DECREE NO. 148/2018/ND-CP: NEW PROVISIONS ON THE WAGE PAID FOR HOLIDAYS
On October 24, 2018, the Government issues the Decree No. 148/2018/ND-CP on amending and supplementing a number of articles of the Government’s Decree No. 05/2015/ND-CP of January 12, 2015 detailing and guiding a number of provisions of the Labor Code.
One of the highlight contents of this Decree is the provision on wage used as a basis for wage payment to employees on annual leave, additional days of annual leave for seniority, public and New Year holidays and paid leaves for personal reasons.
Specifically, the wage is calculated as follow: Wage payment to employees that stated in the labor contract divided by the number of normal working days in the month as prescribed by the employer, and then multiplied by the number of days of the annual leave, additional days of annual leave for seniority, public and New Year holidays or paid leaves for personal reasons of the employee.
As in the Decree No. 05/2018/ND-CP, the wage stated in the labor contract is the wage of the month before the employee takes days off.
This Decree takes effect on December 15, 2018.
