Two Forms of Salary Calculation for Contract Labor

Sat, 09 Sep 2023 22:45:00  |  Print  |  Email   Share:

Salary in labor contracts for certain types of work in administrative agencies and public entities is subject to one of two forms: applying a salary level based on an agreement that complies with labor laws or applying a salary based on the salary scale for civil servants, officials, which is in line with the budgetary capacity of the agency, organization, or unit.

Mr. Truong Van Tich (Hau Giang) has requested clarification on the regulations for two cases of signing contracts under Decree No. 111/2022/NĐ-CP dated December 30, 2022, of the Government on contracts for certain types of work in administrative agencies and public entities as follows:

Case A: A person A with a university degree has signed a contract with the District People's Committee to serve for 12 months. So, when applying the salary based on the salary scale for civil servants and officials, what is the initial coefficient to ensure that when multiplied by VND 1.8 million, it does not fall below the regional minimum wage of VND 3.25 million? Does Person A receive a 25% service allowance and a 30% allowance for party and mass organization activities?

Case B: A person B with a university degree has signed a contract with the District People's Committee to serve for 12 months, applying the regional minimum wage of VND 3.25 million. Does this salary include social insurance and health insurance contributions (social insurance and health insurance)? In addition to VND 3.25 million per month, does Person B receive a 25% service allowance and a 30% allowance for party and mass organization activities?

Regarding this matter, the Ministry of Home Affairs responds as follows:

Point a Article 8, Clause 2 of Decree No. 111/2022/NĐ-CP dated December 30, 2022, of the Government on contracts for certain types of work in administrative agencies and public entities specifies:

"Laborers performing support and service work as stipulated in Clause 1, Article 4 of this Decree shall receive wages and other benefits as agreed upon in the labor contract. The salary in the labor contract shall be determined in one of two forms: applying a salary level as agreed upon in compliance with labor laws or applying a salary based on the salary scale for civil servants and officials, in accordance with the budgetary capacity of the agency, organization, or unit. In cases where the salary is agreed upon based on the salary scale for civil servants and officials, any allowances (if applicable) shall be included in the salary; salary level increments and other related policy regimes related to salaries shall be implemented as for civil servants and officials."

In the case of labor contracts applying the salary based on the salary scale for civil servants and officials, the salary shall be determined based on the position and title of the work as stipulated in Table 4 attached to Decree No. 204/2004/NĐ-CP dated December 14, 2004, of the Government on the salary regime for officials, civil servants, and armed forces personnel.

Point d Article 2, Clause 1 of Decree No. 34/2012/NĐ-CP dated April 15, 2012, of the Government on the regime of service allowances specifies the specific subjects for applying service allowances:

"Individuals working under labor contracts in state administrative agencies as stipulated in Decree No. 68/2000/NĐ-CP dated November 17, 2000, of the Government on the implementation of contracts for certain types of work in state administrative agencies, public entities (from February 22, 2023, as stipulated in Decree No. 111/2022/NĐ-CP dated December 30, 2022, of the Government), and individuals working under labor contracts in Party agencies, political-social organizations shall apply the regulations in Decree No. 68/2000/NĐ-CP; excluding individuals working under labor contracts in public entities."

At point b, section I, Instruction No. 05-HD/BTCTW dated July 1, 2011, of the Central Organization Commission on the implementation of certain regimes for party officials, officials of political-social organizations, and the salary of the Vietnam Veterans' Association under Announcement No. 13-TB/TW dated March 28, 2011, of the Party Central Committee, specifies:

"Individuals working under labor contracts with a term of one year (12 months) or more in Party agencies, political-social organizations, have their salaries determined based on the salary scales prescribed by the State under the established staffing quotas approved by the competent authority."

The organization and implementation of policies for party officials, officials, and social-political organization staff in provinces and centrally-run cities (provincial level) fall under the jurisdiction of the Hau Giang Provincial Party Committee. Therefore, Mr. Truong Van Tich is advised to contact the specialized agency of the Hau Giang Provincial Party Committee (the Provincial Party Committee's Organization Board) for further clarification.

According to Chinhphu.vn (Government Newspaper).

 

By: Translator: LeAnh-Bizic

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