What are forms of payment of salary of employees in Vietnam?

What are forms of payment of salary of employees in Vietnam?

Pursuant to Article 91 of the Labor Code in 2019 stipulating salary payment forms as follows:

Salary payment forms

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.

Therefore, according to the above regulations, the company or employer has the right to negotiate and decide on the form of salary payment for employees.

Currently, the salary of employees is paid by employers in two forms:

- In cash or

- Payed through the employee's personal bank account.

What are forms of payment of salary of employees in Vietnam? - Source: Internet

What are regulations on salary payment time for employees in Vietnam?

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

Do employees in Vietnam get paid when their labor contract is suspended?

Pursuant to Article 30 of the Labor Code in 2019 stipulating suspension of an employment contract as follows:

Suspension of an employment contract

1. Cases of suspension of an employment contract:

a) The employee is conscripted into the army or militia;

b) The employee is held in custody or detention in accordance with the criminal procedure law;

c) The employee is sent to a reformatory school, drug rehabilitation center or correctional facility;

d) The female employee is pregnant as specified in Article 138 of this Code;

dd) The employee is designated as the executive of a wholly state-owned single-member limited liability company;

e) The employee is authorized to representative the state investment in another enterprise;

g) The employee is authorized to represent the enterprise’s investment in another enterprise;

h) Other circumstances as agreed by both parties.

2. During the suspension of the employment contract, the employee shall not receive the salary and benefits specified in the employment contract, unless otherwise agreed by both parties or prescribed by law.

As regulations above, during the suspension of the employment contract, the employee shall not receive the salary and benefits specified in the employment contract.

If both parties have agreement on receiving the salary during the suspension of the employment contract, the employee can still receive the salary.

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