regulations on wages paid to employees in Vietnam, regulations on wages paid to employees, wages paid to employees in Vietnam, regulations on wages in Vietnam,

Regulations on Wages Paid to Employees in Vietnam

Wages are a critical factor in the labor relationship, reflecting the value of the employee’s work and serving as a basis to ensure their rights throughout the employment process. In Vietnam, labor law clearly defines the payment of wages to employees, from minimum wages to allowances and bonuses, in order to protect employees’ legitimate rights.

This article clarifies the legal regulations related to wages, helping both employees and employers understand the rules regarding wage levels and the obligations related to wage payments in the Vietnamese labor environment.

Wages

Wages are the amounts that the employer pays to the employee as agreed, in exchange for work performed. This includes wages according to the job or position, allowances, and other supplementary payments.

The wage for the job or position should not be lower than the minimum wage. Employers must ensure equal pay, without gender discrimination, for employees performing the same type of work with equal value.

Minimum Wage

The minimum wage is the lowest wage that can be paid to an employee performing the simplest work under normal working conditions, ensuring a minimum standard of living for the employee and their family, in line with the socio-economic development conditions. The minimum wage is determined by region and is set on a monthly or hourly basis.

The minimum wage is adjusted based on factors such as:

  • The minimum living standards for employees and their families.
  • The relationship between the minimum wage and market wages.
  • The consumer price index, economic growth rate.
  • Supply and demand for labor, employment, and unemployment rates.
  • Labor productivity and the financial capability of businesses.

Wage Scales, Wage Tables, and Labor Norms

Employers are required to establish wage scales, wage tables, and labor norms as a basis for hiring, utilizing labor, negotiating the wages for jobs or positions listed in the labor contract, and paying wages to employees.

The labor norms must be at a level that most employees can meet without extending regular working hours, and they must be tested before being officially applied.

Employers must consult with employee representative organizations at the workplace, where such organizations exist, when creating wage scales, wage tables, and labor norms.

Wage scales, wage tables, and labor norms must be publicly posted at the workplace before they are implemented.

Wage Payment Principles

Employers must pay wages directly, fully, and on time to employees. In cases where an employee cannot receive their wage directly, the employer may pay the wage to a person legally authorized by the employee.

Employers are not allowed to restrict or interfere with the employee’s freedom to spend their wages; they cannot force the employee to use their wages to purchase goods or services from the employer or from other entities designated by the employer.

The regulations regarding wages in Vietnam not only ensure the financial rights of employees but also contribute to maintaining fairness and transparency in labor relationships. Compliance with wage regulations, including ensuring the minimum wage, allowances, bonuses, and timely payments, is crucial to creating a stable and sustainable working environment.

Therefore, both employees and employers need to be aware of and comply with the wage regulations to protect their legitimate rights and foster a harmonious labor environment.

ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.

***Other service of ASL LAW – full service Vietnam law firm *** 
Retainer service to enterprisesInternational trademark registration
Oversea investment consultancy for Vietnamese enterprisesPatent in Vietnam
PCT Patent in VietnamPCT Patent Vietnam Entry
Intellectual property services (Vietnam IP Firm)Vietnam Patent Agent
Trademark in VietnamVietnam Patent Firm
Vietnam Trademark AgentPatent translation in Vietnam
How to register trademark in VietnamVietnam Patent Translation Agent
Copyright in VietnamVietnam IP Firm
Vietnam TrademarkVietnam IP Agent
Notes to company formation in VietnamM&A
How to open company in VietnamBanking & financial services
Open representative office in VietnamContract consultancy
Establish company in VietnamEmployment and labor
Corporate services in VietnamLitigation and dispute resolution
Vietnam Law FirmFranchise in Vietnam
Vietnam Antidumping Law FirmVietnam Franchise registration
Vietnam countervailing law firmVietnam Business Law Firm
Vietnam Real estate law firmVietnam construction law firm
Law firm in HanoiLaw Firm in Ho Chi Minh
Contact Me on Zalo
+84982682122
WhatsApp chat