1. A firm has an employee’s base pay which is: $20/hr+$30/wk (bonus).

If an employee
works for 50 hours this week (40 regulars and 10 overtime), estimate this employee’s
total pay. Follow the Art of overtime pay of Labour Law of Vietnam.
Method 1: Direct method
According to the Art of overtime pay of labour law of Vietnam:
Overtime pay of workday = minimum 150% of base pay
Overtime pay of weekend = minimum 200% of base pay
Overtime pay of holiday = minimum 300% of base pay
If overtime is on weekday, this employee’s minimum total pay is:
40*20+10*20*1.5+30=1130 (USD)
If overtime is on weekend, this employee’s minimum total pay is:
40*20+10*20*2+30=1230 (USD)
If overtime is on holiday, this employee’s minimum total pay is:
40*20+10*20*3+30=1430 (USD)
Method 2: Hourly method
For 40 regular working hours: $20/hr
 20*40 = 800 for the first 40 hours
+ bonus: $30  Total pay for regular hours: $830
 Hourly rate: $830/40=$20.75/hr
Case 1: overtime is on weekday
 overtime pay ≥ 150% base pay
 Minimum overtime pay = 20.75*150%*10 = $311.25
 Minimum total pay = 830+311.25 = $1141.25
Case 2: overtime is on weekend
 overtime pay ≥ 200% base pay
 Minimum overtime pay = 20.75*200%*10 = $415
 Minimum total pay = 830+415 = $1245
Case 3: overtime is on holiday
 overtime pay ≥ 300% base pay
 Minimum overtime pay = 20.75*300%*10 = $622.5
 Minimum total pay = 830+622.5 = $1452.5
2. Estimate the pay of an employee based on the following data:
Wage: USD 6,000,000
Allowance:
Responsibility: VND 3,000,000
Lunch: VND 1,500,000
Phone: VND 1,000,000
Apartment: VND 2,000,000
Social insurance: 8%
Medical insurance: 1.5%
Unemployment insurance: 1%
The pay of the employee:
Pay = Wage + Allowance – Insurance
= 6 mil + 7.5 mil – (8%+1.5%+1%)*(6mil+3mil)
= 12,550,000 (VND)
Note: If allowance has petrol, DO NOT calculate petrol into insurable amount
3. Salaries of employees in a Pay Grade are:
Employees Salary ($)
Employee 1 2,308
Employee 2 2,066
Employee 3 2,525
Employee 4 2,419
Midpoint of the Pay Range is $2,175/month.
1 Determine the Compa-Ratio
2. Determine the Average Salary of Employees
1. Average Salary of Employees: (2,308+2,066+2,525+2,419)/4 = $2,329.5
Compa-Ratio = Average Salary of Employees/Midpoint of the Pay Range
= 2329.5/2175 = 1.071>1
2. Implication: Compa-Ratio is greater than 1  The company is paying more than planned for
human resources and may have difficulty keeping costs under control
Note:
Assuming that the pay structure is well planned to support the organization’s goals, the compa-
ratios should be close to 1.
A compa-ratio greater than 1 suggests that the organization is paying more than planned for human
resources and may have difficulty keeping costs under control.
A compa-ratio less than 1 suggests that the organization is underpaying for human resources
relative to its target and may have difficulty attracting and keeping qualified employees.
4. An employee made 150 products.
- Estimate his/her wage if Straight Piecework Plan is applied with a rate of $1.2/product
- Estimate his/her wage if Differential Piecework Plan is applied with a rate of $1.2/product
for the first 100 first product, $1.5/product for 101-140 products and $2.00/product for
over 140 products.
If Straight Piecework Plan is applied with the given rate, the employee’s wage:
1.2*150=$180
If Differential Piecework Plan is applied with the given rate, the employee’s wage:
1.2*100+1.5*40+2*10=$200