Is it permissible for employers to pay salary multiple times for employees, who receives a monthly salary in Vietnam?

Is it permissible for employers to pay salary multiple times for employees, who receives a monthly salary in Vietnam?

Pursuant to Article 97 of the Labor Code in 2019 stipulating salary payment time in Vietnam 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.

As regulations above, an employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively.

Therefore, the maximum number of times to pay salary is 2 times in a month. The payment time shall be periodic and agreed upon by both parties.

In Vietnam: Who shall pay transfer fees in case salary is paid multiple times in a month?

Pursuant to Article 54 of the Decree 145/2020/NĐ-CP stipulating salary payment forms 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, the employers shall pay transfer fees in case salary is paid multiple times in a month.

What are regulations on suspension pay in Vietnam?

Pursuant to Article 99 of the Labor Code in 2019 stipulating regulations on suspension pay in Vietnam as follows:

In case of a suspension of work, the employee shall receive a suspension pay as follows:

1. If the suspension is at the employer’s fault, the employee shall be paid the full salary under the employment contract;

2. If the suspension is at the employee’s fault, the employee shall not receive the salary. If this leads to suspension of work of other employees in the same unit, they shall be paid an amount not smaller than the statutory minimum wages;

3. In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:

a) If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;

b) If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.

Above are regulations on suspension pay in Vietnam.

Best regards!