Ms. Nguyen Thi Le (name of the character changed) said that she is working as an employee at a manufacturing company and reflected that the business is facing difficulties in calculating overtime wages and nighttime work allowances for employees.
According to Ms. Le, the company agreed on a total salary of 10 million VND/month, of which 70% is the main salary, and 30% is the work performance salary (KPI). The KPI salary is specified in the appendix of the labor contract and paid according to the monthly evaluation results, which may be higher or lower than the 30% level depending on grades A, B, C, D.
From the above reality, Ms. Le proposed that the Ministry of Home Affairs guide businesses when calculating overtime wages and nighttime work allowances, whether they are calculated based on the total salary (including the main salary and KPI salary) or only based on the main salary. At the same time, she also proposed to clarify whether responsibility allowances and fixed monthly position allowances are included in the "actual salary paid" as a basis for calculating overtime wages.
Regarding Ms. Le's reflection and recommendation, the Ministry of Home Affairs has responded on the Electronic Information Portal:
According to the provisions of point a, clause 1, Article 55 of Decree No. 145/2020/ND-CP dated December 14, 2020 of the Government, the salary used as a basis for calculating overtime for employees receiving time-based salaries is the actual salary paid for the work being done in the month or week or day that the employee works overtime.
This salary does not include the following amounts: Overtime salary, overpaid salary when working at night, salary for holidays, Tet holidays, paid holidays according to the provisions of the Labor Code; bonuses according to the provisions of Article 104 of the Labor Code, initiative bonuses; mid-shift meal allowances, gasoline, telephone, travel, housing money, childcare money, childcare; support when relatives die, employees have relatives marrying, employee birthdays, occupational diseases and other support and allowances not related to performing work or positions in the labor contract).
The Ministry of Home Affairs requests you to base on the above regulations, compare with the nature of each amount of money that businesses pay to employees to determine the actual hourly wage paid as a basis for calculating overtime wages for employees.
