Wages paid by enterprises to employees on the condition that they are not lower than the minimum wage prescribed by the state. Depending on the nature of the job, position as well as cooperation time, businesses have many forms of salary payment for employees such as: package salary, salary paid by time, salary by product, salary by business. income, ... So do you know what is the contract salary? Let's find out with Giaiphapdonggoi.net!
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1. What is a package salary?
Depending on the type of business, the nature of the job, the employer or the business owner will choose the form of payment for employees. Many businesses choose the form of pay according to labor results to ensure fairness and encourage employees to work more efficiently. Contract salary is a form of it.
Accordingly, package salary is understood as a form of payment according to the volume, quantity and quality of completed work. This form of payment can be calculated by time (hours), by product units, or by revenue, even gross profit for the month.
What is a contract salary?
Flat salary is the form in which the employer pays the employee a salary according to the provisions of Clause 1, Article 96 of the Labor Code 2019 which takes effect from January 1, 2021 as follows: The employer and Employees agree on the form of payment by product, by time or by contract.
Thus, the payment of package salary is a form of salary payment prescribed by law and the form of payment of package salary is completely legal.
In addition, according to Point c, Clause 1, Article 54 of Decree No. 145/2020/ND-CP detailing and guiding the implementation of a number of articles of the Labor Code on working conditions and labor relations, promulgated on the 14th. December 1, 2020, effective from February 1, 2021, stipulates: a flat salary is paid to employees who are entitled to a flat salary based on the volume of work, quality of work and time to complete the work.
Currently, the law does not have detailed regulations on the concept of salary under contract. Based on the above provisions, the salary package can be understood as the salary paid based on the quantity, quality and time to complete the work of the employee. Contract wages are usually applied to seasonal, temporary jobs.
2. How to calculate package salary
How to calculate contract salary?
The flat salary will be calculated on the basis of the volume of work completed in accordance with the quality, time of work and the unit price of the flat salary. The salary is calculated according to the following formula:
Package salary = Flat salary x Percentage of finished products
With the following example:
Hoa is hired to embroider pictures for 5 months, each completed picture will be paid 500,000 VND.
If Ms. Hoa completes a painting with the agreed quality and time, she will receive 500,000 VND.
In case Ms. Hoa works hard but only embroiders 50% of the picture, she will receive: 500,000 x 50% = 250,000 VND
Thus, with the formula for calculating the package salary as above, the employer needs to build the unit price of the flat salary as the basis for calculating the package salary for the employee.
3. Is the contract salary subject to social insurance contributions?
As analyzed above, a package salary is a salary paid in the form of a contract in accordance with the labor law. The flat salary paid to employees with a fixed salary based on the volume of work, quality of work and time to complete the work is the salary paid by the employer to the employee, not including allowances and supplements.
Does the salary have to pay social insurance?
Article 6. Process of collecting social insurance, health insurance, unemployment insurance, occupational accident and occupational disease insurance, management of social insurance books, health insurance cards issued together with Decision 595/QD-BHXH of the Insurance Vietnamese society stipulates as follows:
From January 1, 2018 onwards, the monthly salary for payment of compulsory social insurance is the salary and allowance specified at Point 2.1 of this Clause and other additional amounts as prescribed at Point a, Clause 3, Article 4 of Circular No. 47. /2015/TT-BLDTBXH.
According to the above regulations, the fixed salary under the labor contract is determined as the salary used as the basis for paying social insurance premiums.
Also in accordance with this Procedure:
The employee who pays unemployment insurance premiums according to the salary regime decided by the unit, the monthly salary on which unemployment insurance premiums are based is the salary on which the compulsory social insurance premium is based as prescribed in Clause 2, Article 6. In case the employee's monthly salary is If the basis for paying compulsory social insurance premium is higher than 20 months of regional minimum salary, the monthly salary on which unemployment insurance premium is based is equal to 20 months of regional minimum salary. (Clause 2, Article 15)
The subjects specified at Points 1.1, 1.2, Clause 1, Article 17: the monthly payment is equal to 4.5% of the monthly salary, of which the employer pays 3%; employees pay 1.5%. The monthly salary on which health insurance premiums are based is the monthly salary on which compulsory social insurance premiums are based as specified in Article 6. (Clause 1, Article 18).
Accordingly, the fixed salary according to the labor contract is also used as a basis for paying various types of insurance
other (unemployment insurance, health insurance).
4. Form of package salary payment
According to the provisions of the labor law, the employee and the employer can agree in the labor contract the form of salary payment according to time, product and salary according to the nature of work and production conditions. business. Specifically, Article 54 of Decree 145/2020/ND-CP:
Form of payment of contract salary
Time-based salary payment for employees who receive time-based wages according to the working time of the day, week, day and hour as agreed in the labor contract:
Monthly salary paid for the month of work.
Wages are paid weekly for 1 working week. If the labor contract agrees on the monthly salary, the weekly salary is determined by the monthly salary multiplied by 12 months and divided by 52 weeks.
Daily wages are paid for a period of 1 working day.
If the labor contract is agreed on a monthly salary, the daily salary is determined by the monthly salary divided by the number of working days in the month.
If the labor contract is agreed to pay weekly wages, the daily salary is determined by the weekly salary divided by the number of working days in the week.
Get paid for an hour of work. If the contract is agreed to pay wages by month, week or day, hourly wage is determined by the daily wage divided by the number of normal working hours in a day.
The itemized wage is paid to the employee by the product and is based on the level of completion, quantity and quality of the delivered product.
Contract wages are paid to employees with a fixed salary based on the volume, quality of work and completion time.
The salary specified above will be paid in cash or through the employee's bank account.
Thus, the contract salary will be based on the volume, quality and time to complete the work. A fixed salary paid by the employer to a bank account or paid in cash to the employee.
Above is the information that helps you understand what is the contract salary that Giaiphapdonggoi.net has provided to you. Through this article, I hope you have gained basic knowledge to apply to your future work. Good luck!
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