;
– The rate of 3,250,000 VND/month, applicable to enterprises operating in the area of Region III;
– The level of 2,920,000 VND/month, applicable to enterprises operating in the area of Region IV.
Apply
The salary, salary allowance and allowance of the above subjects are calculated by multiplying the base salary multiplied by the salary coefficient, the current bonus coefficient, the allowance coefficient, etc.
The salary agreed between the employer and the employee must ensure:
– Not lower than the regional minimum wage for employees doing the simplest jobs;
– At least 7% higher than the regional minimum wage for employees who do jobs requiring workers who have undergone vocational training or vocational training.
Change
The adjustment of the base salary is based on the state budget capacity, the consumer price index and the country’s economic growth rate.
Currently, there is no regulation on the changing cycle of regional minimum wages.
Legal grounds
– Decree 38/2019/ND-CP;
– Circular 79/2019/TT-BQP;
– Circular 04/2019/TT-BNV.
Decree 157/2018/ND-CP.
