Wages have always been a particularly sensitive issue in society. On August 16, 2022, Chairman of the Finance and Budget Committee Nguyen Phu Cuong asked a question during a discussion session of the National Assembly Standing Committee that "In Vietnam, husband and wife have joint accounts, so if a wife takes her husband's ATM card, is it considered domestic violence?". This issue immediately caused a stir in Vietnamese society with many conflicting opinions. The essence of the question revolves around domestic violence, but from another perspective, this can be understood as an authorization for the wife to receive wages on behalf of the husband. So, what is the regulation on authorization to receive wages on behalf of employees in Vietnam in 2022?

Article 90 of the Labor Code 2019 stipulates that wages are:

  1. Wage is the amount of money that the employer pays the employee under an agreement to perform the job, including the salary according to the job or title, salary allowances and other supplements.
  2. The salary according to the job or title must not be lower than the minimum wage.
  3. Employers must ensure equal wages, regardless of gender, for employees doing work of equal value.

Authorization to receive salary instead

If the employee for some reason cannot receive the salary (due to serving a prison sentence by the Court at all levels, ...) or does not want to receive the salary directly, they can authorize another party to get the money they deserve instead.

The parties authorized to receive wages on behalf of the employees are usually family members, close friends of the employees.

This authorization is clearly stated in Clause 1, Article 94 of the Labor Code 2019. Specifically:

1. Employers must pay wages directly, in full and on time to employees. In case the employee cannot receive the salary directly, the employer can pay the salary to the person legally authorized by the employee.

Accordingly, in case the employee cannot or does not want to receive the salary directly, the employer can pay the salary to the person legally authorized by the employee.

However, employees should further note that although the law allows authorization to receive wages, it does not specifically provide for authorization to receive all or part of wages.

Accordingly, the application of which of the two authorization methods is completely dependent on the authorizer and the authorized.

To authorize, the employee needs to prepare a power of attorney to receive salary (or letter of authorization to receive wages on behalf of) in accordance with the form of an administrative document in accordance with the law, clearly stating the content of the authorization, powers of the power of attorney as well as details of the authorizer and the authorized party.

Originally published September 8, 2022

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.