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Increasing overtime working hours from April 1, 2022: How will the employee’s income be increased?

  After obtaining consultation in nearly 3 months, the proposal of the Ministry of Labor, War Invalids and Social Affairs was recently approved by the National Assembly Standing Committee. Resolution No. 17/2022/UBTVQH15 has been effective since April 1, 2022 and increased the maximum overtime limit for the employees in a month and a year compared to the Labor Code 2019 in order to restore and develop the economy in the prevention of COVID-19.

  This regulation is as follows:

  1. The overtime working hours 

  Compared with the Labor Code in 2019, Resolution No. 17/2022/UBTVQH15 has increased the overtime limit is more than 40 hours but not exceeding 60 hours per month and more than 200 hours but not exceeding 300 hours per year. Accordingly, this is only  applied in case the employer requests and the employee consents, except for the following cases:

  – Employees from full 15 years old to under 18 years old;

  – Employees being persons with mild disabilities who have lost 51% or more of their working capacity and persons with serious or extremely serious disabilities;

  – Employees who practice or perform heavy, hazardous or dangerous occupations or jobs, or extremely heavy, hazardous or dangerous occupations or jobs;

  – The female employee is at the 7th month or more of her pregnancy, or at the 6th month or more of her pregnancy if she works in a highland, deep-lying, remote, border or island area;

  – The female employee is raising a child under 12 months old.

2. The overtime pay

  The increase in overtime working hours not only helps enterprises to have the opportunity to promote production and business but also contributes to increasing the employee’s income to cover the living expenses.

  In detail, Article 98 of the Labor Code in 2019, Articles 55 and 57 of Decree No. 145/2020/ND-CP regulate overtime wages of employees as follows:

  – Pay for overtime work = Hourly wage actually paid for the employee’s current job on normal workdays x Minimum rate of 150% or 200% or 300% x Number of overtime hours

  – Pay for overtime work at night = (Hourly wage actually paid for the employee’s current job on normal workdays  x  Minimum rate of 150% or 200% or 300%  +  Hourly wage actually paid for the employee’s current job on normal workdays x Minimum rate of 30%  +  20%  x  Hourly wage for daytime of normal workdays or weekly day-offs or public holidays, new year festivals or paid day-offs)  x  Number hours of overtime work at night

  Thus, it can be seen that when the number of overtime hours is increased, the employees also have more opportunities to increase their income by registering to work overtime and the specific income will depend on the number of overtime working hours.

  Please contact T2H Lawyers for the fastest support in any problems!


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