TO ADD UP TO 2 AVERAGE MONTHLY WAGE TO THE PAID WAGE FUND IN 2020
The Circular No. 04/2020/TT-BLDTBXH on providing guidance on the implementation of the regulations on contractual unit and the fund of wage for operation of employees and the Operation Board prescribed in Article 7 and Article 8 of the Government’s Decree No. 20/2020/ND-CP dated February 17, 2020 on the pilot management of labor, wages and bonuses of a number of state economic groups and corporations is issued on May 25, 2020 by the Ministry of Labor, War Invalid and Social Affairs.
In accordance with this Circular, the company’s paid wage fund in 2020 shall be determined according to the wage fund calculated by the contractual unit price. In case a company’ earned profit in 2020 is higher than the average profit in the 2018-2019 period, the company may additionally include the difference in the wage fund on the principle that for an increase of 1% in profit, the wage fund may be added by up to 2%, provided that the addition must not exceed 20% of the excessive profit amount and 02 months’ paid wage amount of the actual average number of employees employed in a year.
In case a company’ earned profit is lower than the average profit in the 2018 - 2019 period, the company’s wage fund shall be decreased by either of the following two ways as selected by the company: deduction in percentage (%) and such deduction is equal to a percentage deduction (%) between earned profits that is lower than the average earned profits of the period 2018 - 2019; or deduction in absolute value by the difference between the profits earned in 2020 that is lower than the average profits earned in the period 2018 - 2019. The deducted amount of the two above-mentioned methods must not exceed 02 months’ average paid wage amount of the actual average number of employees employed in 2020.
This Circular takes effect on July 10, 2020.
