REGULATIONS OF SALARY IN THE VIETNAMESE LAW

Legal basis:

– Labour Code 2019.

1. Definition of salary

– A salary is an amount the employer pays the employee under an agreement for work performed by the latter. Salary equals base salary plus allowances and other additional amounts.

– The employer shall pay the employee on the basis of the agreed salary, productivity and work quality. The salary written in the employment contract and the salary paid in reality shall be VND. However, in case the employee is a foreigner working in Vietnam, the employer can pay in other currency.

– Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, night-shift pay and deductions.

2. Salary payment rules

– Employers shall directly, fully and punctually pay salaries to their employees. 

– 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.

3. Salary payment time

– An employer who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties.

– An employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively. The payment time shall be periodic and agreed upon by both parties.

– An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.

– In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 01-month interest rate quoted by the bank at which the employee’s salary account is opened.

In labor relations, salary is one of the core issues that both parties must pay attention to. In Vietnam, labor disputes often arise from wages and salaries. Therefore, employers and employees need to pay attention to legal regulations on wages during the implementation of labor relations.