Overtime, Night Shifts and Unused Leave Exempt from Vietnam Income Tax
Jul 2, 2026 · Vietnam · Economy Business · by Lena Kovács
If overtime or night pay appears on your Vietnamese payslip, those earnings are income-tax-free from July 1.
Starting July 1, 2026, income from overtime work, night shifts, and unused annual leave payouts is exempt from personal income tax in Vietnam. Tuoi Tre News reported the change under the country's revised Personal Income Tax Law.
- Date
- Jul 2, 2026
- Where
- Vietnam
- Topic
- Economy Business
- Source
- Tuoi Tre News
- Confidence
- Community signal
For residents working legally in Da Nang or Hoi An, the exemption covers three income types: extra hours beyond the standard workweek, pay for night shifts, and any annual leave balance an employer converts to a cash payout rather than time off. All three now fall outside the personal income tax base.
The law took effect July 1. If you log overtime or night hours, or cash out unused leave, check with your employer's payroll team about how it applies to your contract.
Jul 2, 2026 · Economy Business