COVID-19 Pandemic: How Long Can Businesses Delay Employee Wages?

Article 24, Decree 05/2015/ND-CP stipulates:

- Employees shall receive their wages directly, fully, and on time.

- In special cases such as natural disasters, fire, or other force majeure reasons where the employer has exhausted all remedial measures but is still unable to pay wages on time as agreed in the labor contract, the delay shall not exceed 01 month. The employer's obligation to pay additional compensation to the employee for delayed wage payment is specified as follows:

+ If the wage payment is delayed for less than 15 days, no additional payment is required;

+ If the wage payment is delayed for 15 days or more, an additional amount must be paid to the employee, at least equivalent to the delayed amount multiplied by the maximum 01-month term deposit interest rate published by the State Bank of Vietnam at the time of payment. If the State Bank of Vietnam does not stipulate a ceiling interest rate, it shall be calculated according to the 01-month term deposit interest rate of the commercial bank where the enterprise or agency has its transaction account, as announced at the time of payment.

=> Therefore, if an enterprise is affected by the Covid-19 pandemic and, despite all remedial efforts, is unable to pay wages on time, it may delay wage payment to employees, but not exceeding 01 month.

The above is the supporting content.

Sincerely!