Vietnam Labor Code Effective January 1, 1995 The labor regulations apply to foreign-invested enterprises, trade representative offices, diplomat offices as well as state-owned and private Vietnamese enterprises; exceptions are government employees, military and security personnel, and employees of some state-run organizations. Based principally on the Labor Code passed on June 23, 1994 by Vietnam's National Assembly, effective since January 1, 1995, and other regulations passed thereafter, the main issues concerning salary and working standards are as follows: Standard working hours : 8 hours per day, 48 hours per week. Saturday is a working day in Vietnam. However, foreign companies may observe the western standard 40-hour week with the same weekly pay. Salary or wage can be based on hourly, daily, weekly or monthly. Salary can be based on piece work or volume basis, with quality and quantity as determined factors. For managerial personnel at the rank of deputy director and higher, a Vietnamese who holds equivalent post should be paid equal salary as that of foreigner. However, foreign nationals are entitled to subsidiaries or cost of living adjustment. Foreign companies have been known to be reluctantly upholding this provision, and the enforcement from the government has been somewhat lax. Overtime issues: Overtime work, excluding holidays and week-ends, is paid at one and a half of normal rate. Holidays and week-ends rate is two times of normal rate. Compulsory overtime should not exceed 150 hours per year. Lunch break is usually from noon to 1PM. Worker is entitled to at least 30-minute rest (45 minutes for night shift) inclusive of the working time if he or she works continuously for 8 hours. Worker is entitled to at least 24-hour rest each week. Regular night shift worker is paid at 30% higher than normal rate. Night shift begins at 9PM to 5AM in Southern Vietnam, and 10PM to 6AM in Northern Vietnam. The point of division is between Da Nang and Hue. Vietnam Labor Code Continued