The type of allowance is the account financial support in addition to the basic salary that the business pay for the labor to offset the working conditions or encourage performance. A number of the most popular include: lunch allowances, gasoline, telephone, housing, accountability, malicious, specializing in need and work for free.
In the context of the labor market increasingly competitive and demand retain personnel good at become urgent, the salary is not enough. Many businesses began to care more deeply to the type of allowance – costs “that have martial arts” helps to increase the real income for workers, at the same time is in recognition with the peculiarities of work, work environment or personal contribution.
From date 1/7/2024 system allowance, there is a change in resolutions 27-NQ/TW and resolution 104/2023/QH15, requires businesses that need updates to adjust policy accordingly. Let's SureHCS discover everything about the kind of mature levels in the business, from the nature, classification regulations, SOCIAL insurance contribution until the point to note in managing pay – to help businesses just in the law, just to optimize costs while improving the experience of employees.
1. Allowances what is?
Allowance is the amount that employers pay workers next to basic salaries, to offset the factors such as labour conditions are not favorable, qualifications, job responsibilities or other factors peculiar to the other.
Allowances are payments in addition to base salary that employers pay for workers to:
- Offset the factors that affect the work process (such as location, environment, region,...).
- Recognized professional qualification, skills peculiarities.
- Encourage the working efficiency, increase long-term commitment.
Allowances can fixed monthly or incurred by states. The account this is made clear in the contract labour regulation compensation or labor agreement collective.
2. Types of allowances under the salary for workers in businesses today
In the process of work, in addition to basic salaries, the workers can be entitled to more allowances vary according to the nature of work, place of work and specific policies of each business.
Follow Resolutions 27-NQ/TW 2018 about policy reform money wages and Resolution 104/2023/QH15starting from the day 1/7/2024 system, the type of sub-levels in state-owned enterprises, administrative units of the public service will have the correction comprehensive guide to lean, transparent and keep abreast of effective practical work.
The category 9 types of allowances in salary under the new regime apply from 1/7/2024:
2.1 allowance, part-time
Allowance tasks are allowances for workers take more one or more tasks in addition to the main work is delivered. This is a form of encouragement and recognition of responsibility, capacity of workers when they have to shoulder the extra work that the business has not or can not allocate personnel replacement.
As prescribed in circular 78/2005/TT-BNV the same guidelines related allowance, the term is often applied for the position of manager-leader, part-add a position to another in the same agency. For example, an hr manager can concurrently add roles Chief occupational safety in the given time, and are entitled to allowances respectively.
Business needs specified in collective labor agreements, or rules of the allowance, part-time, usually ranging from 5% to 20% wage function, the highest in the unit. Allowances will not only help workers be more motivated, which is also flexible solution in the organization, saving personnel costs that still ensure the work efficiency.
2.2 senior secondary levels exceeding frame
Senior secondary levels exceeding frame is a kind of special allowances, applicable to workers who have reached the top of the steps in salary but still continue to work and complete tasks for a long time. Allowances aims to recognize the dedication, persistence, accumulated experience of workers, especially in the administrative region the state.
Pursuant to circular 04/2005/TT-BNV, senior secondary levels exceeding the frame is applied to the object was entitled to salary ranks last in rank or titles and have time to work enough 3 years upwards, in which each year will be plus 1% on the eligible salary, the maximum not more than 15%.
The type of allowance is commonly seen in the labor perennial belonging to the public sector such as teachers, doctors, specialist, senior. However, trends in policy reform money paid by the resolutions 27-NQ/TW, senior secondary levels exceeding frame will be continuously maintained as one of the nine kinds of allowances privacy from the date 1/7/2024. This suggests that The state still retain the value of gratitude for those workers who have devoted long time motivational maintain human resources quality in the public sector.
2.3 European regional level
Not any workplace there are also conditions to live and work the same. The employees working at the local conditional socio – economic characteristics such as deep-lying, remote, border and island... will be entitled to allowances area to offset the difficulty and cost of living higher. Allowances are determined based on the category specific area, state issued, be paid the same monthly salary.
2.4 allowance position titles
Other than allowances toxic, the type-level positions or titles are applied to workers who take on management positions, leadership as head of department, a deputy chief or the location is highly specific. Allowances this is in recognition of roles, responsibilities and workload that that individual is responsible for. Depending on location – level influence of the role, the business can pay the allowances appropriate, but usually does not exceed 15% of the highest salaries in the system.
