May Vietnamese employees receive salaries in foreign currency? May employers pay salaries to foreign employees weekly?
May Vietnamese employees receive salaries in foreign currency?
Under Clause 1, Article 90 of the Labor Code 2019:
Salaries
1. A salary is an amount the employer pays the employee under an agreement for work performed by the latter. Salary equals (=) base salary plus (+) allowances and other additional amounts.
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Under Article 95 of the Labor Code 2019:
Salary payment
1. The employer shall pay the employee on the basis of the agreed salary, productivity and work quality.
2. The salary written in the employment contract and the salary paid in reality shall be VND, unless the employee is a foreigner working in Vietnam.
3. Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay and deductions (if any).
Under the above regulations, the employer and employee can negotiate salary for work performed on the basis of labor productivity and work quality.
Thus, if the payment of salary in foreign currency is specified in the concluded employment contract, Vietnamese employees may receive their salaries in foreign currency.
Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay, and deductions (if any).
May employers in Vietnam pay salaries to foreign employees weekly?
Under Clause 1, Article 94 of the Labor Code 2019:
Salary payment rules
1. Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.
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Under Article 97 of the Labor Code 2019:
Salary payment time
1. An employer who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties.
2. An employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively. The payment time shall be periodic and agreed upon by both parties.
3. An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.
4. In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.
Thus, employers can pay salaries to foreign employees weekly if there is a specific agreement in the employment contract.
Note: Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.
In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. If a salary is paid at least 15 days behind schedule, the employer shall pay salary payment interest to the employee.
What are the forms of paying salaries to foreign employees by employers in Vietnam?
Under Article 96 of the Labor Code 2019:
Salary payment forms
1. The employer and employee shall reach an agreement on whether the salary is time-based, product-based (piece rate) or a fixed amount.
2. Salary shall be paid in cash or transferred to the employee’s personal bank account.
In case of bank transfer, the employer shall pay the costs of account opening and transfer.
3. The Government shall elaborate this Article.
Thus, the employer shall reach an agreement on whether the salary is time-based, product-based (piece rate), or a fixed amount with the foreign employee. Salary shall be paid in cash or transferred to the foreign employee’s personal bank account.
Note: In case of bank transfer, the employer shall pay the costs of account opening and transfer.
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