From January 01, 2021, several new regulations related to employees' wages according to the Labor Code 2019 of Vietnam will take effect. According to this Code, enterprises have to pay transfer fees if they pay wages via ATM cards to employees.
Article table of contents
Specifically, Article 96 of the Labor Code 2019 of Vietnam stipulates salary payment forms as follows:
“Article 96. 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.”
Thus, according to the above provision, from 2021 (official effective date of the Labor Code 2019 of Vietnam), enterprises are responsible for paying the employee's salary in cash or via the employee's personal account opened at a bank (salary payment via ATM card). Concurrently, in case of bank transfer, the employer shall pay the costs of account opening and transfer (new provision compared to previous regulation).
Previously, according to Article 94 of the Labor Code 2012 of Vietnam, wages may be paid by cash or via the employee’s personal account opened at a bank. In case the wage is paid into the bank account, the employer shall negotiate with the employee on any fees related to the opening and maintenance of the account.
It can be seen that currently, fees related to account opening and salary transfer will be agreed upon by the enterprise and the employee, so it is likely that the employee's interests will be affected. Thus, the Labor Code 2019 of Vietnam has specified that enterprises have full responsibility for paying fees related to bank account opening for salary payment and salary transfer fees, which ensures the interests of employees, avoiding the situation that employees bear all costs related to opening accounts and transferring wages.
In addition to new regulation related to salary payment via ATM card, the Labor Code 2019 of Vietnam also stipulates new points related to employees’ wages as follows:
- Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee. Concurrently, employers must not restrict or interfere with their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.
- Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, night shift pay and deductions (if any).
- Enterprises give bonuses to employees not only in cash, but also property or in other forms based on production and business results, and the level of work completion of employees.
Ty Na
- Key word:
- Labor Code 2019
