Employers in Vietnam are required to incur bank interest if they are tardy in paying salaries to their employees, according to a new government decree.
>> Vietnam to raise minimum wage by up to $18.9 per month in early 2015 Under the decree, which details and guides the implementation of a number of articles of the Labor Code, those employers who compensate their employees 15 days – or more – late have to pay an additional sum consisting at least of the overdue amount multiplied by the ceiling interest rate for one-month deposits set by the State Bank of Vietnam (SBV) at the time of payment. If the SBV does not stipulate such a rate, the interest applied will be that fixed by the commercial bank where the employers have opened their accounts. When employers make salary payment less than 15 days late, they will not be subject to any interest. The decree also stipulates that the dates of monthly salary payment must be mutually agreed upon by employers and their employees. The decree requires employers pay salaries to their employees directly, fully, and on time. When employees work overtime on working days, weekly days off or holidays, the extra payment for them must be equal to at least 150 percent, 200 percent or 300 percent of their wages for normal working hours, the decree says. This decree is not applicable to state agencies when they make late payment, Le Xuan Thanh, deputy head of the Department of Labor and Wage under the Ministry of Labor, Ward Invalids, and Social Affairs, told Tuoi Tre (Youth) newspaper.
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