Guidance on Calculating Overtime Pay for Night Work on Regular Working Days
According to the provisions of the 2012 Labor Code, wages are the amount paid by the employer to the employee for performing work as agreed upon. Employees who are paid hourly, daily, or weekly shall be paid after the respective working hours, days, or weeks, or in a lump sum as agreed by both parties, but must be paid at least once every 15 days. Employees paid monthly receive monthly wages either once or twice a month. Employees paid based on products or contracts are remunerated as per mutual agreement; if the work spans multiple months, a monthly wage advance will be provided based on the volume of work completed in the month.
In cases where employees work overtime, they are compensated for overtime work as prescribed by law.
Article 97 of the 2012 Labor Code stipulates:
"Article 97. Overtime Wages, Night Work
1. Employees working overtime are paid according to the wage unit price or salary for the work being performed as follows:
a) On regular days, at least 150%;
b) On weekly days off, at least 200%;
c) On public holidays and paid leave days, at least 300% not including holiday and paid leave day wages for employees receiving daily wages.
2. Employees working at night are paid at least an additional 30% over the wage unit price or salary for the work of a normal working day.
3. Employees working overtime at night, apart from being paid as stipulated in Clause 1 and Clause 2 of this Article, are also paid an additional 20% over the wage unit price or salary for daytime work."
Based on the above regulations, in cases where employees work overtime at night on regular working days, the calculation of night overtime wages is as follows:
In case of no overtime work during the day:
T = [(150% x T1) + (30% x T1) + (20% x T1)] x H
In case of overtime work during the day:
T = [(150% x T1) + (30% x T1) + 20% x (150% x T1)] x H
Where:
- T: Night overtime wages (VND).
- T1: Actual hourly wage of a regular working day (VND/hour).
- H: Total hours of night overtime (hours)
Note: Night working hours are calculated from 10:00 PM of the previous day to 6:00 AM the next day.
The above outlines our advisory opinion concerning the issue you are inquiring about.
Sincerely!
