Vietnam: Is the 2024 Tet bonus plan for employees required to be announced 20 days before the holiday?
Vietnam: Is the 2024 Tet bonus plan for employees required to be announced 20 days before the holiday?
According to the official dispatch on enhancing the implementation of solutions for stabilizing labor relations from the Vietnam General Confederation of Labor, the Presidium of the Vietnam General Confederation of Labor requires grassroots trade unions to proactively gather information and report on the production and business situation, policy implementation, and common urgent issues and difficulties faced by employees at enterprises.
Additionally, promptly report to the higher-level trade union if the enterprise is facing difficulties in production and business, is bankrupt, has owners who have fled, or has not paid or cannot pay salaries and bonuses to union members and employees, especially prior to the 2024 Lunar New Year (Tet) holiday.
The grassroots trade unions should also proactively coordinate and propose to employers to launch initiatives aiming at improving labor productivity, quality, and efficiency.
Particularly, propose to enterprises to publicly announce the salary and Tet bonus plans at least 20 days before the Lunar New Year holiday.
The grassroots trade unions shall supervise the implementation of salary and Tet bonuses, working conditions, working hours, rest time, overtime; ensuring rightful benefits for union members and employees who work overtime, during Tet.
The Vietnam General Confederation of Labor requires the practical and effective implementation of activities to take care of union members and employees during the Lunar New Year Giap Thin 2024 to ensure that every union member and employee has a Tet.
Focus on providing timely and appropriate support to union members and employees who have reduced working hours or lost jobs due to enterprise order cuts. Ensure not to miss any eligible individuals.
Source: Vietnam General Confederation of Labor
Vietnam: Is the 2024 Tet bonus plan required to be announced 20 days before the holiday? (Image from the Internet)
What is the 2024 Tet holiday schedule for employees in Vietnam?
Clause 1, Article 112 of the 2019 Labor Code states the following:
Holiday and Tet leave
1. Employees are entitled to leave with full pay on the following holidays and Tet:
a) New Year's Day: 01 day (January 1st of the solar calendar);
b) Lunar New Year: 05 days;
c) Victory Day: 01 day (April 30th of the solar calendar);
d) International Labor Day: 01 day (May 1st of the solar calendar);
dd) National Day: 02 days (September 2nd of the solar calendar and 01 adjacent day either before or after);
e) Hung Kings' Commemoration Day: 01 day (March 10th of the lunar calendar).
...
On November 03, 2023, the office of the Government of Vietnam issued Official Dispatch 8662/VPCP-KGVX in 2023 to convey the Prime Minister’s decision on the Lunar New Year and National Day holidays in 2024.
The Prime Minister of the Government of Vietnam agreed with the proposal from the Ministry of Labor, Invalids and Social Affairs under Official Dispatch 4594/LĐTBXH-ATLĐ in 2023 concerning the Lunar New Year holiday from February 08, 2024, to February 14, 2024, and the National Day holiday from August 31, 2024, to September 03, 2024.
For employees at enterprises, the Ministry of Labor, Invalids and Social Affairs advises that based on actual conditions and the holiday schedule for officials and public employees, employers arrange the Lunar New Year holiday for employees as follows (it is encouraged for employers to apply the same Lunar New Year holiday schedule for employees as for officials and public employees).
- For the Lunar New Year holiday in 2024:
+ Option for 01 day before Tet and 04 days after Tet or 02 days before Tet and 03 days after Tet or 03 days before Tet and 02 days after Tet.
+ Announce the Lunar New Year holiday plan to employees at least 30 days before implementation.
The Lunar New Year 2024 falls on a Saturday and Sunday of the week, so the number of days off for Lunar New Year 2024 for employees will be as follows:
*For employees who do not work on Saturdays
- Enterprises choosing the option for 01 day before Tet and 04 days after Tet:
Employees will start the Lunar New Year holiday 2024 from Friday, February 09, 2024 (the 30th day of the twelfth lunar month of the Year of the Cat) until the end of Thursday, February 15, 2024 (the 6th day of Tet).
- Enterprises choosing the option for 02 days before Tet and 03 days after Tet:
Employees will start the Lunar New Year holiday 2024 from Thursday, February 08, 2024 (the 28th of December, lunar calendar) until the end of Wednesday, February 14, 2024 (the 5th day of Tet).
- Enterprises choosing the option for 03 days before Tet and 02 days after Tet:
Employees will start the Lunar New Year holiday 2024 from Wednesday, February 07, 2024 (the 27th of December, lunar calendar) until the end of Tuesday, February 13, 2024 (the 4th day of Tet).
Thus, employees will have a continuous 7-day holiday, including 5 days of Lunar New Year holiday regulated by the State and 2 compensatory days (due to overlapping with the usual Saturday and Sunday weekend).
*For employees who work on Saturdays
- Enterprises choosing the option for 01 day before Tet and 04 days after Tet:
Employees will start the Lunar New Year holiday 2024 from Friday, February 09, 2024 (the 30th day of the twelfth lunar month of the Year of the Cat) until the end of Wednesday, February 14, 2024 (the 5th day of Tet).
- Enterprises choosing the option for 02 days before Tet and 03 days after Tet:
Employees will start the Lunar New Year holiday 2024 from Thursday, February 08, 2024 (the 28th of December lunar calendar) until the end of Tuesday, February 13, 2024 (the 4th day of Tet).
- Enterprises choosing the option for 03 days before Tet and 02 days after Tet:
Employees will start the Lunar New Year holiday from Wednesday, February 07, 2024 (the 27th of December lunar calendar) until the end of Monday, February 12, 2024 (the 3rd day of Tet).
Employees will have a continuous 6-day holiday, including 5 days of Lunar New Year holiday regulated by the State and 1 compensatory day (overlapping with the usual Sunday weekend).
Note: The above-mentioned Tet holiday schedule is for reference only. The final decision on the Tet holiday schedule for 2024 will depend on each enterprise.
What is the wage rate for employees working during the Tet holidays in Vietnam in 2024?
According to Article 98 of the 2019 Labor Code regulating overtime pay and night work pay:
Overtime pay and night work pay
1. Employees who work overtime shall be paid according to the labor price unit or the actual salary for the work they are doing as follows:
a) On regular days, at least 150%;
b) On weekends, at least 200%;
c) On holidays, Tet, paid days off, at least 300% excluding the salary for holidays, Tet, or paid days for employees paid on a daily basis.
2. Employees working at night shall be paid an additional amount of at least 30% of the wage calculated according to the labor unit price or the actual salary for daytime work on regular working days.
3. Employees working overtime at night, besides the wages specified in Clauses 1 and 2 of this Article, shall be paid an additional 20% of the labor unit price or the actual salary for daytime work on regular working days, weekends, or holidays, Tet.
4. The Government of Vietnam shall detail this Article.
Thus, according to the above regulations, employees working during Tet 2024 will receive the following wage rates:
- At least 300% excluding the salary for holidays, Tet, or paid days off for employees paid on a daily basis.
If the work is done at night, they will be paid an additional 30% of the wage calculated according to the labor unit price or the actual salary for the daytime work on regular working days, and an additional 20% of the wage calculated according to the labor unit price or the actual salary for the daytime work on holidays or Tet.
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