Overtime in Vietnam is lawful only if the employee agrees to it and the hours stay within three caps: no more than 50% of the normal working hours of the day, 40 hours a month and 200 hours a year, or 300 hours a year in listed sectors and situations with a written notice to the provincial Department of Home Affairs (Article 107 of the Labour Code). Overtime pay is at least 150% of the hourly wage on a normal working day, 200% on the weekly rest day and 300% on public holidays and paid days off, and overtime worked between 10 pm and 6 am attracts two further night components (Articles 98 and 106).
We checked these rules against the consolidated Labour Code published in the Official Gazette on 28 February 2026 (the 2025 amending laws did not touch Articles 98 or 105 to 108), Decree 145/2020/ND-CP, the penalty Decree 283/2026/ND-CP in force since 10 September 2026, and the 2026 personal income tax decree. The 60-hour monthly cap that still appears in some guides came from Resolution 17/2022/UBTVQH15 and applied only until 31 December 2022.
Overtime in Vietnam: four rules that surprise foreign employers#
These overtime rules in Vietnam differ from what many groups apply at home:
- No "exempt employee" category. The Labour Code does not exclude managers or professionals from overtime pay because of their title. Article 116 lets line ministries set special hours for certain types of work, such as transport, offshore oil and gas, seasonal work or order-based processing, but that turns on the work, not the job title.
- Consent per occasion. The employee must agree to the time, place and work of the overtime (Article 59(1) of Decree 145). A general clause in the employment contract is weak evidence of consent to a specific overtime session; in our reading, a per-session confirmation by form, email or HR system is safer. A written form is not mandatory; Form 01/PLIV is a reference template (Article 59(2)).
- A monthly cap, not only a yearly one. The 40-hour monthly cap applies to every employer, including those allowed 300 hours a year.
- "Weekend" is not the test. The 200% rate applies to the weekly rest day the employer designates in its internal labour rules (Article 111(2)). If a five-day company designates only Sunday, Saturday work beyond normal hours is, in our reading, overtime on a normal day at 150%.
Employers may require overtime without consent or caps only for mobilisation orders on defence and security, and for protecting life and property in disasters, fires, dangerous epidemics and catastrophes (Article 108). A rush order or a system outage does not qualify.
Some employees cannot be asked at all, or only with their own agreement: pregnant employees from the 7th month (6th in remote, border and island areas) cannot work overtime even if they agree; employees raising a child under 12 months can only with their consent (Article 137(1)); children under 15 cannot, and those aged 15 to under 18 only in jobs on the ministerial list (Article 146); employees with a disability causing a loss of working capacity of 51% or more, or with a severe or extremely severe disability, only with consent (Article 160(1)). Foreign employees follow the same rules on overtime in Vietnam as local staff (Article 2(3)).
How many hours of overtime in Vietnam per day, month and year?#
| Limit | Maximum | Basis |
|---|---|---|
| Normal working day | Overtime up to 50% of that day's normal hours (4 hours on an 8-hour day) | Article 107(2)(b); Article 60(1) of Decree 145 |
| Weekly working-hour schedule, or part-time work | Normal hours plus overtime up to 12 hours a day | Article 107(2)(b); Article 60(2) and (3) |
| Weekly rest day, public holiday | Up to 12 overtime hours a day | Article 60(4) |
| Month | 40 hours | Article 107(2)(b) |
| Year | 200 hours; 300 hours for the cases below | Article 107(2)(c) and (3) |
The monthly overtime cap in Vietnam is therefore the same for everyone: 40 hours. With a 200-hour annual budget, an employer using the full 40 hours each month runs out after five months, so the yearly cap usually bites first. Breaks counted as working time under Article 58(1) of Decree 145 are deducted when adding up monthly and yearly overtime (Article 60(5)).
