How to calculate overtime pay in 2021 in Vietnam?
Please provide me with the method to calculate overtime pay in 2021 in Vietnam. Thank you!
How to calculate overtime pay in 2021 in Vietnam? - image from internet
Pursuant to Article 55 of the Decree 145/2020/ND-CP stipulating overtime pay:
1. An employee receiving time-based salaries will receive overtime pay for working outside of the normal working hours prescribed in Article 105 of the Labor Code shall be calculated as follows:
|
Overtime pay |
= |
Hourly salary in a normal working day (normal hourly salary) |
x |
At least 150% or 200% or 300% |
x |
Overtime hours |
Where:
a) Hourly salary in a normal working day (hereinafter referred to as “normal hourly salary”) is the actual salary of the work in the month or week in which the employee works overtime (excluding overtime pay, night work pay, salary of public holidays and paid leave prescribed by the Labor Code; bonuses prescribed in Article 104 of the Labor Code; rewards for innovation; mid-shift meal allowance, allowances for travel, communication, housing, daycare, infant care; financial assistance upon death or marriage of a family member, the employee’s birthday, occupational diseases, other allowances and benefits that are not relevant to the performance of the works or position specified in the employment contract) divided by (:) the total number of working hours of the same month or week, which must not exceed the number of normal working days of a month and normal working hours of a day or a week as decided by the enterprise, excluding overtime hours;
b) At least 150% of the normal hourly salary in case of overtime work on normal days; at least 200% of the normal hourly salary in case of overtime work during weekly breaks; at least 300% of the normal hourly salary in case of overtime work during public holiday or paid leave, excluding the daily salary during public holidays or paid leave in case the employee receives daily salary.
2. Employees receiving piece rate pay will be receive overtime pay for working outside of the normal working hours in order to increase the quantity or volume of products according to the productivity norms under agreement with the employer. Overtime pay will be calculated as follows:
|
Overtime pay |
= |
Piece rate in a normal working day (normal piece rate) |
x |
At least 150% or 200% or 300% |
x |
Additional quantity of products |
Where:
At least 150% of the normal piece rate in case of overtime work on normal days; at least 200% of the normal piece rate in case of overtime work during weekly breaks; at least 300% of the normal piece rate in case of overtime work during public holidays or paid leave.
3. Employees that work overtime during public holidays that are also weekly breaks will receive the overtime pay for working during public holidays. Employees that work overtime on compensatory days off that are also weekly breaks will receive the overtime pay for working during weekly breaks.
Best regards!
