In Vietnam: Do employees have to pay fees for opening bank accounts to receive salary?

In Vietnam: Do employees have to pay fees for opening bank accounts to receive salary?

Pursuant to Article 96 of the Labor Code in 2019 stipulating salary payment forms in Vietnam as follows:

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.

As regulations above, the employer shall pay the costs of account opening and transfer.

In Vietnam: Is it compulsory to pay salary on the 5th of every month?

Pursuant to Article 94 of the Labor Code in 2019 stipulating salary payment rules in Vietnam as follows:

1. Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.

2. Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.

As regulations above, it is not compulsory to pay salary on the 5th of every month in Vietnam. The time for payment shall depend on clauses in labor contract.

What are regulations on monthly, weekly and daily salary in Vietnam?

Pursuant to Article 54 of the Decree 145/2020/NĐ-CP stipulating regulations on monthly, weekly and daily salary in Vietnam as follows:

The forms of salary payment prescribed in Article 96 of the Labor Code are elaborated as follows:

1. The form of salary payment shall be specified in the employment contract on the basis of consensus between the employer and the employee. To be specific:

a) Time-based salary shall be paid to the employee monthly, weekly, daily or hourly as agreed in the employment contract. To be specific:

a1) Monthly salary is the salary for a month’s work;

a2) Weekly salary is the salary for a week’s work. In case monthly salary is specified in the employment contract, the weekly salary equals (=) the monthly salary multiplied by (x) 12 months and divided by (:) 52 weeks;

a3) Daily salary is the salary for a days’ work. In case monthly salary is specified in the employment contract, the daily salary equals (=) the monthly salary divided by (:) the number of normal working days in a month as decided by the employer. In case weekly salary is specified in the employment contract, the daily salary equals (=) the weekly salary divided by (:) the number of working days in a week as specified in the employment contract;

a4) Hourly salary is the salary for an hour’s work. In case monthly, weekly or daily salary is specified in the employment contract, the hourly salary equals (=) the daily salary divided by (:) the number of normal working hours in a day as prescribed by Article 105 of the Labor Code.

b) Piece rate pay is paid to piece workers according to the quantity and quality of products, productivity norms and unit prices of the products.

c) Fixed salary is paid according to the quantity and quality of works and time needed for completion of these works.

2. Payment of salaries in the forms specified in Clause 1 of this Article shall be made transferred to the employees’ bank accounts. In the latter case, the employers shall pay the fees for opening accounts and transferring salaries.

As regulations above, time-based salary shall be paid to the employee monthly, weekly, daily or hourly as agreed in the employment contract. To be specific:

Monthly salary is the salary for a month’s work;

Weekly salary is the salary for a week’s work. In case monthly salary is specified in the employment contract, the weekly salary equals (=) the monthly salary multiplied by (x) 12 months and divided by (:) 52 weeks;

Daily salary is the salary for a days’ work. In case monthly salary is specified in the employment contract, the daily salary equals (=) the monthly salary divided by (:) the number of normal working days in a month as decided by the employer. In case weekly salary is specified in the employment contract, the daily salary equals (=) the weekly salary divided by (:) the number of working days in a week as specified in the employment contract;

Best regards!