Promotion to employee salary

1. DONG DUONG
STEEL
INCENTIVE COMPENSATION
Khổng Mạnh Cường

2. Contents
I. INTRODUCTION
Introduce the company
Introduce the compensation packages
II. BODY
Three divisions of Employees
Why do we use this method?
How can it be implemented?
III.CONCLUSION
IV.Q & A

3. Introduce the Company
• Dong Duong Steel Limited Liability Company
• Add: Tan Tao Industrial Park, Lot 3, St. 1A,
Tan Tao A Ward, Binh Tan Dist., HCMC
• Profession: Steel Distribution
• Tel: (84-8) 37562775
• Fax: (84-8) 37562779
• Email: dongduongsteel@hcm.vnn.vn
• Website: www.dongduongsteel.com.vn
• Director: Mr. Hung

6. Chief
Accountant
Organizational Structure
CEO
Sales Dept
Deputy CEO
Warehouse HR
Account &
Finance
Technician
Factory worker
Driver (car, truck,
forklift)
Janitor
Security Guard
Customer
Services
Taxation
Cash flow
Income & Profit

7. Employee Info-graphic
62.5
37.5
GenderMale
Female
• There are currently 25 males and 15 males in company
• The age ranges from 25-55 years old

8. Employee Info-graphic
• The senior employee lies in between 41-53 (1 janitor, 1
factory workers, and 3 executives). Take up to 12.51%
of the company.
• 21-38 years old (generation Y)
• 40-53 years old (generation X)

9. Chief
Accountant
Organizational Structure
CEO
Sales Dept
Deputy CEO
Warehouse HR
Account &
Finance
Technician
Factory worker
Driver (car, truck,
forklift)
Janitor
Security Guard
Customer
Services
Taxation
Cash flow
Income & Profit

10. Key factors for company’s
incentive plan to reach
effectiveness
• List focuses on the following packages:
– Salary
– Allowance
– Bonus
– Insurance
– Non-monetary benefits

11. • The based salary is considered to be:
Salary
3,750,000 VND

12. • There are 3 types of allowance:
Allowance
Phone Lunch Gasoline

13. • There are 2 types of bonus:
– The attendant bonus
– The overtime payment
Bonus

14. Insurance
According to Decree No. 44/2017/ND-CP
• Both employers and employees have to pay
percentages for contributions to 3 insurances.
Through the application of guidelines, the rate
that employers and employees are required to
pay is 22 percent and 10.5 percent respectively
for insurance in Vietnam.

15. Insurance rates
Reference: http://www.vietnam-briefing.com/news/vietnam-
implements-social-insurance-updates.html/

16. Public Holidays
• 1 day New Year – January 1
• 5 days for the Chinese New Year festival.
(dates may vary from year to year)
• 1 day for Hung King Anniversary Day - March
10 of the Lunar Year
• 1 day on the occasion of Victory day - April 30
• 1 day on the occasion of Labor day - May 1st
• 1 day on the occasion of National Day -
September 2

17. Higher Level (executive level)
CEO, Deputy CEO & Chief Accountant
Salary & Allowance
• Salary according to position (Monthly)
• Extra bonus of 1 month (annually)
• Considerations for annual salary increase.
• Allowance up to 13,600,000 VND
• Phone Allowance + Gasoline Allowance
• Dine in-card (Expense for food)

18. Rewards
• Innovations; Efficiency in production (individual, increase rank)
• Rewarding employees with good academic performance
• Flexible Working Hours
• Annual Executive Incentive and bonuses (5% of all Profits)
• Christmas/New Years Party (Exclusive Presents)
Discounts
• Provide discount for employees when purchasing products of the
company.
Insurance regime
• Social insurance
• Health insurance
• 24/24 accident insurance
• Golden Parachute
Higher Level (executive level)
CEO, Deputy CEO & Chief Accountant

19. Non-Finance
• Breaking time: 30 minutes. (This shall be included in the working hours.)
• Weekly break: Saturday and Sunday
• Sickness (13 days; Unpaid)
• Have medical examination twice a year, medical examination for early
detection of occupational diseases
• Maternity Leave (Unlimited)
• Care programs for children of employees
• Organizing fun activities, entertainment for workers and family members,
staff attendees such as events in summer, mid-autumn, national holidays
• Exclusive Reserved Parking Space
• Flextime
Higher Level (executive level)
CEO, Deputy CEO & Chief Accountant

20. Annual Break
• The employee who has completed one year (i.e. 12 months’ service in the
company shall be entitled to an annual leave of 12 days with full pay. )
• For an employee who has completed more than 5 years of service in the
company, there shall be a proportionate increase of 1 day holiday for every
5 years of service.
• The employee with less than 12 months’ service also shall be entitled to an
annual leave but the number of days shall correspond with the length of
his/her employment. (i.e. 1 day leave per month)
Personal Paid Leaves (total of 9)
• 4 days for one’s own marriage;
• 1 day for marriage of one’s son or daughter
• 2 days in case of death of the parent, parent-in-law, spouse, son or
daughter;
• 1 day in case of death of the grandparent, siblings
• Male Employee is entitled to 1 day off in case of his wife’s giving birth
Higher Level (executive level)
CEO, Deputy CEO & Chief Accountant

