Gregorian Calendar New Year Holiday 2024: Will employees be entitled to fully paid days off? Will salary for working during the Gregorian Calendar New Year Holiday in 2024 be taxable?
Gregorian Calendar New Year Holiday in 2024: Will employees be entitled to fully paid days off in Vietnam?
According to the provisions stipulated in Article 112 of the Labor Code 2019 regarding public holidays and New Year holidays:
Public Holidays and New Year Holidays
1. Employees are entitled to fully paid days off on the following public holidays and New Year holidays:
a) Gregorian Calendar New Year Holiday: 1 day (January 1st);
b) Lunar New Year: 5 days;
c) Victory Day: 1 day (April 30th);
d) International Labor Day: 1 day (May 1st);
dd) National Day: 2 days (September 2nd and 1 adjacent day before or after);
e) Hung Kings Commemoration Day: 1 day (March 10th of the lunar calendar).
2. Foreign employees working in Vietnam, apart from the holidays stipulated in Clause 1 of this Article, are entitled to an additional 1 day for their traditional New Year and 1 day for their national day.
3. Annually, based on practical conditions, the Prime Minister of the Government of Vietnam will specifically decide the holiday dates stipulated in points b and đ, Clause 1 of this Article.
According to Article 111 of the Labor Code 2019 which stipulates weekly rest days for employees:
Weekly Rest Days
1. Every week, employees are entitled to at least 24 consecutive hours of rest. In special cases where the work cycle does not allow for weekly rest days, employers must ensure that employees get an average of at least 4 days off per month.
2. Employers have the right to schedule weekly rest days on Sunday or another specified day of the week but must include it in the labor regulations.
3. If the weekly rest day coincides with a public holiday as stipulated in Clause 1, Article 112 of this Code, employees are entitled to take compensatory rest on the next working day.
Thus, according to the above regulations, on Gregorian Calendar New Year Holiday, employees will get 1 day of fully paid day off.
The Gregorian Calendar New Year Holiday 2024 holiday schedule for employees is as follows:
Gregorian Calendar New Year Holiday 2024 falls on a Monday, so employees with fixed weekly rest days on Saturday and Sunday will have the weekend off on Saturday, December 30, 2023, and Sunday, December 31, 2023, in addition to Monday, January 1, 2024.
The total number of days off for Gregorian Calendar New Year Holiday 2024 is 3 days (from December 30, 2023, to January 1, 2024).
Additionally, for employees who work with a policy of 1 day off per week (Sunday), Gregorian Calendar New Year Holiday 2024 will last 2 days (from December 31, 2023, to January 1, 2024, i.e., Sunday and Monday).
Employees with a policy of non-Sunday weekly rest days will only have 1 day off on January 1, 2024.
Gregorian Calendar New Year Holiday 2024: Will employees be entitled to fully paid days off? Will salary for working during the Gregorian Calendar New Year Holiday in 2024 be taxable?
How is the salary calculated for employees working on Gregorian Calendar New Year Holiday 2024?
According to Article 98 of the Labor Code 2019, which stipulates overtime and night work salary:
Overtime and Night Work Salary
1. Employees working overtime are paid based on the wage unit price or the actual salary of the current work as follows:
a) On regular days, at least 150%;
b) On weekly rest days, at least 200%;
c) On public holidays, New Year holidays, fully paid days off days, at least 300% excluding the salary for the holidays for employees paid on a daily basis.
2. Employees working at night are paid at least an additional 30% of the wage unit price or the actual salary of the work done during normal working days.
3. Employees working overtime at night are paid an additional 20% of the wage unit price or the salary of the daytime work on normal working days or weekly rest days or public holidays, in addition to the provisions in Clauses 1 and 2 of this Article.
4. the Government of Vietnam stipulates the details of this Article.
In case employees work on a public holiday, they are entitled to at least 300% of their salary excluding the holiday salary.
Additionally, employees working at night shall receive an additional 30% of the normal working day salary and 20% of the holiday salary.
Thus, working on Gregorian Calendar New Year Holiday 2024 will result in the following wages:
- For daytime work: At least 400% of the salary.
- For night work: At least 490% of the salary.
Is overtime salary on Gregorian Calendar New Year Holiday 2024 taxable in Vietnam?
According to Point i, Clause 1, Article 3 of Circular 111/2013/TT-BTC, the regulation states:
Income Exempt from Tax
...
i) Income from night work or overtime paid higher than that of day work or working hours according to the regulations of the Labor Code. Specifically, as follows:
i.1) The part of the salary or wage paid higher due to night work or overtime is tax-exempt, calculated by the actual salary minus (-) the salary or wage for normal working days.
Example 2: Mr. A has a regular daily wage of 40,000 VND/hour as stipulated by the Labor Code.
- If an individual works overtime on a regular day and is paid 60,000 VND/hour, the tax-exempt income is:
60,000 VND/hour – 40,000 VND/hour = 20,000 VND/hour
- If an individual works overtime on a rest day or a public holiday and is paid 80,000 VND/hour, the tax-exempt income is:
80,000 VND/hour – 40,000 VND/hour = 40,000 VND/hour
...
Thus, according to the above regulations, the part of the salary or wage paid higher due to night work or overtime is tax-exempt, calculated by the actual salary minus (-) the salary or wage for normal working days.
Therefore, according to the above regulations, the income earned from working on Gregorian Calendar New Year Holiday 2024, which is higher than the regular day payment, is tax-exempt for personal income tax. However, the income that matches the regular day's wage is subject to personal income tax.
Example: Mr. A has a regular daily wage of 40,000 VND/hour.
- When working overtime on a regular day and is paid 60,000 VND/hour, the tax-exempt income is:
60,000 VND/hour – 40,000 VND/hour = 20,000 VND/hour
- When working overtime on a rest day or a public holiday and is paid 120,000 VND/hour, the tax-exempt income is:
120,000 VND/hour – 40,000 VND/hour = 80,000 VND/hour.
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