Is it required to declare note specifying the salary if salary is paid via ATM in Vietnam?

Is it required to declare note specifying the salary if salary is paid via ATM in Vietnam?

Currently, my company still transfers salaries via ATM cards to employees. However, when paying salary via ATM, do we have to declare salary statements for employees?

Answer: According to Article 95 of the 2019 Labor Code, regulations on salary payment are as follows:

1. The employer shall pay the employee on the basis of the agreed salary, productivity and work quality.

2. The salary written in the employment contract and the salary paid in reality shall be VND, unless the employee is a foreigner working in Vietnam.

3. Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay and deductions (if any).

Currently, salary payment via ATM card (personal account) of employees will depend on the agreement between the company and the employee. And the labor law also does not distinguish between salary statement notices that only apply to cash payments. Therefore, if your company pays salaries via ATM card, you must also prepare a payroll according to regulations in Vietnam.

Does the company have to pay employees at the beginning of month in Vietnam?

Let me ask, my business has just been established. When starting to recruit employees into the company, can the company agree on the time the employees receive their salaries? Or do I have to pay at the beginning of the month?

Answer: According to Article 97 of the 2019 Labor Code, regulations on salary payment time are 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 regulations in Vietnam, the date of salary payment will be agreed upon by both parties. Therefore, the company can completely agree with the employee in the labor contract on the salary receipt date at the beginning or end of the month. However, the salary payment time must be fixed at a specific cyclical time.

Is it required to declare note specifying the salary if salary is paid via ATM in Vietnam? (Image from the Internet)

Does the company have to pay salary when suspending work in Vietnam?

I have a small factory with 20 workers. The other day, I let my laborer take a day off to fix the electricity because I accidentally damaged it. So do I have to pay my workers that day?

Answer: Pursuant to Article 99 of the 2019 Labor Code, regulations on cases of work suspension, employees are paid 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.

So, according to the information you provided, the reason you let the workers rest is because you damaged the electrical system. Therefore, according to the above regulations in Vietnam, you are still responsible for paying the full salary according to the labor contract to the employee who suspends working.

Best regards!