Is the company obliged to reward the Lunar New Year 2023 in cash for full-time employees and probationary employees in Vietnam?
- Is the company obligated to give Tet bonuses in cash to full-time employees and probationary employees in Vietnam?
- How is the 2023 Lunar New Year bonus of full-time employees and probationary employees calculated?
- Is it required to pay social insurance premiums for Tet bonuses?
- How should the company pay overtime on Lunar New Year to full-time employees and probationary employees?
Is the company obligated to give Tet bonuses in cash to full-time employees and probationary employees in Vietnam?
Pursuant to Article 104 of the 2019 Labor Code of Vietnam stipulating as follows:
Bonuses
1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.
2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).
According to the above regulations, the company is not required to give Tet bonuses in cash to official employees and probationary employees.
A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees.
Is the company obliged to reward the Lunar New Year 2023 in cash for full-time employees and probationary employees in Vietnam?
How is the 2023 Lunar New Year bonus of full-time employees and probationary employees calculated?
Pursuant to Article 104 of the 2019 Labor Code of Vietnam stipulating as follows:
Bonuses
1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.
2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).
Thus, the employer will decide on the regulation of the 2023 Lunar New Year bonus based on the situation and results of production and business.
In addition, the company can use assets or reward the Lunar New Year 2023 in another form that the employer will decide based on business results.
Is it required to pay social insurance premiums for Tet bonuses?
Pursuant to Official Dispatch 560/LDTBXH-BHXH of Vietnam in 2018 guiding as follows:
The monthly salary on which the compulsory social insurance premium is based shall comply with the provisions of Article 89 of the Law on Social Insurance, Article 17 of Decree No. 115/2015/ND-CP dated 11/11/2015 of the Government, Article 30 of the Government's Circular No. Circular No. 59/2015/TT-BLDTBXH dated December 29, 2015 of the Ministry of Labor, Invalids and Social Affairs.
According to the provisions of the above documents, from January 1, 2018 onwards, the monthly salary on which social insurance premiums are based is the salary, salary allowance and other additional amounts. The monthly salary for which compulsory social insurance is paid does not include other benefits and regimes, such as bonuses as prescribed in Article 103 of the Labor Code, initiative bonuses; Mid-shift meal; allowances for petrol, phone, travel, housing, child care, child rearing; support when employees have relatives died, employees have relatives getting married, employees' birthdays, allowances for employees in difficult circumstances when suffering from occupational accidents, occupational diseases and other grants and subsidies.
The Tet bonus is not subject to social insurance, but if, according to the labor contract between the employee and the company, this amount is recorded in the salary, the social insurance premium must still be paid.
How should the company pay overtime on Lunar New Year to full-time employees and probationary employees?
Pursuant to Article 98 of the 2019 Labor Code of Vietnam stipulating as follows:
Overtime pay, night work pay
1. An employee who works overtime will be paid an amount based on the piece rate or actual salary as follows:
a) On normal days: at least 150%;
b) On weekly days off: at least 200%;
c) During public holidays, paid leave, at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.
2. An employee who works at night will be paid an additional amount of at least 30% of the normal salary.
3. An employee who works overtime at night will be paid, in addition to the salary specified in Clause 1 and Clause 2 of this Article, an amount of at least 20% of the day work salary of a normal day, weekend or public holiday.
4. The Government shall elaborate this Article.
Thus, employees who go to work on the Lunar New Year day of 2023 will be paid a salary of at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.
An employee who works overtime at night will be paid, in addition to the salary according to their overtime salary on holidays, an amount of at least 20% of the day work salary of a normal day, weekend or public holiday.
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