Payroll services for business in Vietnam
In accordance with the provision of law, enterprises are responsible for paying salaries directly, fully, and on time for employees.
As can be seen, the core principle of salary payment is “on time and fully”. Therefore, late payment of wages is one of the violations of the above principle.
VinaSC specializes in providing services of calculating and managing salaries, bonuses, real wages, deductions, salary slips, social insurance and personal income tax obligations, etc.
VinaSC’s payroll services for business in Vietnam will help enterprises simplify payroll management. From that point, business activities will become easy and convenient as well as the company’s personnel will reduce pressure.
Regarding the scope of payroll services for business in Vietnam, VinaSC will consult and support businesses the following contents:
– Check attendance;
– Calculating salary, allowances, bonuses, benefits and other incomes;
– Calculating salary for new employees and employees who leave;
– Update salary changes/adjustments;
– Summarize/confirm payroll pending payment;
– Respond, explain, answer all questions of employees about salary via email, phone or at the enterprise.
Pursuant to Clause 1 of Article 93 of the Labor Code 2019 stipulating that the employer must develop a salary scale and salary table as a basis for recruiting and employing employees, and agreeing on a salary according to the job and title recorded in the labor contract and pay the employee’s salary
Salary payment principle:
Pursuant to Clause 1 of Article 94 of the Labor Code 2019 stipulating that the employer must pay salary to the employee directly, fully and on time.
Pursuant to Article 95 of the Labor Code 2019 stipulating the payment of salaries of enterprises:
– Pay salary based on the agreed salary, labor productivity and quality of work performance;
– The salary stated in the labor contract and the salary paid to the employee in VND is in Vietnam Dong (for foreign workers in Vietnam, it can be in foreign currency);
– When paying salary, the enterprise must notify the salary statement (which clearly states the salary, overtime salary, night work salary, content and deducted amount, if any).
Salary payment method:
Pursuant to Article 96 of the Labor Code 2019 and Article 54 of Decree 145/2020/ND-CP guiding the form of salary payment:
– Enterprises and employees can agree on the form of time-based, product-based and fixed wages in the labor contract;
– Salary is paid in cash or bank transfer to the employee’s personal bank account (the enterprise must pay fees related to account opening and salary transfer).
Wage payment period
Pursuant to Article 97 of the Labor Code 2019 stipulates the wage payment period:
– Employees who receive hourly, daily and weekly wages shall be paid after hours, days and weeks of work, or be paid in a lump sum as agreed by the two parties but must be paid in lump sum within 15 days;
– Employees receiving monthly salary are paid once a month or semi-monthly. The time of salary payment shall be agreed upon by both parties and must be fixed at a cyclical time;
– Employees who are paid by product or by contract shall be paid according to the agreement of the two parties; if the work must be done for many months, the monthly salary shall be advanced according to the volume of work done in the month;
– The enterprise can pay wages not on time but not more than 30 days (due to force majeure and have sought all remedies).
What are penalties imposed business not paying salaries “on-time and adequate”?
Pursuant to the provisions of Article 17 of Decree 12/2022/ND-CP issued on January 17th, 2022 stipulating penalties for administrative violations in the field of labor and social insurance, Vietnamese workers work abroad under contract. Specifically, violations of salary regulations:
– A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed on an employer who fails to notify the salary statement or has a notice of the salary statement that does not comply with regulations;
– Fines for employers who commit acts of: not paying wages on time as prescribed by law; failure to pay or insufficient payment of wages to employees as agreed upon in the labor contract; failure to pay or insufficient overtime pay; failure to pay or insufficient payment of wages for working at night; failure to pay or insufficient payment of work stoppage wages to employees in accordance with the provisions of law, etc.:
From VND 5,000,000 to VND 10,000,000 for violations from 01 to 10 employees and can be up to VND 40,000,000 to VND 50,000,000 for violations of 301 employees or more
– Fines shall be imposed on any employer that commits the act of failing to pay or inadequately paying, at the same time with the payment of wages, an amount equal to the compulsory social insurance, health insurance, unemployment insurance premiums paid by such employer for the workers who are not subject to compulsory social insurance, health insurance and unemployment insurance as prescribed by the law provisions, as follows:
A fine of between VND 3,000,000 and VND 5,000,000 for violations related to between 01 worker and 10 workers and up to VND 15,000,000 to VND 20,000,000 for violations related to 301 workers or more.;
– Besides, there are other remedial measures.
*Note: Above are individual penalty levels. The fines imposed on organization are double of the individual levels.
Thus, when there is a violation of wages, enterprises will be administratively penalized. The level of administrative violation can be up to VND 100,000,000 and other additional remedial measures.
Why should businesses use VinaSC’s payroll services for business in Vietnam?
– VinaSC will always accompany businesses to solve salary problems;
– The cost of using VinaSC’s payroll services for business in Vietnam is significantly lower than hiring experts or buying software;
– VinaSC will support and share the human resources and infrastructure for the payroll department of the enterprise;
– Using VinaSC’s payroll services for business in Vietnam will help businesses avoid complaints and violations of the law.
– VinaSC will be fully responsible if the salary payment is delayed or the legal procedure is wrong according to the signed contract;
– Information about customers will be absolutely confidential by VinaSC even if cooperation is stopped;
– VinaSC will always advise on payroll solutions, appropriate regimes and completely fee of charge.