Circular No. 23/2015/TT-BLDTBXH guiding the implementation of certain provisions on wages under Decree No. 05/2015/NĐ-CP dated January 12, 2015 of the Government detailing and guiding the implementation of certain contents of the Labor Code.

CIRCULAR

Guidelines for Implementing Certain Provisions on Wages

issuedN |||Decree No. 05/2015/NĐ-CP January 12, 2015

issuedCThe Government provides detailed regulations and guidance on implementing certain provisions of the Labor Code

certain provisions of BLabor Codeg

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Pursuant to Decree No. 106/2012/NĐ-CP dated December 20, 2012, of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Labor, Invalids, and Social Affairs;

Pursuant to Decree No. 05/2015/NĐ-CP dated January 12, 2015 of the Government detailing and guiding the implementation of certain contents of the Labor Code;

At the proposal of the Director of the Department of Labor and Wages;

The Minister of Labor, Invalids and Social Affairs issues this Circular to provide guidelines for implementing certain provisions on wages under Decree No. 05/2015/NĐ-CP dated January 12, 2015 of the Government providing detailed regulations and guidance on implementing certain provisions of the Labor Code.

Article 1. Scope of Regulation

This Circular provides guidelines for implementing certain provisions on wages under Decree No. 05/2015/NĐ-CP dated January 12, 2015 of the Government providing detailed regulations and guidance on implementing certain provisions of the Labor Code (hereinafter referred to as Decree No. 05/2015/NĐ-CP).

Article 2. Applicability

Employers, employees, organizations representing employee collectives, agencies, organizations, and individuals directly related to labor relations in the implementation of certain wage-related provisions under Decree No. 05/2015/NĐ-CP.

Article 3. Wages

Wages as prescribed in Clause 1 and Clause 2, Article 21 of Decree No. 05/2015/NĐ-CP are specified as follows:

1. The wage recorded in the labor contract agreed upon between the employee and the employer to perform specific work includes:

a) The wage level based on job or position is the wage level in the wage scale or wage table established by the employer in accordance with Article 93 of the Labor Code and Clause 2, Article 10 of Decree No. 49/2013/NĐ-CP dated May 14, 2013 of the Government detailing certain provisions of the Labor Code on wages;

b) Wage supplements are amounts of money compensating factors such as working conditions, complexity of work, living conditions, and factors attracting labor that have not been considered or fully considered in the wage level based on job or position in the wage scale or wage table, specifically:

- Compensating working condition factors, including jobs involving heavy, hazardous, dangerous, or extremely heavy, hazardous, dangerous working conditions.

- Compensating factors related to the complexity of work, such as jobs requiring training time, professional qualifications, high responsibility, affecting other jobs, requirements for experience and skills, communication, coordination during work, and other factors influencing the quality of work.

- Compensating factors related to living conditions, such as jobs performed in remote, isolated areas with many difficulties and harsh climates, areas with high living costs and housing shortages, jobs requiring frequent changes in work locations and residences, and other factors making living conditions unfavorable when performing work.

- Compensating factors to attract labor, such as encouraging workers to work in new economic zones, newly opened markets; unattractive occupations or those with limited supply in the labor market; encouraging workers to perform work with higher productivity and quality or meet assigned deadlines.

c) Other additional amounts are sums of money outside the wage and wage supplements and related to the performance of work or positions under the labor contract. Other additional amounts do not include: bonuses as stipulated in Article 103 of the Labor Code; meal allowances; support payments when employees have deceased relatives, weddings of employees' relatives, birthdays of employees, assistance to employees facing difficult circumstances due to workplace accidents, occupational diseases, and other support or assistance unrelated to the performance of work or positions under the labor contract.

2. The wages paid to employees shall be based on the wages recorded in the labor contract, labor productivity, quantity and quality of work performed by the employee, ensuring that the wages paid to the employee for the simplest work under normal working conditions and completing agreed labor quotas or tasks (excluding additional payments for overtime work or night shifts) shall not be lower than the regional minimum wage set by the Government.

Article 4. Forms of Salary Payment

The forms of salary payment stipulated in Article 22 of Decree No. 05/2015/NĐ-CP shall be specifically guided as follows:

1. Time-based salary (monthly, weekly, daily, or hourly) shall be paid to employees receiving time-based salary based on actual working hours per month, week, day, or hour, specifically:

a) Monthly wages are paid for a month's work based on the labor contract;

b) Weekly wages are paid for a week's work calculated from the monthly wage multiplied by 12 months and divided by 52 weeks;

c) Daily salary shall be paid for a determined day of work based on monthly salary divided by the number of normal working days in a month (calculated according to each calendar month and ensuring that employees have at least four days off on average per month) as prescribed by law and chosen by the enterprise;

d) Hourly salary shall be paid for a determined hour of work based on daily salary divided by the number of normal working hours in a day as provided for in Article 104 of the Labor Code.

2. Piece-rate salary shall be paid to employees receiving piece-rate salary based on the quantity and quality of products completed according to labor norms and product unit prices assigned.

3. Contractual salary shall be paid to employees receiving contractual salary based on the volume, quality of work, and time required to complete it.

Based on the above forms of salary payment, the nature of work, and production and business conditions, employers shall choose a form of salary payment that ensures salary is tied to work results, encouraging employees to improve efficiency and productivity. The selection or change of salary form must be reflected in the labor contract and collective labor agreement.

