Vietnam: What is the latest form of decision on the pay rise for an employee? What is the basis of the pay rise for employees?
- What is the latest form of decision on the pay rise for an employee in Vietnam?
- What is the basis of the pay rise for employees in Vietnam?
- What is the basis for adjusting statutory minimum wages paid by enterprises to employees in Vietnam?
- What are the rules of salary payment for employees in Vietnam?
What is the latest form of decision on the pay rise for an employee in Vietnam?
Currently, the law does not provide for a form of decision on the pay rise for an employee in Vietnam. The below picture is the form of decision on the pay rise for an employee in Vietnam (only for reference):
Download the latest form of decision on the pay rise for an employee in Vietnam: here.
What is the basis of the pay rise for employees in Vietnam?
Pursuant to Point e, Clause 1, Article 21 of the Labor Code 2019 as follows:
Contents of employment contracts
1. An employment contract shall have the following major contents:
a) The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;
b) Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;
c) The job and workplace;
d) Duration of the employment contract;
dd) Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments;
e) Regimes for promotion and pay rise;
g) Working hours, rest periods;
h) Personal protective equipment for the employee;
i) Social insurance, health insurance and unemployment insurance;
k) Basic training and advanced training, occupational skill development.
2. If the employees’ job is directly related to the business secret, technological know-how as prescribed by law, the employer has the rights to sign a written agreement with the employee on the content and duration of the protection of the business secret, technology know-how, and on the benefit and the compensation obligation in case of violation by the employee.
3. If the employee works in agriculture, forestry, fishery, or salt production, both parties may exclude some of the aforementioned contents and negotiate additional agreements on settlement in the case when the contract execution is affected by natural disaster, fire or weather.
4. The contents of the employment contract with an employee who is recruited to work as the director of a state-invested enterprise shall be stipulated by the Government.
5. The Minister of Labor, War Invalids and Social Affairs elaborate Clauses 1, 2 and 3 of this Article.
Thus, according to the above provisions, the pay rise for employees in Vietnam will be carried out based on the agreement on the regimes for promotion and pay rise in the concluded employment contracts.
What is the basis for adjusting statutory minimum wages paid by enterprises to employees in Vietnam?
Pursuant to Clause 3, Article 91 of the Labor Code 2019 as follows:
Statutory minimum wages
1. Statutory minimum wages are minimum wages of workers who do the simplest jobs in normal working conditions that are sufficient to support themselves and their families, and appropriate for socio-economic development.
2. Statutory minimum wages per month or per hour vary according to regions.
3. Statutory minimum wages shall be adjusted according to minimum living standards of workers and their families; the relation between statutory minimum wages and usual salaries; consumer price index, economy growth rate; labor supply and demand, productivity and financial capacity of enterprises.
4. The Government shall elaborate this Article; decide and announce the statutory minimum wages on the basis of proposals of National Salary Council.
Thus, statutory minimum wages shall be adjusted according to the minimum living standards of workers and their families; the relation between statutory minimum wages and usual salaries; consumer price index, economic growth rate; labor supply and demand, productivity, and financial capacity of enterprises.
Accordingly, statutory minimum wages paid by enterprises to employees in Vietnam must be equal to or higher than the regional minimum wage as prescribed by law.
What are the rules of salary payment for employees in Vietnam?
Pursuant to Article 94 of the Labor Code 2019 on salary payment rules as follows:
- 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.
- Employers must not restrict or interfere with their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.
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