The current Labor Code has regulations on wages and forms of payment for employees as well as regional minimum wages. Is it mandatory by law to pay wages to employees in Vietnamese Dong? Follow the article below of Lawyer X for more information!
Legal grounds
- Decree 145/2020/ND-CP;
- Labor Code 2019.
Is it mandatory by law to pay wages to employees in Vietnamese Dong?
According to the provisions of Article 95 of the Labor Code 2019 as follows:
The employer pays the employee based on the agreed salary, labor productivity and quality of work performance.
The salary stated in the labor contract and the salary paid to the employee is in Vietnam Dong, in case the employee is a foreigner in Vietnam, it may be in a foreign currency.
Each time a salary is paid, the employer must notify the employee’s salary statement, clearly stating the salary, overtime pay, night-time wage, content and amount of withholding. minus (if any).
Thus, except for the case that the employee is a foreigner in Vietnam, the salary can be paid in foreign currency. For the Vietnamese employee, the salary stated in the labor contract and the salary paid to the employee is the same denominated in Vietnamese Dong.
How is the employee’s salary determined?
Pursuant to Clause 1, Article 90 of the Labor Code 2019, the salary is as follows:
“1. Wage is the amount of money that the employer pays the employee under an agreement to perform the job, including the salary according to the job or title, salary allowance and other supplements.
- The salary according to the job or title must not be lower than the minimum wage.
- Employers must ensure equal pay, regardless of gender, to employees doing work of equal value.
Thus, in principle, salary is the amount paid to employees to perform the work as agreed, including salary, salary allowances and other supplements.
How is the form of payment of wages for employees regulated?
Pursuant to Article 54 of Decree 145/2020/ND-CP detailing instructions for Article 96 of the Labor Code 2019 stipulates the form of salary payment as follows:
“The form of salary payment according to Article 96 of the Labor Code is specified as follows:
- Based on the nature of the job and production and business conditions, the employer and the employee shall agree in the labor contract the form of time-based, product-based and lump-sum salary payment as follows: after:
a) Time-based wages are paid to employees who are paid by time, based on the working time of the month, week, day and hour as agreed in the labor contract, specifically:
a1) Monthly salary paid for one month of work;
a2) Weekly wages are paid for a working week. In case the labor contract agrees on a monthly salary, the weekly salary is determined by the monthly salary multiplied by 12 months and divided by 52 weeks;
a3) Daily wages are paid for one working day. In case the labor contract agrees on a monthly salary, the daily salary is determined by the monthly salary divided by the number of normal working days in a month according to the provisions of law selected by the enterprise. In case the labor contract agrees on weekly wages, the daily salary is determined by the weekly salary divided by the number of working days in the week as agreed in the labor contract;
a4) Hourly wages are paid for an hour worked. In case the labor contract agrees on a monthly, weekly or daily salary, the hourly wage is determined by the daily salary divided by the number of normal working hours in a day as prescribed in Article 105 of the Labor Code. .
b) Product-based wages are paid to employees who receive product-based wages, based on the level of completion of quantity and quality of products according to labor norms and assigned product unit prices.
c) A flat salary is paid to employees who enjoy a fixed salary, based on the volume and quality of work and the time it takes to complete.
- The employee’s salary according to the forms of salary payment specified in Clause 1 of this Article shall be paid in cash or through the employee’s personal account opened at a bank. Employers must pay fees associated with opening an account and transferring wages when choosing to pay wages through an employee’s personal account.”
Is the employer required to increase the employee’s annual salary?
Normally, salary, time of salary increase, salary increase regulations, salary-related policies, etc. will be agreed upon by the parties in the labor contract or refer to documents such as internal labor regulations. , collective labor agreement, ..
In addition, Clause 6, Article 3 of Circular 10/2020/TT-BLDTBXH stipulates:
“6. Salary raise and raise regime: according to the agreement of the two parties on the conditions, time and salary level after the promotion or salary increase or comply with the collective labor agreement and regulations of the employer. .
Accordingly, the salary increase will be done according to the agreement of the parties or the collective labor agreement and the company’s regulations.
Thus, there is no regulation that requires the company to increase the annual salary for employees.
Whether to increase wages or not, at what time will be based on the agreement of the parties in the contract or collective labor agreement and separate regulations issued by the employer.
Note, Clause 2, Article 90 of the Labor Code 2019 above requires that the minimum salary according to the job or title paid to employees is not allowed to be lower than the regional minimum wage.
Thus, when the regional minimum wage increases, those who are receiving the regional minimum wage will also be increased (for example, the parties agree that the salary will be the regional minimum wage, or the coefficient with the minimum wage). region,…)
In case the salary is higher than the minimum wage in the new region, and there is an agreement on an annual salary increase in the labor contract or in the collective labor agreement, the company’s regulations record the content of the salary increase. In this case, employees need to carefully review the salary increase conditions to determine if they have met the conditions or not.
Related article:
- Change the type of labor contract in Vietnam
- Business conditions and procedures for licensing labor export in Vietnam
- Policy on the salary of employees by the law of Vietnam
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Frequently asked questions
According to Article 128 of the Labor Code 2019 stipulates that the employer must give the employee an advance and full advance of the salary for the employee during the period of temporary suspension of work as prescribed by law.
Employers must comply with the provisions of law on the formulation and publication of salary scales and tables, specifically:
– Publicly announce at the workplace before implementation: salary scale, salary table; labor level; bonus regulations;
Building salary scale, salary table or labor norms; does not apply the trial labor rate before officially promulgating;
– Must consult with the representative organization of employees at the grassroots level for the place where there is an organization representing workers at the grassroots when formulating the salary scale and salary table; labor norms; bonus rules.
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