Vietnam has emerged as a strategic hub for manufacturing, logistics, and services, driven by competitive labor costs and expanding infrastructure. However, businesses operating in Vietnam often face strict labor regulations, especially regarding overtime. Employers must navigate detailed requirements on when overtime is triggered and how it must be compensated.

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1. How to calculate overtime pay in Vietnam?

Employers in Vietnam are required to compensate overtime at higher rates than regular working hours, depending on the day, time, and occasion of the work performed, as per Article 98 of the Labor Code 2019 and Article 55, Article 57 of Decree 145/2020/ND-CP. In general, overtime (OT)payment is calculated by multiplying the normal hourly salary by the applicable compensation rate and the number of overtime hours.

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The formula for overtime (OT) compensation is calculated as follows:

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1. Normal hourly salary = Monthly salary ÷ (Working days × Working hours per day)

2. Number of overtime hours = total number of hours that you must work beyond the regular working hour

3. Compensation rate: This rate depends on the day and time on which the overtime work occurs.

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Below is the calculator that gives you the most accurate minimum overtime pay in Vietnam to help businesses stay compliant with the overtime regulations.

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Example:

An employee had an overtime shift from 22:00pm to 2:00am (4 hours night shift) on Saturday. 

• Monthly base salary: 12,480,000 VND

• Number of working days per month: 26 days

• Number of working hours per day: 8 hours

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Calculation:

1. Calculate the base hourly salary:

• Daily wage = 12,480,000 VND / 26 days = 480,000 VND/day

• Hourly wage = 480,000 VND / 8 hours = 60,000 VND/hour

2. Calculate the overtime pay rate for weekend nighttime:

• Overtime rate: 270% (as per Vietnam’s Labor Code)

• Overtime hourly pay = 60,000 × 250% = 162,000 VND/hour

3. Calculate the total overtime pay for specific hours:

• Overtime hours: 4 hours

• Total overtime pay = 162,000 × 4 = 648,000 VND

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2. When is overtime triggered in Vietnam?

Article 107 of the Labor Code 2019 stipulates, “Overtime work is the duration of work performed at any other time than during normal working hours, as indicated in the law, collective bargaining agreement or internal labor regulations of an employer”.

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Therefore, working hours can be considered “overtime” when employees work either more than 8 hours/day or 48 hours/week. Additionally, triggers of overtime beyond hours worked can include weekends, public holidays, and night hours.

For employees performing hazardous, heavy, or chemically dangerous work, the allowable working hours may be further restricted based on national technical standards. In such cases, any work beyond the regulated threshold is immediately classified as overtime, and the employer is obligated to compensate accordingly - even if the daily or weekly caps are not fully met.

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3. Overtime limits and employer responsibilities

Vietnam’s labor code sets clear limits on overtime work to protect employees' health and ensure safe working conditions. These rules, defined in the Labor Code 2019 (Law No. 45/2019/QH14) and Decree 145/2020/ND-CP, must be strictly followed by employers. Non-compliance can result in penalties, labor disputes, and reputational damage.

As stated in Article 107, Clause 2 of the Labor Code 2019, overtime is only allowed when:

• Employees provide explicit written consent.

• The overtime is within the legal daily, monthly, and annual limits.

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3.1. Overtime Limits in Vietnam by type

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3.2. Sectors allowed to use the 300 hours/year overtime

Only certain industries are permitted to use the 300-hour annual overtime cap, as defined by Article 61 of Decree 145/2020/ND-CP:

• Manufacturing sectors: Textiles, garments, footwear, electronics.

• Primary industries: Agriculture, forestry, aquaculture, salt production.

• Utilities & infrastructure: Electricity generation, telecom, refining, water services.

• Specialized work: Jobs requiring rare or unavailable skills in the local market.

• Emergency or seasonal work: Urgent needs due to material shortages, natural disasters, technical breakdowns, epidemics, or similar disruptions.

• Other cases as decided by the Government.

Employers applying 300hrs/year overtime must notify the provincial labor authority in writing, ensuring transparency and legal alignment.Article 107, Clause 4 of the Labor Code 2019 mandates that businesses applying the 300h/year limit must notify the provincial labor authority (DOLISA) in writing.

This notification must detail:

• The reason for extended overtime.

• The list of affected employees.

• The expected work schedule.

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4. Overtime regulations for pregnant women, mothers, and minor employees

Vietnam’s labor regulations offer special protections for certain vulnerable employee groups, particularly pregnant women, mothers of infants, and minor employees.

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4.1. Overtime policies for pregnant employees and working mothers

For women in their seventh month of pregnancy or those with babies under 12 months old, the regulation strictly prohibits:

• Working overtime.

• Working night shifts (between 22:00 and 06:00).

• Undertaking long-distance business trips that could affect their health and well-being.

These protections ensure that employers make appropriate work arrangements, such as adjusting schedules or assigning alternative tasks, to protect both the employee and the company from legal risks.

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4.2. Regulations on overtime work of minor employees

Similarly, employees under the age of 18 (minor employees) are subject to clear working hour limits:

• Employees aged 15 to under 18 may work up to 8 hours per day and 40 hours per week. They are only permitted to work overtime or night shifts in specific industries as allowed by the Ministry of Labor, Invalids, and Social Affairs (MoLISA).

• Employees under 15 years old are limited to 4 hours per day and 20 hours per week and are strictly prohibited from any overtime or night work

• Employees under 13 years old are only allowed to work 1 hour per day, in approved non-hazardous roles, and cannot work overtime or night shifts under any circumstances.

Employers must carefully manage work schedules for these groups, ensuring legal compliance, and should integrate age-specific rules into their HR systems to avoid accidental violations.

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Streamline Payroll with Manpower Vietnam 

With over 77 years of global expertise and over 17 years of local experience, Manpower Vietnam is the go-to partner for businesses seeking reliable, compliant, and scalable workforce solutions. We offer end-to-end HR services - from recruitment and staffing to workforce consulting and payroll management. Ourpayroll solutions are built to handle complex labor regulations, including overtime pay in Vietnam that varies by day, time, and occasion. Let us help you stay compliant, reduce administrative burden, and focus on growing your business. 

Get in touch with Manpower Vietnam today by filling the form below:

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