2.5 mobility allowance
Some jobs require employees to have to move often, changing locations constantly working as technical staff, maintenance and repair of infrastructure, staff, market... These people will be entitled to mobility allowance to support the cost of travel, accommodation and adapt new environment. Allowances are based on working days or according to the degree of fluidity of work usually does not exceed 10% of the most highly specialized.
2.6 allowances heavy work, hazardous or dangerous
This is allowances to compensate for the employees working in environments with toxic elements, dangerous or heavy exceeds normal levels. According To Paragraph 2 Of Article 11 Circular 36/2012/TT-BLDTBXHworkers , when regularly exposed to toxic chemicals, pathogenic microorganisms, a noisy environment or working conditions harsh will be entitled to allowances for this.
The benefit level depends on the level of danger and is calculated as percentage compared with a salary range from 5% to 15% is paid for the same period monthly salary.
2.7 allowances work roving
Some jobs require employees to have to move often, changing locations constantly working as technical staff, maintenance and repair of infrastructure, staff, market... These people will be entitled to mobility allowance to support the cost of travel, accommodation and adapt new environment. Allowances are based on working days or according to the degree of fluidity of work usually does not exceed 10% of the most highly specialized.
2.8 allowance classification of administrative units
Allowances classification of administrative units apply for workers who work at the agency, organization, unit administrative state sector, which are classified according to the groups of the different (types I, II, III). This classification based on size of population, level of development, socio – economic and the local peculiarities.
Allowances and this reflects the complex and higher requirements on the organization of the volume of work as well as operating requirements management at the administrative unit level higher. Based on Decree no. 34/2019/ND-CP and the text instructions related, allowance is determined according to the percentage and attached with a number of european-level position, responsible for the work. Allowances are paid the same monthly salary, apply to all officers and servants working at the administrative unit specific classification.
2.9 own allowances to armed forces
Armed forces of the people, including the Military, police, militia – are the forces that are highly specific about the organization, tasks and the working environment. Therefore, in addition to the high salary by a factor of, these objects are also entitled to allowances separately to compensate the unique characteristics and demanding requirements of the job.
A number of the most popular include: allowance, military rank, senior secondary levels, vocational allowance peculiarities industry, level of responsibility, command, special allowances in border areas, islands, etc. based on the Law professional soldiers, workers, officials, defense (2015) and the Law on Public security, the people (2018), the allowances this can be accounted for fairly large percentage of the total monthly income of officers and soldiers. The application of the same genus-specific, depending on rank, position, place of work and type of assigned tasks.
3. The allowance in addition to salary
This is a group of allowances that are paid to support the cost of living, moving, work... help employees more convenient in the process of work.
- Allowance gasoline car travel: For regular employees on the move (sales, technical). Can spend according to norms or practice.
- Mobile phone allowance: Support telephone charges for positions multiple contacts with customers and partners.
- Housing allowance: Usually apply for specialist officers working away from home.
- Allowances lunch, ca: Help ensure nutrition, health for workers. Under current rules, the maximum 730,000 VND/person/month will not be charged to tax if the right regulations.
- Allowance outfit: Support uniform, or money shopping for clothes according to industry characteristics (labor protection, reception...).
Do not required to attach with salary or seniority, the type of allowance, this easy-to-adjust according to the budget and demand in each period.
4. Allowances and SOCIAL insurance contribution in the business
According to Paragraph 2 of Article 89 of Law on social insurance in 2014, the specific instructions in Article 1 of circular 06/2021/TT-BLDTBXH, from the date 01/01/2021, monthly wage base SOCIAL imperative consists of three groups account the following:
4.1 salary according to the job or titles
This is the salary specified in the Contract of employment between the employer (EMPLOYER) and the employee (the EMPLOYEE), applied according to the salary scale of the construction business. Case worker salary exchange, piecework, then wages to SOCIAL insurance contribution will be converted to wages over time, based on the level of output or the exchange work had a deal.
4.2 The account allowance
Is the account to offset labor conditions, nature of work, or the level of complexity, responsibility, but has not been calculated into wages titles. Types of wage subsidies to SOCIAL insurance contribution, including (according to circular 10/2020/TT-BLDTBXH):
- Allowance position titles
- Allowances responsibility
- Allowances heavy, toxic, dangerous
- Allowances area
- Mobility allowance
- Allowance attract
Conditions for allowance is calculated on pay SOCIAL insurance contribution:
- Be clearly stated in the labor contract;
- Has high paying stable under each pay period;
- Associated with the process of work of EMPLOYEES.