Who may run 300 hours of overtime in Vietnam a year, and how to notify#
The 300-hour cap covers export production and processing of textiles, garments, leather, footwear, electrical and electronic goods, and processing of agricultural, forestry, salt and aquatic products; electricity, telecoms, oil refining, water supply and drainage; work needing highly skilled labour the market cannot supply in time; and urgent work driven by seasons, raw materials, weather, disasters, fire, power or material shortages, or production-line breakdowns (Article 107(3)). Article 61 of Decree 145 adds public services, healthcare, education and vocational training, and direct production work at companies whose normal week is 44 hours or less.
No approval is needed, but a written notice is (Article 107(4); Article 62 of Decree 145). It goes to the provincial labour authority where the overtime takes place and, if different, where the head office is. Decree 145 still names the former Department of Labour, Invalids and Social Affairs; that function now sits with the provincial Department of Home Affairs (Article 8(1) of Decree 150/2025/ND-CP), which is also the body Decree 283 names (Article 24(1)(b)). The notice is due no later than 15 days after overtime passes 200 hours, using Form 02/PLIV. Some industrial-zone and high-tech park management boards also ask for a copy; check with the board where the project is located.
Calculating pay for overtime in Vietnam#
For time-based wages, overtime pay in Vietnam is computed as follows (Article 55(1) of Decree 145):
Overtime pay = hourly wage actually paid for the current job on a normal working day x at least 150%, 200% or 300% x overtime hours
The hourly wage is the wage actually paid for the current job in the month (or week, or day) concerned, divided by the normal hours actually worked in that period, excluding overtime hours (Article 55(1)(a)). It excludes overtime and night pay already earned, holiday pay, bonuses, meal allowances, and support for fuel, phone, travel, housing and childcare, and other support not linked to the job or title. Job and title allowances are included, so computing overtime on the base salary alone (or on a declared social insurance salary lower than actual pay) underpays. Piece-rate workers use the normal piece rate times the same percentages for output above the norm (Article 55(2)). All percentages are floors.
Each payslip must show overtime pay and night pay as separate items (Article 95(3) of the Labour Code). In our reading, an "all-inclusive salary" covers overtime only if the overtime element is shown separately and is not below the statutory amount for the hours actually worked. The Labour Code has no rule allowing time off in lieu instead of overtime pay.
Rate table with a worked hourly wage#
Illustration (assumed figures). Monthly wage used for the calculation VND 15,600,000; the company uses 26 working days a month and 8 hours a day; the employee worked all normal hours. Hourly wage = 15,600,000 / 26 / 8 = VND 75,000 (Article 54(1), points a3 and a4, of Decree 145).
| Type of hour | Minimum | Per hour | Basis |
|---|---|---|---|
| Daytime overtime, normal day | 150% | VND 112,500 | Article 98(1)(a) |
| Daytime overtime, weekly rest day | 200% | VND 150,000 | Article 98(1)(b) |
| Daytime overtime, public holiday or paid day off | 300% | VND 225,000 | Article 98(1)(c) |
| Regular night shift (not overtime) | 100% + 30% = 130% | VND 97,500 | Article 98(2); Article 56 of Decree 145 |
| Night overtime, normal day, no daytime overtime that day | 150% + 30% + 20% x 100% = 200% | VND 150,000 | Article 98(3); Article 57(1)(b), point b1 |
| Night overtime, normal day, after daytime overtime that day | 150% + 30% + 20% x 150% = 210% | VND 157,500 | Article 57(1)(b), point b1 |
| Night overtime, weekly rest day | 200% + 30% + 20% x 200% = 270% | VND 202,500 | Article 57(1)(b), point b2 |
| Night overtime, public holiday | 300% + 30% + 20% x 300% = 390% | VND 292,500 | Article 57(1)(b), point b3 |
The 300% holiday rate is "not counting" the holiday wage of daily-paid employees (Article 98(1)(c)): monthly-paid staff already receive holiday pay in their monthly salary, while daily-paid staff also receive that day's wage.
One month, assumed hours. Eight weekday evenings of 5 pm to 7 pm (16 hours x VND 112,500 = VND 1,800,000); one Sunday that is the designated weekly rest day, 8 daytime hours (VND 1,200,000); one weekday from 7 pm to 11 pm, of which 3 hours are daytime overtime (VND 337,500) and the hour after 10 pm is night overtime after daytime overtime at 210% (VND 157,500). Total: 28 hours, within the 40-hour cap, and 4 overtime hours on the 7 pm to 11 pm day, exactly 50% of an 8-hour day. Minimum overtime pay: VND 3,495,000 on top of the monthly salary.
Night shift pay in Vietnam and night overtime#
Night hours run from 10 pm to 6 am (Article 106). A scheduled night shift is not overtime: the employee earns the hourly wage plus at least 30% (Article 56 of Decree 145), and a shift of 6 hours or more with at least 3 night hours carries a continuous break of at least 45 minutes (Article 109(1); Article 64(1) of Decree 145). Some English-language guides say 30 minutes; that is the daytime break.
Night overtime adds three parts (Article 57 of Decree 145): the overtime rate of 150%, 200% or 300%; 30% of the normal hourly wage; and 20% of the "daytime hourly wage" of that type of day. The third part is where payroll systems often go wrong. On a normal day the daytime hourly wage is 100% if the employee did no daytime overtime before the night overtime, and 150% if they did (point b1). The same hour at 11 pm on a Wednesday therefore costs at least 200% for someone who started overtime at 10 pm, and at least 210% for someone who had been on overtime since the afternoon. Night shift pay in Vietnam, and any night overtime in Vietnam, should be computed by splitting hours at 10 pm and 6 am and flagging days with daytime overtime.
Public holidays and rest days#
From 2026 Vietnam has 12 paid public holiday days. Article 112(1) lists 11: New Year's Day (1), Lunar New Year (5), 30 April (1), 1 May (1), National Day (2: 2 September and one adjacent day) and Hung Kings' Commemoration (1, 10th day of the 3rd lunar month); the Prime Minister fixes the exact Lunar New Year and National Day dates each year (Article 112(3)). The 12th is 24 November, Vietnam Culture Day, under Resolution 28/2026/QH16 (in force 1 July 2026). Foreign employees also get one day for their traditional new year and one for their national day (Article 112(2)); in our reading, work on those days is paid at the holiday rate.
Article 2(1) of Resolution 28/2026/QH16 provides that 24 November each year is Vietnam Culture Day and that employees are entitled to the day off on full pay. It is a paid day off, so overtime in Vietnam on 24 November is paid at least 300% (Article 98(1)(c)). In 2026, 24 November is a Tuesday, and the Deputy Prime Minister approved a single day off with no swap of working days (Letter 10065/VPCP-KGVX of 2 October 2026). A draft law amending the Labour Code (discussed by the National Assembly Standing Committee on 4 September 2026) would also write the day into Article 112; the entitlement has applied since 1 July 2026 and does not wait for that law.
If a holiday falls on the weekly rest day, the employee takes the next working day off (Article 111(3)). Overtime in Vietnam on the holiday itself is paid at 300%; overtime on the substitute day off is paid at the weekly rest-day rate of 200% (Article 55(3) of Decree 145).
Is overtime pay taxable in Vietnam, and is it subject to social insurance?#
Personal income tax. Article 4(8) of Law 109/2025/QH15 on Personal Income Tax exempts night-work and overtime pay paid in line with the law. Article 26 of Decree 253/2026/ND-CP (in force 1 July 2026) exempts night-work and overtime pay "in line with the conditions and hours set by labour law" and requires the employer to keep a schedule of night and overtime hours and amounts paid, or to prove them through payroll, timesheets and employment contracts (Article 26(1)); any amount "exceeding the level set by law" is taxable (Article 26(3)).
So is overtime pay taxable in Vietnam? The old rule exempted only the part paid above normal-hour pay. The new wording drops that limit, so on its face the whole of compliant overtime pay is exempt (the VND 3,495,000 in the example above). We have not found official guidance on two points: whether "exceeding the level set by law" means hours above the Article 107 caps or pay above the Article 98 minimum rates (for example, a company paying 200% on weekdays), and whether a regular night shift is exempt in full or only for its 30% premium. Until guidance appears, a cautious payroll treats only capped, consented hours as exempt, taxes pay above the statutory rates, and exempts only the 30% premium on regular night shifts. For resident individuals, the employment-income rules of Law 109 and Decree 253 apply from the 2026 tax year (Article 29(2) and (3) of Law 109; Article 69(1)(a) of Decree 253), so in our reading overtime paid from January 2026 is also assessed under Article 26 at the 2026 finalisation; monthly or quarterly returns already filed under the old rules are not refiled but adjusted in the 2026 finalisation return (Article 70(2) of Decree 253). For expatriate tax generally, see personal income tax for foreigners in Vietnam.
The practical link: hours over the overtime cap in Vietnam, or without consent, can cost both a fine and the tax exemption, because Article 26(1) ties the exemption to labour-law conditions and hours.
Social insurance. The compulsory contribution base is the salary, salary allowances and other agreed amounts paid regularly and stably each pay period (Article 31(1)(b) of Law 41/2024/QH15); Article 7(1) of Decree 158/2025/ND-CP excludes amounts that vary with productivity or work performed. Overtime pay varies with hours worked, so in our reading it is outside the base, although neither text names it. A fixed monthly "overtime allowance" paid regardless of hours may be treated as a regular amount and attract contributions. See also social insurance for foreign employees.
Fines for unlawful overtime in Vietnam under Decree 283/2026#
Decree 283/2026/ND-CP replaced Decree 12/2022/ND-CP from 10 September 2026 (Article 66(1) and (4)). The amounts below are for individuals; companies, branches and representative offices pay double (Article 7(1) and (2)(b); none of these articles is in the exception list of Article 7(1)).
| Violation | Individual (VND) | Company (VND) | Basis |
|---|---|---|---|
| No notice for overtime between 200 and 300 hours a year | 2–5 million | 4–10 million | Article 24(1)(b) |
| Overtime without the employee's consent (outside Article 108) | 20–25 million | 40–50 million | Article 24(3)(b) |
| Overtime beyond the legal hours | 5–10 million (1–10 employees); 10–20 million (11–50); 20–40 million (51–100); 40–60 million (101–300); 60–75 million (301 or more) | Double, up to 150 million | Article 24(4) |
| Unpaid or underpaid overtime or night pay | 5–10 million (1–10 employees); 10–20 million (11–50); 20–30 million (51–100); 30–40 million (101–300); 40–50 million (301 or more) | Double, up to 100 million | Article 23(2) |
| Overtime by an employee pregnant from the 7th month, or by an employee with a child under 12 months without consent | 10–20 million | 20–40 million | Article 26(2)(a) and (b) |
| Overtime by a child under 15, or by a 15–17-year-old outside the permitted list | 20–25 million | 40–50 million | Article 27(2)(d) and (dd) |
| Overtime by an employee with a qualifying disability without consent | 5–10 million per employee | 10–20 million per employee | Article 29(1)(b) |
Underpaid overtime pay in Vietnam must also be paid in full with interest at the highest demand-deposit rate of the state-owned commercial banks at the time of the penalty (Article 23(5)(a)).
Records to keep for overtime in Vietnam#
Per-session consent (Article 59 of Decree 145); timesheets that split night hours; payslips showing overtime and night pay separately (Article 95(3)); the overtime schedule for the tax exemption (Article 26 of Decree 253); and the notice once overtime passes 200 hours. Timesheet and biometric attendance data are personal data; see the handbook entry on employee personal data.
If your overtime rules in Vietnam need a check, for example to review an overtime policy, consent forms, payroll formulas or a 300-hour notice, LexData's employment law advice for companies in Vietnam works to an agreed scope. This article is general information and does not replace advice on a specific case.
