According to Article 97 of the 2019 Labor Code, the law clearly stipulates the salary payment term for each form of salary payment, but does not set a fixed day in the month for businesses to pay salaries to employees.
Employees receiving salaries by hour, day, week are paid immediately after the hour, day, or week of work. In case the two parties agree to pay in bulk, the time for paying in bulk must not exceed 15 days and must be paid in one lump sum.
For employees receiving monthly salaries, businesses are paid once a month or half a month. The time of payment is agreed upon by both parties but must be set at a cyclical time, in order to ensure stability and transparency in labor relations.
For employees receiving salaries according to products or contracts, salaries are paid according to the agreement. In case the work lasts for many months, the enterprise must advance monthly salaries according to the workload that the employee has completed.
Notably, the law also clearly stipulates the responsibilities of employers when paying salaries late. Accordingly, in cases of force majeure and having applied all remedial measures but still not being able to pay salaries on time, enterprises are not allowed to delay more than 30 days. If the salary payment is delayed by 15 days or more, employers must compensate employees with an amount of money at least equal to the interest of the delayed salary payment, calculated according to the 1-month term deposit interest rate of the bank where the enterprise opens a salary payment account.
From the above regulations, it can be seen that the law does not specifically stipulate which day of the month salaries must be paid, but empowers the parties to agree. In fact, depending on the regulations and operational characteristics, each business will have different salary payment times, commonly on the 5th, 10th, 15th or the last day of the month.
