Does company have to pay monthly salary for employees at the beginning of the month in Vietnam?
My enterprise is newly established. Enterprise starts to recruit workers into the company, does the enterprise have an agreement on the employee's salary period? Or does enterprise have to pay it at the beginning of the month?
According to Article 97 of the Labor Code 2019, the payment term is as follows:
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, based on the above provisions, the payment time shall be agreed upon by both parties. Therefore, the company can fully agree with the employee in the labor contract on the date of receiving salary at the beginning of the month or the end of the month. However, the time of payment must be fixed at a specific cyclical time.
Best Regards!
