This continues to be one of the noteworthy content mentioned in the Draft Amendment to the Labor Code, which is still in the period of collecting feedback and is expected to take effect from January 1, 2021.
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To be specific:, Article 100 Draft has introduced 02 options regarding overtime and night shift wages for employees, including:
Option 1: Keep the current regulations as stipulated in the Labor Code 2012.
Employees working overtime are paid according to the wage unit price or the wages of the job they are doing as follows:
- On regular days, at least 150%;
- On weekly rest days, at least 200%;
- On public holidays, Tet, paid leave days, at least 300%.
Payment of progressive overtime wages higher than the levels specified in this clause shall be agreed upon by both parties for implementation. (This is the newly supplemented content in the Draft compared to the Labor Code 2012).
Option 2: Pay progressive overtime wages at higher rates for employees, accordingly, employees working overtime are paid according to the wage unit price or the wages of the job they are doing as follows:
- On regular days, at least 150% for the first 02 hours, 165% for the 3rd overtime hour, and 180% for the 4th overtime hour.
- On weekly rest days, at least 200% for the first 02 hours, 220% for the 3rd overtime hour, and 240% for the 4th overtime hour.
- On public holidays, Tet, paid leave days, at least 300% for the first 02 hours, 330% for the 3rd overtime hour, and 360% for the 4th overtime hour.
Additionally, employees working during night shifts shall be paid an additional amount of at least 30% of the wage unit price or the wages of daytime jobs. (The current regulation is according to the wages of regular working days).
Employees working overtime during night shifts, besides being paid according to the above regulations, will also be paid an additional amount of at least 20% of the wage unit price or the wages of daytime jobs on regular working days. (The current regulation is according to the wages of daytime jobs).
Thus, if option 02 in the Draft is approved, from January 01, 2021, the overtime and night shift wages of employees will be significantly increased.
Nguyen Trinh
