Regulations on Wage Deductions: Is it Legal to Deduct 50% of Wages for Damaged Machinery Caused by Employees?
Regulations on Salary Deduction?
Regarding the new regulations on salary deduction, may I ask: How is salary deduction regulated according to the Labor Code 2019? Thank you!
Answer: Article 102 of the Labor Code 2019 regulates salary deduction as follows:
The employer may only deduct an employee's salary to compensate for damages caused by the employee damaging tools, equipment, or assets of the employer as stipulated in Article 129 of this Code.
The employee has the right to know the reason for the salary deduction.
The monthly salary deduction must not exceed 30% of the employee's actual monthly salary after mandatory social insurance, health insurance, unemployment insurance contributions, and personal income tax have been deducted.
Deducting 50% of Salary Due to Employee Damaging Machinery, Is It Legal?
I am a worker in the export garment industry. Last month, I damaged a company sewing machine, and the repair cost was 5 million VND. My actual received salary after insurance deductions is 10 million VND, but this month I only received 5 million VND because the accountant said it was deducted for damaging the sewing machine. Is the accountant's action legal?
Answer: Article 102 of the Labor Code 2019 regulates salary deduction as follows:
The employer may only deduct an employee's salary to compensate for damages caused by the employee damaging tools, equipment, or assets of the employer as stipulated in Article 129 of this Code.
The employee has the right to know the reason for the salary deduction.
The monthly salary deduction must not exceed 30% of the employee's actual monthly salary after mandatory social insurance, health insurance, unemployment insurance contributions, and personal income tax have been deducted.
According to the regulations, the monthly salary deduction must not exceed 30% of the employee's actual monthly salary after mandatory social insurance, health insurance, unemployment insurance contributions, and personal income tax have been deducted. Therefore, in your case, deducting your salary by 5 million VND (50%) is not conformable.
You can contact the accountant for resolution; if not resolved, you can file a complaint to the company's director to protect your rights.
Best regards!
