5 Sample decisions on salary increase for employees (2025)
The salary increase decision is an important legal document that shows the recognition of employees' contributions and transparency of salary policies in the enterprise. Building and issuing a correct salary increase decision not only complies with legal regulations but also creates motivation to work, maintains the commitment of employees to the organization. 1C Vietnam will guide you on how to build a standard salary increase decision, suitable for each type of employee and ensures legality.
1. Overview of salary increase decision
1.1. What is a salary increase decision?
A salary increase decision is a legal document issued by the head of the enterprise or a competent person, confirming the adjustment of the salary increase for employees. This document shows the change in the basic salary, allowances or other income of employees, based on factors such as work performance, seniority, professional qualifications, or according to the provisions of law.
The decision to increase wages is not only the basis for paying new wages to employees but also evidence of the labor relationship, ensuring the legal rights of both the enterprise and the employee.
1.2. Why is the decision to increase salary important?
The decision to increase salary plays an important role in human resource management for the following reasons:
- Motivating employees : Salary increases are one of the most effective ways to recognize employees' abilities and achievements, thereby boosting work performance.
- Retaining talent : Reasonable salary increase policy helps businesses limit the situation of quitting jobs and talent loss.
- Building corporate culture : Transparent and fair salary increase decisions contribute to creating a positive organizational culture.
- Compliance with the law : Ensure compliance with state regulations on salary regime for employees.
- Increase business reputation : Competitive salary and bonus policies help businesses enhance their image and reputation in the labor market.
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2. Latest salary increase decision templates in 2025
The decision to increase salary needs to be built in accordance with each type of employee and the actual situation of the enterprise. Below are typical salary increase decision templates updated for 2025, meeting the latest legal regulations and suitable for many types of organizations.
Each decision form includes basic information such as: legal basis, employee information, old and new salary levels, application time, and responsibilities of related parties. However, each form will have its own adjustments to suit the specific characteristics of each subject.
2.1. Sample decision on periodic salary increase for the collective
The collective salary increase decision form is used when a business adjusts salaries for many employees at the same time, usually on an annual basis or after a performance review.
This form usually includes a list of employees who receive a salary increase (full name, employee code, job position), current salary, new salary, increase rate and application date. Suitable for large-scale businesses or those that want to apply a uniform salary increase policy to the entire department.
2.2. Sample decision on salary increase for officials and civil servants
The decision form for salary increase for officials and civil servants is built based on the state regulations on salary regime in the public sector. This decision is usually based on the seniority, rank and work performance of the official.
The main content of the form includes information on the current salary level, new salary coefficient, position allowance (if any), and the next salary increase time. This form must strictly comply with salary regulations in the administrative career sector.
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2.3. Sample decision to increase salary for employees in the enterprise
The salary increase decision form for employees in private enterprises is often more flexible and depends on the policy of each company. This decision must clearly state the reason for the salary increase (excellent performance, improved professional qualifications, market adjustment).
The form includes the employee's personal information, job position, previous salary, new salary, increase rate and effective date. The decision should also mention the conditions attached (if any) and the employee's responsibilities after receiving the salary increase.
2.4. Sample salary increase decision for company director
The decision to increase salary for a company director is usually issued by the Board of Directors or the Chairman of the company, based on the business results and the director's contribution to the development of the business.
This decision should be based on the company charter, the Board of Directors' resolution and the results of the performance evaluation. The form includes information on the current salary, the new salary, bonuses and accompanying benefits, along with the applicable period.
2.5. Sample decision to increase allowances for employees
The decision to increase allowances form is a suitable choice when the enterprise does not adjust the basic salary but wants to increase the income of employees through allowances such as gasoline, lunch, phone, or position allowance.
This decision must clearly state the type of allowance to be increased, the specific increase, the conditions for receiving the allowance and the time of application. Increasing the allowance helps businesses be flexible in their compensation policies without affecting the basic salary structure.
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3. Process of making salary increase decision
Making a decision to increase salary must follow a strict process to ensure legality and fairness. An effective process for making a decision to increase salary not only helps businesses comply with the law but also creates transparency and satisfies employees.
3.1. Steps to make a decision to increase salary
To build a proper and effective salary increase decision, businesses need to follow these steps:
Step 1: Determine the target and time of salary increase
- Review the list of employees eligible for salary increase
- Determine the type of salary increase (regular, extraordinary, based on performance)
- Choose the right time to increase salary based on the financial situation of the business
Step 2: Refer to current legal regulations
- Master the regulations on regional minimum wages
- Learn about personal income tax regulations
- Review regulations on social insurance, health insurance
Step 3: Calculate the salary increase
- Budget for salary increase
- Calculate the appropriate increase for each subject
- Ensure fairness and relevance to employee contributions
Step 4: Draft the salary increase decision
- Choose the appropriate decision template
- Fill in all required information
- Ensure language is clear, accurate and legally compliant
Step 5: Review and approve the decision
- Submit to competent authority for review
- Collect feedback (if needed)
- Edit and finalize the decision
Step 6: Announce and implement the decision
- Notice to employees of salary increase
- Instructions for accounting department to make payment
- Store decisions in personnel records
3.2. Notes when implementing salary increase decisions
When implementing the decision to increase salaries, businesses need to pay attention to the following points to ensure the process goes smoothly and in accordance with regulations:
- Ensure legality : The decision to increase salary must be signed by an authorized person and stamped according to regulations.
- Notice period : Employees should be notified at least 1 month before the decision takes effect.
- Information transparency : Clearly explain the reasons, basis and method of calculating the new salary level to employees.
- Ensure fairness : Apply salary increase criteria consistently and fairly among employees.
- Contract Update : Consider signing an employment contract addendum to reflect salary changes.
- Implement on time : Pay new salary at the time specified in the decision.
- Adjust contributions : Update social insurance and health insurance contributions according to new salary levels.
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4. Frequently Asked Questions about Salary Increase Decisions (FAQs)
Are businesses required to increase salaries annually?
According to Vietnamese labor law, enterprises are not required to increase annual salaries for employees. However, enterprises are obliged to ensure that salaries are not lower than the regional minimum wage prescribed by the Government. Periodic salary increases are the discretion of enterprises based on business performance and human resource policies.
How long does an employee have to work before being considered for a pay raise?
Normally, the time for considering salary increases depends on the salary and bonus regulations of each enterprise. Many companies apply a salary increase review cycle of 12 months after employees complete their probationary period. For the state sector, salary increases usually take place every 2-3 years depending on the civil servant and public employee ranks.
How many common types of salary increase decisions are there?
There are 5 common types of salary increase decisions including: periodic salary increase decisions for groups, salary increase decisions for civil servants, salary increase decisions for employees in enterprises, salary increase decisions for directors, and allowance increase decisions. Each type has its own characteristics and applies to different subjects depending on the nature of the job and organizational structure.
How is an increase in allowance different from an increase in basic salary?
Increasing the basic salary is an increase in the official salary in the labor contract, affecting social insurance, health insurance and personal income tax contributions. Meanwhile, increasing allowances is simply an increase in additional support in addition to the basic salary such as lunch, travel, and phone allowances. Allowances are often more flexible and can be adjusted more easily than the basic salary, but some types of allowances are not included in the social insurance contribution.
The decision to increase salary helps businesses recognize the contributions of employees and build sustainable labor relations. The decision to increase salary must comply with legal regulations, ensuring fairness and transparency. 1C Vietnam hopes that the detailed instructions and templates provided will help businesses build salary increase decisions that comply with regulations and bring about optimal human resource management efficiency.