Enterprises must establish a salary scale and wage table as a basis for paying wages to employees and ensure fair wages
Legal grounds:
- Labor Code 2019;
- Decree No. 24/2023/ND-CP.
We get the following questions:
My company is a private company, I have just seen Decree No. 24/2023/ND-CP changing the base salary from July 1, 2023. I want to ask if my company applies salary according to this Decree? And I want to ask how to register for the salary scale?
The law stipulates that enterprises must ensure fair wages, regardless of gender. Therefore, enterprises are obliged to develop a salary scale, salary table and publicize it at the workplace for transparency in salary payment.
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Enterprises with private capital apply Decree No. 24/2023/ND-CP?
Decree No. 24/2023/ND-CP is the Decree stipulating the base salary for cadres, civil servants, public employees and the armed forces.
Enterprises with private capital operate under the Law on Enterprises, and their employees work under labor contracts.
Therefore, based on Articles 1 and 2 of Decree No. 24/2023/ND-CP, wages and employees in enterprises are not regulated by this Decree.
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Procedure to register salary scale, salary table?
Previously, according to the provisions of Clause 2 Article 93 of the Labor Code 2012 and Article 1 Decree No. 121/2018/ND-CP, if an enterprise employs 10 or more employees, it must submit the salary scale and wage table to the district-level labor management agency where enterprise is located.
However, this provision has expired.
Pursuant to Article 93 of the Labor Code 2019 as follows:
Article 93. Development of salary scale, wage table and labor norms
- Employers must develop a salary scale, wage table and labor norms as a basis for recruiting, employing employees, agreeing on salary levels according to the job or title stated in the labor contract and paying wages to employees.
- The labor level must be the average level to ensure that the majority of employees can do it without having to prolong the normal working hours and must be tested before it is officially issued.
- The employer must consult with the employee representative organization at the grassroots level if having the employee representative organization when developing the salary scale, wage table and labor norm.
Salary scale, wage table and labor rate must be publicly announced at the workplace before implementation.
The above regulation no longer stipulates the obligation to register the salary scale and payroll of enterprises. Accordingly, when building a salary scale and payroll, enterprises only need to do:
- Consult with the employee representative organization at the grassroots level if having the employee representative organization; And:
- Disclosure at the workplace before implementation.
