Question: I would like to ask how overtime wages for employees are calculated. What is the maximum allowable overtime working time for employees?
Answer:
According to Article 98 of the 2019 Labor Code, it is provided that:
“Overtime pay and night work pay
1.Employees working overtime shall be paid based on the unit wage or actual wage paid for the job they are performing as follows:
a) On regular working days, at least 150%;
b) On weekly days off, at least 200%;
c) On public holidays, Tet holidays, and paid leave days, at least 300%, excluding the wage for the public holiday, Tet holiday, or paid leave day for employees receiving daily wages.
2. Employees working at night shall be paid an additional amount of at least 30% of the wage calculated based on the unit wage or actual wage paid for the job during normal working days.
3.Employees working overtime at night, in addition to the wages specified in Clauses 1 and 2 of this Article, shall be paid an extra 20% of the wage calculated based on the unit wage or the wage for the job performed during daytime of a normal working day or a weekly day off or a public holiday or Tet holiday.”
Overtime working hours of employees
Article 107 of the 2019 Labor Code provides the following regarding overtime work:
“1. Overtime work is the period worked beyond normal working hours as prescribed by law, collective labor agreements, or internal labor regulations.
2. Employers may require employees to work overtime when all of the following conditions are satisfied:
a) There is consent from the employee;
b) Ensuring that the employee’s overtime hours do not exceed 50% of normal working hours in a day; in cases where normal working hours are applied by week, the total number of normal working hours and overtime hours shall not exceed 12 hours per day and not exceed 40 hours per month;
c) Ensuring that the total overtime hours do not exceed 200 hours per year, except for cases specified in Clause 3 of this Article.
3. Employers may require employees to work overtime up to 300 hours per year in certain industries, occupations, jobs, or situations as follows:
a) Production and processing for export of textile, garment, leather, footwear, electricity, electronics, agricultural, forestry, match production, and aquatic products;
b) Production and supply of electricity, telecommunications, oil refining; water supply and drainage;
c) Cases requiring the handling of work requiring highly skilled labor that the labor market cannot supply sufficiently or promptly;
d) Cases requiring urgent work that cannot be delayed due to the seasonal nature, timing of materials or products, or to address work arising from unforeseen objective factors, including consequences of weather, natural disasters, fires, war, power shortages, material shortages, or technical issues in production lines;
đ) Other cases prescribed by the Government.
4. When organizing overtime work under Clause 3 of this Article, the employer must notify in writing the labor authority under the Provincial People’s Committee.”
Conclusion: Thus, overtime wages are calculated at higher rates compared to normal wages depending on when the overtime is performed; at the same time, employers must strictly comply with the limits on overtime hours to ensure compliance with the law and protect employees’ rights.
Consultation: Labor Law Services
