Salary scale developing services in Vietnam

Any newly established business needs to provide regulations, salary and other benefits for employees. So do you know how to build a reasonable salary scale and comply with regulations? Let’s dive into the service of developing a salary scale with Viet An tax agent as well as the knowledge you need to know about salary and bonus regulations for employees.

What is a salary scale

The salary scale in each enterprise is understood as a system built from salary grades, salary brackets and salary groups as a basis for paying income to employees as well as periodic salary increases for competent and dedicated officials to the company. Based on this salary scale, managers will easily decentralize employees as well as ensure fairness and transparency in salary calculation.

Regulations on developing salary scales in enterprises

• All established companies are required to build salary scales as well as labor norms. It is the basis for recruiting and employing labor as well as balancing costs in the company.
• The labor rate is an average level that must ensure that the majority of employees can maintain it without extending the normal working time as prescribed.
• Businesses also need to consult with employees to build a salary scale appropriately.

Salary scale developing service of Viet An tax agent

The salary scale developing service for Viet An tax agent will be carried out according to the following steps:

Step 1: Build a salary scale system suitable for the business model

The company’s salary scale should be divided into different tiers (depending on the company’s statutes). According to the provisions of the Labor Code, the salary scale of an enterprise needs to have at least 2 levels to motivate employees to contribute and not limit the maximum number of salary levels. Normally, businesses will build a salary scale of 5 to 15 levels. In particular, the level 1 salary must be at least equal to the regional minimum wage according to Clause 2, Article 90 of the Labor Code.

Step 2: Consult with the director and the employee’s representative

According to Clause 3, Article 93 of the Labor Code, the employer needs to consult with the representative organization of officials and employees before developing the salary scale and regulations on salaries and bonuses and allowances in the company.

Step 3: Publicize the salary before applying it

When soliciting opinions from relevant departments, Viet An tax agent will develop a standard salary scale and announce the salary scale to the labor department of the client unit.

Step 4: Archive the salary scale and relevant records

Enterprises need to be responsible for archiving the salary scale as a basis for recruiting personnel for the next year and serving the inspection process when needed.

Penalties when developing a salary scale in 2025

According to Clause 1, Article 17 of Decree 12/2022/ND-CP, employers will be fined from VND 5,000,000 to VND 10,000,000 if they commit one of the following acts when developing salary scales for enterprises:

• The Executive Board does not publicly announce the salary scale, labor level and salary and bonus regulations at the workplace before putting the salary scale into operation.
• The employer fails to build the salary scale and labor norms as prescribed.
• Do not consult employees.

In addition, if the employer pays the employee a salary lower than the regional minimum wage as prescribed: The fine will be as follows:

• A fine ranging from 20,000,000 VND to 30,000,000 shall be imposed if ranging from 1 to 10 persons.
• A fine of between VND 30,000,000 and 50,000,000 shall be imposed if there are violations involving between 11 and 50 people.
• A fine of between VND 50,000,000 and 75,000,000 shall be imposed if there are violations involving 51 or more employees.

Questions related to the regulation of developing salary scales

Whether the salary scale must be submitted to the Department of Labor, War Invalids and Social Affairs

The company’s executives do not need to register the salary scale with the Department of Labor, War Invalids and Social Affairs, but only need to announce it to employees and store it internally at the enterprise.

The company builds a salary scale with 6 occupational groups, each group has 7 levels. So when the employee is at the highest level, how must the next level be built and is it necessary to adjust the level of social insurance contributions?

When the employee has increased his salary at the highest level, the company can build the next level depending on the management level and rank of that employee. When increasing the level for employees and at the same time increasing the social insurance payment rate, the enterprise needs to carry out procedures for adjusting the increase in the payment rate with the social insurance collector.

Above is all information related to the salary scale developing service at Viet An tax agent. Please contact us if your unit needs to use the service!