The rules are set out in Decree 283 on administrative penalties for violations of labour, social insurance and contractual overseas employment regulations, which takes effect on September 10.
Under the decree, employers that pay wages late or fail to pay them in full as agreed in employment contracts face fines of VND 5 million to VND 50 million, depending on the number of workers affected.
The same penalties apply to employers that fail to fully pay overtime, night-work or work-stoppage wages as required by law.
Employers that pay workers below the government-set minimum wage may face fines of VND 3 million to VND 20 million.
The penalties apply to individuals, while fines for organisations are twice as high, meaning companies could face fines of up to VND 100 million for wage payment violations.
In addition to fines, employers must pay any outstanding wages plus interest on late or underpaid amounts.
The interest will be calculated using the highest demand-deposit rate offered by state-owned commercial banks at the time the penalty is imposed.
The fines and interest also apply to other violations, including requiring workers to provide financial or asset guarantees for employment contracts, or failing to fully pay severance, job-loss allowances or other amounts due upon termination.
Employers may also have to pay interest on late or incomplete compensation for occupational accidents or diseases, withheld social insurance benefits and other violations under the decree.
