If the company incurs a night shift allowance for employees, this allowance is not included in the employee's personal income tax (PIT) if the expenditure level complies with the guidelines set by the Ministry of Labor, War Invalids, and Social Affairs. Should the expenditure level exceed the guidelines provided by the Ministry, any excess amount must be included in the employee's taxable income.
If a company provides additional allowances for employees working night shifts, along with an extra 30% of their salary, the higher wages paid for night work and overtime will be exempt from PIT. This exemption applies to the difference between the actual wages paid for night work and overtime, and the amount calculated for a normal working day, as specified in Point i, Clause 1, Article 3 of Circular No. 111/2013/TT-BTC dated 15 August 2013, issued by the Ministry of Finance.