An enterprise can apply many different payment methods for each job position to be suitable and fair to employees. So you know how to calculate the basic salary at your business?
Wages are always an issue that any employee and employer cares about and understands well. Each type of salary will have a different calculation formula. So how is the basic salary coefficient, how is the current basic salary calculation? Navigos Search - Vietnam's leading mid- and high-level "talent hunting" brand will clearly explain to readers the information below.
1. What is the base salary?
Basic salary is the salary agreed between the employee and the employer in the labor contract. This is the basis for calculating wages and monthly wages that employees receive in that unit.
The basic salary of an employee depends on the agreement of the two parties and depends on the position, working unit, nature and specific job requirements. Basic salary will not include bonuses, benefits and other supplements. Therefore, the basic salary is not the salary received by a worker.
In other words, basic salary is the lowest salary that employees will receive when working at an organization or enterprise. Accordingly, the basic salary calculation method in each region is also different.
Basic salary is the agreed salary of the employee and the employer
2. Differentiate between basic salary and base salary
Many people still confuse basic salary with base salary. In fact, these two salaries have the following difference:
Legal Basis of Salary
The base salary is clearly specified in Decree 72/2018/ND-CP of the Government, the salary level through each period is determined by specific numbers. The basic salary is not specified in any legal documents but is just a way of calling the lowest salary of the employee and the employer as agreed.
Subjects of application according to regulations
The base salary will be applied to workers, public employees, officials, laborers, socio-political organizations, armed forces, etc. belonging to the State. The base salary will not be applied in enterprises, organizations and companies outside the State sector.
The basic salary will be applied to the internal and external sectors. In other words, basic salary is a concept commonly used by all employers and employees.
What is the difference between base salary and base salary?
3. How to calculate basic salary according to the latest regulations
So, what is the basic salary coefficient and how is the basic salary calculated? Here is the new and most accurate way to calculate basic salary in private enterprises and state agencies:
3.1 Basic salary for employees working in state agencies
Public employees and employees in the State sector will be applied for the base salary. Therefore, the formula for calculating basic salary is based on base salary and salary coefficient:
Base salary = Base salary x salary coefficient.
The base salary applies according to the latest regulations (from July 1, 2019 onwards is VND 1,490,000).
3.2 Basic salary for employees working in private enterprises
For employees working in private enterprises and organizations outside the State sector, the basic salary will be determined based on the regional minimum wage. According to Clause 1, Article 3 of Decree 157/2018/ND-CP, the method of calculating the regional minimum basic salary will be prescribed as follows
- Enterprises and organizations in Region I have an application rate of VND 4,180,000/month.
- Enterprises and organizations in Region II have the application rate of 3,710,000 VND/month.
- Enterprises and organizations in Region III have the application rate of 3,250,000 VND/month.
- Enterprises and organizations in Region IV have the application rate of VND 2,920,000/month.
Enterprises and organizations in any region will calculate the basic salary based on the regional minimum wage in that area. Businesses must also note that the basic salary must not be less than the regional minimum wage. For workers who have been trained and apprenticed, the basic salary must be at least 7% higher than the regional minimum wage.
How to calculate basic salary correctly
Our state has specific regulations on calculating the basic salary for employees and is applied to different cases, according to each separate field of work. Each region has a different level of regulation and application basis. If you belong to one of the above regions, you can propose a salary increase or ask businesses or companies 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.
When there is a suitable job position, Navigos Search will actively contact, invite you to apply, share how to negotiate salary, advise on job requirements and support you throughout the application process.
With a methodical recruitment process, Navigos Search has helped many candidates find the right dream job position, develop themselves and be successful on their career path.
Or if you are a business leader, looking for talent for vacant positions in your unit, do not hesitate to contact Navigos Search. Navigos Search's consulting team are recruitment experts who are knowledgeable about the industry, understand the labor market and always accurately grasp the recruitment requirements for each industry.
With a database of 375,000+ senior candidates, 85,000+ available senior management candidates and optimal recruitment solutions, Navigos Search is confident to be the current "talent hunter" for mid-level and senior-level personnel. Navigos Search is proud to have accompanied many businesses and corporations to get the best quality human resources.
Recruit talent and find your dream job at Navigos Search
Whether you are a recruiting company or a potential candidate, we help you achieve your expectations and dreams. Please contact Navigos Search if you are looking for your dream job or your business is in need of recruiting talent.
Hopefully, the above article has helped you understand how to calculate the basic salary for employees working in state agencies. In addition, please visit our Linkedin page and Fanpage for timely updates on job market information , useful HR articles!
Navigos Search - Vietnam's leading mid- and high-level talent hunting company