When participating in a labor relationship with an employer, employees are often required to try their jobs for a certain period of time. A probationary contract ensures that employees enjoy certain benefits when there is no official contract. However, not all employees are clear about the provisions of probationary contracts and the benefits that probationary contracts bring. In 2024, how much is the probationary salary calculated? How is social insurance paid? This article will provide some information related to this issue.
1. Probationary labor contract
1.1 If the employee quits during the probationary period, does he/she get paid?
According to regulations, when an employee quits his job (regardless of whether he quits temporarily or not), the employer is responsible for paying all amounts related to the employee's benefits, including: salaries, allowances… Therefore, regardless of whether the employee quits during the probationary period or not, the employer is responsible for paying the employee for the days he or she has worked according to regulations. The salary level is determined by both parties’ negotiation, but must be at least equal to 85% of the salary of that job.
1.2 How many days' notice should I give during the probationary period?
Pursuant to the provisions of Clause 2, Article 27 of the 2019 Labor Code, during the probationary period, each party has the right to cancel the probationary contract or the signed labor contract without prior notice and without compensation.
What is Probation Period & How to Handle it
>>>Read more: Payroll service provider in Vietnam
1.3 Do I need to compensate the company if I suddenly leave the job?
Clause 2, Article 27 of the 2019 Labor Code stipulates that during the probationary period, each party has the right to cancel the probationary contract or the signed labor contract without prior notice and without compensation. Therefore, during the probationary period, the employee has the right to cancel the probationary contract or the signed labor contract without prior notice and without compensation to the employer. That means, employees who quit during the probationary period must compensate the company.
1.4 How many months maximum for a probation period?
Pursuant to the provisions of Article 25 of the 2019 Labor Code, the probationary period is agreed upon by both parties based on the nature and complexity of the job, but the probationary period is only allowed once for a job and ensures following conditions:
-
No more than 180 days for the work of an enterprise manager according to the provisions of the Enterprise Law and the Law on Management and Use of State Capital Invested in Production and Business at Enterprises;
-
No more than 60 days for jobs with professional titles that require professional and technical qualifications of college or higher;
-
No more than 30 days for jobs with professional titles that require intermediate professional and technical qualifications, technical workers, and professional staff;
-
No more than 06 working days for other jobs.
Thus, the maximum probationary period is no more than 180 days but will only apply in the case of the job of a business manager. Most jobs today have a typical probationary period of 60 or 30 days. In some cases, the employee may request a shorter probationary period or no probationary period due to good work experience in a similar field and position.
Latest regulations on probation and probationary salary 2024
>>>What services does an HR consulting company include?
2. Probationary salary: Does probationary salary include personal income tax?
The employee's probationary salary is also counted as income subject to personal income tax. Accordingly, the personal income tax deduction for income from the employee's probationary salary is as follows:
2.1. Case 1: Probationary employee signs a probationary contract or probationary period with a labor contract of 3 months or more
In case a probationary employee signs a labor contract of 3 months or more, the personal income tax on the income from the employee's probationary salary will be calculated according to the Partial Progressive Tax Schedule as prescribed in Article 10. 7 Circular 111/2013/TT-BTC.
Accordingly, the basis for calculating personal income tax is taxable income and tax rate.In particular, taxable income is determined by taxable income minus the following deductions:
-
Family deductions.
-
Insurance contributions and voluntary pension funds.
-
Charitable, humanitarian, and study promotion contributions.
2.2. Case 2: The employee signs a probationary or probationary contract with a labor contract of less than 03 months
If the employee in this case has a total income of 02 million VND/time or more, the enterprise will deduct tax at the rate of 10% of the income before paying the employee.
However, if the employee only has the above income but the total taxable income after deducting family circumstances is not enough to pay tax, he or she can make a commitment to the employer to avoid tax deductions.
CONTACT FARO VIETNAM today for payroll HR outsourcing service.
Faro Vietnam
Email: service.vn@farorecruitment.com
HANOI HEAD OFFICE
HO CHI MINH CITY OFFICE
Grow your business with our trusted Human Resource Solutions.