1. Enterprises are required to increase wages for employees in 02 cases.
1.1 After finishing probationary time, a labor contract is signed in case the probationary salary is lower than the official salary.
If a labor contract is signed between an employee and an employer after the probationary period has ended, the offered salary must be greater than the probationary one and not less than 85% of the official salary, as defined in Article 26 of the Labor Code 2019.
1.2 In the case of regional minimum wage increases (for the employees who are receiving minimum wages only).
The base salary does not fall below the minimum wage (Article 90 of the Labor Code 2019).
The wages paid to skilled workers are at least 7% higher than the regional minimum wages (Article 5 of Decree 90/2019/NĐ-CP).
With the proposal to increase the minimum wages of the National Salary Council in Resolution 63/NQ-CP dated May 3, 2022, it is expected that from July 1, 2022, the regional minimum wages will increase from 180.000 VND to 260.000 VND depending on the region, which makes the company increase wages for employees.
2. Salary increases, according to the agreement
Promotion and salary increases based on working conditions and salary level are negotiated by employer and employee in the labor contract. Besides, an increase in salary complies with the collective bargaining agreement or regulations of the employers.
Employers need to establish pay scales, payrolls, and labor productivity norms as the basis for negotiation and payment of salaries (Clause 1 Article 93, The Labor Code of 2019).
The enterprises will be held liable for administrative penalties or criminal prosecution as prescribed by law in cases where they fail to meet their obligations to increase salaries or when employees have met salary increase conditions as negotiated.
If you have any questions or need further assistance, please contact us for a free consultation:
EZ . Investment and Tourism Consulting Co., Ltd
Address: 42 Lane 26 Nguyen Hong, Lang Ha Ward, Dong Da District, Hanoi City, Vietnam
Phone: 0869 907 519 | 0867 439 725
Email: support@eztour.vn
