A salaried employee is hired to perform a specific job and receives a fixed salary regardless of the number of hours worked weekly. The standard workweek is 48 hours, according to the Labor Code of Vietnam. Salaried employees are not typically entitled to overtime pay if they work beyond these hours, although certain high-level positions may require flexibility in working hours without additional compensation.
Salaried vs. Hourly Employees
| Aspect | Salaried Employee | Hourly Employee |
|---|---|---|
| Pay Structure | Fixed annual salary paid in regular installments | Hourly wage based on hours worked |
| Overtime | Generally not eligible | Eligible for overtime pay at higher rates |
| Work Schedule | Expected to work as needed to complete duties | Set schedule with extra pay for overtime |
| Benefits | Often includes comprehensive benefits like health insurance, retirement plans, and paid leave | May include some benefits, but typically less comprehensive |
How Salary Pay Works in Vietnam
The standard workweek in Vietnam is 48 hours. Overtime is regulated strictly; generally, employees can work a maximum of 200 hours of overtime per year, with some industries allowing up to 300 hours under special conditions. Overtime pay is calculated at 150% of the normal hourly rate on regular days, 200% on weekends, and 300% on holidays.
Part-Time Salaried Employees
Part-time employees in Vietnam work fewer than the standard hours but can still receive a fixed salary. Advances in technology have allowed for greater flexibility, enabling part-time salaried employees to work remotely. Companies must clearly define work plans, monitor hours, and manage workloads to ensure compliance with labor laws.
