{"id":1122,"date":"2025-12-13T11:56:58","date_gmt":"2025-12-13T02:56:58","guid":{"rendered":"https:\/\/est.haro-inc.com\/?p=1122"},"modified":"2025-12-13T11:56:59","modified_gmt":"2025-12-13T02:56:59","slug":"vietnam-overtime-wage-base","status":"publish","type":"post","link":"https:\/\/est.haro-inc.com\/en\/pyroll-en\/vietnam-overtime-wage-base\/","title":{"rendered":"Basics of Overtime Pay Calculation in Vietnam: What Is Included and Excluded from Wages"},"content":{"rendered":"\n

In calculating overtime pay in Vietnam, one of the most common mistakes made by HR and payroll practitioners is misunderstanding the \u201cscope of wages included in the overtime calculation base.\u201d<\/span><\/strong>
\nEven if a company believes it is paying overtime correctly, an incorrect calculation base may still be judged as unpaid overtime<\/strong><\/span>.<\/p>\n\n\n\n

Overtime Pay Is Calculated Based on \u201cNormal Wages\u201d<\/h2>\n\n\n\n

Under Vietnamese labor law, overtime pay must be calculated based on normal wages<\/strong><\/span>.
\nNormal wages are not limited to base salary alone, but refer to all wages paid as consideration for work performed<\/strong><\/span>.<\/p>\n\n\n\n

Wages That Should Be Included in the Calculation Base (Principle)<\/h2>\n\n\n\n

In principle, the following types of wages must be included in the overtime pay calculation base<\/strong>.<\/p>\n\n\n\n

Item<\/th>Reason<\/th><\/tr><\/thead>
Base salary<\/td>The core compensation for labor<\/td><\/tr>
Position \/ responsibility allowance<\/td>Paid monthly on a fixed basis according to role or position<\/td><\/tr>
Job-related \/ skill allowance<\/td>Directly related to job duties<\/td><\/tr>
Allowances paid monthly at a fixed amount<\/td>Substantively regarded as part of wages<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The key point is that judgment is based not on the allowance name, but on the actual substance of the payment<\/strong><\/span>.<\/p>\n\n\n\n

Wages That May Be Excluded from the Calculation Base (Conditional)<\/h2>\n\n\n\n

On the other hand, the following items are generally considered excludable from the overtime calculation base<\/strong><\/span>.<\/p>\n\n\n\n

Item<\/th>Reason<\/th><\/tr><\/thead>
Meal allowance<\/td>Strong welfare-related nature<\/td><\/tr>
Commuting allowance<\/td>Reimbursement of actual expenses<\/td><\/tr>
Performance-based bonus<\/td>Not paid on a fixed monthly basis<\/td><\/tr>
Annual bonus (Tet bonus, etc.)<\/td>Paid irregularly<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

However, if allowances such as meal allowances are paid at a fixed amount every month<\/strong><\/span>, they may be required to be included in the calculation base depending on their substance.<\/p>\n\n\n\n

Common Practical Mistakes<\/h2>\n\n\n\n
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