Article 5. Periodicity of Salary Payment for Monthly Salary Recipients

The periodicity of salary payment for monthly salary recipients as stipulated in Article 23 of Decree No. 05/2015/NĐ-CP is defined as follows:

1. Employees receiving monthly salary shall be paid once a month or twice a month and shall be paid immediately within the month in which they work.

2. The payment date is agreed upon by both parties and fixed at a certain point in the month.

Article 6. Overtime Pay

Payment of overtime pay when employees work overtime as stipulated in Clause 1, Article 25 of Decree No. 05/2015/NĐ-CP is defined as follows:

1. For employees receiving time-based salary, they shall be paid overtime pay when working outside regular working hours set by the employer according to Article 104 of the Labor Code and calculated as follows:

Where:

a) The actual hourly wage for a normal working day is determined based on the actual wage received for the job being performed in the month the employee works overtime (excluding overtime pay and additional pay for night work) divided by the actual number of hours worked in the month (excluding overtime hours). In cases where wages are paid daily or weekly, the actual hourly wage is determined based on the actual wage received for the day or week of work (excluding overtime pay and additional pay for night work) divided by the actual number of hours worked in the day or week (excluding overtime hours);

b) At least 150% of the actual hourly wage for a normal working day, applicable to overtime hours on regular days;

c) At least 200% of the actual hourly wage for a normal working day, applicable to overtime hours on weekly rest days;

d) At least 300% of the actual hourly wage for a normal working day, applicable to overtime hours on public holidays, Tet holidays, or paid rest days, excluding the salary for public holidays, Tet holidays, or paid rest days as prescribed by the Labor Code, for employees receiving daily salary.

Employees receiving daily salary are those whose salary agreed upon in the labor contract is paid daily and does not include the salary for public holidays, Tet holidays, or paid rest days as prescribed by the Labor Code.

2. For employees receiving piece-rate salary, they shall be paid overtime pay when employees and employers agree to work outside regular working hours to produce additional quantities or volumes of products or work beyond the agreed-upon labor norms and calculated as follows:

Where:

a) At least 150% of the unit price of piece-rate salary for a normal working day, applicable to additional products produced on regular days;

b) At least 200% of the unit price of piece-rate salary for a normal working day, applicable to additional products produced on weekly rest days;

c) At least 300% of the unit price of piece-rate salary for a normal working day, applicable to additional products produced on public holidays, Tet holidays, or paid rest days.

Article 7. Wages for Night Work

Workers performing night work as stipulated in Clause 3, Article 25 of Decree No. 05/2015/NĐ-CP shall be paid wages as follows:

1. For workers receiving time-based wages, the wage for night work shall be calculated as follows:

In which: The actual hourly wage of a normal working day is determined according to point a, Clause 1, Article 6 of this Circular.

2. For workers receiving piece-rate wages, the wage for night work shall be calculated as follows:

Article 8. Overtime Wages for Night Work

Payment of wages when workers perform overtime during night work as stipulated in Clause 4, Article 25 of Decree No. 05/2015/NĐ-CP is regulated as follows:

1. For workers receiving time-based wages, the overtime wage for night work shall be calculated as follows:

Where:

a) The actual hourly wage of a normal working day is determined according to point a, Clause 1, Article 6 of this Circular;

b) The daytime hourly wage of a normal working day or of a weekly rest day or of a holiday or a paid leave day shall be determined as follows:

- The daytime hourly wage of a normal working day, shall be at least 100% of the actual hourly wage of a normal working day for cases where the worker does not perform overtime during the daytime of that day (before performing overtime during the night); at least 150% of the actual hourly wage of a normal working day for cases where the worker performs overtime during the daytime of that day (before performing overtime during the night).

- The daytime hourly wage of a weekly rest day, shall be at least 200% of the actual hourly wage of a normal working day.

- The daytime hourly wage of a holiday, Tet holiday, or paid leave day, shall be at least 300% of the actual hourly wage of a normal working day.

2. For workers receiving piece-rate wages, the overtime wage for night work shall be calculated as follows:

Where:

a) The piece-rate wage unit price during the daytime of a normal working day or of a weekly rest day or of a holiday, Tet holiday, or paid leave day shall be determined as follows:

- The piece-rate wage unit price during the daytime of a normal working day, shall be at least 100% of the piece-rate wage unit price of a normal working day for cases where the worker does not perform overtime during the daytime of that day (before performing overtime during the night); at least 150% of the piece-rate wage unit price of a normal working day for cases where the worker performs overtime during the daytime of that day (before performing overtime during the night);

- The piece-rate wage unit price during the daytime of a weekly rest day, shall be at least 200% of the piece-rate wage unit price of a normal working day.

- The product unit price during the daytime of a holiday, Tet holiday, or paid leave day, shall be at least 300% of the product unit price of a normal working day.

Article 9. Effective Date

1. This Circular takes effect from August 8, 2015.

2. The provisions of this Circular shall be implemented from the date on which Decree No. 05/2015/NĐ-CP of January 12, 2015 of the Government detailing and guiding the implementation of certain contents of the Labor Code comes into force.

3. The Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairpersons of People's Committees of provinces and centrally-run cities have the responsibility to direct, urge, and inspect the implementation of the provisions of this Circular. 

In the course of implementation, if there are any difficulties, agencies, units, and enterprises are requested to report to the Ministry of Labor, Invalids, and Social Affairs for timely supplementary guidance./.