Why should business owners care?
Salary & Social Security system
The salary policy must serve the business of the enterprise, however, the salary policy must comply with the constraints of the legal environment on labor and employment of the country.
Our consulting service helps you have a good salary policy for your business while meeting regulatory frameworks.
The Enterprise Law of Vietnam stipulates that “enterprises, when hiring workers, must comply with the labor law, pay wages according to the wage law, and implement policies and regimes of social insurance and insurance. unemployment insurance, health insurance and other insurance for employees as prescribed by law.”
Therefore, once hiring workers, enterprises must comply with relevant legal provisions, that is: When hiring workers, they must comply with the labor law, pay wages according to the labor laws. salary, and implement compulsory insurance regimes (including social insurance, unemployment insurance, health insurance and other insurance).
You, or your business, need to hire specialized personnel to perform the tasks of labor, salary, and compulsory insurance. Personnel in charge of this management need to be familiar with the Labor Code, the Law on Wages, the Law on Social Insurance, and regularly update new regulations in these three areas.
These are three huge groups of legal regulations that govern all labor relations in Vietnam. To keep abreast of these 3 areas is not easy, on the other hand, the risk of doing wrong is very large.
And yet, you need to pay attention to:
- Law on personal income tax: because the employee's income is governed by the Law on Personal Income Tax.
- Law on corporate income tax: because salary costs account for a very large part of a business's expenses. In some cases, even if you pay wages and comply with salary regulations, they are excluded and not included in the costs of the business.
- Accounting Law: since the salary of the business is published on the financial statements of the business, it must meet the provisions of the Law on Accounting, which will greatly affect your Financial Statements.
- Tax administration law: Vietnam Social Security and the General Department of Taxation have linked data and have a mechanism to exchange data with each other, you need to do it synchronously for this reporting purpose.
- Your Monthly Published Payroll must ensure Full, Uniform and Correct.
The practice of managing Labor records, managing Payroll and Social Insurance records has issues that you need to take care of, maybe it won't happen in a few months, but often it can happen. out after about 1 year.
Details are as follows:
- Records when hiring employees are not only labor contracts, but all relevant records such as salary scales, agreements, labor regulations, etc. You need to comply with the prescribed deadlines and store full documents. enough.
- The payroll management file is not only the payroll but also includes a full set of documents as a basis to prove the salary calculation, such as: Timekeeping parameters, salary calculation, personal income tax calculation, management of employees. properties, calculation of social insurance, payroll records ... need to be synchronized with data and fully archived salary calculation documents.
- The social insurance management record is not only the monthly social insurance payment amount, but it includes the entire record to prove that the calculation and payment of social insurance is correct in data and in accordance with the law. Therefore, all social insurance records must be synchronized with data and fully archived. Periodically check the data with the insurance agency.
- Health insurance card records must be regularly updated and monitored for each employee to maintain their right to health insurance.
Consulting Salary and Social Insurance
Salary and Social Insurance consulting services to develop salary policies for businesses, in which the focus is on applying the 3P salary policy and consistent with the corresponding regulations on labor, salary and insurance. society
Customers can choose to deploy a package service, or use each service individually according to their needs, as follows:
1. Consulting on the application of the enterprise salary system: The 3P salary system combines the current labor policy of Vietnam.
2. Consulting the salary calculation system corresponding to the enterprise salary system.
3. Consulting on the applicable social insurance system corresponding to the enterprise salary system.
The reason for choosing the service
Expertis .'s salary and social insurance consultant
3P salary emphasizes the aspect of a reasonable salary policy due to the comprehensive assessment of the employee's capacity in close relationship with the business performance that the employee creates for the enterprise. In this respect, 3P salary is closely linked with human resource policy and business strategy.
Expertis's services go into effective management consulting in the following 2 ways:
1. In case the enterprise has applied 3P salary:
+ We advise to synchronize the 3P salary policy and with the system of binding regulations when employing employees (Labour Law - Salary - Social Insurance)
2. In case the enterprise has not/or has not applied 3P salary:
+ We provide a standard 3P salary scale system for each job position.
+ Consultancy on synchronous 3P salary policy according to standards and with the system of binding regulations when employing employees (Labour Law - Salary - Social Insurance).
– Enterprises are operating, have hired labor but do not have an effective salary policy.
– Enterprises that hire workers, have a salary policy, but have not synchronized the salary policy.
– Enterprises that have a need to make a published salary table.
