Overtime Limits: 40 Hours/Month, 200 Hours or 300 Hours per Year?
"Our factory runs 280 overtime hours a year — is that a violation?" The answer is: it depends on the industry. The Labor Code 2019 sets three overtime tiers: 40 hours/month, 200 hours/year, and a 300-hour/year exception for certain industries. Misunderstanding one tier means penalties.
Contents
- 1. The three overtime tiers
- 2. Which industries qualify for 300 hours/year?
- 3. Conditions for organizing overtime
- 4. Overtime pay calculation
- 5. Penalties for exceeding caps
- 6. Frequently asked questions
- 7. When to work with a lawyer
- References
1. The three overtime tiers
Article 107 of the Labor Code 2019 provides:
- Tier 1 — monthly: overtime must not exceed 40 hours in one month. A hard cap for all sectors and cases.
- Tier 2 — annual (general cap): total overtime must not exceed 200 hours in one year.
- Tier 3 — annual (exception): certain industries, occupations or cases may organize overtime from over 200 up to 300 hours in one year (Article 107(3)).
All three tiers apply simultaneously: even 300-hour enterprises must not exceed 40 hours/month. Normal working hours remain capped at 8 hours/day and 48 hours/week (Article 105).
2. Which industries qualify for 300 hours/year?
The detailed list is set by the Government; typical groups include:
- Manufacturing and export processing of textiles, garments, leather, footwear;
- Manufacturing and export processing of electronic components;
- Other specified industries, occupations or cases.
The key point: 300 hours is not automatic. Enterprises must fall in the right groups and notify in writing the specialized labor agency when organizing 200–300 hours/year. No notification with 200+ hours = violation.
3. Conditions for organizing overtime
At any tier, overtime requires:
- Employee consent — no coercion;
- Within the caps above (40 hours/month; 200 or 300 hours/year as applicable);
- Written notification to the labor authority for the 200–300 hours/year case;
- Special protections: pregnant employees, nursing mothers of children under 12 months, and juvenile workers face separate overtime restrictions — check before mobilizing.
4. Overtime pay calculation
Article 98 of the Labor Code 2019:
| Overtime timing | Minimum rate |
|---|---|
| Normal working day | 150% of hourly wage |
| Weekly rest day | 200% of hourly wage |
| Public holiday | 300% of hourly wage (plus holiday pay) |
Night overtime earns additional statutory pay. Note: pay correctly, fully, with clear payslips — overtime pay disputes are among the most common grounds for lawsuits.
5. Penalties for exceeding caps
Exceeding overtime caps triggers administrative penalties under Article 24(4) of Decree 283/2026/ND-CP (effective 10 September 2026, replacing Decree 12/2022/ND-CP), scaled by the number of affected employees: VND 5–10 million (1–10 employees), VND 10–20 million (11–50 employees), VND 20–40 million (51–100 employees), VND 40–60 million (101–300 employees), and VND 60–75 million (301 employees or more); remedial measures may also apply as prescribed. Note: these amounts apply to individuals; organizations face double the fine (Article 7 of Decree 283/2026/ND-CP).
For FDI enterprises with thousands of workers, one inspection finding cap breaches can produce very large total fines — plus recurring-inspection risk.
6. Frequently asked questions
Q: What is the monthly overtime limit?
A: No more than 40 hours in one month under the Labor Code 2019. This is a hard cap for all sectors.
Q: What is the annual overtime limit?
A: No more than 200 hours in one year. Certain industries and jobs (e.g., textiles, garments, leather, footwear, electronic components) may work from over 200 up to 300 hours/year under Article 107(3).
Q: Which industries qualify for 300 hours/year?
A: Industries, occupations and cases specified by the Government, typically: manufacturing and export processing of textiles, garments, leather, footwear, electronic components. Employers must notify the labor authority in writing.
Q: What conditions apply to organizing overtime?
A: Employee consent is required; overtime must stay within limits; and for the 200–300 hours/year case, written notification to the specialized labor agency is mandatory.
Q: How is overtime pay calculated?
A: At least 150% of normal hourly wage on weekdays, 200% on weekly rest days, 300% on public holidays. Night overtime earns additional pay as regulated.
Q: What are the penalties for exceeding overtime caps?
A: Administrative penalties under Article 24(4) of Decree 283/2026/ND-CP (effective 10 September 2026), scaled by the number of affected employees (VND 5–75 million depending on headcount), with possible remedial measures as prescribed.
7. When to work with a lawyer
Work with a lawyer when: inspected or penalized for cap breaches; building internal rules and collective agreements with lawful overtime mechanisms; disputing overtime pay with employees; or FDI enterprises needing full labor compliance review. FLAT Law Firm advises enterprises on labor — contact hotline 0988424851.
References
- Labor Code 2019 (45/2019/QH14).
- Decree 283/2026/ND-CP (effective 10 September 2026).
- Content cross-checked at time of writing (28/9/2026).
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