When will TikTok's deliveryman have a Tet break for 2025 in Vietnam? Is the overtime salary during Tet for TikTok's deliveryman subject to PIT in Vietnam?

When will TikTok's deliveryman have a Tet break for 2025 in Vietnam?

Pursuant to Announcement 6150/TB-BLDTBXH 2024 which stipulates the Tet holiday schedule for businesses, the Tet break schedule for TikTok's deliveryman in 2025 will depend on the Tet holiday regulations of the transport units. Specifically:

Businesses can choose:

- 1 day at the end of the Year of the Dragon and 4 days at the beginning of the Year of the Snake.

- 2 days at the end of the Year of the Dragon and 3 days at the beginning of the Year of the Snake.

- 3 days at the end of the Year of the Dragon and 2 days at the beginning of the Year of the Snake.

Most delivery services will take a Tet holiday from January 27, 2025 (28th day of lunar December) and resume operations on February 2, 2025 (5th day of lunar January). The specific Tet holiday schedule for delivery units is as follows:

When will TikTok's deliveryman have a Tet break for 2025 in Vietnam? (Image from the internet)

How is TikTok's deliveryman salary calculated during the Tet Holiday in Vietnam?

According to Article 112 of the Labor Code 2019 which stipulates the holidays as follows:

Holidays

1. Employees are entitled to leave with full pay on the following holidays:

a) New Year's Day: 1 day (January 1, Gregorian calendar);

b) Lunar New Year: 5 days;

c) Victory Day: 1 day (April 30, Gregorian calendar);

d) International Labor Day: 1 day (May 1, Gregorian calendar);

e) National Day: 2 days (September 2, Gregorian calendar and 1 adjacent day before or after);

f) Hung King's Death Anniversary: 1 day (10th day of the 3rd lunar month).

2. Foreign employees working in Vietnam are additionally entitled to 1 traditional new year day and 1 National Day of their country besides the holidays stipulated in clause 1 of this article.

3. Annually, based on actual conditions, the Prime Minister of the Government of Vietnam decides the specific holiday dates specified at points b and e of clause 1 of this article.

According to these regulations, employees are entitled to at least 5 days off during the Lunar New Year. Depending on actual conditions or agreements with employers, the number of days off can be extended.

In the case of TikTok's deliveryman working during the Tet holiday, the provisions on overtime pay shall be applied to determine their remuneration.

According to Article 98 of the Labor Code 2019 regulating overtime pay as follows:

Overtime and Night Work Pay

1. Employees working overtime shall receive wages calculated according to the unit price of salary or the salary paid for current work as follows:

a) On regular days, at least 150%;

b) On weekly rest days, at least 200%;

c) On public holidays, Tet holidays, paid leaves, at least 300% excluding the salary for public holidays, Tet holidays, paid leaves for daily-wage earners.

2. For night work, employees are entitled to an additional at least 30% of the salary calculated based on the unit price of salary or the actual salary paid for regular day work.

3. Employees working overtime at night, in addition to wages as stipulated in clauses 1 and 2 of this article, are entitled to an additional 20% of the salary calculatedbased on the unit price of salary or the salary for daytime work on regular days or weekly rest days or holidays, Tet holidays.

4. the Government of Vietnam shall provide detailed provisions for this article.

Thus, TikTok's deliveryman working during the Tet holiday shall receive at least three times the regular daily wage, excluding the holiday wage for daily-wage earners.

In the case of working at night, an additional 20% of the salary calculated based on the unit price or actual salary for regular day work shall be paid.

Is the overtime salary during Tet for TikTok's deliveryman subject to PIT in Vietnam?

According to point i clause 1 Article 3 of Circular 111/2013/TT-BTC regarding tax-exempt incomes:

Tax-Exempt Incomes

1. Pursuant to Article 4 of the Personal Income Tax Law, Article 4 of Decree No. 65/2013/ND-CP, the tax-exempt incomes include:

...

i) Income from night work, overtime pay which is higher than daytime or working hour pay as stipulated in the Labor Code. To be specific:

i.1) The additional wage for night work, overtime is tax-exempt based on the actual pay for night work, overtime minus (-) the wage calculated for regular working days.

- For overtime on regular days, if an individual is paid VND 60,000/hour, the tax-exempt income is:

VND 60,000/hour – VND 40,000/hour = VND 20,000/hour

- For overtime on holidays, if an individual is paid VND 80,000/hour, the tax-exempt income is:

VND 80,000/hour – VND 40,000/hour = VND 40,000/hour

i.2) Organizations, individuals must record specific hours for night work, overtime, additional wages paid for night work, overtime, and keep such records at the income-paying organization and present them upon request by tax authorities.

...

According to the above regulations, TikTok's deliveryman are exempt from tax on the part of the salary and wages that are higher when working at night or overtime. The part of the salary calculated for regular working days remains subject to PIT.