Employees have the right to rest and receive their full salary during the holidays and New Year's. So, if the company requires employees to work on holidays, how will the employees be paid in Vietnam?
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Instructions on how to calculate wages for employees working on public holidays in Vietnam (Artwork)
According to Point c, Clause 1, Article 98 of Vietnam's Labor Code 2019, an employee who works overtime will be paid an amount based on the piece rate or actual salary 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.
In addition, in Article 55 of Vietnam's Decree 145/2020/ND-CP (effective from February 1, 2021), the calculation of wages for employees working on a paid public holiday is as follows:
For employees with time-based wages:
In there:
- 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;
- 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.
For employees receiving wages by product:
In which: At least 300% of the normal piece rate in case of overtime work during public holidays or paid leave.
In particular, it should be noted that 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.
Thus, in case the company actively requires employees to work overtime on paid holidays, it must pay overtime wages based on the piece rate or actual salary during public holidays, paid leave, at least 300% compared with the actual salary paid according to the work performed on a normal working day for employees who are paid by time or compared with the unit price of the product salary of the normal working day for employees receiving salary according to the product. At the same time, this salary does not include the daily salary during the public holidays or paid leave for employees receiving daily salaries in accordance with the Labor Code
