Requiring Enterprises to Provide a Payroll Statement to Employees When Paying Salaries

Illustrative image (source: internet)

Labor Code 2019 stipulates that each time wages are paid, the employer must provide the employee with a wage statement, specifying:

- Salary- Overtime pay- Night work pay- Items and amounts deducted (if any).

The employer pays wages to the employee based on the agreed salary, labor productivity, and the quality of work performed. Salaries recorded in the labor contract and wages paid to the employee are in Vietnamese Dong. In case the employee is a foreigner working in Vietnam, wages can be paid in foreign currency.

Thus, compared to the regulations in the Labor Code 2012, the New Code has stricter provisions regarding wage payments to ensure transparency and openness in labor relations.

The New Law stipulates that wages can be paid in cash or via the employee's personal account opened at a bank. However, in case wages are paid through the employee's personal account opened at a bank, the employer must bear the costs related to the opening of the account and the wage transfer (as opposed to the current practice of negotiating who pays these costs).

Noteworthy, in cases where the employee cannot receive wages directly, the employer may pay wages to a legally authorized representative of the employee. The employer is not allowed to restrict or interfere with the employee's right to decide how to spend their wages. The employer is also prohibited from compelling the employee to spend wages on goods or services provided by the employer or any designated unit.

See the full regulations in the Labor Code 2019 effective from January 1, 2021.

Thu Ba

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