What is salary payment time for employees who receive a piece rate in Vietnam?

What is salary payment time for employees who receive a piece rate in Vietnam?

Pursuant to Article 97 of the 2019 Labor Code, salary payment time is 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, according to the above provisions in Vietnam, your company and the employee can agree on the salary payment time when calculating piece rate.

What is calculation of night overtime pay for employees receiving piece rate pay in Vietnam?

Pursuant to Article 57 of Decree 145/2020/ND-CP, there are regulations on night overtime pay as follows:

Employees who work overtime at night as prescribed in Clause 3 Article 98 of the Labor Code will receive overtime pay as follows:

1. For employees receiving time-based salaries:

Night overtime pay

=

Normal hourly salary

x

At least 150% or 200% or 300%

+

Normal hourly salary

x

At least 30%

+

20%

x

Daytime hourly salary of a normal working day, during weekly breaks, public holidays or paid leave

x

Extra night work hours

Where:

a) Normal hourly salary is determined in accordance with Point a Clause 1 Article 55 of this Decree;

b) Daytime hourly salary of a normal  working day, during weekly breaks, public holiday or paid leave is determined as follows:

b1) Daytime hourly salary of a normal  working day shall be at least 100% of the normal hourly salary if the employee does not work overtime during the daytime of the same day (before the night work); at least 150% of the normal hourly salary  if the employee works overtime during the daytime of the same day (before the night work);

b2) Daytime hourly salary during weekly breaks shall be at least 200% of the normal hourly salary;

b3) Daytime hourly salary during public holidays or paid leave shall be at least 300% of the normal hourly salary.

2. For employees receiving piece rate pay:

Night overtime pay

=

Normal piece rate

x

At least 150% or 200% or 300%

+

Normal piece rate

x

At least 30%

+

20%

x

Daytime piece rate of a normal working day, during weekly breaks, public holidays or paid leave

x

Quantity of extra products during night work

Daytime piece rate of a normal working day, during weekly breaks, public holidays or paid leave is determined as follows:

a) Daytime piece rate of a normal working day shall be at least 100% of the normal piece rate if the employee does not work overtime during the daytime of the same day (before the night work); at least 150% of the normal piece rate  if the employee works overtime during the daytime of the same day (before the night work);

b) Daytime piece rate during weekly breaks shall be at least 200% of the normal piece rate;

c) Daytime piece rate during public holidays or paid leave shall be at least 300% of the normal piece rate.

According to this Article, night overtime pay for employees receiving piece rate pay in Vietnam will be made in accordance with the above regulations.

Best Regards!