Wages - Overview


Cambodia, China, Lao PDR, Thailand and Vietnam all have a guaranteed minimum wage.

Coverage: In Cambodia, the scope of coverage of wages includes actual wages, overtime, commissions, bonuses, indemnities, gratuities, family allowances, holiday pay, compensatory pay, maternity and disability leave, health care, travel expenses, benefits granted exclusively to help the worker do his or her job and profit sharing. In China wages must cover holidays, leave for periods of mourning and marriage, and participation in social activities in accordance with the law. In Thailand ‘basic pay’ includes holiday pay, leave for military service, sick leave, annual leave and maternity leave. Vietnamese legislation stipulates that allowances, bonuses, movements up on the wage scale, and other incentives may be agreed in the labour contract, collective agreement, or the regulations of the enterprise.

Payment of wages: Under Cambodian legislation, wages must be paid directly to the worker in legal currency, unless otherwise agreed, and the employer may not determine how the employee uses his wages. Under Chinese legislation, wages should be paid monthly in currency and cannot be deducted or delayed without reason. In Lao PDR, labour legislation states that wages must be paid in cash, in full and on time (once a month at a fixed time). Thai legislation specifies that wages are to be paid in Thai currency, except where the employee has agreed to be paid by cheque or in a foreign currency. Payment has to be made at least once a month, unless otherwise agreed and where an employee has been dismissed, the employer must pay basic pay, overtime pay, holiday pay and holiday overtime pay to an employee entitled to receive such pay, within three days from the date of termination of the employment. In Vietnam the employer has the right to select the method of payment of wages calculated by reference to time (hours, days, weeks, or months), or on the basis of a product produced or a completed piece of work, provided that the selected method is applied for a fixed period of time and the employee is notified of the method. A Vietnamese employee whose wage is calculated by reference to hours, days, or weeks shall be paid at the end of the hour, day, or week, or such period as agreed by the parties, provided that at least one payment of wage is made every fifteen days, and an employee whose wage is calculated by reference to months shall be paid monthly or half-monthly.

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