21. Salary & Allowance
• Salary according to position (Monthly)
• Extra bonus of 1 month (annually)
• Considerations for annual salary increase.
• Overtime: The overtime hours shall be to a maximum of 4 hours per day,
and 200 hours per year
• The employee who works overtime is paid according to his salary as
following:
a. 150% on week days. b. 200% on weekly days-off. c. 300% on holidays
and days-off with pay as well as a compensatory day-off
• Lunch Allowance, Phone Allowance, Gasoline Allowance
Middle Level (Warehouse Manager, Human
Resource and Accounting)

22. Rewards
• Innovations; Efficiency in production (individual, increase rank)
• Rewarding employees with good academic performance
• Paid Training
• Christmas/New Years Party (Exclusive Presents)
Discounts
• Provide discount for employees when purchasing products of the
company.
Insurance regime
• Social insurance
• Health insurance
• 24/24 accident insurance
Middle Level (Warehouse Manager, Human
Resource and Accounting)

23. Non-Finance
• Breaking time: 30 minutes. (This shall be included in the working hours.)
• Weekly break: Saturday and Sunday
• Internal training: Job training, specialized behavioral topics, and soft skills.
• External training: improve professional skills, management skills (by experts
and training institutions through outsourcing)
• Sickness (13 days; Unpaid)
• Have medical examination twice a year, medical examination for early
detection of occupational diseases
• Maternity Leave (Unlimited)
• Female employees with 12 month newborn leave early 30 minutes (applies to
marriage, funeral specific case)
• Care programs for children of employees
• Organizing fun activities, entertainment for workers and family members, staff
attendees such as events in summer, mid-autumn, national holidays
• 1 field trip in a year (beach, mountain, travel tour)
Middle Level (Warehouse Manager, Human
Resource and Accounting)

24. Annual Break
• The employee who has completed one year (i.e. 12 months’ service in the
company shall be entitled to an annual leave of 12 days with full pay. )
• For an employee who has completed more than 5 years of service in the
company, there shall be a proportionate increase of 1 day holiday for every
5 years of service.
• The employee with less than 12 months’ service also shall be entitled to an
annual leave but the number of days shall correspond with the length of
his/her employment. (i.e. 1 day leave per month)
Personal Paid Leaves (total of 9)
• 4 days for one’s own marriage;
• 1 day for marriage of one’s son or daughter
• 2 days in case of death of the parent, parent-in-law, spouse, son or
daughter;
• 1 day in case of death of the grandparent, siblings
• Male Employee is entitled to 1 day off in case of his wife’s giving birth
Middle Level (Warehouse Manager, Human
Resource and Accounting)

25. Middle Level
(Sales)
Salary & Allowance
• Salary according to position (Monthly)
• Extra bonus of 1 month (annually)
• Considerations for annual salary increase.
• Overtime: The overtime hours shall be to a maximum of 4 hours per day,
and 200 hours per year
• The employee who works overtime is paid according to his salary as
following:
a. 150% on week days. b. 200% on weekly days-off. c. 300% on holidays
and days-off with pay as well as a compensatory day-off
• Phone Allowance, Gasoline Allowance, Lunch Allowance

26. Rewards
• Innovations; Efficiency in production (individual, increase rank)
• Rewarding employees with good academic performance
• Paid training
• Commission (Goal-based Incentive)
• Seniority-based reward
• Christmas/New Years Party (Exclusive Presents)
Discounts
• Provide discount for employees when purchasing products of the
company.
Insurance regime
• Social insurance
• Health insurance
• 24/24 accident insurance
Middle Level
(Sales)

27. Non-Finance
• Breaking time: 30 minutes. (This shall be included in the working hours.)
• Weekly break: Saturday and Sunday
• Internal training: Job training, specialized behavioral topics, and soft skills.
• External training: improve professional skills, management skills (by experts
and training institutions through outsourcing)
• Sickness (13 days; Unpaid)
• Have medical examination twice a year, medical examination for early
detection of occupational diseases
• Maternity Leave (Unlimited)
• Female employees with 12 month newborn leave early 30 minutes (applies to
marriage, funeral specific case)
• Care programs for children of employees
• Organizing fun activities, entertainment for workers and family members, staff
attendees such as events in summer, mid-autumn, national holidays
• 1 field trip in a year (beach, mountain, travel tour
• Flextime
Middle Level
(Sales)

