Vietnam: Detailed instructions on how to calculate overtime wages of employees from 2021

Recently, the Government of Vietnam has issued the Decree No. 145/2020/NĐ-CP on elaboration of some Articles of the Labor Code of Vietnam on working conditions and labor relations.

tính lương tăng ca của người lao động từ năm 2021, Nghị định 145/2020/NĐ-CP

Specifically, regulations on overtime pay, night work pay of employees in Article 98 of the Labor Code 2019 of Vietnam are detailed in Articles 55, 56 and 57 of Decree No. 145/2020/NĐ-CP of Vietnam’s Government as follows:

1. In case the employee works overtime

Overtime pay prescribed in Clause 1 Article 98 of the Labor Code 2019 of Vietnam is elaborated as follows:

- 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:

+ 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 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.

- Employees receiving piece rate pay will 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.

Note: 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.

2. In case the employee works at night

Night work pay prescribed in Clause 2 Article 98 of the Labor Code 2019 of Vietnam is elaborated as follows:

- Night work pay for employees receiving time-based salaries:

Night work pay

=

Normal hourly salary

+

Normal hourly salary

x

At least 30%

x

Night work hours

- Night work pay for employees receiving piece rate pay:

Night work pay

=

Normal piece rate

+

Normal piece rate

x

At least 30%

x

Night work products

3. In case the employee works overtime at night

Employees who work overtime at night as prescribed in Clause 3 Article 98 of the Labor Code 2019 of Vietnam will receive overtime pay as follows:

- For employees receiving time-based salaries:

Night overtime pay

=

Normal hourly salary

x

At least 150% or 200% or 300%

+

Normal 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, 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.

- For employees receiving piece rate pay:

Night overtime pay

=

Normal piece rate

x

At least 150% or 200% or 300%

+

Normal piece rate

x

At least 30%

+

20%

x

Daytime piece rate of a normal working day, during weekly breaks, public holidays or paid leave

x

Quantity of extra products during night work

 

Where, daytime piece rate of a normal working day, during weekly breaks, public holidays or paid leave is determined as follows:

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

+ Daytime piece rate during weekly breaks shall be at least 200% of the normal piece rate;

+ Daytime piece rate during public holidays or paid leave shall be at least 300% of the normal piece rate.

Ty Na

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