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Businesses are entitled to pay employees according to productivity and efficiency of work

Wed, 15 Nov 2017 09:41:12 AM GMT + 7    Print   Email   Share:

(Chinhphu.vn) – Based themselves on the realized wage fund, the business shall have the full power to decide on the distribution of wages to employees according to the business' wage payment regime, which is related to the productivity and efficiency of the work performance of the employees, to ensure publicity and transparency with the participation of organizations representing collective employees at the business.

 

As reported, Mr. Nguyen Thanh Long (in Phu Tho Province) reported some unreasonable reasons for salaries and social insurance premium in the case business is lost as stipulated in Decree No. 53/2016 / ND-CP dated. June 13, 2016 of the Government and Circular No. 28/2016 / TT-BLDTBXH dated 1 September 2016 of the Ministry of Labor, War Invalids and Social Affairs

 

Under the provisions of Decree No. 53/2016 / ND-CP and Circular No. 28/2016 / TT- of the Department of Labor, Invalids and Social Affairs,for companies suffering losses or without profit (after deducting objective factors, if any). The average monthly salary level is equal to the average salary in the labor contract.

 

When applying the provisions of the above-mentioned documents, it has arisen unreasonable issues that is the company is suffered losses, but due to the increase in the basic salary, the amount of social insurance premiums have risen nearly doubled. Therefore, labor costs have also increased.

Since Mr. Long's company has applied the salary regulations in accordance with the above regulations, many skilled engineers and workers have quited their job due to reduced income and wages paid in the form of " levelling” that is not based on the efficiency of production and business.

Regarding to this issue, The Ministry of Labor, War Invalids and Social Affairs shall reply as follows:

According to Decree No. 53/2016 / ND-CP dated July 13, 2016 of the Government and Circular No28/2016 / TT-BLDTBXH dated 1 September 2016 of the Ministry of Labor, War Invalids and Social Affairs guiding the implementation of labor, wages, remunerations and bonuses for companies with shares, contributed capital of the State shall only stipulate the principles for determination of wage funds of employees and managers of companies.

The planned salary fund is determined in association with the production and business efficiency targets of the company compared to that of the previous year. On the basis of the planned salary fund, the company shall advance the wages to the employees; The salary fund shall be determined on the basis of the plan's wage fund and the level of implementation of production and business’ targets.

Based on the performance of the salary fund, the company has the power to decide on the distribution of wages to the employees in accordance with the company's salary payment policy in connection with the productivity and efficiency of the work performed according to the company's salary payment regulations, it is linked to the productivity and effectiveness of the work performance of the employees, ensuring publicity and transparency with the participation of the representative organizations of collective employees in the business.

  • By : Online Newspaper of the Government - Viet Nam Government Portal

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