Government issued Decree 145/2020/ND-CP Regulations detailing and guiding the implementation of certain articles of the 2019 Labor Code on working conditions and labor relations, effective from February 1, 2021.
Accordingly, the regulations regarding the timing of wage payments to employees are detailed below.
Based on the nature of the work and production and business conditions, the employer and employee may agree in the labor contract on the form of wage payment based on time, output, or piecework as follows:
Hourly wages Paid to employees on an hourly basis, according to the monthly, weekly, daily, or hourly work hours as agreed upon in the employment contract, specifically:
- Monthly salary Paid for one month's work;
- Weekly salary Paid for one week of work. In cases where the employment contract stipulates a monthly salary, the weekly salary is determined by multiplying the monthly salary by 12 months and dividing by 52 weeks;
- Daily wage Paid for one day's work; including:
If the employment contract stipulates a monthly salary, the daily wage is determined by dividing the monthly salary by the number of normal working days in the month as stipulated by law and chosen by the enterprise. If the employment contract stipulates a weekly salary, the daily wage is determined by dividing the weekly salary by the number of working days in the week as agreed upon in the employment contract.
- Hourly wage paid for one hour of work; including:
In cases where the employment contract stipulates monthly, weekly, or daily wages, the hourly wage is determined by dividing the daily wage by the normal number of working hours in the day as prescribed in Article 105 of the 2019 Labor Code.
Piecework wages Workers are paid on a piece-rate basis, according to the level of completion of the quantity and quality of products based on labor standards and the assigned product unit price.
Fixed-rate wages Paid to workers on a piecework basis, according to the volume and quality of work and the time required to complete it.
Salary payment method:
According to the above-mentioned payment methods, employees' wages are paid in cash or transferred to their personal bank accounts.
Employers must pay fees associated with opening an account and transferring salaries when choosing to pay salaries through employees' personal accounts.