Overtime, 13th-Month Salary, Maternity Leave and Personal Income Tax for Companies

Four questions come up often when companies prepare payroll: how to calculate overtime correctly, whether the 13th-month salary is mandatory, how long an employee on maternity leave may rest and who pays for it, and how personal income tax (PIT) on wages is withheld under the 2026 brackets. All four sit on the same payroll, so separating the legal basis of each one helps the HR department work faster and more accurately.

Quick answer:

• Overtime: requires the employee’s consent (except the special cases in Article 108), up to 40 hours a month and 200 hours a year (300 hours a year in some industries). Pay is at least 150% on ordinary days, 200% on weekly rest days and 300% on public holidays and Tết (Articles 98 and 107, Labor Code 2019).
• 13th-month salary: not mandatory under the law. It becomes an obligation once it is committed to in the labor contract, a collective labor agreement or a bonus regulation.
• Maternity leave: 06 months. From 01/07/2026, a second child gives 07 months. Maternity benefits are paid by the social insurance (BHXH) fund.
• PIT on wages from the 2026 tax period: a 5-bracket scale, a family deduction of 15.5 million VND per month for the taxpayer and 6.2 million VND per month for each dependent. The employer withholds the tax before paying wages.

What conditions apply to overtime?

Article 107 of the Labor Code 2019 allows an employer to require overtime only when all three of the following conditions are met:

1. The employee agrees (Point a, Clause 2). The simplest approach is to record consent for each overtime period, in writing or through a timekeeping app with confirmation, so it can be checked whenever needed.
2. No more than 50% of normal working hours in one day. If working hours are set by the week, total normal and overtime hours may not exceed 12 hours a day. No more than 40 hours in one month (Point b, Clause 2).
3. No more than 200 hours in one year, except where up to 300 hours are allowed (Point c, Clause 2; Clause 3).

Groups allowed up to 300 hours a year include: production and export processing of textiles, garments, leather, footwear, electrical and electronic goods, and processing of agricultural, forestry, salt-making and aquaculture products; production and supply of electricity, telecommunications, oil refining, and water supply and drainage; work requiring highly specialized or technical skills that the market cannot supply in time; urgent work caused by seasonality, raw materials, weather, natural disasters or technical incidents; and other cases prescribed by the Government. When the 300-hour limit is applied, the employer must notify the specialized labor authority of the provincial People’s Committee in writing (Clause 4, Article 107).

When can an employee not refuse overtime?

Article 108 sets out two special cases. The employer may require overtime on any day, without the hour limits in Article 107, and the employee may not refuse:

• Carrying out mobilization orders or call-ups to ensure national defense and security tasks.
• Work to protect human life and property while preventing or overcoming the consequences of natural disasters, fires, dangerous epidemics or catastrophes, except where the work puts the employee’s own life or health at risk.

Outside these two cases, a rise in orders or the need to meet tight deadlines still requires the employee’s consent.

How is pay for overtime and night work calculated?

The minimum pay rates are set in Article 98 of the Labor Code 2019, calculated on the unit price or the actual wage for the work being performed. Detailed calculation (hourly wage, number of normal working days) is guided by Articles 55–57 of Decree 145/2020/NĐ-CP.

These are minimum rates; the employer may pay more by agreement. Exceeding the overtime limits or paying below the rates above is a violation and may lead to administrative penalties. It is therefore best to have the timesheet separate overtime hours by type of day from the start.

Pregnant employees and those raising young children

Clause 1, Article 137 does not allow female employees to work at night, work overtime or go on distant business trips from the seventh month of pregnancy (or from the sixth month if they work in highland, remote, border or island areas). For employees raising a child under 12 months old, these arrangements are permitted only with the employee’s consent. When drawing up an overtime schedule, HR should filter this list first.

Is the 13th-month salary mandatory?

The Labor Code 2019 contains no article that makes a “13th-month salary” mandatory. The amount is usually paid as a bonus. Under Article 104, a bonus is money, property or another form that the employer gives the employee based on production and business results and the level of work completed. The bonus regulation is set by the enterprise and must be published openly at the workplace, after consulting the workers’ representative organization at the enterprise (if any).

