How to calculate overtime pay for employees in 2024 in Vietnam?

How to calculate overtime pay for employees in 2024 in Vietnam?

Pursuant to Article 98 of the Labor Code in 2019 stipulating overtime pay, night work pay 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.

In addition, the Decree 145/2020/NĐ-CP stipulates on calculation of overtime pay for employees in 2024 in Vietnam as follows:

[1] Daytime overtime (according to Article 55 of the Decree 145/2020/NĐ-CP):

[2] Night overtime (according to Article 57 of the Decree 145/2020/NĐ-CP):

Where: Depending on whether the employee works on a regular working day, a weekly rest day, or a public holiday, the following rates will be applied, respectively: 150%, 200%, 300%.

How to calculate overtime pay for employees in 2024 in Vietnam? - Source: Internet

What are forms of salary payment in Vietnam?

Pursuant to Article 96 of the Labor Code in 2019 stipulating salary payment forms as follows:

Salary payment forms

1. The employer and employee shall reach an agreement on whether the salary is time-based, product-based (piece rate) or a fixed amount.

2. Salary shall be paid in cash or transferred to the employee’s personal bank account.

In case of bank transfer, the employer shall pay the costs of account opening and transfer.

3. The Government shall elaborate this Article.

As regulations above, there are 2 forms of salary payment in Vietnam, which are:

- In cash

- Transferred to the employee’s personal bank account

The employee shall choose the forms of payment via agreement with the employer.

Shall the salary of employees in Vietnam be paid monthly or weekly?

Pursuant to Article 97 of the Labor Code in 2019 stipulating salary payment time as follows:

Salary payment time

1. An employer who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties.

2. An employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively. The payment time shall be periodic and agreed upon by both parties.

3. An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.

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Through the above regulations, depending on the factor on which the employee is paid (hourly, daily, monthly, or product, etc.), the payment of salary is carried out according to the following periods:

- If the employee is paid weekly, the salary are paid after the working week or can be paid in lump sum by mutual agreement but no more than 15 days must be paid in lump sum once.

- If the employee is paid monthly, it is paid 1 time per month or 1 time per half month. The parties agree on the time of payment and set it at a periodic time.

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