The basic salary is usually applied to officials and employees working in government organizations. The regional minimum wage is usually applied by private enterprises to employees.
What is the basic salary? What principle will the basic salary apply to and to whom? Can you distinguish between the basic salary and the regional minimum wage? Whether you are a business owner or an employee, you should be aware of these concepts. Let's find out with Navigos Search via the following article!
1. What is the basic salary?
Basic salary is the lowest salary, excluding bonuses, allowances, commissions, etc.
The basic salary provides clarity and transparency in the salary payment. In addition, the basic salary is also the basis for enterprises to:
- Calculate expenses and fees of operating activities in accordance with the provisions of law.
- Accurately calculate deductions to be paid from the capital of the enterprise, the employee's regime and
the profit based on the basic salary.
Understand the concept of basic salary
2. Principles of calculating the basic salary
To calculate and apply the employee's salary, the enterprise must base on the basic salary and the salary coefficient as follows:
- The basic salary in 2019 according to state regulations is increased by 100,000 VND compared to other years.
- The salary is increased and adjusted from the basic salary of VND 1,390,000 to VND 1,490,000.
- Salary increase based on the new basic salary due to state regulations.
In addition, the basic salary is also applied and changed based on the current consumer price index, economic
growth rate, etc. to meet and serve people's needs well. Therefore, the best basic salary calculation principle is
to calculate the salary coefficient to work out a suitable salary table for everyone during the working period.
3. Who does the basic salary apply to?
The following are the subjects that the basic salary could be applied to:
- Cadres and civil servants on duty from the central government to commune-level units, villages, residential
groups, wards, towns, etc.
- Individuals working under contract in agencies and units of the Party, the Government, socio-political
organizations, public units.
- People working on the payroll.
- Officers, professional soldiers, non-commissioned officers, people's police, serving soldiers.
Basic salary applied to employees in state-owned organizations
4. The basic salary range over years
The basic salary for each year and each period has been applied according to the following regulations:
|
Effective Time
|
Basic salary (VND/month)
|
Legal Regulations
|
|
From 01/10/2004 - 09/2005
|
290.000
|
Decree 203/2004/ND-CP
|
|
From 01/10/2005 - 09/2006
|
350.000
|
Decree 118/2005/NĐ-CP
|
|
From 01/10/2006 - 12/2007
|
450.000
|
Decree 94/2006/NĐ-CP
|
|
From 01/01/2008 - 04/2008
|
540.000
|
Decree 166/2007/NĐ-CP
|
|
From 01/05/2009 - 04/2009
|
650.000
|
Decree 33/2009/NĐ-CP
|
|
From 01/05/2010 - 04/2011
|
730.000
|
Decree 28/2010/NĐ-CP
|
|
From 01/05/2011 - 04/2012
|
830.000
|
Decree 22/2011/NĐ-CP
|
|
From 01/05/2012 - 06/2013
|
1.050.000
|
Decree 31/2012/NĐ-CP
|
|
From 01/07/2013 - 04/2016
|
1.150.000
|
Decree 66/2013/NĐ-CP
|
|
From 01/05/2016 - 06/2017
|
1.210.000
|
Decree 47/2016/NĐ-CP
|
|
From 01/07/2017 - 06/2018
|
1.300.000
|
Decree 47/2017/NĐ-CP
|
|
From 01/07/2018 - 06/2019
|
1.390.000
|
Decree 72/2018/NĐ-CP
|
|
From 01/07/2019
|
1.490.000
|
Resolution 70/2018/QH14
|
See now: How to calculate basic salary in enterprises and government agencies?
5. How is the basic salary applied to the business?
According to regulations, the basic salary will apply to state officials and employees. Therefore, other companies and businesses need to apply the regional minimum wage. There are a few things that businesses should keep in mind:
Maternity allowance
One-time allowance when giving birth or adopting a child. A female employee who gives birth or adopts a child under 6 months old will be entitled to 1 allowance for each child equal to 2 times the basic salary in the month the female employee gives birth or adopts a child. In case of childbirth, and only the father participates in the payment of Social Insurance, he/she will receive an allowance equal to 2 times the basic salary in the month of childbirth for each child.
One-time allowance = 2 x 1,800,000 = 3,600,000 VND
Maximum salary for participation in social insurance and health insurance:
The monthly salary paid for Social Insurance and Health Insurance must not exceed 20 times the basic salary. The monthly salary on which unemployment insurance premiums are based must not exceed 20 times the minimum salary.
Maximum salary paid for Social Insurance, Health Insurance = 20 x 1,800,000 = 36,000,000 VND
You can also refer to the exact salary of each profession today right here.
Non-state organizations often apply regional minimum wages
6. Distinguish between basic salary and regional minimum wage
Based on the following table, you can clearly visualize the difference between the basic salary and the regional minimum wage:
|
Criteria
|
Basic Salary
|
Minimum Regional Wage
|
Definition
|
The lowest salary as a basis for calculating salaries for officials and employees…
|
The lowest salary paid to employees who work under normal working conditions in order to ensure a minimum standard of living for workers and their families, suitable to socio-economic development conditions.
|
|
Legal Grounds
|
Decree 38/2019/NĐ-CP
|
Decree 38/2022/NĐ-CP
Labour Law
|
Subjects of application
|
- Cadres, civil servants and public employees from the central level to the commune, village and residential group levels
- People working under contract and payroll regimes
- Officers, professional soldiers, non-commissioned officers, soldiers, army, public security workers in the police force.
|
Employees in private enterprises and companies
|
Salary
|
1,49 million (VND) / month - 30/6/2023
1,8 million (VND) / month from 01/7/2023
|
Region 1 is 4,68 million (VND) / month
Region 2 is 4,16 million (VND) / month
Region 3 is 3,64 million (VND) / month
Region 4 is 3,25 million (VND) / month
|
|
Time of increase
|
In recent years, it is 01/07
|
In recent years it is 01/01
|
Impact
|
The increase in the basic salary leads to an increase in the salary of officials, civil servants, and public employees.
|
The increase in the regional minimum wage leads to an increase in workers whose wages are lower than the regional minimum.
The remaining employees are not affected by the regional minimum wage increase.
|
Basic salary and regional minimum wage are completely different
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