WHAT ARE THE FINES FOR ENTERPRISES WHEN PAYING LOWER WAGES THAN REGION-BASED MINIMUM WAGES FOR EMPLOYEES?
The employer shall pay wages to employees based on agreed wage levels, labor productivity, and work quality, but cannot be lower than the region-based minimum wage. Fines shall be imposed on any employer that pays employees less than the minimum wage prescribed by the Government under Clause 3, Article 17, Decree No. 12/2022/ND-CP as follows:
- A fine of between VND 20,000,000 and VND 30,000,000 for violations related to between 01 worker and 10 workers;
- A fine of between VND 30,000,000 and VND 50,000,000 for violations related to between 11 and 50 workers;
- A fine of between VND 50,000,000 and VND 75,000,000 for violations related to 51 workers or more.
Therefore, a fine ranging from VND 20 million – 75 million for the acts imposing on the employers pay employees less than the region-based minimum wage. Accordingly, in accordance with Clause 1, Article 6, Decree 12 prescribes that the employer as an organization shall be imposed a double fine from VND 40 million – VND 150 million.
Beside the fines, compelling the employer to pay full wages and the interest on the employee’s late payment or underpayment thereof. The interest rate is calculated according to the highest demand deposit interest rate of the State commercial banks announced at the time the penalties are imposed.