Proposing new regulations on wage scales, payrolls that enterprises in Binh Duong province should be noted
The Ministry of Labor, Invalids and Social Affairs of Vietnam (MoLisa) is drafting a decree amending and supplementing some articles of Decree No. 49/2013 /ND-CP dated May 14, 2013 by the Government detailing the implementation of some articles of the Labor Code on wages. In particular, the MoLisa proposes new regulations on the principles of building wage scales, and payroll. Specifically, according to Decree No. 49/2013/ND-CP, multiples of the salary scale is the difference between the salary of the job or the position with the highest technical requirements compared with the salary of the job or the positions with the lowest technical requirements, the number of steps in the salary scale and payroll depends on the complexity of the management, work level or position required. The gap between the two consecutive wage grades must ensure that employees are encouraged to improve their professional and technical skills, experience and talents, but at least 5%.
According to the MoLisa, the principle that the gap between salaries of at least 5% has influenced the salary policy, structure of salary scale and payroll of enterprises and not suitable with the market mechanism. Many enterprises have built a salary scale based on seniority (to ensure a gap of at least 5%), leading to discouraging pay for work, paying seniority, seniority, the cost of paying high social insurance (doing the same job, but the company has to pay salary, the insurance for laborers for 15-20 years is 2-3 times higher than the new ones). This situation leads to enterprises not wanting to employ many senior employees, finding ways to lay off senior employees to recruit new employees.
In the draft, the MoLisa proposes two modifications to the above provisions.
Option 1: qualitative provisions for negotiation and determination of specific values for enterprises and local trade unions (5% regulation deletion). Specifically, "the number of grades of wage scales and payrolls shall be decided by the enterprise based on management complexity, job grade or job position. The gap between the two consecutive wage grades must ensure that employees are encouraged to improve their professional and technical skills, accumulate experience and develop their talents". According to the MoLisa, this plan has the advantage of increasing the autonomy of enterprises in building and deciding the formulation of wage scales, and payrolls. However, this option has disadvantages due to the limited bargaining power of employees, the pressure on employment, the representative organization of employees (trade union) is not strong enough to lead to situation that the employers will pressure the employee with low wage.
Option 2: quantitative regulation is still defined, but reduced from 5% to 3% to deregulate the regulation in coming years. Specifically, "The number of grades of wage scale and payroll decided by the enterprise shall be based on the management complexity, the job grade or job position required. The gap between the two consecutive wage grades must ensure that employees are encouraged to raise their professional qualifications, technical skills and professional skills, accumulate experience and develop their talents, but at least equal to 3% of their salaries. Minimum area prescribed by the Government" This option has the advantage that the Government still creates the lowest floor to avoid the situation of enterprises squeezing salary of workers is low, but there are disadvantages to limit the initiative to enterprises in the structure and decision. The structure of wage scales and payrolls, affecting the structure of wage scales and payrolls when enterprises build.
In terms of labor market, based on capacity of grassroots trade union and current employment pressure, there should be a road map for implementation, so the MoLisa suggested option 2.
Source: http://baochinhphu.vn/Chinh-sach-moi/De-xuat-quy-dinh-moi-ve-thang-luong-bang-luong/330868.vgp
