01:10 | 29/10/2022

What are the salary payment forms in Vietnam? What is the salary payment time for employees in case of force majeure event?

May I ask what the salary payment forms in Vietnam are? What is the salary payment time for employees in case of force majeure event? - Question of Mr. Binh (Hai Phong)

What are the salary payment forms in Vietnam?

According to Article 95 of the 2019 Labor Code of Vietnam on salary payment as follows:

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).

At the same time, according to the provisions of Article 96 of the 2019 Labor Code of Vietnam on the salary payment forms as follows:

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, according to regulations, 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.

What are the salary payment forms in Vietnam? What is the salary payment time for employees in case of force majeure event?

What are the salary payment forms in Vietnam? What is the salary payment time for employees in case of force majeure event? (Image from the Internet)

What is the salary payment time for employees in case of force majeure event?

Pursuant to the provisions of Article 97 of the 2019 Labor Code of Vietnam on the salary payment time as follows:

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, 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.

What are the regulations on the salary payment through the contractor’s foreman?

According to Article 100 of the 2019 Labor Code of Vietnam on the salary payment through the contractor’s foreman as follows:

Salary payment through the contractor’s foreman
1. Where a contractor’s foreman or equivalent intermediary is employed, the employer who is the principal owner must maintain a list of the names and addresses of such persons accompanied by a list of their employees, and must ensure that their activities comply with the law on salary payment and occupational safety and health.
2. In case the contractor’s foreman or equivalent intermediary fails to pay or pays insufficient wages to the employees and does not ensure other rights and interests of the employees, the employer who is the principal owner shall be responsible for salary payment and for ensuring the rights and interests of the employees.
In this case, the employer who is the principal owner has the rights to request compensation from the contractor’s foreman or equivalent intermediary, or to request the competent authority to resolve the dispute in accordance with the provisions of the law.

Thus, the salary payment through the contractor’s foreman is regulated as above.

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