Regulations on Overtime and Nighttime Wage Payments for Foreign Employees in Vietnam

Overtime and night shift work are common in many industries, especially in sectors requiring continuous operations such as manufacturing, healthcare, and logistics. To protect employees’ rights and ensure fair compensation, Vietnam has established specific regulations on wage payments for those working overtime at night. These regulations set out clear guidelines on how wages should be calculated, ensuring that employees receive appropriate compensation for their extended and nighttime working hours.

1. Definition

1.1. Nighttime working hours

Article 106 of the Labor Code 2019 stipulates the night working hours as follows: “Nighttime working hours are counted from 22:00 to 6:00 of the next day.”

1.2. Overtime working hours

Article 107 of the 2019 Labor Code provides regulations on overtime working hours as follows:

“1. Overtime period is a working period in addition to normal working time prescribed by law, collective labor agreements or internal working regulations.
2. The employer may request the employee to work overtime when fully satisfying the following requirements:
a/ Obtaining the employee’s consent;
b/ Ensuring that overtime working hours of the employee does not exceed 50% of the normal working hours per day; in case of application of normal working time on a weekly basis, the total of normal working hours and overtime working hours must not exceed 12 hours per day and 40 hours per month;
c/ Ensuring that overtime working hours of the employee do not exceed 200 hours per year, except the cases specified in Clause 3 of this Article.”

Normal working hours vary depending on the employer but are typically from 8:00 a.m. to 5:00, 5:30, or 6:00 p.m.

Accordingly, any period worked at the employer’s request after the end of the company’s regular working hours (e.g., after 5:30 p.m.) and before 10:00 p.m. will be considered regular overtime.

If the employee works from 10:00 p.m. onwards, it will be considered nighttime overtime.

2. Do regulations on overtime and nighttime work apply to foreign workers in Vietnam?

Foreign employees working in Vietnam under labor contracts are subject to the same labor regulations as Vietnamese employees, unless otherwise provided by law.

According to Article 2 of the 2019 Labor Code, the law applies to:

“Vietnamese employees, foreign employees working in Vietnam; employers; and other agencies, organizations, and individuals directly related to labor relations.”

Therefore, all provisions related to working hours, overtime, and nighttime work — including the requirements for employee consent and limits on working hours — apply equally to foreign workers.

This means that provisions on maximum overtime hours, conditions for working overtime, and nighttime work (from 10:00 p.m. to 6:00 a.m. the following day) also apply to foreign employees. Employers must ensure that foreign workers are not required to work overtime beyond the legal limits and must obtain their consent before assigning overtime work.

3. Overtime and Nighttime Wage Payments for Foreign Employees

Clause 2, Article 98 of the Labor Code 2019 stipulates the salary for working at night as follows:

“1. Employees who work overtime are paid according to the salary unit price or the actual salary paid according to the work they are doing as follows:

a) On weekdays, at least equal to 150%;

b) On weekly rest days, at least 200%;

c) On public holidays, Tet holidays, and days off with pay, at least equal to 300%, excluding the salary for holidays, Tet holidays, and days off with pay for employees receiving a daily salary.

2. Employees who work at night shall be paid at least 30% of the salary calculated according to the salary unit price or the actual salary paid according to the work of the normal working day.

3. Employees who work overtime at night, in addition to paying wages as prescribed in Clauses 1 and 2 of this Article, are also entitled to an additional 20% of the salary calculated according to the salary unit price or the salary according to the daytime work on a normal working day or on a weekly holiday or on a public holiday.”

With Article 57 of Decree No. 145/2020/ND-CP, Here is a comprehensive table summarizing Article 57 of Decree No. 145/2020/ND-CP and the 2019 Labor Code regarding overtime pay, night work, and holiday work for employees. It covers all relevant cases with wage calculation methods, explanations, and examples.

CaseLegal BasisWage CalculationExplanation / Example
1. Overtime on weekdaysArticle 98(1)(a) of the Labor Code, Article 57 of Decree 145At least 150% of normal wageIf base wage is 100,000 VND/hour → Overtime pay: 150,000 VND/hour
2. Overtime on weekly rest daysArticle 98(1)(b) of the Labor Code, Article 57 of Decree 145At least 200% of normal wageBase wage: 100,000 VND/hour → Overtime pay: 200,000 VND/hour
3. Overtime on public holidays / TetArticle 98(1)(c) of the Labor Code, Article 57 of Decree 145At least 300% of normal wage (excluding paid holiday wage)Base wage: 100,000 VND/hour → Overtime pay: 300,000 VND/hour (plus full holiday wage if daily-paid)
4. Night work (10:00 PM – 6:00 AM)Article 98(2) of the Labor Code, Article 57 of Decree 145Minimum 30% of normal wageBase wage: 100,000 VND/hour → Night work pay: 130,000 VND/hour
5. Overtime at night (weekday)Article 98(3) of the Labor Code, Article 57 of Decree 145150% (OT) + 30% (night) + 20% extra = 200% totalBase wage: 100,000 VND/hour → Overtime at night pay: 200,000 VND/hour
6. Overtime at night (rest day)Article 98(3) of the Labor Code, Article 57 of Decree 145200% (OT) + 30% (night) + 20% extra = 250% totalBase wage: 100,000 VND/hour → Overtime at night pay on rest day: 250,000 VND/hour
7. Overtime at night (holiday / Tet)Article 98(3) of the Labor Code, Article 57 of Decree 145300% (OT) + 30% (night) + 20% extra = 390% totalBase wage: 100,000 VND/hour → Overtime at night pay on holiday/Tet: 390,000 VND/hour

In conclusion, the regulations on overtime and nighttime work in Vietnam provide clear guidelines for ensuring fair compensation for all employees, including foreign workers. By adhering to the provisions of the 2019 Labor Code and relevant decrees, employers can protect workers’ rights while maintaining smooth business operations. These regulations ensure that workers receive appropriate wages for their overtime hours and nighttime shifts, with additional compensation for working on holidays or weekly rest days. Foreign employees, like their Vietnamese counterparts, are entitled to these protections and must be compensated accordingly. Thus, both employers and employees benefit from the legal clarity and fairness provided by these labor laws, fostering a healthy and equitable working environment in Vietnam.

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