What is the maximum amount of salary advance an employee can get?

Regulations on salary payment period for employees

Article 97 of the 2019 Labor Code stipulates the period of salary payment to employees as follows:

- Employees who receive hourly, daily, or weekly wages shall be paid after the working hour, day, or week, or shall be paid in a lump sum as agreed by both parties, but no more than 15 days must be paid in a lump sum.

- Employees receiving monthly salaries are paid once a month or once every two weeks. The payment time is agreed upon by both parties and must be set at a periodic time.

- Employees who receive wages based on products or contracts are paid according to the agreement of both parties; if the work has to be done over many months, they will receive a monthly salary advance based on the amount of work done during the month.

- In case of force majeure, the employer has taken all possible measures to remedy the situation but cannot pay the salary on time, the delay must not exceed 30 days; if the salary is paid late by 15 days or more, the employer must compensate the employee with an amount at least equal to the interest on the late payment calculated at the interest rate for 1-month term deposits announced by the bank where the employer opens the salary payment account for the employee at the time of salary payment.

However, in some cases, when it is not yet time to pay salary, employees can still get an advance on salary to serve their own and their family's needs.

In what cases are employees entitled to salary advances?

Pursuant to the provisions of the 2019 Labor Code, employees are entitled to salary advances in the following cases:

- Employees are paid in advance according to the agreement with the employer.

- Employees are entitled to advance salary during temporary leave to perform civic duties of 01 week or more.

- Employees are paid in advance during annual leave.

Depending on each specific case, the salary advance level and salary advance period will have different regulations.

What is the maximum amount of salary advance an employee can get?

Pursuant to the provisions of Clause 3, Article 97, Article 101 and Clause 5, Article 113 of the 2019 Labor Code, the maximum salary advance amount and salary advance period for employees in each specific case are as follows:

(1) In case of salary advance according to agreement:

- Conditions for salary advance, salary advance amount and salary advance period are agreed upon by the employee and the employer.

- Employers are not allowed to charge interest on the salary that employees advance according to the agreement.

(2) In case of temporary leave from work to perform civic duties for 01 week or more:

The law requires employers to advance employees salary corresponding to the number of days the employee temporarily takes off work to perform civic duties for 01 week or more, but not exceeding 01 month's salary according to the labor contract, and the employee must repay the advanced amount.

(3) In case of salary advance during annual leave:

When taking annual leave before the pay period, employees are given an advance payment of at least the salary for the days off.

(4) In case of receiving salary based on product or contract but the work must be done for many months:

Employees who receive wages based on products or contracts are paid according to the agreement of both parties; if the work has to be done over several months, they will receive a monthly salary advance based on the amount of work done during the month.

The above regulations show that, in principle, salary advances will be agreed upon by both parties (according to conditions).

Minh Hoa (t/h)

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