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NEW REGULATIONS ABOUT WAGE TO BE EFFECTIVE FROM FEBRUARY 1, 2021

The Government has just issued Decree No.145/2020 / ND-CP (effective from February 1, 2021), which guides new regulations on paying salaries to employees in accordance with the Labor Code 2019.

According to Article 96 Labor Code 2019 regulates 2 new points compared to Labor Code 2012:

  • The employer and employee shall reach agreement on the form of wage payment based on time, product or piecework.
  • Wages may be paid in cash or via employees’ personal bank accounts. In case wages are paid via employees’ personal bank accounts, employers shall pay all charges for account opening and bank transfer.

With these two new points, Decree No.145/2020 / ND-CP specifically guides the form of salary payment as follows:

Enterprises and employees agree in the labor contract on the form of wage payment:

  • Time-based wage shall be paid to the employee enjoying wage payment according to time, on the basis of the working time according to month, week, day, hour as agreed in the labor contract. To be specific:

+ Monthly wage is paid for one working month;

+ Weekly wage is paid for one working week. In case there is an agreement on wage payment by month in the labor contract, the weekly wage is determined by the monthly wage multiplied by 12 months and divided by 52 weeks;

+ Daily wage is paid for one working day. In case there is an agreement on wage payment by month in the labor contract, the daily wage is determined by the monthly wage divided by the number of working days in the month under regulations of law as selected by the enterprise. In case there is an agreement on wage payment by week in the labor contract, the daily wage is determined by weekly wage divided by the number of working days in a week as agreed in the labor contract;

+ Hourly wage is paid for one working hour. In case there is an agreement on wage payment by month or week or day, the hourly wage is determined by the daily wage divided by the number of normal working hours in a day under Article 105 of the Labor Code

  • Product-based wage shall be paid to the employee enjoying wage payment according to products, on the basis of the quantitative and qualitative completion of a product according to labor norms and assigned product unit cost.
  • Piecework-based wage shall be paid to the employee enjoying wage payment according to piecework, on the basis of the volume and quality of a work and the time for completion thereof.

Please contact us for detailed advice.

T2H Law Liability limited company

Head office: G4-4A, Dormitory 708, Lien Ninh, Thanh Tri, Hanoi

Branch office: 20N7A Nguyen Thi Thap, Nhan Chinh Ward, Thanh Xuan District, Hanoi.

Phone: 0242 242 9900 – 0989 656 682

Website: https://t2hlawyers.vn

Email: contact.t2h@t2hlawyers.vn – huong.le@t2hlawyers.vn

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