Vietnam: How much is the Lunar New Year bonus 2023? Is it mandatory to reward Lunar New Year 2023 for employees?
Is the company required to reward Lunar New Year 2023 for employees in Vietnam?
Currently, when posting job information, most companies post job benefits content to receive 13th-month salary.
The 13th-month salary here is understood as the Tet bonus that the company gives to employees because the 13th-month salary is usually paid by companies and businesses to employees before the Lunar New Year holiday.
So, is the company required to reward Lunar New Year 2023 for employees or not?
Currently, the law of our country does not have any regulations requiring companies and employers to reward Lunar New Year for employees.
Article 104 of the Labor Code 2019 of Vietnam stipulates as follows:
Article 104. 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 provisions, employers are not required to reward employees for Tet. The employer will base on the situation, production and business results of the company to decide whether to develop a Lunar New Year bonus regulation for employees or not.
Lunar New Year bonus regulations will be decided by the employer and publicly announced at the workplace in consultation with the representative organization of employees.
Besides, if the employer decides to reward Lunar New Year 2023 for employees, the Tet bonus is not required to be done with money.
Instead, the employer can use the property or the Lunar New Year 2023 bonus in another form that the employer based on business results to decide.
Vietnam: How much is the Lunar New Year bonus 2023? Is it mandatory to reward Lunar New Year 2023 for employees?
How is the Lunar New Year 2023 bonus of employees calculated in Vietnam?
As mentioned above, the law does not stipulate the amount of Lunar New Year bonus that employees will receive.
Instead, the Lunar New Year 2023 bonus regulations will be decided by employees according to Article 104 of the Labor Code 2019 of Vietnam as follows:
Article 104. 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).
Accordingly, the employer will decide on the Lunar New Year bonus regulations 2023 based on the situation and business results.
For example, the employer decides that the Lunar New Year 2023 bonus regulation is 03 months of salary as agreed in the labor contract based on the efficiency and productivity of the employee during the year. The salary in the labor contract is 10,000,000 VND / month and the working efficiency in 2022 of the employee reaches 90%, the bonus for the Lunar New Year in 2023 will be calculated as follows:
10,000,000 x 3 x 90% = 27,000,000 VND.
Under what conditions can employers use employees to work overtime during the Lunar New Year 2023 in Vietnam?
Pursuant to Article 107 of the Labor Code 2019 of Vietnam, it provides as follows:
Article 107. Overtime work
1. Overtime work is the duration of work performed at any other time than during normal working hours, as indicated in the law, collective bargaining agreement or internal labor regulations of an employer.
2. An employer has the right to request an employee to work overtime when all of the following conditions are met:
a) The employee agrees to work overtime;
b) The number of overtime working hours of the employee does not exceed 50% of the normal working hours in 01 day; in case of weekly work, the total normal working hours plus overtime working hours shall not exceed 12 hours in 01 day, and 40 hours in 01 month;
c) The total overtime working hours do not exceed 200 hours in 01 year, except for the cases specified in Clause 3 of this Article.
3. An employer must not request an employee to work overtime exceeding 300 hours in 01 year in the following fields, works, jobs and cases:
a) Manufacture, processing of textile, garment, footwear, electric, electronic products, processing of agricultural, forestry, aquaculture products, salt production;
b) Generation and supply of electricity, telecommunications, refinery operation; water supply and drainage;
c) Works that require highly skilled workers that are not available on the labor market at the time;
d) Urgent works that cannot be delayed due to seasonal reasons or availability of materials or products, or due to unexpected causes, bad weather, natural disasters, fire, hostility, shortage of power or raw materials, or technical issue of the production line;
dd) Other cases prescribed by the Government.
4. When organizing overtime work as prescribed in Clause 3 of this Article, the employer shall send a written notification to the provincial labor authority.
5. The Government shall elaborate this Article.
Thus, employers may only use employees to work overtime during the Lunar New Year holiday 2023 when the following conditions are met:
- Must obtain the consent of the employee;
- Ensure that the employee's overtime hours do not exceed 50% of the normal working hours in 01 day; in case of application of the regulation on normal working hours by week, the total number of normal working hours and overtime hours shall not exceed 12 hours in 01 day; no more than 40 hours in 01 month;
- Ensure that the number of overtime hours of employees does not exceed 200 hours in 01 year, except for the case specified in Clause 3, Article 107 of the Labor Code 2019 of Vietnam.
LawNet
