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(Vietnam) Most of the workforce in every society is made of workers. The workers are manual laborers and they contribute to the founding of every stone and road in our society. Nonetheless, most of them still experience troubles with salary every month. So what is the right salary to be paid to the workers each month? What should workers pay attention to when receiving a salary?
The definition of worker in Vietnam
Up to now, the correct definition of “worker” has not been specified in any legal documents. However, workers still make up the majority of the labor market. In common sense, workers are unskilled laborers that earn money by manual labor through a labor contract.
In our society, many professions need workers such as construction, textiles, footwear, hydroelectricity, automobile manufacturing… Most of them often work in factories, manufacturing plants, industrial parks,… However, being the majority of our workforce, workers still encounter issues with their payment. So, what is the correct amount of money that workers have the right to receive according to the Labor Code?
Worker’s salary according to the Vietnam Labor Code 2019
According to the provisions of Article 90 of the Vietnam Labor Code 2019, a salary is an amount the employer pays the employee under an agreement for a work performed by the latter. Salary equals (=) base salary plus (+) allowances and other additional amounts.
Also according to this Article, the base salary must not fall below the statutory minimum wages.
Pursuant to Decree 145/2020/ND-CP, the regional minimum wage in 2021 will continue to apply according to the provisions of Article 5 of Decree 90/2019/ND-CP. This is the lowest level as the basis for enterprises and employees to negotiate and pay wages.
Therefore, it can be understood that the salary of workers in 2021 must be at least equal to:
– The level of 4,420,000 VND/month if the enterprise operates in the area in region I.
– The level of 3,920,000 VND/month if the enterprise operates in the area in Region II.
– The level of 3,430,000 VND/month if the enterprise operates in the area in Region III.
– The level of 3,070,000 VND/month if the enterprise operates in the area in Region IV.
Notes workers need to pay attention to when dealing with salary issues
To ensure their rightful benefits, when receiving wages, workers should pay attention to the following issues:
Receive salary via bank account: No salary transfer fee
This is a new regulation specified in Clause 2, Article 96 of the Labor Code 2019:
“Salary shall be paid in cash or transferred to the employee’s personal bank account. In the case of bank transfer, the employer shall pay the costs of account opening and transfer.”
Accordingly, in the case of paying salary through a worker’s bank account, the enterprise will have to pay fees related to account opening and salary transfer.
Previously, this fee was agreed upon by the parties, so in many cases, this fee will be deducted from the salary of the worker. Therefore, currently, if any business still deducts card processing fees or deducts transfers fees from workers’ wages, they are violating the regulations.
Employees have the right to receive a detailed list when collecting salary
Pursuant to Clause 3, Article 95 of the Labor Code 2019, every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay, and deductions (if any).
Every month, each worker will be deducted the following amounts:
- Insurance premium.
- Union fee if the worker joins the union.
- Personal income tax (if any).
Therefore, every month, when receiving wages, workers need to carefully check their salary records to see if the employers have paid them enough salary, have deducted wages correctly or not to protect their rightful benefits.
You can see a comprehensive article about this issue at Is it illegal for an enterprise to pay wages to employees without a detailed list in Vietnam?
Debt salary: Get paid extra interest
According to the principle of salary payment, enterprises must pay salaries to workers directly, fully, and on time.
However, according to Clause 4, Article 97 of the Labor Code 2019, in case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days.
In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.
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.
