From March 1, 2015, employers who delay paying salaries to employees for 15 days or more will have to additionally pay an amount equal to the late paid salary amount multiplied by the ceiling interest rate for one-month bank deposits set by the State Bank of Vietnam at the time of payment.
Under Government Decree No. 05/2015/ND-CP, detailing and guiding the implementation of a number of articles of the Labor Code, employers will not be subject to any interest if they delay salary payment for less than 15 days.
The fixed date of monthly salary payment must be mutually agreed by employers and employees, and salaries must be paid in full and on time directly to employees.
Employees working overtime in workdays, days off or holidays will receive an extra-pay equal to at least 150, 200 or 300 percent of their salaries, respectively, for normal working hours.
The Decree also details some regulations on severance allowances. Employers are obliged to fully pay severance allowances for employees within 7 working days from the date of terminatation of labor contracts with these employees.
This time limit may be extended but must not exceed 30 days in case employers are not individuals whose production or business activities are terminated; employers or employees encounter natural disasters, fires or enemy sabotages or infectious epidemics or diseases; or employers experience structural changes, technological renewal or economic ups and downs.
This Decree will replace Government Decrees No. 196/CP of December 31, 1994; No. 41/CP of July 6, 1995; No. 93/2002/ND-CP of November 11, 2002; No. 33/2003/ND-CP of April 2, 2003; and No. 11/2008/ND-CP of January 30, 2008.-