According to current regulations, enterprises are only allowed to deduct wages of employees to compensate for damage caused by damaging tools, equipment, and assets of enterprises. Therefore, In this case, what are the regulations on the employee salary deduction level in Vietnam?
Article table of contents
Labor Code 2019: Employee Salary Deduction level in Vietnam (Latest) (Illustration)
According to the provisions of Article 129 of Vietnam's Labor Code 2019, an enterprise may only deduct the employee's salary in the following 3 cases:
(1) An employee who causes damage to equipment or otherwise damages the employer’s assets
(2) An employee who loses the employer’s equipment or assets, or consumes the materials beyond the set limits
(3) An employee who consumes materials beyond the allowable limit
According to Clause 3, Article 102 of Vietnam's Labor Code 2019, any monthly deduction shall not exceed 30% of the net monthly salary of the employee, after the payment of compulsory social insurance, health insurance, unemployment insurance premiums and personal income tax.
The amount of compensation in each specific case is prescribed as follows:
- In the case of damage to tools, equipment, or other acts causing damage to the employer's property: compensation in accordance with the law or the employer's internal labor regulations.
- In case the employee causes non-serious damage due to negligence with a value not exceeding 10 months' regional minimum salary, compensation is at most 3 months' salary.
- In the event of loss of tools, equipment, property of the employer or other property assigned by the employer or consumption of materials exceeding the allowable limit, compensation must be made for partial or complete damage according to market prices or labor regulations. If there is a liability contract, compensation must be made according to the liability contract.
Note: Cases caused by natural disasters, fires, enemy sabotage, dangerous epidemics, disasters, and objective events that cannot be foreseen and cannot be remedied even though all necessary measures have been taken, and the ability to permit is not subject to compensation.
- Key word:
- Labor Code 2019 of Vietnam
