Whether in a state agency or a private enterprise, the construction of salary levels needs to comply with the regulations of the State and must be consistent with the efforts of the employees.
What is salary grade? What are the conditions to be considered for a salary increase? What is the procedure for raising salary level according to current law? Navigos Search will clarify these issues for businesses and employees alike.
1. What is the salary level?
Salary grade is the number of salary promotions in each salary range of an employee. Each salary level will correspond to a certain salary coefficient.
At each salary grade, there should be a specific number of salary grades to create the necessary variation from the minimum wage to the maximum salary in that tier. This makes a difference, ensuring reasonableness, fairness and transparency to stimulate employees' work efforts and promote work performance.
The salary level will be arranged in ascending order at each salary grade in the salary scale and the higher the salary level, the higher the coefficient level. Employees always aim to increase the salary level to enjoy a higher salary and income level.
General information about salary level
2. Decision to increase base salary
On 11/11/2022, the National Assembly approved the decision to increase the rank from 1.49 million VND/month to 1.8 million VND/month (an increase of 20.8% compared to the current salary level) starting from July 1, 2023.
3. Minimum wage in each region
Pursuant to Decree No. 90/2019/ND-CP , the regional minimum wage applied to employees working at enterprises is as follows:
- The level of 4,680,000 VND/month, applicable to enterprises operating in region I.
- Level 4,160,000 VND/month, applicable to enterprises operating in Region II.
- Level 3,640,000 VND/month, applicable to enterprises operating in Region III.
- Level 3,250,000 VND/month, applicable to enterprises operating in Region IV.
Areas where the regional minimum wage rates are applied are regulated by administrative units at the district, town or provincial level. The list of areas to which the minimum wage rates apply for regions I, II, III and IV are specified in the Appendix to this Decree.
See also: What is the base salary? Distinguish between base salary and regional minimum wage
The latest regional minimum wage
4. Conditions for consideration for salary increase
4.1 Conditions for considering salary increase in enterprises
Conditions for raising salary levels in enterprises and companies often depend on the salary increase regulations of that unit. In general, enterprises rely on standards such as professional capacity, experience, and labor performance of personnel to consider salary increases. This is expressed as follows:
- Regularly complete the work in terms of quantity and quality according to the labor contract.
- Implement well the provisions of the Labor Code and internal regulations of the enterprise.
- Achieve outstanding achievements and make great contributions to the development of the business.
Conditions for raising wages for employees working at enterprises depend on the Regulations on raising wages. Regulations related to salary increase must contain the following contents:
- The subject is raised in salary
- Conditions and standards for raising the salary level and raising the salary level early for each title or group of job titles and jobs
- Time limit for raising salary level for each title, group of job titles.
- Time to consider raising salary every year for employees.
Immediately see the average salary of industries and jobs in the market at Navigos Group's 2023 salary report .
4.2 Conditions for raising wages for employees working in state agencies
Pursuant to Article 2 of Circular 08/2013/TT-BNV stipulating the salary increase regime for cadres, civil servants and public employees as follows:
For cadres, civil servants and public employees who have not yet ranked the last salary level in the civil servant ranks, in the professional titles of public employees, senior experts, professional and professional professions of the Court, or the Procuracy, they will be considered for a salary increase when meeting the conditions for holding a rank in a rank or title, and meeting the criteria for regular salary increase as prescribed in Clauses 1 and 2, Article 2 of Circular 08/2013/TT-BNV during the salary period.
Current salary increase conditions
5. Does the personal income tax rate of public employees change when increasing the salary level?
The increase in salary level means that the income of cadres, civil servants and public employees will be increased. At that time, the taxable income increases, so the personal income tax rate increases.
Taxable income is calculated by the formula:
Taxable income = Taxable income – deductions
In which, deductions include insurance contributions, voluntary retirement funds, family deductions, and charitable contributions.
6. Procedures for raising salary level according to the law
Based on regulations on conditions and standards, units shall make a list of employees expected to receive regular salary increases for the head of the unit to discuss with the committee and executive committee of the trade union at the same level.
- The head of the unit publicly posts the list of employees expected to receive a regular salary increase and solves the problems of civil servants, public employees and employees in the implementation of the regular salary increase regime. . This listing takes place within 10 days.
- Based on the list of qualified civil servants and public employees and attached criteria.
Regular salary increase profile:
- A report on the regular salary increase of the unit for cadres, civil servants, public employees and employees; The report should clearly state that the subjects who are entitled to regular salary increases must meet the conditions and standards as prescribed in Clause 2, Article 2 of Circular 08/2013/TT-BNV 31/7/2013 of the Ministry of Home Affairs .
- Minutes of the meeting to agree with the Party Committee and Executive Committee of the Trade Union at the same level on the regular salary increase.
- Decision to raise the latest salary level of civil servants and public employees.
- To decide to appoint the nearest leadership and management positions of cadres, civil servants and public employees.
- Decision on appointment of professional titles; decide on the transfer of civil servant ranks and new professional titles of civil servants and public employees.
Dossier of advance salary increase:
Dossier for raising salary level ahead of time due to employee's excellent achievements in performing tasks, dossier includes:
- The unit's report on raising the salary level ahead of time for civil servants, public employees and employees due to outstanding achievements and achievements in performing tasks; The report clearly states that the subjects of salary increase before the deadline must ensure the conditions and standards specified in Clause 2, Article 2 of Circular 08/2013/TT-BNV dated July 31, 2013 of the Ministry of Home Affairs; percentage of civil servants, public employees and employees whose salary level is raised ahead of schedule on the total salary list of the unit as of December 31, in the year in which the salary level is considered to be raised before the deadline.
- Minutes of the meeting to agree with the Party Committee, Executive Committee of the Trade Union at the same level on raising the salary level ahead of time for civil servants, public employees and employees due to outstanding achievements in performing tasks.
- Decision on recognition of outstanding achievements by competent authorities.
- Decision to raise the latest salary level of civil servants and public employees.
- Decide to appoint the nearest leadership and management positions of civil servants and public employees.
- Decision on appointment of civil servant ranks, professional titles and decision on transfer of civil servant ranks and new professional titles of civil servants and public employees.
- Regulations on raising salary levels ahead of time for public servants, public employees and employees of the unit.
Procedures required to raise salary
Above is the content explaining what is the salary level, the conditions and procedures for raising the salary level applied from July 1, 2023 according to the current regulations that Navigos Search sent to readers. If you have met the conditions for raising the salary level, you can propose to increase your salary or ask the business or company to increase your basic salary to apply in accordance with the standards and regulations of the state.
In addition, if you are a potential candidate looking for a job, you can access the job directory to choose and apply for a suitable position. Or you can actively send your CV to us for a chance to become a potential candidate in our candidate database.
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