– Enterprises want to improve management efficiency and timely prevent risks caused by violations of labor, salary and social insurance policies.
To assess the business is at risk or not, you can contact Expertis to request, we will check, evaluate and advise all free for your business.
To assess the overall level of completion and potential risks on the issue of Salary – Social Insurance, Expertis has an overview check checklist. Please contact us using the registration form in this article to receive the Checklist.
Social insurance monitoring is a task that needs to be done regularly to update and improve the labor system of the enterprise
After completing the registration procedure for the first social insurance for the enterprise, the monitoring of the increase or decrease of participating personnel, related procedures, procedures related to maternity and medical examination, and issuance of social insurance and health insurance cards according to requirements for medical examination and treatment or discontinuation of participation in social insurance ... are jobs that need to be monitored and regularly updated to complete the general labor system of the enterprise.
In most businesses, the Accounting or Human Resources staff is the department in charge of building and monitoring social insurance according to the regulations of state agencies. However, with the continuous change of the law on social insurance, especially the law on dealing with social insurance violations, it is more and more serious, it is more serious that criminal responsibility can be attributed to the violation of issues related to social insurance. in which part comes from not monitoring the social insurance regularly of the enterprise.
The context of the Law on Social Insurance has undergone many changes along with the increase in social insurance inspection at enterprises.
From 2016 and earlier, this issue was still managed by the state, but the problem has changed according to the increasingly difficult route and increased premiums from 2016-2017. Since 2018 there have been many important changes related to LABOR - Wage - SOCIAL INSURANCE. Accordingly, enterprises need to rearrange and re-organize their system so that 03 salaries (Salary shown on financial statements, Salary as the basis for calculating and paying social insurance contributions and actual salary announced by enterprises) enterprise) in the enterprise for consistency, legality and safety.
Moreover, Vietnam Social Insurance increasingly tightens the participation of social insurance for employees of enterprises, while strengthening the review, inspection and sudden inspection at enterprises. Specifically, the following are some important decisions:
Firstly, there is a comparison between the tax office and the social insurance agency when making tax finalization, or when the social insurance inspection agency inspects.
Second, the Social Insurance Inspection Agency strengthens the inspection of labor records in Ho Chi Minh City
Third, the act of evading social insurance contributions has been elevated to a criminal offense (article 216, Penal Code 2015, applied from January 1, 1).
The rapidly changing business and information technology environment creates a highly competitive and fast-changing environment, creating a tendency to specialize and focus on the core competencies of each enterprise.
In order to properly and effectively implement a content that requires a lot of knowledge and experience, it is difficult for small and medium enterprises to maintain a stable human resource for managing payroll and social insurance, hiring out is a much more efficient solution.
Implementation System & Process
In order for the management of payroll and social insurance to be good, enterprises need an appropriate implementation system and process. For small and medium enterprises, it is not necessary to equip complex systems and processes, otherwise these systems and processes cannot keep up with the rapid change in the enterprise's personnel model.
In fact, there are quite a few businesses that have the habit of using 3 separate salary items as follows:
1. Salary shown in Financial Statements (Accounting)
2. Salary as the basis for calculating and paying social insurance premiums.
3. Salary as the basis for personal income tax calculation.
This practice makes it difficult to manage the business, and creates risks:
+ The business owner himself does not know which number is correct and what is the difference between these 3 salary parameters.
+ There is a comparison between the tax office and the social insurance agency when making tax finalization, or when the social insurance inspection agency inspects.
+ The Social Insurance Inspection Agency strengthens the inspection of labor records in Ho Chi Minh City.
+ The act of evading social insurance payment has been elevated to a criminal offense (article 216, Penal Code 2015, applied from January 1, 1).
Ways to avoid risk and manage it more effectively:
+ Build a Salary system so that the management and calculation of the above three items are unified.
If you have this problem and need advice, please contact Expertis for support.
When starting to generate employees, the enterprise must fully push the contents according to the regulations of the social insurance agencies, Labor, Tax ..., Because, 1 or more employees can have risks if has not been fully implemented.
Therefore, when personnel arise, businesses must fully implement or hire professional services to manage.
Expetis has a management software system with an unlimited number of employees, in addition, the implementation staff are experts with professional experience and experience in handling when there is an inspection, inspection, to ensure it is correct. set of documents for businesses with a large number of employees.
On the other hand, our system is optimized for the management of a large number of workers, eliminating redundant operations, so the service cost is also very suitable for customers.