The employer must create a wage scale, payroll, and labor norms as a foundation for recruiting, hiring, negotiating a salary based on the work or title provided in the labor contract, and paying the employee’s salary. So, what is the law about wage scales? Hong Bang Law Firm would like to give the following advice to customers in order to explain this matter:

Legal basis

• Labor Law 2019
• Decree No. 90/2019/ND-CP stipulates the regional minimum wage for employees working under labor contracts.

Principles of building pay scaless and payrolls

• Every employer shall establish their worn pay scale, payroll and labor productivity norms as the basis for recruitment and use of labor, negotiation and payment of salaries.

( Article 93 of the Labor Code 2012 stipulates that employers are responsible for building pay scaless and payrolls on the basis of the principles of building pay scaless and payrolls prescribed by the Government in Decree No. 49/2013/ND-CP dated May 14, 2013).

• The labor rate shall be an average value that is achievable to most employees without having to extend their normal working hours, and must be experimented before officially introduced.
• The employer shall consult with the representative organization of employees (if any) during establishment of the pay scale, payroll and labor productivity norms.

Note: Previously, Clause 2, Article 93 of the Labor Code 2012 stipulated that employers must register ladders and payrolls with the state management agencies of district-level labor where the employer’s production and business establishments are located at the same time as the publicity at the workplace.

However, the Labor Code 2019 no longer requires employers to register ladders and payrolls with state agencies.

Basis for building pay scaless and payrolls

Ladders and payrolls are the basis for enterprises to agree on salary according to work or title stated in the labor contract with employees.

Meanwhile, as prescribed in the current regulations, the minimum wage is the lowest wage paid to workers doing the simplest work under normal working conditions.

Therefore, when building ladders and payrolls, enterprises must base on the regional minimum wage to comply with the provisions on the principle of pay.

From January 1, 2021, the regional minimum wage will continue to comply with the following Decree No. 90/2019/ND-CP:

Note: For employees who do jobs that require apprenticeship or vocational training, they must pay at least 7% higher than the above-mentioned regional minimum wage.

Services of Hong Bang Law

Hong Bang Law Firm has advised and supported many enterprises in industrial relations. The services provided by Hong Bang Law Firm are as follows:

• Legal advice on labor relations;
• Advising on assessment of labor contracts, labor regulations, other internal documents of enterprises;
• Advising on the compilation of labor contracts, labor regulations and other internal regulations of enterprises;
• Advising on the direction of resolving labor disputes.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!