Guidelines on Calculating Overtime Pay on Regular Days

According to the provisions of the Labor Code 2012, wages are the amounts paid by the employer to the employee for performing work as agreed. Employees who are paid on an hourly, daily, or weekly basis shall receive their wages after each hour, day, or week of work or receive a lump sum payment as agreed by both parties but at least once every 15 days. Employees who receive monthly wages are paid once a month or once every half month. Employees paid by product or contract are compensated according to the agreement between the two parties; if the work takes several months, a monthly wage advance is provided based on the volume of work completed in the month.

In cases where an employee works overtime, they are entitled to overtime wages according to legal regulations.

According to Article 97 of the Labor Code 2012, in cases where employees work overtime on regular working days, the overtime pay is calculated as follows:

1. Calculation of daytime overtime pay:

T = (150% x T1) x H

Where:

- T: Daytime overtime pay (VND).

- T1: Actual hourly wage of a regular working day (VND/hour).

- H: Total overtime hours worked during the day (hours).

2. Calculation of nighttime overtime pay:

In the event of no daytime overtime:

T = [(150% x T1) + (30% x T1) + (20% x T1)] x H

In the event of daytime overtime:

T = [(150% x T1) + (30% x T1) + 20% x (150% x T1)] x H

Where:

- T: Nighttime overtime pay (VND).

- T1: Actual hourly wage of a regular working day (VND/hour).

- H: Total overtime hours worked at night (hours).

Note: Nighttime hours are calculated from 10:00 PM the preceding day to 6:00 AM the following day.

The above represents our advisory opinion on the issues you have inquired about.

Sincerely!