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Question 64: May Employers set the ceiling and provide for the same ceiling for different jobs in the salary scale and payroll?

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The labour law on salaries only stipulates the minimum wage level in the salary scale and payroll, namely the lowest salary of the job or the simplest title under normal working conditions must not be lower than the area minimum wage prescribed by the Government; and the lowest salary of a job or title requiring traineeship (including enterprise-trained Employees) must be at least 7% higher than the area minimum wage prescribed by the Government[1], furthermore, the labour law does not cover any restriction on setting the ceiling in the salary scale and payroll. In addition, Employers are entitled to rely on production and labour organisation to develop and decide the salary scales and payrolls for managerial, technical and professional Employers and Employers directly involved in production, business and services[2]. Therefore, Employers may set the ceiling in the salary scale, payroll of their enterprises. Regarding the application of the common ceiling for different jobs, this issue has not been clearly defined by the labour law whether Employers are entitled to apply a common salary ceiling for different jobs in the salary scale and payroll. However, Employers must ensure that the salary levels applicable to each job are determined on the basis of the complexity of the job or the title of the Employee in line with the level of, skill of, responsibility for and experience in performing a job or holding a title[3].

[1]Article 7.3 Decree 49/2013/NĐ-CP dated 14/5/2013

[2]Article 7.1 Decree 49/2013/NĐ-CP dated 14/5/2013

[3]Articles 7.2 and 7.3 of Decree 49/2013/ND-CP dated 14/5/2013

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