Cases in which employee allow to receive a salary advance in Vietnam?

1. What is salary?

According to the provisions of Article 90 of the Labor Code 2019, salary is an amount the employer pays the employee under an agreement for a work performed by the latter. Salary equals (=) base salary plus (+) allowances and other additional amounts.

The base salary must not fall below the statutory minimum wages.

Employers shall pay salaries fairly without discrimination against genders of employees who perform equal works.

Cases in which employee allow to receive a salary advance in Vietnam? (Internet image) 

2. Cases in which employee allow to receive a salary advance in Vietnam?

According to the provisions of the Labor Code 2019, an employee is entitled to a salary advance in one of the following cases:

- Salary by product, by contract, by amount of work done and working for many months:

Specifically, Clause 3, Article 97 of the Labor Code 2019 stipulates that 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.

- Advance salary as agreed:

According to Clause 1, Article 101 of the Labor Code 2019, an employee may receive an interest-free salary advance in accordance with conditions agreed on by the two parties.

- Performing duties of citizens

Clause 2, Article 101 of the Labor Code 2019 stipulates that the employer must make the advance payment to the employee for the number of days the employee temporarily leaves his/her work in order to perform duties of citizens for a period of 01 week or longer.

An employee who is conscripted in accordance with the Law on Conscription may not receive salary advance.

- Annual leave

According to Clause 3, Article 101 of the Labor Code 2019, ưhen taking annual leave, an employee shall receive an advance payment of at least salary for the entitled days of leave.

- Work suspension

Pursuant to Article 128 of the Labor Code 2019, during the working process, the employee violates the labor discipline but the case needs time to verify and clarify, the employer has the right to suspend the employee. During the period of work suspension, the employee is allowed to ask for salary advance.

3. What is the maximum salary advance for an employee in Vietnam?

Depending on the case, the maximum salary an employee can advance will be different, specifically:

- In case of receiving salary by product, by contract, by amount of work done and working for many months, the employee is entitled to an advance of the maximum salary according to the volume of work performed in the month.

- In case of agreement, the maximum salary advance will be mutually agreed upon by the parties.

- In case of performing duties of citizens, the employee is entitled to an advance salary corresponding to the number of days the employee is temporarily absent from work but must not exceed 01 month's salary according to the labor contract and the employee must pay the salary in advance. pay the advance amount.

- In case of annual leave, the employee is entitled to an advance at least equal to the salary of the days off.

- In case of suspension of work, the employee is entitled to an advance of 50% of the salary before being suspended from work.

4. What are the fines for failing to make or insufficiently making advance payments to employees who temporarily leave their works in Vietnam? 

According to the provisions of Clause 2, Article 17 of Decree 12/2022/ND-CP, the employer failing to make or insufficiently making advance payments to employees who temporarily leave their works in accordance with regulations of law shall be fined as follows:

- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the violation involves 01 - 10 employees;

- A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed if the violation involves 11 - 50 employees;

- A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 51 - 100 employees;

- A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed if the violation involves 101 - 300 employees;

- A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed if the violation involves 301 employees or more.

Note: Clause 1, Article 6 of Decree 12/2022/ND-CP stipulates the above-mentioned fine levels applicable to individuals. The fine level for organizations is 2 times higher than that for individuals.

Nhu Mai

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