JavaScript is off. Please enable to view full site.

Employers in Vietnam must pay interest on overdue salary: gov’t decree

Employers in Vietnam must pay interest on overdue salary: gov’t decree

Monday, January 12, 2015, 17:38 GMT+7

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.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

Tuoi tre news

More

Read more

;

Photos

VIDEOS

‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Latest news