Payroll is essential for businesses owing to the effect of fairness and transparency of businesses to employees. Although this is a procedure, it has an important role and requirements which require a lot of time and effort. To learn more about payroll, please refer to the information in this article.
The role of payroll
The establishment of payroll for businesses is not only required by legal regulations to carry out procedures for participating in social insurance, but also helps enterprises to quickly complete their tasks. In addition, payroll also plays an important role such as:
Control the salaries and benefits package for employees to balance the budget for many other goals.
Ensure transparency in payroll to encourage employees' efforts to strive for common goals. With the transparent salary regulation, it will both help businesses retain talents in the long run.
Put foundation for building welfare, remuneration and reward policies as well as reflect the company's concern for its employees. Enterprises want to build effective and realistic incentive policies, payroll will be one of the most important data.
Criteria to building payroll for business
To build an effective payroll, businesses rely on the following factors:
Type of business in operation:
In general, enterprises are divided into two basic types: state-owned enterprises and non-state enterprises. For state-owned enterprises, payroll is based on a quantitative table and the applied ratio is 100% while for foreign businesses, there will be more diverse options.
The enterprises with large scale operating in diverse markets can be effective with 3Ps instead of ratio.
Provisions of law:
The construction of payroll can help businesses take the initiative as well as set it up as a sanction to ensure the rights of both employees and employers through legislation.
Notes for building payroll
When building a payroll according to Decree 49/2013/ND-CP, enterprises should keep in mind following factors:
It is necessary to ensure the regional minimum wage according to regulations
The salary corresponding to the job with hazardous, arduous and dangerous working conditions is at least 5% higher than the salary of the job with same-level equivalent complexity under the normal working condition.
A job or title with heavy or hazardous working conditions must be at least 7% higher than the salary of a job or title of equivalent complexity.
The multiple of the salary scale is the coefficient of difference between the salary of the job with the highest technical requirements and the salary of the job with the lowest technical requirement. The gap between two adjacent salary levels must ensure the encouragement of employees to improve their technical and professional qualifications.
Currently, based on Decree 49/2013/ND-CP has expired, businesses can build different wages with requirements to meet the regional minimum wage. In addition, enterprises need to consult with the representative organization of employees at the facility and publicly announce it at the workplace before proceeding.
The above information about the role and factors for businesses to build an effective payroll. If businesses are in need of advice and support on payroll administration, labor law issues or recruitment, please contact Farovietnam's hotline!