Salary Regime During the Probationary Period in Vietnam
In Vietnam, the probationary period is a crucial phase for both employees and employers. During this time, salary concerns and legal obligations must be handled properly to ensure fair treatment for employees and to avoid legal penalties for employers. Here are the key points regarding salary during the probationary period:
According to Article 26 of the Labor Code 2019, employees on probation must be paid at least 85% of the official salary for the position. Employers and employees should agree on the exact salary, which must be documented in the probationary or labor agreement. If an employer pays less than the required 85%, they can face fines ranging from VND 2,000,000 to VND 10,000,000, depending on whether they are an individual or organization, and will be required to pay full salaries to employees (under Article 10 and Article 6.1 of Decree No. 12/2022/ND-CP).
2. Overtime and Night Work Pay
As specified in Article 98 of the Labor Code 2019, probationary employees are entitled to the same rates for overtime and night work as full employees. If employees work overtime, they shall be paid as follows:
For night work, employees shall receive an additional of at least 30% of the salary unit or actual salary paid for his/her current job. Employers failing to comply with these regulations face fines up to VND 100,000,000 and must pay any owed wages with interest on the late payment or underpayment thereof to the employee, calculated according to the highest demand deposit interest rate of the state commercial banks announced at the time of the penalties (Article 17 and Article 6.1 of Decree No. 12/2022/ND-CP).
3. Legality of Minimum Working Time Requirements
Some employers set a minimum number of working days before employees can receive their probationary salary, but this is not legal under Article 27.2 of the Labor Code 2019. Employees are entitled to be paid for the actual days worked, regardless of whether they complete the full probation period or terminate the agreement early. Employers attempting to enforce minimum working day requirements for salary payment can face fines up to VND 10,000,000.
To foster a positive work environment and avoid administrative sanctions, employers must ensure compliance with salary regulations during the probation period. Transparency and fairness in pay structure benefit both the company and the employees.