Vietnam: Guidance on overtime pay for employee who receives time-based wage

According to Circular No. 23/2015/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, every employee who receives time-based wage and works overtime in addition to the working time established by the employer shall receive overtime pay as prescribed in Article 104 of the Labor Code, which is calculated as follows:

Where:

- Actual hourly wage on a normal working day equals (=) the actual wage for the current job of the month in which the employee works overtime (minus overtime pay and extra pay for night work) divided by (:) actual number of working hours in the month (exclusive of overtime hours). If the employee receives a daily or weekly wage, the overtime pay equals (=) the actual wage of that working day or week (minus overtime pay and extra pay for night work) divided by (:) actual number of working hours in the day or week (exclusive of overtime hours);

- The overtime pay on a normal working day is at least 150% of actual hourly wage on a normal working day.

- The overtime pay on a weekly day off is at least 200% of actual hourly wage on a normal working day.

- The overtime pay on a public holiday or paid day off (exclusive of wages of public holidays and paid days off prescribed by the Labor Code) is at least 300% of actual hourly wage on a normal working day. This rate is applied to employees receiving daily wages.

Note: Employees receiving daily wages are those whose wages are paid daily according to the employment contract and do not include wages of public holidays and paid days off prescribed by the Labor Code.

View more details at Circular No. 23/2015/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam, effective from August 08, 2015.

Le Hai

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