Late salary payment for 15 days or more shall be paid interest
Under the Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government guiding the implementation of a number of the Labor Code’s contents, an employee enjoying monthly salary shall be paid on monthly or semi-monthly basis.
In case natural disaster, conflagration or other force majeure events take place, and employers have sought all remedial measures but cannot make payment on time as agreed in the labor contract, the payment shall be made within 01 month. Besides, if the late payment is made for 15 days or more, an extra amount shall be at least equal to the arrears of salary multiplied by the ceiling of interest rate for 1-month deposits announced by the State bank of Vietnam at the time when the payment is made. If the State Bank of Vietnam does not specify the ceiling interest rate, 1-month deposit interest rate of commercial banks, where businesses and agencies open trading accounts at the time of payment, shall be applied.
Under this Decree, the employee shall have the right to unilaterally terminate the labor contract to take care of their spouse, father, mother, father-in-law, mother-in-law, natural children and adopted children who are sick or involved in accidents. Especially, participants in strikes that do not follow the prescribed procedures shall not be paid salary and other benefits under the provisions of the law in the time of participating in the strike. Employees who do not participate in the strike but have to stop working because of the strike shall be paid salary for such stop and other benefits under the provisions of legislation on labor.
This Decree takes effect on March 1, 2015.