Why is there an 8-hour difference in working hours per week between the public and private sectors?

On the afternoon of October 31, Deputy Pham Trong Nghia, Director of the Center for Legislative Science Information, proposed that the National Assembly consider reducing normal working hours for private sector workers from 48 to 44, and eventually to 40 hours per week. He cited a 1947 decree by President Ho Chi Minh stipulating that working hours should not exceed 48 hours per week and overtime should not exceed 100 hours per year.

The country has achieved many successes after more than eight decades, but working hours in the private sector have not decreased while overtime has tripled, according to Mr. Nghia. Since 1999, civil servants and public employees have worked 40 hours per week, while the business sector has kept the 48 hours after many amendments to the Labor Code.

Explaining the difference of 8 working hours per week between workers in the two sectors, former Deputy Minister of Labor, War Invalids and Social Affairs Pham Minh Huan said that working hours in the public sector were adjusted by Decision 188/1999 of the Prime Minister. The regulation of 40 hours per week, 8 hours per day aims to improve the working efficiency of civil servants and public employees, handling administrative work in five days. This is also to save costs of electricity, water and many other expenses because they are paid by the budget.

Working hours in the business sector are regulated by the Labor Code, maintaining the 48-hour week regulation after many amendments to the law. The policy is carefully considered by lawmakers in the context of low labor productivity, low income levels, and the need to extend working hours.

Statistics show that Vietnamese workers made 70.3 million VND in 2011, and nearly 172 million VND in 2021. After 10 years, labor productivity increased 2.5 times, but is still much lower than other countries in the region.

According to Mr. Huan, the salary and wages are paid by businesses based on working time, if working hours are reduced, income will decrease accordingly. Currently, this level is very low, if reduced further, it will not ensure living expenses. Meanwhile, few businesses are willing to reduce working hours while maintaining the old salary because they have to increase costs or recruit more workers. Businesses are also affected by the post-Covid-19 pandemic, the wave of order cuts and the global economic recession.

Reducing working hours is a common goal of laborers around the world, especially workers, not just in Vietnam. However, Mr. Huan said that in order for the proposal to become a reality, it is necessary to gradually prepare conditions such as improving labor productivity, raising the wage level and labor income.

"Many parties have proposed reducing working hours, but none have been considered. The earliest the economy can discuss this policy is after 2030," he said, adding that the law stipulates a 48-hour work week, but businesses are encouraged to implement 40 hours depending on conditions. The state does not intervene too deeply with administrative decisions to improve the ability of both parties to reach an agreement.

Mr. Ta Van Duong, Head of the Department of Legal Policy and Labor Relations, Hanoi Labor Confederation, said that in policy making, Vietnam should approach the general trend of the world which is to reduce working hours, helping workers to regenerate their strength. Currently, workers in the business sector are still working a lot and taking little rest.

According to statistics from the Department of Labor Safety in 2019, Vietnam has one of the highest working hours in Southeast Asia, while the number of holidays is one of the lowest. Specifically, the average working time of Vietnamese people in a year is about 2,320 hours, lower than the Philippines, Malaysia, Thailand and higher than Singapore, Indonesia, Laos and Cambodia.

Vietnam has 12 starting days of leave, which is in the average group, lower than Laos, Cambodia, Indonesia and higher than Malaysia, Singapore, Thailand, and the Philippines. Vietnam's current public holidays and Tet are 11 days, equal to Singapore but among the lowest in Southeast Asia.

The government "encourages businesses to implement a 40-hour work week," but according to Mr. Duong, it doesn't make much sense because it's the business's right. In reality, some companies reduce the work week to 44 hours, working Saturday mornings and taking the afternoon off. Some places rotate working all of Saturday this week and taking the following week off.

However, the above policy mainly applies to managers or office and administrative staff, while production workers, especially in labor-intensive industries, often work on weekends and choose to work overtime to earn more income. "Most workers do not want to work on Saturday afternoons, and work efficiency is not high. If businesses give workers this time off, it will create conditions for them to have more time to take care of their families and restore their energy," he said.

Disagreeing with the view that Vietnamese labor productivity is low so they have to work a lot, Mr. Duong analyzed that labor efficiency is only one factor, technology, business administration and many other things account for a large part.

Ms. Pham Thu Lan, Deputy Director of the Trade Union of Workers, suggested reducing working hours to create fairness for workers in both sectors. Through surveys, workers have repeatedly wondered and compared why the state sector works 40 hours, with two full days off on weekends, while workers in the business sector work 48 hours.

According to Ms. Lan, the official working hours of employees in the enterprise sector are already among the highest, and overtime hours have doubled in the past 10 years. Overtime is an "unwanted" choice for employees to improve their income, and partly because they do not dare to refuse, they are afraid of losing their jobs, not because they like it.

The 2020 union survey showed that the average income of workers reached 7.4 million VND per month, of which salary was 5.22 million VND; overtime was 934,000 VND; and bonuses and diligence were 2.1 million. In the first half of 2023, this average income increased to 7.88 million VND per month, but 77% of this was basic salary, the rest from overtime and allowances and benefits.

Speaking further about the proposal, delegate Pham Trong Nghia said that the policy of reducing working hours is also a tool to regulate investment and business activities in Vietnam, gradually reducing labor-intensive industries. When gradually improving the working conditions of workers, foreign enterprises coming to Vietnam must also increase investment in science and technology, change production structure and use less workers, not just take advantage of cheap labor as before.

Current law stipulates that employees work under normal conditions no more than 8 hours per day and 48 hours per week. Enterprises have the right to regulate working hours by day or week but must notify employees; if they regulate working hours by week, they must not exceed 10 hours per day and 48 hours per week. The State encourages enterprises to implement a 40-hour work week for employees.

The law limits overtime to no more than 40 hours per month and no more than 200 hours per year. The maximum overtime limit of 300 hours per year is extended to a number of industries, such as: textile and garment export processing, leather and footwear, agricultural, forestry and fishery processing, electricity production and supply, telecommunications, oil refining, water supply and drainage, salt industry, electricity and electronics.