31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Jan 02, 2015 / 10:31

Vietnamese regulations on wages

Paying wages to employees is one of the most basic obligations of the employer. However in principle, forms of wage payment as well as payroll calculation methods in several cases still often confuse enterprises.

Based on the provisions of the Labor Code, a wage is monetary compensation which is paid by an employer to an employee in exchange for doing a job as agreed by the two parties, including a wage amount based on the work or title, wage allowance(s) and other additional payments as stated in the labor contract.

1.    Probation wage:
The wage for an employee during probation period is required to be agreed by the two parties but must be at least 85% of the wage for the job.

2.    Wage for overtime work:
An employee’s wage for overtime work is calculated according to the wage unit or wage for his/her current job as follows:
a.     On normal days, at least equal to 150%;
b.    On weekends, at least equal to 200%;
c.     On public holidays and paid leave days, at least equal to 300%, excluding the wage for public holidays and paid leave days of employees receiving daily wages.

3.    Wage for night work (calculated from 22:00 until 06:00 of the next day):
An employee who performs night work must be paid with an additional amount at least equal to 30% of the wage calculated according to the wage unit or the wage for a job performed during normal workdays.

4.    Wage for overtime work at night:
An employee performing overtime work at night must be paid under the regulations on overtime and nighttime work. Aside from that, he/she must also be paid with an additional amount equal to 20% of the wage calculated according to the wage unit or the wage for a job performed during daytime.

5.    Wage in case of work suspension:
a.     In case an employee has to suspend working due to the fault of the employer, the employee is entitled to payment of the full wage;
b.    If due to the employee’s fault, he/she is not entitled to payment of wage; other employees in the same unit who also have to suspend the work are entitled to the wages as agreed upon by the two parties, provided that those wages are not lower than the regional minimum wage stipulated by the Government;
If due to power or water incidents rather than the fault of the employer, employees or for other objective reasons such as natural calamity, fire, dangerous epidemic, etc., or for economic reasons, the wage for work suspension must be agreed by the two parties but must not be lower than the regional minimum wage stipulated by the Government.