On the Ministry of Finance Information Portal, reader L.K. D in Da Nang asked: Is the case of wages and salaries for working at night and overtime paid for days without leave exempt from personal income tax?
Da Nang City Tax Department has the following feedback:
Decree No. 253. 2026. ND-CP dated June 30, 2026, detailing a number of articles and measures to organize and guide the implementation of the Personal Income Tax Law. This Decree takes effect from July 1, 2026.
Regulations related to income from business, from salaries and wages of resident individuals apply from the tax period of 2026.
Labor Code No. 45. 2019. QH14 dated November 20, 2019.
Decree No. 145. 2020. ND-CP dated December 14, 2020 of the Government detailing and guiding the implementation of a number of articles of the Labor Code on working conditions and labor relations.
According to Article 26 of Decree No. 253. 2026. ND-CP and guidance from the Tax authority, personal income tax exemption from salaries and wages in some specific cases is implemented as follows:
Regarding wages and salaries for nighttime work. Cases of application: In addition to normal working hours, businesses have nighttime work (calculated from 10 pm to 6 am the next morning) at the workplace in accordance with regulations on conditions and time according to labor law.
Regulations on tax exemption, wages, and salaries paid to workers working at night during the above-mentioned period are exempt from PIT.
In case the enterprise pays beyond the prescribed level of law, the excess part must be included in the taxable personal income of employees.
Regarding salaries and wages for overtime work. In case of application, if workers have overtime work at the workplace, it is in accordance with the regulations on conditions and time according to labor law.
Regulations on tax exemption, wages, and salaries that employees receive for overtime work are exempt from PIT.
The portion that employees receive higher than the level prescribed by law must be included in personal income taxable income.
Regarding salaries and wages paid for days without leave (annual leave). Application case: Applied to employees under the provisions of Clause 3, Article 113 of the Labor Code (in case of resignation, job loss but not taking annual leave or not taking all annual leave days, the employer shall pay salaries for the days not taken), and in accordance with the provisions of the Law on Civil Servants and the Law on Public Employees.
Tax exemption regulations: Wages and salaries recognized for days not on leave or not fully off leave of this subject are exempt from PIT. The portion of expenses exceeding the regulated level must be included by the enterprise in the taxable PIT income of employees.
The level of salary and wage exempted from tax in the above cases is determined according to the provisions of the Labor Code and detailed guidance in Articles 55, 56, 67 of Decree No. 145. 2020. ND-CP dated December 14, 2020 of the Government.
Article 98 of the Labor Code stipulates the minimum wage for overtime and nighttime work as follows:
Overtime pay: Overtime workers are paid according to the unit price of salary or the actual salary paid according to the work they are doing:
On weekdays: At least 150%;
On weekly holidays: At least 200%;
On holidays, Tet holidays, paid holidays: At least equal to 300% (excluding salary on holidays, Tet holidays, paid holidays for workers receiving daily wages).
Night work salary: Workers working at night are paid at least 30% of the salary calculated according to the unit price of the salary or the actual salary paid according to the work of a normal working day.
Overtime pay at night: Workers working overtime at night, in addition to being paid according to overtime regulations and working at night, are also paid an additional 20% of the salary calculated according to the salary unit price or salary according to the work done during the day of normal working days or weekly holidays or holidays, Tet holidays.
In case the enterprise pays employees exceeding the above-mentioned legal regulations, this exceeding amount will be included in the personal income taxable income of employees.
