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Trang ChủSharing of expertiseLabourQuestion 71: How are night work salary and night overtime salary calculated?

Question 71: How are night work salary and night overtime salary calculated?

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Working at night is the normal working hours provided by labour law, the CLA or ILRs and this period falls within the time frame from 22:00 to 6:00 of the following day[1]. In fact, manufacturing enterprises often specify working on shifts and Employees who work on the third shift from 22:00 to 6:00 of the following day will be considered working at night.

If Employees work on night shift which falls into the said time frame, they will receive night shift salary at the rate of at least[2]: (100% * A) + (30% * A). Thus, Employees will be paid at least 130% * A, in which, “A” is the actual hourly salary paid for the normal working day.

Pursuant to the current labour law, overtime hours are the working time outside normal working hours prescribed by law, any CLA or ILRs[3]. Working overtime at night means that Employees work overtime from 22:00 to 6:00 of the following day[4]. In practice, with regard to production enterprises, working overtime at night is often the case with the Employees who have finished the 1st shift from 6:00 to 14:00 and are asked to work night shift from 22:00 to 6:00 in the next morning (ensure that Employees have at least 12 hours to rest before taking the next shift and the number of overtime hours does not exceed 50% the normal working hours/12 hours in a day).

Accordingly, Employees will be paid a minimum amount of money as follows:

  • Working overtime at night and on normal working days (if Employees have not worked overtime in the daytime): (100% * A) + (30% * A) + (20% * 100% * A) = 200% * A; or
  • Working overtime at night and on normal working days (if Employees have worked overtime in the daytime): (150% * A) + (30% * A) + (20% * 150% * A) = 210% * A; or
  • Overtime at night and on weekends: (200% * A) + (30% * A) + (20% * 200% * A) = 270% * A; or
  • Working overtime at night and on public holidays, Tet holidays, paid leave days: (300% * A) + (30% * A) + (20% * 300% * A) = 390% * A.

Note that Employees are only entitled to PIT exemption for the part of night work salary and night overtime salary, which is paid higher than in the daytime[5].

In addition, the actual hourly salary paid for the normal working day will be determined on the basis of the actual salary paid for the current work of the month in which Employees work overtime by being divided by the number of actual working hours in the month (no more than 208 hours for the jobs under normal working and environmental conditions, excluding overtime hours.) In case of paying salaries on a daily or weekly basis, the actually paid hourly salary will be determined on the basis of the actually paid salary of such working day or week (excluding overtime salaries or extra salaries when working at night) by being divided by the number of actual working hours of the day or week (no more than 08 hours per day and excluding overtime hours.)

The actually paid hourly salary as aforesaid does not include overtime salaries, night overtime salaries, salaries of public holidays, new year holidays and paid days off as prescribed by the Labour Code; bonuses as provided for in Article 103 of the Labour Code; initiative rewards; mid-shift meal; allowances for petrol, telephone, travel, housing, child care, child rearing; support for Employees having dead relatives, Employees who have close relatives celebrating marriage, birthdays of Employees, allowances for Employees encountering any plight in case of labour accidents or occupational diseases, and other allowances and supports unrelated to the performance of jobs or titles in LCs[6].

[1]  Articles 105 and 106.1 Labour Code

[2]  Article 7.1 Circular 23/2015/TT-BLĐTBXH dated 23/06/2015

[3]  Article 106.1 Labour Code

[4]  Article 105 Labour Code

[5]  Article 4.9 Law on PIT

[6] Article 6.1a Circular 23/2015/TT-BLĐTBXH dated 23/06/2015 as amended and supplemented by Article 14.4c Circular 47/2015/TT-BLĐTBXH dated 16/11/2015

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