28. Annual Break
• The employee who has completed one year (i.e. 12 months’ service in the
company shall be entitled to an annual leave of 12 days with full pay. )
• For an employee who has completed more than 5 years of service in the
company, there shall be a proportionate increase of 1 day holiday for every
5 years of service.
• The employee with less than 12 months’ service also shall be entitled to an
annual leave but the number of days shall correspond with the length of
his/her employment. (i.e. 1 day leave per month)
Personal Paid Leaves (total of 9)
• 4 days for one’s own marriage;
• 1 day for marriage of one’s son or daughter
• 2 days in case of death of the parent, parent-in-law, spouse, son or
daughter;
• 1 day in case of death of the grandparent, siblings
• Male Employee is entitled to 1 day off in case of his wife’s giving birth
Middle Level
(Sales)

29. Recognition
• Parking Privilege
• Employee of the Month of each department (Dinner with CEO; Early
Leave 30 minutes on Friday)
• New/Upgraded working space
• Enhanced decision making
• Chance to lead team and task
Middle Level
(Sales)

30. Lower Level (Workers, Janitors, Drivers
and Security Guards)
Salary & Allowance
• Salary according to position (Monthly)
• Extra bonus of 1 month (annually)
• Considerations for annual salary increase.
• Overtime: The overtime hours shall be to a maximum of 4 hours per day,
and 200 hours per year
• The employee who works overtime is paid according to his salary as
following:
a. 150% on week days. b. 200% on weekly days-off. c. 300% on holidays
and days-off with pay as well as a compensatory day-off
• Company minimum wage (3,750,000 VND/month)
• Phone Allowance, Lunch Allowance & Gasoline Allowance

31. Rewards
• Innovations; Efficiency in production (individual, increase rank)
• Receives 200,000 VND to 500,000 VND (Public Holidays)
• Married Workers rewarded 200,000 VND
• Relative Deaths payment 200,000 VND
• Natural Disaster 300,000 VND
• Christmas/New Years Party (Exclusive Presents)
Insurance regime
• Social insurance
• Health insurance
• 24/24 accident insurance
Lower Level (Workers, Janitors, Drivers
and Security Guards)

32. Non-Finance
• Breaking time: 30 minutes. (This shall be included in the working hours.)
• Weekly break: Saturday and Sunday
• Internal training: Job training, specialized behavioral topics, and soft skills
• Sickness (13 days; Unpaid)
• Have medical examination twice a year, medical examination for early
detection of occupational diseases
• Maternity Leave (6 month)
• Female employees with 12 month newborn leave early 30 minutes (applies
to marriage, funeral specific case)
• Care programs for children of employees
• Organizing fun activities, entertainment for workers and family members,
staff attendees such as events in summer, mid-autumn, national holidays
• 1 field trip in a year (beach, mountain, travel tour)
Lower Level (Workers, Janitors, Drivers
and Security Guards)

33. Annual Break
• The employee who has completed one year (i.e. 12 months’ service in the
company shall be entitled to an annual leave of 12 days with full pay. )
• For an employee who has completed more than 5 years of service in the
company, there shall be a proportionate increase of 1 day holiday for every
5 years of service.
• The employee with less than 12 months’ service also shall be entitled to an
annual leave but the number of days shall correspond with the length of
his/her employment. (i.e. 1 day leave per month)
Personal Paid Leaves (total of 12)
• 4 days for one’s own marriage;
• 2 day for marriage of one’s son or daughter
• 3 days in case of death of the parent, parent-in-law, spouse, son or
daughter;
• 2 day in case of death of the grandparent, siblings
• Male Employee is entitled to 1 day off in case of his wife’s giving birth
Lower Level (Workers, Janitors, Drivers
and Security Guards)

34. Increase Productivity-Increase Satisfaction 34
Total Package
Upper Level Compensation Package:
1. Base Salary 389,256,000
2. Insurance Coverage 128,454,480
3. Allowance
393,828,000
4. Annual break, personal leaves
17,420,949
6. Annual gain profit (3% of the annual profit)
180,000,000

35. Increase Productivity-Increase Satisfaction 35
Add-up Total Package
Total Value 1,108,959,429 VND
Total Package without Bonus:
1,108,959,429 VND

36. Increase Productivity-Increase Satisfaction 36
Total Package
Middle Level Compensation Package:
1. Base Salary 1,027,380,000
2. Insurance Coverage 250,432,080
3. Allowance
284,400,000
4. Annual break, personal leaves
47,332,656
6. Holidays
56,000,000

37. Increase Productivity-Increase Satisfaction 37
Add-up Total Package
Total Value 1,655,544,736 VND
Total Package without Bonus:
1,655,544,736 VND

38. Increase Productivity-Increase Satisfaction 38
Total Package
Lower Level Compensation Package (Security
Guard) :
1. Base Salary 934,620,000
2. Insurance Coverage 137,990,160
3. Allowance
297,300,000
4. Annual break, personal leaves
46,921,032
6. Holidays
66,500,000

39. Increase Productivity-Increase Satisfaction 39
Add-up Total Package
Total Value 1,483,331,192 VND
Total Package without Bonus:
1,483,331,192 VND