Why do employees working on holidays receive 400% of their daily salary? What is the formula for calculating overtime pay in Vietnam?
Vietnam: Why do employees working on holidays receive 400% of their daily salary?
Pursuant to the provisions of Clause 1, Article 112 of the Labor Code 2019 on public holidays and Tet as follows:
Public holidays
1. Employees shall be entitled to fully paid days off on the following public holidays:
a) Gregorian Calendar New Year Holiday: 01 day (the 1st of January of the Gregorian calendar);
b) Lunar New Year Holidays: 05 days;
c) Victory Day: 01 day (the 30th of April of the Gregorian calendar);
d) International Labor Day: 01 day (the 1st of May of the Gregorian calendar);
dd) National Day: 02 days (the 2nd of September of the Gregorian calendar and the previous or next day);
e) Hung Kings Commemoration Day: 01 day (the 10th of the third month of the Lunar calendar).
According to the above regulations, according to current regulations, employees have 06 holidays to enjoy full salary.
Pursuant to the provisions of Article 98 of the Labor Code 2019 as follows:
Overtime pay, night work pay
1. An employee who works overtime will be paid an amount based on the piece rate or actual salary as follows:
a) On normal days: at least 150%;
b) On weekly days off: at least 200%;
c) During public holidays, paid leave, at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.
2. An employee who works at night will be paid an additional amount of at least 30% of the normal salary.
3. An employee who works overtime at night will be paid, in addition to the salary specified in Clause 1 and Clause 2 of this Article, an amount of at least 20% of the day work salary of a normal day, weekend or public holiday.
4. The Government shall elaborate this Article.
According to the above regulations, employees working on public holidays are entitled to a minimum wage of 300%. In particular, the above-mentioned overtime salary does not include salary on paid holidays.
Therefore, the employee's overtime pay during public holidays will be equal to 300% + 100% of the daily salary during the public holidays = 400%.
Note that this is the minimum wage, the employee and the employer can base on the general situation to negotiate and offer a reasonable overtime wage.
In addition, an employee who works overtime at night will be paid, in addition to the salary during the public holidays, an amount of at least 20% of the day work salary of a normal day, weekend or public holiday.
Why do employees working on holidays receive 400% of their daily salary? What is the formula for calculating overtime pay in Vietnam? (Image from the Internet)
What is the formula for calculating overtime pay in Vietnam?
Pursuant to Decree 145/2020/ND-CP guiding the Labor Code on labor conditions and labor relations.
The formula for calculating overtime pay on public holidays is determined as follows:
(1) For employees receiving time-based salaries:
In particular, because overtime hours are worked on a public holiday, a rate of at least 300% of the actual hourly wage paid for the job being done on a normal working day will be applied.
In case of working at night:
(2) For employees who are paid by product
In particular, because overtime hours are worked on a public holiday, a rate of at least 300% of the actual hourly wage paid for the job being done on a normal working day will be applied.
In case of working at night:
What are the fines imposed upon an employer who failing to make or insufficiently making overtime pay in Vietnam?
Pursuant to the provisions of Clause 2, Article 17 of Decree 12/2022/ND-CP as follows:
Violations against regulations on salaries
...
2. The following fines shall be imposed upon an employer for commission of one of the following violations: Failing to pay salaries on schedule as prescribed by law; failing to pay or insufficiently paying salaries to employees as agreed in their employment contracts; failing to make or insufficiently making overtime pay; failing to make or insufficiently making nightshift pay; failing to pay or insufficiently paying work suspension allowances as prescribed by law; restricting or interfering employees’ spending of their salaries; forcing employees to spend their salaries on goods or services of the employer or any particular providers decided by the employer; deducting from employees’ salaries in breach of law; failing to pay or insufficiently paying salaries to employees how are reassigned to perform works which are not specified in their employment contracts or during a strike; failing to make or insufficiently making payments to employees who, due to employment termination or job loss, have not taken or not entirely taken up their annual leave in compensation for their untaken leave days; failing to make or insufficiently making advance payments to employees who temporarily leave their works in accordance with regulations of law; failing to pay full salaries to employees who are not disciplined for their work suspension period:
a) A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the violation involves 01 - 10 employees;
b) A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed if the violation involves 11 - 50 employees;
c) A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 51 - 100 employees;
d) A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed if the violation involves 101 - 300 employees;
dd) A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed if the violation involves 301 employees or more.
According to the above regulations, if the employer does not pay overtime on holidays, he will be administratively sanctioned, the specific fine will depend on the number of employees that the company does not pay.
At the same time, based on Clause 1, Article 6 of Decree 12/2022/ND-CP on fines, the above-mentioned fine levels apply to individuals, in case of violations by organizations, the fine level is determined to be doubled depending on each case.
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