Interest Rate When an Employee Requests a Salary Advance: Is a Reason Needed for a Salary Advance?

Is a reason necessary for advance salary payment?

I would like a salary advance of 4 million VND to book a train ticket to go home for Tet. Is this possible? Do I need to provide a reason for the salary advance?

Answer: Pursuant to Clause 1, Article 101 of the Labor Code 2019, the regulation on salary advance is as follows:

Employees are entitled to salary advances under conditions agreed upon by both parties and the advance will not incur interest.

Accordingly, the amount of salary advance will be negotiated between the employee and the company; the law does not specify how much salary can be advanced.

Therefore, you can request a salary advance of 4 million VND to purchase a train ticket if you can agree with your company. The law does not require a reason for salary advance.

What is the interest rate for a salary advance for employees?

I intend to request a salary advance for personal needs. I am wondering if there is an interest rate specified by law for this? Specifically: what is the appropriate rate?

Answer: According to Clause 1 Article 101 of the Labor Code 2019, the regulation on salary advance is as follows:

Employees are entitled to salary advances under conditions agreed upon by both parties and the advance will not incur interest.

Thus, it can be seen that the labor law clearly stipulates that the salary advance will not accrue interest. Therefore, you can negotiate with the employer about the amount of the advance without having to pay interest.

Note: During annual leave, employees are entitled to an advance payment at least equal to their salary for the days off.

Yours sincerely!