Article 97 of the Labor Code 2019 stipulates that employees who are paid by hours, days, or weeks shall be paid after the completed hours, days, or weeks of work, or as mutually agreed by both parties, but not exceeding 15 days in a lump sum. In the case of employees who are paid monthly, they shall be paid once a month or every half month. The payment period must be agreed upon by both parties and must be fixed at a periodic time. In the case of employees who are paid based on products or piecework, the payment shall be made as agreed upon by both parties; if the work is required to be performed over several months, a monthly advance payment shall be made based on the volume of work completed in the month.
In the event that, due to force majeure, the employer has taken all necessary measures but cannot pay the salary on time, it must not be delayed for more than 30 days; if the salary is delayed for 15 days or more, the employer must compensate the employee with an amount at least equal to the interest on the delayed amount calculated based on the deposit interest rate for a one-month term of the bank where the employer has opened an account to pay salaries to employees, announced at the time of salary payment.
Provisions of labor law regarding salary payment and forms of salary payment:
Article 95 of the Labor Code 2019 stipulates that the employer shall pay the employee based on the agreed salary, labor productivity, and quality of work performance. The salary shall be recorded in the labor contract and paid to the employee in Vietnamese Dong. In the case of foreign employees in Vietnam, it can be paid in foreign currency. Every time the salary is paid, the employer must inform the employee of the payroll, which clearly states the salary, overtime wages, night-shift wages, deductions (if any), and other relevant information.
Regarding forms of salary payment, Article 96 of the Labor Code 2019 stipulates that the employer and employee may agree on the form of salary payment based on time, product, or piecework. The salary can be paid in cash or transferred to the personal account of the employee opened at a bank. In the case of salary payment through the employee’s personal account opened at a bank, the employer must bear any fees related to the account opening and salary transfer.
