Do employees on probation receive Lunar New Year bonuses in Vietnam?

Do employees on probation receive Lunar New Year bonuses in Vietnam?

Pursuant to Clause 1 Article 3 of the Labor Code in 2019 stipulating as follows:

1. “employee” means a person who works for an employer under an agreement, is paid, managed and supervised by the employer.

Pursuant to Article 104 of the Labor Code in 2019 stipulating bonuses as follows:

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 current regulations, probationary workers are still considered as employees. Lunar New Year bonuses for probationary workers will be based on the company's bonus policy. Therefore, the decision of whether or not to give you a Lunar New Year bonus will be up to your company.

Do employees on probation receive Lunar New Year bonuses in Vietnam? - Source: Internet

Do employees who receive Lunar New Year bonuses have to pay personal income tax in Vietnam?

Pursuant to Clause 1.e Article 2 of the Circular 111/2013/TT-BTC stipulating taxable incomes as follows:

e) Rewards in cash or not in cash in any shape or form, including rewards in the form of securities, except for:

e.1) Prize money associated with the titles awarded by the State, including the prize money associated with honorary titles as prescribed by law:

e.1.1) Prize money associated with honorary titles awarded by Ministries, central and provincial agencies and associations, excellent employee titles.

e.1.2) Prize money associated with the awards.

e.1.3) Prize money associated with the titles awarded by the State.

e.1.4) Prize money associated with the awards presented by associations and organizations belonging to central and local political organizations, socio-political organizations, social organizations, professional-social organizations that conforms to their charters and the Law on Emulation and Commendation.

e.1.5) Prize money associated with the Ho Chi Minh Prize and National Prize.

e.1.6) Prize money associated with medals or badges.

e.1.7) Prize money associated with certificates of merit.

As regulations above, employees who receive Lunar New Year bonuses have to pay personal income tax in Vietnam.

Do employees have the right to advance their salaries for Lunar New Year in Vietnam?

Pursuant to Article 101 of the Labor Code in 2019 stipulating salary advances as follows:

1. An employee may receive an interest-free salary advance in accordance with conditions agreed on by the two parties.

2. The employer must make the advance payment to the employee for the number of days the employee temporarily leaves his/her work in order to perform duties of citizens for a period of 01 week or longer, but the advance shall not exceed 01 month’s salary. The employee must reimburse the advance.

An employee who is conscripted in accordance with the Law on Conscription may not receive salary advance.

3. When taking annual leave, an employee shall receive an advance payment of at least salary for the entitled days of leave.

As regulations above, employees may be given an advance on their salary for Lunar New Year if they have agreement with their employer.

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