The amount becomes an obligation when the enterprise has committed to it in one of the following documents:

• A signed labor contract;
• A collective labor agreement in force;
• A published bonus regulation.

Once committed, the enterprise must follow the document. To change it, the enterprise amends that document through the procedure for that type of document: agreeing to amend the contract, renegotiating the collective agreement, or reissuing the regulation after consulting the workers’ representative organization. This approach avoids year-end disputes over the amount.

If a 13th-month salary is paid, the amount is included in income from wages and salaries when PIT is withheld (see the tax section below).

Maternity leave: how long, and what does the employer do?

Leave periods from 01/07/2026

Clause 1, Article 139 of the Labor Code 2019, amended by Clause 1, Article 29 of Population Law No. 113/2025/QH15, takes effect from 01/07/2026:

After the leave ends, a female employee may, if she wishes, take additional unpaid leave once she agrees with the enterprise (Clause 3). An employee may also return to work early after taking at least 04 months of leave, with advance notice, the employer’s agreement and confirmation from a medical facility that early return is not harmful to health. In that case, the employee continues to receive maternity benefits for the days worked, in addition to wages (Clause 4).

For births before and after the 01/07/2026 milestone, HR should check the date of birth and the birth order to apply the correct leave period.

What the employer must do

1. Keep the job: the employer may not dismiss or unilaterally terminate the contract on grounds of marriage, pregnancy, maternity leave or caring for a child under 12 months old, except where the enterprise ceases operations or in the other cases listed in Clause 3, Article 137. When the employee returns, the former job must be guaranteed, and wages and entitlements may not be reduced (Article 140).
2. Coordinate the social insurance dossier: the enterprise confirms the information and contribution periods so the employee can receive benefits.

Maternity benefits are paid by the social insurance fund when the employee meets the conditions under Social Insurance Law No. 41/2024/QH15 (Luật Bảo hiểm xã hội số 41/2024/QH15; effective 01/07/2025) and Decree 158/2025/NĐ-CP (Clause 2, Article 139 of the Labor Code). This is not an amount the enterprise pays itself, nor an amount deducted from the employee’s wages.

Wage PIT: the employer withholds and declares

The enterprise that pays wages is a payment organization. It must withhold PIT before paying the employee and declare it with the tax authority each period. Bonuses, including the 13th-month salary if any, are added to income from wages and salaries when tax is calculated.

From the 2026 tax period, there are two main changes under Personal Income Tax Law No. 109/2025/QH15 (Luật Thuế thu nhập cá nhân số 109/2025/QH15; adopted 10/12/2025) and Resolution 110/2025/UBTVQH15 (17/10/2025):

• Family deduction: 15.5 million VND per month for the taxpayer, and 6.2 million VND per month for each dependent.
• A 5-bracket progressive tax scale, with rates from 5% to 35%:

The calculation sequence is unchanged: take the taxable income from wages and salaries, deduct compulsory insurance contributions, deduct the family deductions (for the taxpayer and registered dependents), then apply the brackets to the remainder and add up the amounts. Decree 253/2026/NĐ-CP (effective 01/07/2026) is the new implementing decree for the PIT Law and replaces Decree 65/2013/NĐ-CP. Check specific exemptions against this decree when finalizing.

At year-end, the employee either authorizes the enterprise to finalize on their behalf or finalizes personally. The enterprise issues withholding certificates to employees when requested. Regular withholding and declaration each period make year-end finalization smoother and avoid additional tax assessments and late-payment interest under tax administration rules.

How Thái Tín supports

Thái Tín is the coordinating contact when a company needs to review overtime timesheets, standardize its bonus regulation, handle maternity files or check how PIT is withheld on wages. The technical work (calculating overtime by type of day, preparing social insurance benefit files, and declaring and finalizing PIT on wages) is carried out case by case by Thái Tín’s accounting and social insurance partners. Thái Tín tracks progress and is the enterprise’s point of contact throughout.

Next step: send us a short description of the number of employees, whether overtime reaches the 300-hour level, whether a bonus regulation exists, and any maternity files being processed. Thái Tín will then identify the right work and connect the appropriate partner.

Questions and answers

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