Paying wage for the employees is one of the basis obligations of employers. However, the principle, paying forms, and way to calculate the wage of some special cases still make the enterprises misunderstanding.
According to the regulations of Labor Code, the wages is a monetary amount that paid by an employer to an emplpoyee to do a job as agreed, which includes a wage amount based on the works or title, wage allowance(s) and other additional payments that stated in the labor contracts.
Wage payment principle
- The wage that paid to the employees must not lower than the minimum wage determined by the Government.
- The wage must be paid to the employees based on labor productivity and quality of the work performed.
- The empoyers shall pay equal wages without gender-based discrimination to employees doing a job of equal value.
- The employers must pay the wage in fully, directly and timely manner. In special cases which an employer cannot pay a wage on time to an employee, the employer may not postpone the payment for more than 1 month and shall pay the employee with an additional amount at least equal to the deposit interest rate announced by the State Bank of Vietnam at the time of wage payment. If an employee are not paid fully wage or the wage is not paid on time, the employee can base on that to terminate the labor contract.
- The employers cannot deduce the wage instead of handle labor discipline, except where deduction the wage for compensation for damage of tools and equipment of the employers according to the regulations.
Wage payment forms
Wage maybe paid by cash or via the employee’s personal account opened at a bank. The employers may select form of the wage payment based on working time, products or piecework and that form must be maintained for a certain period of time. Any change in the form of payment must be informed by the employers to the employees at least 10 days in advance.
- The employees enjoying monthly wages must be paid once a month or once every half of the month. In case that the employees enjoying hourly, daily or weekly wages must be paid after the working hour, day or week or paid in a lump sum as agreed by the two parties, provided that wages are paid in a lump sum at least every 15 days.
- Employees enjoying wages based on products or piecework must be paid as agreed by the two parties; if the work is to be performed in a number of months, each month, the employee must be given an advance wage according to the volume of work completed in the month.
Way to calculate the wage in some specific cases:
Wage during the probation period: The wage for an employee during the probation period must be agreed upon by the two parties but must be at least equal to 85% of the wage for the job.
Wage for overtime work: An employee who performs overtime work must be paid according to the wage unit or wage for his/her current job as follows: On normal days, at least equal to 150%;
On weekends, at least equal to 200%;
On public holidays and paid leave days, at least equal to 300%, excluding the wage for public holidays and paid leave days of employees who receive daily wages.
Wage for night work (calculated form 10 p.m to 6 a.m 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.
Wage for overtime work at night: An employee who performs overtime work at night must be paid under the wage for night work regulation above. He/She must 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.
Wage in case of work suspension:
In case an employee has to suspend working due to fault of the employer, the employee is entitled to payment of the full wage.
In case an employee has to suspend working due to his/her fault, the employee 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 upono 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, enemy sabotage, relocation of the operation place upon request of a competent state agency, 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.
Wage in assignment of employees to perform other jobs situations
The employer may temporarily assign an employee to perform a job which is not stated in the labor contract provided that the assignment does not exceed 60 accumulated workdays within one year, unless otherwise agreed by the employee. The employee in this case is entitled to a wage for the new job; if the wage for the new job is lower than the previous wage, he/she is entitled to the wage of the previous job for 30 working days. The wage for the new job must be at least 85% of the previous wage but not lower than the regional minimum wage stipulated by the Government.
Wage in work suspension situations
In the process of verification the violation of the employees to handle labor discipline, the employers are entitled to suspen the work of the employees. In this time, the employees are entitled to 50% of the wage he/she receive prior to the suspension. In case the employee is disciplined, he/she is not required to reimburse the wage advanced to him/her. But if the employee is not disciplined, the employer shall pay the full wage for the period of work suspension.
Wage in apprenticeship and on-the-job training situations
During the period of apprenticeship or on-the-job training, if the apprentice or the on-the-job trainee directly makes, or participates in the making of, qualified products, he/she must be paid with a wage by the employer at a level agreed by the two parties.
Wage in absention from work and covered by social insurance situations
When an employee is absent from work and covered by social insurance, the employer is not required to pay a wage to the employee. For an employee who is not covered by compulsory social insurance, compulsory health insurance and unemployment insurance, the employer shall simultaneously pay to the employee a wage and an amount which is equivalent to the level of contribution to compulsory social insurance, compulsory health insurance and unemployment insurance, and annual leave payments in accordance with regulations.
Source: Doi song phap luat