Government issues new regulations on wages

11:09, 23/09/2018

The Government has issued a decree to update provisions of the Labour Code relating to wages.

The Government has issued a decree to update provisions of the Labour Code relating to wages.

The newly issued decree, which will take effect from November 1, 2018, details regulations for wage scales, payroll and labour productivity norms.

Illustrative photo (Source: VNA)
Illustrative photo (Source: VNA)

The labour productivity norms are implemented for work that involves producing products and providing services. The norms and wages are formulated on the basis of the job or title and are compatible with the qualifications of labourers, ensuring labour standards are upheld.

The labour norms must not exceed the “advanced average norm” - a standard the majority of labourers can attain without having to work overtime.

The Government requires the new labour norms be applied experimentally before being officially promulgated. Enterprises must notify labourers at least 15 days before it is applied experimentally. The duration of the experimental application shall depend on the nature of work, but will not be more than three months and must include assessments of the implementation of the norm.

The labour norm must be periodically reviewed and amended as necessary. When making adjustments to the labour norms, enterprises must consult organizations representing labourers’ collectives at the enterprises. They must also widely publicise regulations at the work place before implementation and send them to the State labour management agencies in the district where production facilities are located.

The enterprises with fewer than 10 employees do not have to submit wage scales and payroll.

(Source:VNA)