Instructions on calculation of night overtime pay in Vietnam 2023

Pursuant to Article 57 of Decree 145/2020/ND-CP, employees who work overtime at night as prescribed in Clause 3 Article 98 of the Labor Code 2019 will receive overtime pay as follows:

Calculation of night overtime pay for employees receiving time-based salaries in Vietnam

For employees receiving time-based salaries, night overtime pay is calculated as follows:

Night overtime pay = [(Normal hourly salary x At least 150% or 200% or 300%) + (ANormal hourly salary x At least 30%) + (20% x Daytime hourly salary of a normal working day, during weekly breaks, public holidays or paid leave)] x Extra night work hours

Where:

- Normal hourly salary is determined in accordance with Point a Clause 1 Article 55 of this Decree;

- Daytime hourly salary of a normal  working day, during weekly breaks, public holiday or paid leave is determined as follows:

= Daytime hourly salary of a normal  working day shall be at least 100% of the normal hourly salary if the employee does not work overtime during the daytime of the same day (before the night work); at least 150% of the normal hourly salary  if the employee works overtime during the daytime of the same day (before the night work);

= Daytime hourly salary during weekly breaks shall be at least 200% of the normal hourly salary;

= Daytime hourly salary during public holidays or paid leave shall be at least 300% of the normal hourly salary.

Instructions on calculation of night overtime pay in Vietnam 2023 (Internet image)

Calculating overtime wages for employees with product-based wages

For employees who are paid by product, overtime pay at night is calculated as follows:

Overtime pay at night = [(Unit price of product salary of normal working day x Minimum rate of 150% or 200% or 300%) + (Unit price of product salary of normal working day x Level of at least 30%) + (20% x Unit price of product salary during the day of normal working day or of weekly rest day or of public holiday, New Year, paid day off)] x No. overtime products at night

In which, the unit price of product wages during the day of a normal working day or of a weekly rest day or of a public holiday, New Year, or paid holiday is determined as follows:

- The unit price of the product salary during the day of a normal working day, which is calculated at least 100% of the unit price of the product salary of the normal working day in case the employee does not work overtime on daytime of that day (before overtime at night); at least equal to 150% of the product wage unit price of the normal working day in case the employee works overtime during the day of that day (before working overtime at night);

- The unit price of the product salary on the day of the weekly rest day, calculated at least 200% of the unit price of the product salary of the normal working day;

- The unit price of product wages during the day of public holidays, New Year's Day, and paid holidays, shall be calculated at least 300% of the product salary unit price of the normal working day.

Mai Thanh Loi

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