What is salary allowance? Regulations on salary allowances 2023

What is salary allowance?"is a matter of concern to businesses as well as employees. Let's find out the detailed regulations and types of salary allowances in this article of Viindoo Please!

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1. What is salary allowance?

Wage allowance is an amount of money to compensate an employee for working in difficult or hazardous working conditions, or the level of attracting labor and living conditions has not been fully calculated or Not included in the salary by job or title. (Pursuant to Article 3, Circular 23/2015/TT-BLDTBXH)

Wage allowance is an important component of employee's income and includes many different types such as: regional allowances, attraction allowances, responsibility allowances, allowances for leaders, allowances for employees. allowances according to respective positions, allowances for working in hazardous and dangerous environments, mobile allowances, expensive allowances, preferential allowances, allowances for working at night, etc.

Wage allowance is paid monthly, and can be calculated on the general minimum wage prescribed by the State or on the basic salary or as a fixed amount, depending on each regime and beneficiaries. Allowances can be agreed upon in the terms of the labor contract, labor agreement or implemented in accordance with the company's regulations.

The allowances must be paid social insuranceWage allowance is an income included in the employee's salary

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2. What is the prescribed level of salary allowance?

According to Circular 10/2020/TT-BLDTBXH on salary allowances based on point b of clause 5 of Article 3, the two parties can agree on salary allowances to offset factors such as working conditions, complexity of work, living conditions and level of labor attraction, if the salary agreed in the labor contract has not been fully calculated or not taken into account. Besides, the salary allowances may be related to the working process and the results of the employee's work performance.

The allowances must be paid social insuranceThe level of salary allowance can be negotiated between the employer and the employee

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3. Types of salary allowances for employees and employees

Salary allowances include: position allowance, title allowance, responsibility allowance, heavy, hazardous and dangerous allowance, seniority allowance, regional allowance, mobile allowance, income allowance allowances, and other allowances similar to allowances to compensate for factors such as working conditions, job complexity, living conditions, and labor attractiveness that have not been taken into account or incompleteness in the labor contract.

The following amounts are not considered salary allowances:

  • Bonuses and bonuses for initiatives;
  • Mid-shift meal;
  • Support such as gas, phone, transportation, housing, child care and child rearing;
  • Support for employees when their relatives die, when employees get married, employees' birthdays and allowances for employees who have difficulties due to work accidents, occupational diseases and other supports.

Specifically about the types of salary allowances, readers refer to the following content:

3.1 Position allowances and titles

Officers holding important positions such as department heads will be entitled to position and title allowances. This partly helps to meet the high demand for capacity and responsibility in these positions. In order to ensure fairness and transparency, the company will conduct due diligence and assessment of employees' work to determine the appropriate level of allowance.

The allowance level will not exceed 15% of the highest professional and professional salary in the payroll. The position allowance will be paid along with the monthly salary and willstop pay employees who have not worked for a month or more.

Position allowance, titlePosition allowance, title

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3.2 Heavy, toxic and dangerous allowances

Based on Article 11 Clause 2 of Circular 36/2012/TT-BLDTBXH, employees will be entitled to hazardous and dangerous hard work allowance if they have to work in hazardous occupations, dangerous occupations or industries. particularly hard work. Heavy, hazardous and dangerous working conditions defined by the Ministry of Labor, War Invalids and Social Affairs or sources of infectious diseases.

The company needs to regularly check and evaluate the working professions as well as the working conditions of employees. In order to ensure the rights and benefits for employees, enterprises need to make comparisons between occupations with similar normal working conditions to determine the appropriate level of allowance.

For occupations with heavy, hazardous and dangerous work, the allowance level will be determined in the range of 5% - 10%. For occupations with particularly heavy, hazardous and dangerous jobs, the allowance will increase from 7% to 15%.

Monthly allowances for employees will be calculated according to the provisions of the 2012 Labor Law. If employees work less than 4 hours in a day, they are only entitled to half of the working day. If the employee works 4 hours or more, the allowance will be calculated for a full working day.

Allowances for employees working in hazardous environmentsAllowances for employees working in hazardous environments

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3.3 Regional allowance

Regional allowance is the amount of money an employee is entitled to when working in a region and geographical area specified in the List of areas entitled to regional allowance under Joint Circular No. 11/2005/TTLT-BNV-BLDTBXH- BTC-UBDT. The company will decide the regional allowance or negotiate with the employee about this allowance.

The position allowance will be included in the monthly salary and paid in the same period. However, if employees do not work for a month or more, they will not be entitled to this allowance.

