Cases in which Employees are Entitled to Salary Advances? What is the Interest Rate when Employees Take Salary Advances?
In which cases are employees entitled to salary advances?
I would like to ask: How many cases are there in which employees are entitled to salary advances according to the new regulations? Thank you.
Answer: According to the Labor Code 2019, there are 5 cases in which employees are entitled to salary advances:
- As agreed upon by both parties.
- When employees temporarily leave work to perform civic duties for 01 week or more.
- During annual leave.
- When employees are temporarily suspended from work.
- Employees paid by product or contract when the work takes multiple months to complete.
What is the interest rate applied when employees advance their salary?
I intend to advance my salary for personal needs. I am wondering if there is a stipulated interest rate in the law for this? Specifically: what is the appropriate rate?
Answer: Pursuant to Clause 1 Article 101 of the Labor Code 2019 regarding salary advances:
Employees are entitled to salary advances based on conditions agreed upon by both parties and they are not subject to interest.
Thus, it is clear that labor laws stipulate that the advanced amount will not be subject to interest. You can therefore negotiate with the employer on the amount to advance without worrying about interest.
Note: During annual leave, employees are entitled to advance an amount at least equal to their salary for the days of leave.
Can I advance my salary to purchase items for Tet?
Admin, can I ask if my company has not yet given the Tet bonus but I want to advance this month's salary to buy Tet items to send to my family? If possible, how much can I advance?
Answer: According to the provisions of Clause 1 Article 101 of the Labor Code 2019:
Employees are entitled to salary advances based on conditions agreed upon by both parties and they are not subject to interest.
Therefore, the issue of salary advances is an internal matter between the company and the employee, and the law does not intervene in this case.
Hence, if you wish to advance your salary to purchase Tet items, you may directly contact the department responsible for employee wages for resolution. Depending on the company's policies and regulations, you may advance an appropriate amount.
Best regards.
