How much is the maximum fine for companies delaying salary payments to employees?
According to Clause 2, Article 16 of Decree No. 28/2020/ND-CP, fines for employers who commit any of the following acts of late salary payment are stipulated as follows:
From 5,000,000 VND to 10,000,000 VND for violations involving 01 to 10 employees;
From 10,000,000 VND to 20,000,000 VND for violations involving 11 to 50 employees;
From 20,000,000 VND to 30,000,000 VND for violations involving 51 to 100 employees;
From 30,000,000 VND to 40,000,000 VND for violations involving 101 to 300 employees;
From 40,000,000 VND to 50,000,000 VND for violations involving 301 or more employees.
Additionally, employers are required to pay the full amount of overdue wages plus the interest on the delayed or underpaid amount. The interest rate is calculated based on the highest demand deposit interest rate announced by state-owned commercial banks at the time of the penalty (Point a, Clause 5 of the above Code).
This penalty applies to individual employers, while companies will face double the fine (Clause 2, Article 5 of the above Decree). Thus, a company could be fined up to 100 million VND for late salary payments to employees.
Respectfully!
