Circular 23 provides detailed definitions on salary, allowances, and other additional payments per the labour contract.
It is noteworthy that from 1 January 2016, allowances shall be included into the base for compulsory insurance contributions and from 1 January 2018, additional other payments will also be included into that base.
Due date of salary payment
For employees who receive salary on a monthly basis, salary is required to be paid in the month when the employee works.
Overtime payment for overtime working hours incurred at night
Circular 23 clearly stipulates on the overtime payment for overtime working hours incurred at night time as below:
| Overtime incurred in | Overtime payment |
| Normal work days: Employees do not work overtime during day time (before working overtime at night time)Employees work overtime during day time (before working overtime at night time) |
50%A + 30%A + 20%*A = 200%A 150%A + 30%A + 20%*150%*A = 210%A |
| Weekend | 200%A + 30%A + 20%*(200%A) = 270%A |
| Public holiday | 300%A + 30%A + 20%*(300%A) = 390%A |
Note:
- A is the hourly salary rate for normal work days.
- 30% is the minimum rate applied (i.e. the employer can apply a higher rate).
Effectiveness of Circular 23
Circular 23 takes effect from 8 August 2015. However, the implementation of salary system provided under Circular 23 is in line with the effective date of Decree 05, i.e. 1 March 2015.
If you have any questions or require any additional information, please contact Apolat Legal – An International Law Firm in Viet Nam.
This article is for general information only and is not a substitute for legal advice.
