I. Legal Basis

1. Definition of Salary

Salary refers to the amount of money paid by an employer to an employee according to an agreement to perform work, including salary based on the job or title, salary allowances, and other additional payments. Accordingly, employers pay salaries based on the agreed salary, labor productivity, and job performance quality. Salaries specified in the employment contract and paid to employees are in Vietnamese Dong. For foreign employees in Vietnam, employers may pay salaries in foreign currency. Each time salaries are paid, employers must provide a salary statement to the employees, detailing the salary, overtime pay, night work pay, and deductions.

2. Salary Payment Principles

Employers must pay salaries directly, fully, and on time to employees. Employers are not allowed to restrict or interfere with the employee’s discretion in spending their salary; they must not force employees to spend their salaries on purchasing goods or services from the employer or any other entities designated by the employer.

3. Minimum Wage

According to the Labor Code, the minimum wage is the lowest salary that employees are allowed to receive, which must not be less than the minimum wage set by the State. The minimum wage is classified by region, including Region 1, 2, 3, and 4, with Region 1 having the highest cost of living and Region 4 having the lowest. This classification helps protect employees’ rights and adjust wages according to the cost of living in different regions.

4. Salary Payment Period

Employees who are paid hourly, daily, or weekly should receive their wages after the respective hours, days, or weeks of work, or as a lump sum as agreed upon by both parties, but not later than 15 days from the end of the pay period. Employees who are paid monthly should receive their wages once a month or semi-monthly. The timing of salary payments should be agreed upon by both parties and established as a regular schedule. Employees who are paid based on output or contractual work should be paid according to the agreement, and if the work spans multiple months, they should receive monthly advances based on the work completed during the month.

In cases of force majeure where the employer has made every effort to remedy the situation but cannot pay salaries on time, the delay must not exceed 30 days. If the delay is 15 days or more, the employer must compensate the employee with an amount at least equal to the interest on the delayed payment, calculated at the 1-month term deposit interest rate published by the bank where the employer maintains the salary account at the time of payment.

In labor relations, salary is a core issue that both parties must pay attention to. In Vietnam, labor disputes often arise from salary and payment issues. Therefore, employers and employees need to be aware of legal provisions regarding salary during the implementation of labor relations.

II. Regulations on Working Hours

The Labor Code stipulates that working hours should not exceed 8 hours per day and 48 hours per week. In exceptional cases, such as jobs with special conditions, working hours may be adjusted according to specific regulations. If employees work overtime, the company must pay overtime at a higher rate than the basic salary. Overtime pay rates are specifically regulated for different times, including evenings, holidays, and weekends.

III. Basic Salary and Allowances

Basic salary is the amount employees receive before adding any allowances, bonuses, or other deductions. Allowances may include responsibility allowances, hazardous work allowances, seniority allowances, and other allowances depending on the company’s policy. These allowances help supplement and incentivize employees during their work.

IV. Salary Payment Regulations

Salaries must be paid at least once a month, according to the Labor Code. Companies are responsible for paying salaries on time as agreed in the employment contract. Salaries can be paid in cash or by bank transfer, and companies need to ensure that the payment method is safe and convenient for employees.

V. Responsibility for Salary

Employers must comply with salary regulations, ensuring employees’ salary rights and fulfilling obligations related to social insurance and health insurance as required by law. Conversely, employees are responsible for working according to the employment contract and company regulations to receive their salary as agreed.

VI. Salary Regulations in Special Circumstances

In cases where employees stop work or suspend their employment contract, the salary will be adjusted according to specific regulations in the employment contract or collective bargaining agreement. If employees are assigned to work elsewhere or travel for work, the salary and related allowances will be clearly agreed upon in the employment contract or company regulations.

VII. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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