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Legal updates

In case the Company incurs expenses for mid-shift meals for employees working at the Company, and such allowances are clearly stipulated in terms of eligibility conditions and benefit levels in the labor contract, collective labor agreement, or the Company’s internal regulations or policies, the determination of taxable income for PIT purposes for such allowances (effective from June 15, 2025) shall be as follows:

Official Letter No. 2677/SNV-VLATLD dated August 18, 2025 of the Department of Home Affairs of Ho Chi Minh City regarding the regulation on organizing overtime work from over 200 hours to 300 hours per year

On August 18, 2025, the Ho Chi Minh City Department of Home Affairs issued Official Letter No. 2677/SNV-VLATLD to provide information and guidance on organizing overtime work from over 200 hours to 300 hours per year, specifically as follows:

(i) Cases where overtime work up to 300 hours/year is permitted

According to Article 107 of the 2019 Labor Code and Article 61 of Decree 145/2020/ND-CP, the cases include:

  • Manufacturing and processing for export: textiles, garments, footwear, electronics, and processing of agricultural, forestry, and fishery products.
  • Production and supply of electricity, telecommunications, oil refining, and water supply/drainage.
  • Jobs requiring highly qualified and scarce professional or technical workers.
  • Urgent work that cannot be delayed (natural disasters, fires, technical incidents, shortage of raw materials, etc.).
  • Urgent work that cannot be delayed and is directly related to official duties in state agencies or public units.
  • Provision of public services, healthcare services, education, and vocational education.
  • Direct production and business activities where normal working hours are ≤ 44 hours per week.

(ii) Regulations when organizing overtime work from 200–300 hours/year

  • Employees’ consent is required regarding: Overtime schedule (time), Overtime location, Overtime tasks.
  • Written agreement with employees must be prepared (Form No. 01/PLIV – Appendix IV, Decree 145/2020/ND-CP).
  • Limits on working hours:
    > Not exceeding 12 hours/day (including overtime),
    > Not exceeding 40 hours/month,
    > Not exceeding 300 hours/year.

(iii) Employer’s obligation to notify the Department of Home Affairs

  • Employers organizing overtime from over 200 hours to 300 hours/year must notify the Department of Home Affairs.
  • Notification must follow Form No. 02/PLIV – Appendix IV (Decree 145/2020/ND-CP).
  • Deadline: within 15 days from the date overtime work exceeding 200 hours/year begins.

Please refer to the attached file for detailed information.

 

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