On December 14, 2020, the Government issued Decree 145/2020/ND-CP guiding the Labor Code on working conditions and labor relations. Accordingly, this Decree provides for the form of payment via bank accounts as follows:

Based on the nature of work and production and business conditions, the employer and the employee agree in the labor contracts in the form of time-based, product-based and flat wage payments.

Employee’s salaries under the above forms of payment are paid in cash or through employee’s personal accounts opened at banks. For the payment through the employee’s personal account, the employer must pay the fees associated with the account opening and remittance.

Thus, from the effective date of this Decree, the employer and the employee are not required to agree on fees related to the opening and maintenance of bank accounts, but all related fees in connection with the opening of an account and remittance of wages to the employee, the employer will have to pay the payment if the bank account is selected.

This Decree takes effect from February 1, 2021.