Is it permissible to pay 13th-month salary for employees after Tet holidays in Vietnam?
My compnany has the policy to pay 13th-month salary for employees after Tet holidays. Is it legally correct? - Question from Minh Nguyet (Nam Dinh).
Is it permissible to pay 13th-month salary for employees after Tet holidays in Vietnam?
Currently, the 13th-month salary has not been specifically promulgated by the law. In general, 13th-month salary is the salary agreed between the employer and the employee. It is usually rewarded at the end of the year.
Pursuant to Article 104 of the Labor Code 2019 stipulating bonuses as follows:
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).
As regulations above, if the 13th-month salary is decided to be paid after Tet holidays, it is legal that the employer pay it after Tet holidays.
What are the fines for failing to publicly post 13th-month salary at the workplace in Vietnam?
Pursuant to Clause 1 Article 17 of the Decree 12/2022/NĐ-CP stipulating the fines for failing to publicly post 13th-month salary at the workplace in Vietnam as follows:
Violations against regulations on salaries
1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed upon an employer for commission of one of the following violations:
a) Failing to publicly post the pay scale, payroll, labour productivity norms and bonus regulations at the workplace;
b) Failing to establish pay scale, payroll, or labour productivity norms; failing to experiment labour productivity norms before they are officially introduced;
c) Failing to consult with the internal representative organization of employees (if any) during the establishment of the pay scale, payroll, labour productivity norms and bonus regulations;
d) Failing to provide salary notes to employees or providing salary notes to employees in breach of law;
dd) Failing to pay salaries fairly or discriminating against genders of employees who perform equal works.
Pursuant to Clause 1 Article 6 of the Decree 12/2022/NĐ-CP stipulating as follows:
Fines, power to impose penalties, and rules for imposing penalties for repeated violations
1. The fines for administrative violations prescribed in Chapter II, Chapter III and Chapter IV of this Decree shall be imposed upon violating individuals, except the fines in Clauses 1, 2, 3, 5 Article 7, Clauses 3, 4, 6 Article 13, Clause 2 Article 25, Clause 1 Article 26, Clauses 1, 5, 6, 7 Article 27, Clause 8 Article 39, Clause 5 Article 41, Clauses 1 through 12 Article 42, Clauses 1 through 8 Article 43, Clauses 1 through 6 Article 45, Clause 3 Article 46 of this Decree. The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation.
As regulations above, if the employer is an individual, the fine shall be ranging from VND 5.000.000 to VND 10.000.000. If the employer is an organization, the fine shall be ranging from VND 10.000.000 to VND 20.000.000.
Do employees enjoying 13th-month salary have to pay social insurance in Vietnam?
Pursuant to Clause 3 Article 30 of the Circular 59/2015/TT-BLĐTBXH (amended by Clause 26 Article 1 of the Circular 06/2021/TT-BLĐTBXH) stipulating monthly salary paid for compulsory social insurance in Vietnam as follows:
Monthly salary paid for compulsory social insurance
The monthly salary paid for compulsory social insurance for the employees who pay the social insurance under the salary system decided by the employers is stipulated as follows:
...
3. Monthly salary serving as the basis for compulsory social insurance contribution does not include other benefits and policies such as awards according to Article 104 of the Labor Code, invention awards; mid-shift meal; travel, communication, accommodation, childcare allowances; allowances when relatives of workers decease, relatives of workers get married, birthday of workers, allowances for workers facing difficulty as a result of occupational diseases and accidents, and other allowances and benefits specified separately under employment contracts according to Sub-point c2 Point c Clause 5 Article 3 of Circular No. 10/2020/TT-BLDTBXH.
As regulations above, employees enjoying 13th-month salary don't have to pay social insurance in Vietnam.
Best regards!