4.3 The additional payments
This is the additional terms often have fixed is the agreement in the contract of employment, irrespective of the name. The account must be public to pay SOCIAL insurance contribution if:
- Have the specific amount;
- Pay monthly;
- Associated with job performance, productivity, or business results.
5. The type of allowance is not SOCIAL
Not all payments to employees are based SOCIAL insurance contribution. The account brings benefits, support, reward is not often won't count towards the salary of SI, including:
- Bonus: includes bonus achievements, rewards initiative, creativity techniques. Pursuant to Article 104 of The Labour code 2019, bonus regulations of EMPLOYER decided and publicly announced.
- Support gasoline cars, phones, houses, babysitting, raising kids;
- Money eat between ca (if the fact does not exceed the level specified);
- Subsidies, funerals, weddings, birthday; sickness allowance, labor accidents and occupational diseases;
- The account support EMPLOYEES with difficult situations or make own targets agreement is in addition to the contract.
- Milf expert level need (if not fixed, not stated in the CONTRACT);
- Travel allowances work;
- Allowance for overtime or working on the night shift;
- Bonuses tied to performance, but not often.
6. Optimal policy allowances – benefits Manager with comprehensive software LV SureHCS C&B
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Software fully integrated modern features such as:
- Management of allowances under the staff, or departments, such as seniority, lunch, travel, phone...
- Calculate the deduction of personal income tax, export tax report accurate, timely
- Solve the problem about social insurance, health, unemployment
- Automated payroll management, supply flexibility, and according to custom structure
- Connect with portal self – service- where employees easily lookup your rights anytime, anywhere
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7. General rules about the type of allowance in the business
Here are the general rules entrepreneurs need to know when deploying the kind of mature levels in your organization:
7.1 salary and allowance salary in labour contract
Salary and allowance salary is two mandatory content should be noted clearly in the contract of employment, expressed the commitment of the employer (EMPLOYER), as well as workers (EMPLOYEES) in labor relations.
According to The Labour code 2019, salary is payment for EMPLOYEES in work or titles, while the allowance is the account to offset factors that the basic salary has not fully reflected, such as labor conditions, nature of work, living environment, or the ability to attract workers.
Grounded in Clause 5, Article 3, circular 10/2020/TT-BLDTBXH, rules on how to write content of a labor contract as follows:
About salary:
- Recorded in the wages of time (months, weeks, days, hours) or salary exchange, wage according to the product, but must be converted to be about the salary corresponding time.
- Salary is determined based on the scale, the salary of construction business according to Article 93 ART, guaranteed not less than the minimum wage prescribed at each point of time.
About allowance:
Allowance is recorded if there is agreement between the two parties, including:
- Allowances offset elements peculiarities of working conditions, working environment, nature of work, or limitations of living conditions.
- The allowances attached to the results of work, the level of completion of the task, the nature of work or working time.
The recorded allowances clearly help businesses avoid confusion between income subject to SOCIAL insurance and not be SOCIAL at the same time increase transparency in the management of income and welfare.
7.2 Business have mandatory paid allowances for workers not?
Allowance is a part of wage policy that businesses can apply to offset, encourage or support workers in the work process. However, not all types of allowances are mandatory, the businesses are required to pay allowance or not depends on each type of allowance and legal basis applies.
The allowances required businesses to pay
Business compelled to pay the allowances if the account has been clear commitment in one of the following text:
- Contract labor
- Labor agreement collective
- Rules and regulations salary of business
- Text private agreement between EMPLOYER and EMPLOYEE
If the allowance has been recorded in the above documents would not pay right or cut left rules can be viewed as breach of contract, leading to claims, labor disputes or administrative penalties.
Allowances are not mandatory, supportive
On the contrary, there are allowances not mandatory, usually the account support to this event, bring benefits or costs, according to internal policies as:
- Supports lunch, gasoline, telephone
- Allowance attendance, performance bonuses
- Subsidies hieu hy, birthday, support difficulty unscheduled
- The bonuses according to the results of trading
Having spent or not spent the how much is the autonomy of the business, for stars ensure the commitment was announced internally and does not violate legal regulations.
The construction of the system the type of allowance transparent, suitable not only help businesses comply with the law, but also the tools important to acknowledge, encourage and retain workers. In the context of wage policy is being reformed at the strong from day 1/7/2024, businesses need to actively review and update, applying flexible kinds of allowances, from which the optimal staffing costs, improve the experience of employees.
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