Vietnam: 03 methods of payment of wages for employees

According to Circular No. 23/2015/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, methods of payment of wages for employees include:

1. Time-based wages (monthly, weekly, daily, or hourly) are paid to employees for their actual working time by month, week, day, or hour. To be specific:

- Monthly wage is paid for one working month based on the employment contract;

- Weekly wage is paid for one working week, which equals (=) monthly wage multiplied by (x) 12 months and divided by (:) 52 weeks;

- Daily wage is paid for one working day which equals (=) monthly wage divided by (:) number of working days in the month (depending on each month of the solar calendar and employees have averagely 04 days off in a month) under regulations of law as selected by the enterprise;

- Hourly wage is paid for one working hour which equals (=) daily wage divided by (:) number of normal working hours in the day as prescribed in Article 104 of the Labor Code.

2. Piece rates are paid to employees who are paid by the piece (piece workers) according to the completion of work in terms of quantity and quality of products under the given norm and rate.

3. Fixed wage is paid to employees who agree to receive fixed wage according to the workload, work quality, and deadline for work completion.

Thus, depending on the characteristics of work and business conditions, employers shall decide on the method of wage payment that ensures wage matches the work performance, and encourages employees to improve work efficiency and performance. The selection or change of wage payment method must be written in employment contracts and collective bargaining agreement.

View more details at Circular No. 23/2015/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, effective from August 08, 2015.

Le Hai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE