How Are Night Shift’s Wages Calculated in 2023?

For many employees in Vietnam, overtime wages and night shifts represent significant concerns impacting their work-life balance and overall compensation. In response to these concerns, NT International Law Firm presents this informative article to provide clarity and understanding on these essential topics.

Drawing upon the Vietnamese Labor Code of 2019, this article delves into the legal definitions, employee entitlements, and various regulations surrounding overtime wages and night shifts. By equipping you with accurate information and legal basis, we aim to empower you to make informed decisions and ensure your rights are protected.

Stay tuned for the following sections, where we will explore key terms like “overtime,” “night work,” and “night overtime,” alongside detailed explanations of employee entitlements regarding breaks, rest periods, and pay calculations. We will also address specific considerations for night shifts and highlight additional resources for further exploration.

Through this comprehensive analysis, we hope to equip you with valuable knowledge and understanding, empowering you to navigate the complexities of overtime wages and night shifts with confidence.

How Are Night Shift’s Wages Calculated in 2023?

What are overtime, night work and night overtime?

Legal Definitions:

• Overtime: Clause 1, Article 106 of the Labor Code defines overtime as the period of working time exceeding the normal working hours prescribed by law, collective labor agreements, or labor regulations.
• Night Work: According to Article 105 of the Labor Code, night working hours are counted from 10:00 p.m. to 6:00 a.m. the next day.
• Night Overtime: Therefore, night overtime occurs when work is performed outside of normal working hours and falls within the designated night work period (10:00 p.m. to 6:00 a.m.).

Employee Entitlements:

• Night Break: Clause 1, Article 109 of the 2019 Labor Code stipulates that employees working at night are entitled to a break of at least 45 consecutive minutes.
• Night Shift Work: For employees working night shifts of 6 hours or longer, their rest time within the shift will be counted as working time. This means the total working time includes both active work and rest periods. However, for night shifts shorter than 6 hours, the break time is not considered part of the employee’s working hours.

Additional Information:

• It’s crucial to note that both the employer and employee must agree on any overtime work, including night work. This agreement should be documented and clearly state the duration, compensation, and other relevant details.
• The specific regulations for overtime pay and night work may also vary depending on the industry, collective labor agreements, and individual employment contracts.

Legal Basis:

• Labor Code of 2019: https://natlex.ilo.org/dyn/natlex2/r/natlex/fe/details?p3_isn=110469&cs=10GyumwEaDf0QkKGiWDPd1oX7t3USDABq-Ud_5wqKeNsIUS8ciIdWwe8J-hkBW-1ZzqKUvYfS_POpzOUxPizg1A
• Article 105: Definitions of working hours and night work
• Article 106: Definitions of overtime and overtime pay
• Article 109: Breaks and rest periods for night work

How is a night shift’s wage calculated?

Night shift’s wage

Night Shift Wage Formula for Hourly Employees:

• Wages for working at night = (Actual hourly wage for normal day + Actual hourly wage for normal day x Minimum 30% increase) x Number of hours worked at night
• Actual hourly wage for normal day = (Total monthly salary / Number of working hours in a month)

Night Shift Wage Formula for Product-Based Employees:

• Wages for working at night = (Product wage unit price for normal day + Product wage unit price for normal day x Minimum 30% increase) x Number of products made at night

Legal Basis:

• Labor Code of 2019: https://natlex.ilo.org/dyn/natlex2/r/natlex/fe/details?p3_isn=110469&cs=10GyumwEaDf0QkKGiWDPd1oX7t3USDABq-Ud_5wqKeNsIUS8ciIdWwe8J-hkBW-1ZzqKUvYfS_POpzOUxPizg1A (Article 98)
• Decree No. 145/2020/ND-CP: https://thuvienphapluat.vn/van-ban/EN/Lao-dong-Tien-luong/Decree-145-2020-ND-CP-elaboration-of-the-Labor-Code-on-working-conditions-and-labor-relations/461788/tieng-anh.aspx (Point a, Clause 1, Article 55)

Key Points:

• Night shift wages are calculated based on the employee’s regular daily wage, whether hourly or product-based.
• A minimum increase of 30% must be applied to the regular wage for all night hours worked.
• For hourly employees, the actual hourly wage is calculated by dividing the monthly salary by the total working hours in a month.
• For product-based employees, the product wage unit price for a normal day is used for the calculation.

Night shift’s overtime wage

Night shift overtime involves additional compensation beyond the regular night shift wage. Here’s a comprehensive breakdown of the calculation process for both hourly and product-based employees:

For Hourly Employees:

• Overtime pay at night = (Actual hourly wage x (150% or 200% or 300%) + Actual hourly wage x 30% + 20% x Hourly wage during the day x Number of overtime hours worked at night)

Where:

• Actual hourly wage = (Total monthly salary / Number of working hours in a month)
• Hourly wage during the day:
  • Normal working day:
    • No daytime overtime: 100% of actual hourly wage
    • Daytime overtime: 150% of actual hourly wage
  • Weekly day off: 200% of actual hourly wage
  • Holidays, Tet, paid leave: 300% of actual hourly wage

For Product-Based Employees:

• Overtime pay at night = (Product wage unit price x (150% or 200% or 300%) + Product wage unit price x 30% + 20% x Product wage unit price during the day x Number of products made overtime at night)

Where:

• Product wage unit price during the day:
  • Normal working day:
    • No daytime overtime: 100% of product wage unit price
    • Daytime overtime: 150% of product wage unit price
  • Weekly day off: 200% of product wage unit price
  • Holidays, Tet, paid leave: 300% of product wage unit price

Key Points:

• Night shift overtime pay is calculated in addition to regular night shift wages.
• Overtime pay depends on the specific day (normal working day, weekly day off, holiday, etc.) and whether the employee worked overtime during the day.
• The minimum increase for regular night shift wages is 30%.
• The minimum increase for overtime hours worked at night is 150%.
• Additional increases apply depending on the specific day and overtime situation.
• Overtime pay is calculated based on the employee’s regular wage, whether hourly or product-based.

Legal Basis:

• Decree No. 145/2020/ND-CP: https://vanbanphapluat.co/decree-145-2020-nd-cp-elaboration-of-the-labor-code-on-working-conditions-and-labor-relations (Point a, Clause 1, Article 55)

NT International Law Firm has addressed the question of how night shift’s wages are calculated. If you have any further questions or concerns regarding labor, please contact our law firm immediately for expert legal advice.

If you require any legal assistance, please feel free to reach out to us via phone at 090 252 4567 or through email: info@ntpartnerlawfirm.com. At NT INTERNATIONAL LAW FIRM, our team is committed to offering you prompt and personalized advice.

You also might be interested in: The 2019 Labor Code in English