Vietnam hikes overtime cap until year-end

All members of the National Assembly Standing Committee approved the decision, which would take affect from April 1 till the end of the year.

The decision also increases the annual cap for overtime from 200 hours to 300 hours for almost all sectors.

Currently only sectors that the government prioritizes for economic growth have an overtime cap of 300 hours.

The latest decision follows a proposal made by the Ministry of Labor, Invalids and Social Affairs to increase the monthly overtime cap from 40 hours to 72 hours as companies reported rising pressure to meet buyers’ orders.

It was reported that the need for increased productivity had employees and employers coming to "secret" agreements to work more than the allowed overtime. This could mean that employees might not have received all the benefits that they are legally entitled to, such as a double-pay on their usual day off.

The Vietnam Chamber of Commerce and Industry (VCCI) also made a similar proposal to that of the ministry, saying that many workers had contracted Covid-19, resulting in a drop in productivity.

The lawmakers, however, did not agree with such proposals.

National Assembly Chairman Vuong Dinh Hue said that he did not receive any proposal from business associations to hike up the overtime to 72 hours per month.

Some lawmakers have emphasized that the overtime hike only applies to this year because of Covid-19.