According to Article 101 of the 2019 Labor Code, employees are entitled to advance wages according to the agreement with the employer and are not subject to interest.
The employer is responsible for giving employees a salary advance corresponding to the leave period to perform citizen obligations for 1 week or more, but not exceeding 1 month of salary according to the contract; the employee must return the amount of money provided. In case of military service under the Law on Military Service, salary advances will not be applied.
When on annual leave, employees are given an advance payment of at least the salary for the days off.
Salary advance payment is understood as the payment of a part or all of the salary that the employee will receive in advance in the next salary period. This is not a loan or loan, so workers do not have to pay any interest or arising expenses.
Thus, during Tet, if there is a need to spend early on living expenses, travel, shopping or supporting their family, employees can completely propose to employers about salary advances, based on the two sides' agreement.
Cases where the law allows salary advances
The 2019 Labor Code stipulates a number of specific cases where employees are entitled to salary advances, including:
Temporary arrangement according to agreement: Employees and employers can proactively agree on salary advances, advancement times and refund methods. The law does not limit the purpose of advance payment in this case, so making advance payment for spending during Tet is completely appropriate.
Day off to fulfill citizenship: In case employees have to temporarily take a day off for 1 week or more to fulfill citizenship, they will be given a salary advance corresponding to the number of days off, but not exceeding 1 month's salary and are responsible for refunding the advance payment.
Annual leave before the salary payment period: When employees take annual leave before the salary payment period, they will be given an advance payment of at least the salary for the days off.
Temporarily suspended from work: Employees whose work is temporarily suspended will receive an advance payment of 50% of their salary before having an official conclusion.
The salary advance payment level is regulated
Based on relevant provisions in Articles 97, 101 and 128 of the 2019 Labor Code, the salary advance payment level is determined depending on each specific case.
For cases clearly regulated by law, the advance payment level is limited as follows:
Maximum 1 month's salary if the employee is on leave to fulfill his/her civil service for 1 week or more.
At least equal to the salary of the days off when workers take annual leave.
50% of salary during the period of temporary suspension of employees.
In particular, in cases of advance payment according to agreement, the law does not stipulate a specific ceiling. This means that the advance payment level depends entirely on the consensus between the employee and the employer, based on the financial conditions of the enterprise and the actual needs of the employee.
