What is salary allowance? Update the latest salary allowance regulations

Salary is one of the top concerns of employees when working at businesses and companies. In addition to the initially agreed salary, salary allowances are also a policy that businesses use to increase employee benefits. So what are salary allowances and what are the details? Let's find out with 1C Vietnam in the article below.

1. What is salary allowance?

Wage allowances are an important part of an employee's income. Based on Article 3, Circular 23/2015/TT-BLDTBXH, this is an amount of money used by businesses to compensate employees when they have to work in difficult and toxic conditions; work is complex in nature; Living conditions have not been calculated based on salary by title or have not been fully calculated.

Salary allowances include many different types such as: Attraction allowances, region-based allowances, responsibility allowances, position-based allowances, expensive allowances, night work allowances, incentive allowances, and allowances for leaders, allowances for working in dangerous and toxic environments, etc. In the next part of the article, 1C Vietnam will help businesses and workers better understand these types of allowances. .

2. Salary allowances for employees

Besides the problem of not clearly understanding what salary allowances are, many people are confused and cannot distinguish between the different types of allowances available. Below is detailed information about current salary allowances for employees:

2.1 Allowances for heavy, toxic and dangerous work

According to Clause 2, Article 11 of Circular 36/2012/TT-BLDTBXH, heavy, hazardous and dangerous allowances are specifically regulated as follows:

• In terms of labor relations, when employees work for employers in toxic, heavy, and dangerous conditions; Extremely heavy, toxic and dangerous occupations; or directly exposed to sources of infectious diseases issued by the Ministry of Labor, War Invalids and Social Affairs will receive this subsidy.
• Enterprises are responsible for regularly inspecting and reviewing labor conditions and working industries.

• To ensure the rights and interests of employees, businesses will determine allowance levels by comparing occupations with equivalent levels under normal working conditions. The allowance level for hazardous, dangerous, and heavy occupations is 5% - 10%; The allowance level for particularly hazardous, dangerous, and heavy occupations is 7% - 15%.

• According to the provisions of the Labor Law 2012, salary allowances will be paid at the same monthly salary period.

2.2 Position and title allowances

Besides toxic and dangerous allowances, position and title allowances are also quite common. This is considered one of the additional bonuses when employees advance to higher positions or hold special roles.

• For important positions such as department heads, they will often receive title allowances. This funding helps meet the responsibilities and capacity needs required for these positions.
• Enterprises will evaluate, review, and verify employees' work and decide on allowance levels based on the complexity and impact of work results.
• According to regulations, the allowance level is usually less than 15% of salary according to the highest profession and expertise in the salary table.
• Employees must work for one month or more to receive responsibility allowances.

2.3 Seniority allowance

Long service allowance is an amount of money paid to employees who have worked for a long time at the company. This amount of money is a way to show recognition and encouragement for that employee's dedication. The calculation of seniority allowance is based on the employee's time working in the company. Normally this amount will increase according to the employee's working time. For example, after 1 year the allowance is 5%, increases to 7% after 2 years and can increase to 10% after 5 years of work.

2.5 Responsibility allowance

Employees often receive this allowance when studying for jobs with high responsibilities or important management positions such as shift leader, director, department leader/deputy leader, team leader/deputy leader, etc. There are also some jobs with many other responsibilities such as treasurer, auditor, cashier,...

• Enterprises are responsible for checking, evaluating, and reviewing working conditions and job details to propose the most reasonable allowances.
• The current highest level of responsibility allowance does not exceed 10% of professional salary, highest position in the salary table.
• Responsibility allowances are paid at the same monthly salary period.
• Employees need to work for 1 month or more to receive responsibility benefits.

2.6 Regional allowances

Regional allowance is an additional amount of money for employees when working in areas and regions specified in the List of areas entitled to regional allowances in Joint Circular No. 11/2005/TTLT-BNV- MOLISA-BTC-UBDT.

• Responsibility allowances are paid at the same monthly salary period.

• This allowance level can be decided by the business or agreed between the parties.
• Employees must work for one month or more to receive regional allowances.

2.7 Mobility allowance

Mobile allowances are not as common as the types of allowances above. Specifically:

• Mobility allowances are paid to employees when they have to do jobs that involve constant movement and frequent changes in location and working environment. Some examples include repairing railways, roads,...
• Enterprises are responsible for evaluating the mobility of work and setting reasonable costs.
• The prescribed mobility allowance is less than 10% of the highest professional salary on the salary schedule.
• The floating allowance is paid according to the number of working days of the employee.
• Allowances will be paid at the same monthly salary period.

2.8 Attractive allowances

For some jobs with working conditions in remote and especially difficult places according to the law, employees will receive additional attractive allowances.

• Enterprises are responsible for checking, evaluating, reviewing working areas or areas and comparing them with regulations to propose the most reasonable allowances.

• The level of attraction allowances is set at less than 35% of the position salary specified in the salary table.
• Enterprises are responsible for paying attraction allowances at the same salary period each month.

2.9 Other allowances of similar nature

According to Article 10 of Circular 17/2015/TT-BLDTBXH, businesses can propose additional allowances to encourage employees to work as well as retain long-term employees. Other allowances will be designed based on the company's actual requirements and performance skills. However, businesses are obliged to report ownership to agree on allowances before implementation.

3. Is it mandatory to pay salary allowances to employees?

Besides the issue of what salary allowances are, many workers have questions about whether businesses are required to pay this amount or not. According to Article 21 of the 2019 Labor Code, salary allowances are a necessary provision in the labor contract. This payment is designed to compensate for factors such as difficult working conditions, living conditions, job complexity and labor attractiveness.

However, payment of allowances is not mandatory for all employees but depends on each person's work conditions. When being paid salary allowances, employers need to carefully check and evaluate factors to ensure that the agreed salary includes allowances and is clearly specified.

4. Latest salary allowance regulations 2024

To better understand what salary allowances are and the latest regulations on this issue, let 1C Vietnam answer frequently asked questions below.

4.1 What is the prescribed salary allowance level?

According to Article 21 of the 2019 Labor Code, the salary paid for Social Insurance includes the official salary and salary allowances. These allowances will be decided based on the enterprise's inspection and assessment of working conditions, complexity, responsibility of the job and level of labor attraction.

4.2 Types of salary allowances that must be paid for social insurance

All types of salary allowances mentioned above must be associated with the employee's working process and job performance. Below are the salary allowances that must be paid for Social Insurance.

• Responsibility allowance
• Allowances for heavy, hazardous and dangerous work
• Seniority allowances
• Regional allowance
• Allowance for mobile work
• Allowances attract talented people
• Allowances are of similar nature.

There are also salary allowances that do not require social insurance. Specifically:

• Bonus
• Meal money between working hours
• Supports include housing, gas, transportation, child care, telephone, and child support
• Support in case of employee's death, birthday, relative's marriage, allowance for employees in difficulty in case of occupational illness or work accident or.
• Other grants and subsidies.

From January 1, 2018, social insurance contributions will include the main salary, salary allowances and additional amounts agreed in the labor contract and paid regularly according to each monthly salary period. These amounts help determine the amount of money the employee needs to pay for social insurance.

Through the above article, we hope that employees and businesses have a better understanding of what salary allowances are as well as other issues surrounding this amount of money. Payment of salary allowances varies depending on working conditions, complexity and level of labor attraction. To automate the process of calculating salaries and salary allowances, businesses can use 1C:Company Management software - the leading software for business administration. Contact 1C Vietnam immediately for more information about this software!