Question 75: May the probationary salary be lower than the area minimum wage applicable in the area where Employees work?

Currently, the Labor Code and the guiding documents do not have specific regulations as to whether the probationary salary paid to Employees may be lower than the area minimum wage. The Labor Code only stipulates that the probationary salary is agreed upon by the two parties but must be at least equal to 85% of…

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Question 74: Do Employers have the right to postpone the first salary payment because Employees have not provided sufficient personal information as required by Employers?

Article 19.2 of the Labor Code stipulates that Employees must provide Employers with the information on their name, age, gender, place of residence, educational level, occupational skill level, health status and other matters directly related to the conclusion of LCs (“Personal Information”). Accordingly, the collection of Personal Information in accordance with the law is only…

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Question 70: Can life support and meal payments be considered salary allowances to compensate for the element of living conditions?

As prescribed by labour law, salary allowances are construed as[1]: The monetary amounts to compensate for the elements of working condition, job with complicated nature, living condition, labour force attraction which have not been counted into the contract salary or have not been considered satisfactory. These include: The amount to compensate for working conditions: applicable…

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Question 69: How to calculate the monthly salary in the case where there is an agreement on unpaid leave and there are 27 working days in the month?

Time-based salaries will be paid according to the actual number of months, weeks, days or hours that Employees have spent doing their work[1]. If Employees receive monthly salaries, salaries will be paid for a working month based on LCs[2]. Of note, monthly salaries do not depend on the normal number of working days in a…

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Question 68: When Employees sign LCs with workplaces in many provinces and with different area minimum wages, will which area minimum wage related to any workplace serve as a basis for determining the salary paid by Employers under LCs at a higher rate than the area minimum wage announced by the Government?

Pursuant to labour law, Employers are obliged to ensure that the salary paid to Employees must not be lower than the area minimum wage prescribed by the Government. The area minimum wage is differently applied in each area based on where Employees work. Specifically, Article 4.1 of Decree 141/2017/NĐ-CP determines the principle of applying the…

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Question 67: In case of recruiting Employees who have undergone vocational training to perform jobs that do not require vocational training, is the minimum salary paid to such Employees is required to be 7% higher than the area minimum wage?

Pursuant to labour law, the lowest salary of a job or title requiring traineeship (including enterprise-trained Employees) must be at least 7% higher than the area minimum wage as regulated by the Government[1]. In particular, the Employees who have undergone vocational training or education include[2]: Persons who have been granted a vocational certificate, vocational diploma,…

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Question 66: What is the salary to which the Employer must refer to pay for the annual leave days that Employees have not taken?

As prescribed by labour law, for Employees who have worked for full 6 months and over, the salary serving as the basis to pay for the annual leave days that Employees have not taken is the average contract salary of the 6 preceding consecutive months prior to calculation of the payment for the Employees’ unused…

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