Accordingly, how do businesses usually pay employees? Pay by time, by product, or by package…? The following article will give you information on the “Regulations on the form of salary payment under Vietnamese Law”.
- 2019 Labor Code
What is salary?
Hence Article 90 of the 2019 Labor Code; the salary regulations are as follows:
Article 90. Salary
- Wage is the amount that the employer pays the employee under an agreement to perform the work, including the salary according to the job or title, salary allowances, and other supplements.
- The salary according to the job or title must not be lower than the minimum wage
- Employers must ensure equal wages, regardless of gender, for employees doing work of equal value.
Accordingly, salary is the amount that the employer must pay to the employee; based on productivity, quality, work efficiency, and working conditions, determined according to a lawful agreement between the two parties in the labor contract or following the law.
Forms of salary payment
Following Article 96 of the 2019 Labor Law, the form of salary payment is as follows:
Article 96. Mode of payment of salary
- Employers and employees agree on the form of time-based, product- or contract-based payment.
- Salary is paid in cash or through the employee’s personal account opened at the bank.
In case of salary payment via an employee’s personal account opened at a bank, the employer must pay fees related to account opening and salary transfer. Accordingly, there are 3 forms of salary payment: time-based, product-based, and flat salary. Here, we go specifically into each form of payment:
Paying over time
Basically, time-based pay is a form of payment based on the working time of the employee. In fact, the working time of an employee includes the actual working time and the time counted as working time as prescribed by law or as agreed upon by the two parties. Salary over time includes annual salary, monthly salary, weekly salary, daily salary, and hourly salary.
In the form of time-based salary payment, the time-based salary is determined as follows:
- Monthly salary for a specified working month on the basis of an employment contract;
- Weekly wages for a specified work week on the basis of monthly wages; multiply by 12 months and divide by 52 weeks;
- Daily wages for a working day; are determined on the basis of the monthly salary divided by the number of normal working days in the month following the law selected by the enterprise.
- Hourly wages for a specified working hour on the basis of daily wages divided by the number of normal working hours in a day in accordance with the Labor Code.
Paying by contract
Thus, package salary is a form of salary payment based on volume and the quality of contracted work performed by employees. This form applies to jobs that cannot be assigned in detail; each part or in case you deliver each part, each part will not be effective; but the entire workload must be assigned; with specific quality requirements for employees to perform in a certain time.
Thank you for paying attention to our article on “Regulations on the form of salary payment under Vietnamese Law”. Hope that this article will help you solve your problem. In case you have any questions, please feel free to contact Lawyer X for quick and best legal services: +84846175333.