Tiếng ViệtDuring the working process, many Employees, even Employers, are confused by the concepts of Regional Minimum Wage, Base Salary and Basic Salary.
This misunderstanding will lead to misuse, which can lead to illegal labor practices. So, how to understand and apply these types of salary correctly?
1. Regional minimum wage
Article 91- Labor Code 2019 states: The minimum wage is the lowest salary paid to employees who perform the simplest jobs under normal working conditions in order to ensure the minimum standard of living of employees and their families. family, suitable to the conditions of socio-economic development.
Minimum wages are set by region, set by month and hour.
In Article 4, Decree 38/2022/ND-CP, it is stipulated:
The minimum monthly salary is the lowest salary as a basis for negotiating and paying wages to employees applying the form of monthly salary, ensuring the salary according to the job or title of the employee who works enough. normal working hours in a month and completing agreed labor norms or jobs must not be lower than the monthly minimum wage.
The hourly minimum wage is the lowest salary as a basis for negotiating and paying wages to employees applying the form of hourly wages, ensuring the salary according to the job or title of the employee working in the field. hour and complete the agreed labor or work norm not less than the hourly minimum wage.
Thus, it can be understood that the regional minimum wage is understood as the lowest salary paid to employees doing the simplest jobs in normal working conditions in order to ensure the minimum standard of living of workers and their families. their families, suitable to the socio-economic development conditions of each region as prescribed by law.
In Article 3 of Decree 38/2022/ND-CP, the minimum monthly and hourly minimum wages for employees working for employers by region are specified as follows:
| Region | Minimum monthly salary
(Unit: VND/month) |
Wage Minimum Hours
(Unit: VND/hour) |
| Region I | 4.680.000 | 22.500 |
| Region II | 4.160.000 | 20.000 |
| Region III | 3.640.000 | 17.500 |
| Region IV | 3.250.000 | 15.600 |
Regional minimum wages to: apply in the salary agreement; building salary scale; minimum social insurance contributions. Enterprises often rely on the regional minimum wage as a basis to build the salary scale and social insurance contributions for their businesses, so this is almost the salary that businesses are most interested in.
2. Base salary
Base salary is understood as the salary as the basis for calculating salary according to the position coefficient applied to the salary sector from the state budget (for example, civil servants, public employees) and also the basis for calculating other benefits. are entitled to according to the provisions of the law.
- Current base salary is 1,490,000 VND
- From July 1, 2023: VND 1,800,000
Normally, the basic salary increase cycle is 1 year, but depending on the socio-economic situation, it can be interrupted for 2-3 years.
3. Basic Salary
Currently, the basic salary is not specified in the legal documents, however, this is a common phrase to call the lowest salary that the employee and the employer agree upon when working.
In addition, the basic salary is also known as the fixed salary / fixed salary in the salary structure paid to employees.
In the salary structure of employees, it can include: Basic salary (LCB) + Allowances (PC) + Other supplements (BS).
Example: Total salary is 8 million = 5 million (LCB) + 1 million (positional PC) + 500 (attendant PC) + 1.5 million (work completion – KPI)
Many enterprises pay the basic salary equal to the regional minimum wage, so it is easy to confuse CB salary as the regional minimum wage. However, these are 2 different types of salary depending on the construction and implementation organization.