3.4 Responsibility allowance

Responsibility allowance is a bonus that employees are entitled to when performing important and highly responsible jobs, such as managerial positions, department heads, team leaders, team vice presidents, etc. .. or the jobs of cashier, cashier.To ensure fairness in the calculation of responsibility allowance, the company will evaluate working conditions, industries and details of work.

The current maximum allowance is not more than 10% of the salary of the title or job in the salary scale, salary scale. This allowance is paid in the same monthly salary period and applies only to employees who have worked for at least one month.

The allowances must be paid social insuranceResponsibility allowance for employees when completing important tasks

3.5 Seniority allowance

A seniority allowance is an amount paid to employees as compensation for their time in the company. When employees work in a company for a long period of time, they are paid a seniority allowance to show the company's appreciation and encouragement for that employee's efforts.

The calculation of seniority allowance is usually calculated based on the employee's working time in the company. Normally, the seniority allowance will increase with the employee's working time. For example, after 1 year of working, employees will be paid a seniority allowance of 5%, after 2 years of working, the seniority allowance will be increased to 7% and after 5 years of working, the seniority allowance can be up to 10%.

3.6 Mobile allowance

A mobile allowance is a sum paid to employees in the event that their work is subject to frequent changes in the environment or workplace. Typically specialized construction survey or road and railway maintenance. However, the fluidity of the work will be reviewed and evaluated by the company.

The level of mobile allowance will not exceed 10% of the salary of the job or title specified according to the monthly salary/payroll. The payment of the mobile allowance will be based on the number of working days of the employee, the company will be obliged to pay the allowance in the same monthly salary period.

Mobile allowance for employees who change jobs frequentlyMobile allowance for employees who change jobs frequently

3.7 Attraction allowance

When working in areas with difficult economic conditions, employees will receive support allowances to encourage and help them overcome those difficulties. To determine the areas that need to be entitled to the allowance, the company needs to conduct an inspection and review of the work area. The maximum allowance to be enjoyed is 35% of the salary of the corresponding title or job. The company is obliged to pay this allowance along with the monthly salary.

3.8 Other allowances of similar nature

Pursuant to Article 10 of Circular 17/2015/TT-BLDTBXH, the company can apply other allowances such as employee incentive allowance to ensure time and labor standards, improve skills performance, long-term employee retention and other allowances in line with the company's actual characteristics and requirements. However, the company must report to the owner to agree on other allowances (if any) before implementation.

4. Is it compulsory to pay salary allowances to employees?

According to Article 21 of the Labor Code 2019, salary allowance is one of the required contents in the labor contract. This allowance is paid to compensate for factors such as difficult working conditions, complexity of work, living conditions and attractiveness of labor.

However, the payment of salary allowance is not mandatory for all employees, but depends on the conditions and work of each person. When paying salary allowance, the employer needs to carefully consider the factors to calculate the fullness and ensure that the salary agreed in the contract includes salary allowance.

The allowances must be paid social insuranceEnterprises are not required to pay salary allowances

5. What kinds of salary allowances are required to pay social insurance?

From January 1, 2016 to December 31, 2017, the salary paid for social insurance includes the main salary and salary allowances. These allowances are provided to compensate for factors such as the complexity of the job, working conditions, living conditions and attractiveness of workers.

All these salary allowances must be tied to the employee's work history and performance, and have not been fully accounted for in the employment contract. The following are the allowances for which social insurance must be paid:

  • Position allowance, title
  • Responsibility allowance
  • Allowances for arduous, hazardous and dangerous work
  • Seniority allowances
  • Regional allowance
  • Allowance for mobile work
  • Allowance to attract talent
  • The allowances are of a similar nature.

Unpaid allowances requiring social insurance:

  • Bonus
  • Meal money between working hours
  • Support includes gas, housing, transportation, phone, childcare, child care
  • Support in case employees have relatives getting married, having relatives die, birthdays, allowances for employees in difficulty in case of work accidents or occupational diseases.
  • Other grants and allowances.

From January 1, 2018, the salary for social insurance premium payment includes the main salary, salary allowance and other additional payments as agreed in the labor contract and paid regularly in each salary period. These additional amounts help determine the specific amount to be paid for social insurance along with the agreed main salary.

The allowances must be paid social insuranceThe allowances must be paid social insurance

Hopefully through the above article of Viindoo, readers already know What is salary allowance. The calculation of salary allowance is usually set by the company and can vary by industry. If you are an employee or learning about this issue, carefully read the company's regulations to better understand salary allowance and how it is calculated.

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Jun Nguyen April 30, 2023