Pay is always a matter of concern to many employees, because this is the core value of the labor relationship between the employee and the employer. So, how are new regulations on salary payment according to the Labor Code 2019 of Vietnam?
Article table of contents
From the officially effective date of the Labor Code 2019 of Vietnam (January 01, 2021), salary payment to employees has 04 important new points as follows:
Firstly, there are 03 basis for salary payment to employees, which are the agreed salary, productivity and work quality.
Secondly, the salary written in the employment contract and the salary paid in reality shall be VND, unless the employee is a foreigner working in Vietnam.
Thirdly, 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).
Fourthly, in case of bank transfer, the employer shall pay the costs of account opening and transfer.
The first 3 contents are completely new regulations, which are first recognized in the Labor Code 2019 of Vietnam. The employer's obligation to pay fees related to account opening and salary transfer is an amended provision. According to Article 94 of the Labor Code 2012 of Vietnam:
Wage 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.
According to this provision, the determination of the person paying the fees related to fees related to the opening and maintenance of the account can be renegotiated, but with the revised provisions in the Labor Code 2019 of Vietnam, the person paying these costs is determined to be the employer. This is also seen as a benefit for employees.
In addition to the above-mentioned new provisions, the salary payment to employees still adheres to the following principles:
- An employee’s wage must not be lower than the region-based minimum wages.
The current region-based minimum wages are specified in Decree No. 90/2019/NĐ-CP of Vietnam’s Government as follows:
+ Region I: VND 4,420,000/month.
+ Region II: VND 3,920,000/month.
+ Region III: VND 3,430,000/month.
+ Region IV: VND 3,070,000/month.
- An employee must be paid with a full wage in a direct and timely manner.
- 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. This is also a new provision of the Labor Code 2019 of Vietnam.
The above are new points about salary payment that both employees and employers need to pay attention to since the effective date of the Labor Code 2019 of Vietnam, which will replace the Labor Code 2012.
Thuy Tram
- Key word:
- Labor Code 2019
