Overtime Rules in Vietnam 2026: Leave, Holidays and OT Pay

Overtime rules in Vietnam are stricter than many foreign employers expect: monthly and yearly caps, employee consent, and pay of up to 300%. In 2026 Vietnam also added a paid holiday on 24 November and made overtime pay fully tax-exempt. Here is what an employer, or its EOR Vietnam partner, must apply.

Quick answer: In Vietnam, overtime is capped at 40 hours a month and 200 hours a year (300 hours in listed sectors) under Article 107 of the Labour Code 2019. It is paid at least 150% on weekdays, 200% on weekly rest days and 300% on public holidays. Employees get 12 days of annual leave and, from 2026, 12 public-holiday days.

What are the overtime limits in Vietnam in 2026?

Vietnam limits overtime to 40 hours per month and 200 hours per year, and normal hours plus overtime may not exceed 12 hours in one day. These limits come from Article 107 of the Labour Code 2019 (Law 45/2019/QH14, effective 1 January 2021) and Article 60 of Decree 145/2020/ND-CP.

Normal hours are capped at 8 hours a day and 48 hours a week (Article 105), so an 8-hour day allows at most 4 hours of overtime. Two conditions also apply:

• Consent. The employee must agree, except in emergencies listed in Article 108.
• 300-hour sectors. Up to 300 hours a year is allowed only in listed cases, such as garment, footwear and electronics export production, power, telecoms or scarce high-skill work (LuatVietnam summary of Article 107 and Decree 145). An employer that goes above 200 hours must notify the provincial Department of Home Affairs in writing.

How is overtime paid in Vietnam?

Overtime in Vietnam is paid at a minimum of 150% of the hourly wage on normal working days, 200% on weekly rest days and 300% on public holidays, under Article 98 of the Labour Code 2019. The 300% holiday rate is paid on top of the normal pay the employee already receives for the holiday.

Night work (22:00–06:00) adds at least 30%, and night overtime a further 20%, so a weekday night overtime hour costs at least 200% (MISA worked examples).

Worked example (checked with a script). An engineer in Ho Chi Minh City earns 20,000,000 VND a month. With 22 working days of 8 hours, the hourly wage is 113,636 VND.

Overtime in the month	Hours	Rate	Overtime pay (VND)	Legal basis
Weekday evening	4	150%	681,818	Labour Code 2019, Art. 98 (effective 1 Jan 2021)
Sunday (weekly rest day)	8	200%	1,818,182	Labour Code 2019, Art. 98
24 Nov 2026 (public holiday)	8	300%	2,727,273	Labour Code 2019, Art. 98; Resolution 28/2026/QH16 (effective 1 Jul 2026)
Total	20		5,227,273	Within the 40-hour monthly cap (Art. 107)

Is overtime pay taxed in Vietnam from 2026?

No. From the 2026 tax period, the whole of an employee's overtime pay and night-work pay is exempt from personal income tax under Article 4.8 of the Law on Personal Income Tax 2025 (Law 109/2025/QH15). Under the old law, only the premium above the normal hourly wage was exempt (Workers' Journal report). Payroll should still show overtime as a separate line. Our guide to Vietnam's 2026 personal income tax changes covers the new brackets and deductions.

How many public holidays does Vietnam have in 2026?

Vietnam has 12 paid public-holiday days from 2026: the 11 days in Article 112 of the Labour Code 2019 plus Vietnamese Culture Day on 24 November, added by Resolution 28/2026/QH16 (passed 24 April 2026, effective 1 July 2026) (Resolution 28/2026/QH16 on Thư Viện Pháp Luật).

In 2026, 24 November falls on a Tuesday, and Government Office letter 10065/VPCP-KGVX of 2 October 2026 set a single day off for public employees, with no swapped working days (Báo Văn hóa). Foreign employees also get one day for their own traditional new year and one for their national day (Article 112.2).

How much annual leave do employees get in Vietnam?

Employees in Vietnam get 12 working days of paid annual leave after 12 months of work, plus 1 extra day for every 5 years with the same employer, under Articles 113 and 114 of the Labour Code 2019. Heavy or hazardous jobs earn 14 or 16 days.

Leave for under 12 months of service is pro-rata, and probation counts as service. The employer sets the leave schedule after consulting staff, and leave can be combined across up to 3 years by agreement. Unused leave must be paid out when employment ends (Article 113.3).

What are the fines for breaking overtime and leave rules?

Fines for working-time breaches are set by Decree 283/2026/ND-CP, effective 10 September 2026, which replaced Decree 12/2022/ND-CP. Under Article 24, exceeding the overtime limits costs 5–75 million VND depending on how many employees are affected, and breaching annual leave or public holiday rules costs 10–20 million VND (Decree 283/2026/ND-CP text). These are individual-level amounts. A company pays twice as much (Article 7).

An Employer of Record (EOR) is a licensed local company that legally employs your staff and carries these obligations, while you direct the daily work. When you compare EOR cost in Vietnam, ask how each provider tracks overtime and leave, not only the monthly fee.

Key takeaways

• Overtime is capped at 40 hours a month and 200 a year (300 in listed sectors) and pays at least 150%, 200% or 300% (Labour Code 2019, Arts. 98 and 107).
• From the 2026 tax period, all overtime and night-work pay is exempt from personal income tax (Law 109/2025/QH15).
• Vietnam has 12 public-holiday days from 2026, including 24 November under Resolution 28/2026/QH16.
• Annual leave is 12 days plus 1 day per 5 years of service, and unused days are paid out at exit.

Frequently asked questions

What is the maximum overtime per month in Vietnam?

The maximum overtime in Vietnam is 40 hours per month under Article 107 of the Labour Code 2019. The yearly cap is 200 hours, or 300 hours in listed sectors such as garment and electronics export production. Normal hours plus overtime may not exceed 12 hours a day. A temporary 60-hour monthly limit used in 2022 has expired.

Is 24 November a paid public holiday in Vietnam?

Yes. 24 November is Vietnamese Culture Day, and employees take it off with full pay under Resolution 28/2026/QH16, effective 1 July 2026. In 2026 it falls on a Tuesday. An employee in Vietnam who works that day is paid at least 300% of the hourly wage, on top of normal holiday pay.

Is overtime pay taxable in Vietnam in 2026?

No. From the 2026 tax period, all overtime and night-work pay for employees in Vietnam is exempt from personal income tax under Article 4.8 of the Law on Personal Income Tax 2025 (Law 109/2025/QH15). Before 2026 only the premium above the normal wage was exempt.

Does an EOR in Vietnam handle overtime and leave records?

Yes. A licensed EOR in Vietnam is the legal employer, so it must apply the overtime caps, pay rates and leave rules of the Labour Code 2019 and answers for fines under Decree 283/2026/ND-CP. The client approves overtime and leave; the EOR checks the caps, calculates pay and keeps the records.

How much annual leave do employees get in Vietnam?

Employees in Vietnam get 12 working days of paid annual leave after 12 months of work under Article 113 of the Labour Code 2019, plus 1 day per 5 years with the same employer under Article 114. Leave for under 12 months is pro-rata, and unused days are paid out when employment ends.

Work with HR4U

HR4U JSC is a licensed Employer of Record in Vietnam (labour outsourcing licence 24/2023/SBD). HR4U employs your team on bilingual contracts, tracks overtime and leave, and runs payroll from USD 109 per employee per month, with statutory costs passed through at cost. We aim to be honest about the rules and proactive about changes like the new 24 November holiday. View EOR in Vietnam or talk to us.

Last updated: 31 October 2026

This article is for general information and reflects rules in effect as of October 2026. It is not legal or tax advice.