Cases eligible for suspension pay in Vietnam

Cases eligible for suspension pay in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1. Cases eligible for suspension pay in Vietnam

According to Article 99 of the Labor Code 2019, in case of a suspension of work, the employee shall receive a suspension pay as follows:

- If the suspension is at the employer’s fault, the employee shall be paid the full salary under the employment contract;

- If the suspension is at the employee’s fault, the employee shall not receive the salary. If this leads to suspension of work of other employees in the same unit, they shall be paid an amount not smaller than the statutory minimum wages;

- In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:

+ If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;

+ If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.

2. Salary payment forms in Vietnam 

Salary payment forms according to Article 54 of Decree 145/2020/ND-CP are as follows:

- The form of salary payment shall be specified in the employment contract on the basis of consensus between the employer and the employee. To be specific:

+ Time-based salary shall be paid to the employee monthly, weekly, daily or hourly as agreed in the employment contract. To be specific:

++ Monthly salary is the salary for a month’s work;

++ Weekly salary is the salary for a week’s work. In case monthly salary is specified in the employment contract, the weekly salary equals (+) the monthly salary multiplied by (x) 12 months and divided by (:) 52 weeks;

++ Daily salary is the salary for a days’ work. In case monthly salary is specified in the employment contract, the daily salary equals (+) the monthly salary divided by (:) the number of normal working days in a month as decided by the employer. In case weekly salary is specified in the employment contract, the daily salary equals (+) the weekly salary divided by (:) the number of working days in a week as specified in the employment contract;

++ Hourly salary is the salary for an hour’s work. In case monthly, weekly or daily salary is specified in the employment contract, the hourly salary equals (+) the daily salary divided by (:) the number of normal working hours in a day as prescribed by Article 105 of the Labor Code.

+ Piece rate pay is paid to piece workers according to the quantity and quality of products, productivity norms and unit prices of the products.

+ Fixed salary is paid according to the quantity and quality of works and time needed for completion of these works.

- Payment of salaries in the forms specified in Clause 1 of Article 54 of Decree 145/2020/ND-CP shall be made transferred to the employees’ bank accounts.

In the latter case, the employers shall pay the fees for opening accounts and transferring salaries.

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