Title: Schedule for New Year's Day 2023? Are Employees Entitled to Full Pay Leave on New Year's Day 2023?
New Year 2023: Will employees get paid leave?
According to the provisions at point a, clause 1, Article 112 of the Labor Code 2019, New Year is stipulated as one of the public holidays during which employees are entitled to leave and receive full salary.
On the occasion of New Year, employees will get 1 day off on January 1.
Moreover, January 1, 2023, falls on a Sunday, a weekly day off. According to the provisions at clause 3, Article 111 of the Labor Code 2019, if a weekly rest day coincides with a public holiday, employees are entitled to a compensatory day off on the next working day.
Thus, on the occasion of New Year 2023, employees may receive a compensatory day off on Monday, January 2, 2023 (the next working day).
What is the schedule for New Year 2023? Will employees get paid leave on New Year 2023?
What is the schedule for New Year 2023?
- For officials and public employees:
Pursuant to Article 13 of the Law on Cadres and Civil Servants 2008 and Article 13 of the Law on Public Employees 2010, officials and public employees are entitled to annual leave, public holidays, and personal leave as prescribed by labor laws.
Thus, officials and public employees will have 3 consecutive days off for New Year 2023:
+ 2 days on Saturday and Sunday: weekly days off;
+ 1 Monday (January 2, 2023): compensatory day off as January 1, 2023, falls on a Sunday.
- For employees with a policy of 2 weekly days off (Saturday and Sunday):
For employees working under a policy of 2 weekly days off, the New Year 2023 holiday will allow them to have 3 consecutive days off (from Saturday, December 31, 2022, to Monday, January 2, 2023).
- For employees with a policy of 1 weekly day off (Sunday):
For employees working in enterprises with a policy of 1 weekly day off (Sunday), the New Year 2023 holiday will allow them to have 2 consecutive days off:
+ 1 Sunday: weekly day off;
+ 1 Monday (January 2, 2023): compensatory day off as January 1, 2023, falls on a Sunday.
Is it mandatory to give New Year bonuses to employees in 2023?
Pursuant to clause 1, Article 104 of the Labor Code 2019, a bonus is an amount of money, assets, or other forms that the employer rewards employees based on production, business results, and the employee's job performance.
According to the above regulations, employers are not mandated to give New Year bonuses to employees. Therefore, enterprises have the right to decide on the timing and value of bonuses for employees. Depending on the financial situation of the enterprise and the contribution of employees, the enterprise may decide to give or not give New Year bonuses in 2023.
Do New Year bonuses count towards personal income tax?
According to point a, clause 2, Article 2 of Circular 111/2013/TT-BTC, taxable income includes:
Taxable Income
...
2. Income from wages and salaries
Income from wages and salaries includes all amounts received by employees from employers, including:
a) Wages, salaries, and other amounts of a similar nature, either in monetary or non-monetary form.
Furthermore, point e, clause 2, Article 2 of Circular 111/2013/TT-BTC states that the following bonuses are exempt from personal income tax:
- Bonuses accompanying titles conferred by the State, including bonuses for emulation titles and forms of commendation as prescribed by the law on emulation and commendation, specifically:
+ Bonuses for emulation titles such as National Emulation Soldier; Emulation Soldier at ministerial, sectoral, central union level, provincial or city-level directly under the central government; Grassroots Emulation Soldier, Advanced Worker, and Progressive Laborer.
+ Bonuses accompanying forms of commendation.
+ Bonuses accompanying titles conferred by the State.
+ Bonuses accompanying awards given by associations and organizations of central and local political, socio-political, social, and socio-professional organizations, in accordance with their charters and the Emulation and Commendation Law.
+ Bonuses accompanying the Ho Chi Minh Prize, State Prize.
+ Bonuses accompanying commemorative medals and badges.
+ Bonuses accompanying certificates of merit and commendations.
Thus, taxable income for personal income tax includes bonuses, except for the aforementioned non-taxable bonuses. This means that New Year bonuses are still subject to personal income tax.
- The time for calculating personal income tax is when the enterprise pays wages and bonuses to employees.
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