What is the Gregorian date of December 27 of lunar calendar? Is the 13th-month salary considered a Lunar New Year bonus in Vietnam?
What is the Gregorian date of December 27 of lunar calendar?
Lunar New Year, also known as Tet Nguyen Dan, is the largest and most important holiday of the year for Vietnamese people. It is an occasion for family reunions to welcome a peaceful and happy new year together. Tet typically falls in January or February according to the Gregorian calendar, depending on the lunar calendar.
According to the Perpetual Calendar, the 27th day of the Lunar New Year 2025 is January 26, 2025, in the Gregorian calendar (Sunday). The Lunar New Year is not only a traditional holiday but also an occasion to uphold cultural practices, customs, and traditional values of the nation.
Tet Nguyen Dan has its origins in the spring festival of ancient Vietnamese people, to thank heaven, earth, and ancestors for a bountiful harvest and to pray for favorable weather in the coming year. It is a time for family members to come together, share traditional meals, tell stories, and share joyful moments.
The Lunar New Year is a highly significant occasion for Vietnamese people. It is an occasion for family reunions, to express affection and gratitude to grandparents and parents, while also preserving and developing the traditional cultural values of the nation.
What is the Gregorian date of December 27 of lunar calendar? Is the 13th-month salary considered a Lunar New Year bonus in Vietnam? (Image from the Internet)
Is the 13th-month salary considered a Lunar New Year bonus in Vietnam?
Based on Article 90 of the Labor Code 2019 regarding salary:
Article 90. Salary
- Salary is the amount that an employer pays to an employee as agreed for performing work, including the salary according to the job or title, salary allowances, and other additional payments.
- The salary according to the job or title must not be lower than the minimum wage.
- Employers must ensure equal pay without gender discrimination for employees performing work of equal value.
Based on Article 104 of the Labor Code 2019 regarding bonuses:
Article 104. Bonus
- Bonus is an amount of money or assets or other forms awarded by an employer to an employee based on production and business results and the level of job completion by the employee.
- The bonus regulation is decided by the employer and publicly announced at the workplace after consulting the organization representing employees at the establishment, where such an organization is present.
Currently, there is no document defining the 13th-month salary. However, the 13th-month salary can be understood as an agreed-upon salary between the employer and the employee after a full year's work.
The Tet bonus is a reward determined by the employer to be given to the employee when the unit or business has good business results, or when the employee has successfully completed the work or tasks assigned during the work year.
Both the 13th-month salary and the Tet bonus have in common that they are paid at the end of the year and are decided by the employer. However, the 13th-month salary is a fixed salary agreed upon in advance between the employer and the employee, while the Tet bonus is a discretionary bonus that may or may not be given depending on the business situation and the employee's work performance.
Therefore, the 13th-month salary is not the Tet bonus.
Is the Lunar New Year bonus subject to personal income tax in Vietnam?
According to points a, b, and e, clause 2, Article 2 of Circular 111/2013/TT-BTC regarding taxable personal income:
Article 2. Taxable Income
[...]
- Income from wages and salaries
Income from wages and salaries is income received by an employee from an employer, including:
a) Wages, salaries, and amounts of a similar nature under any form, monetary or non-monetary.
b) Allowances, support, except for certain allowances and support specified below:
[...]
e) Bonuses in cash or non-cash forms under any guise except for the bonuses below:
e.1) Bonuses accompanying the titles awarded by the State, including bonuses for emulation titles and rewards as per legal provisions on emulation and commendation, specifically:
e.1.1) Bonuses accompanying emulation titles like National Emulation Soldier; Emulation Soldier at the level of Ministries, Central agencies, provinces, cities under Central authority; Base-level Emulation Soldier, Advanced Labor, Advanced Soldier.
e.1.2) Bonuses accompanying commendation forms.
e.1.3) Bonuses accompanying titles awarded by the State.
e.1.4) Bonuses accompanying awards by Organizations or Societies related to Central and local Political, Social, Professional Organizations that are adhered to their regulations and are compliant with the Law on Emulation and Commendation.
e.1.5) Bonuses accompanying the Ho Chi Minh Prize, the State Prize.
e.1.6) Bonuses accompanying Commemorative Coins, Medals.
e.1.7) Bonuses accompanying Commendation and Certificate of Merit.
The authority to decide rewards, levels of bonuses for emulation titles, and forms of commendations mentioned above must comply with the Law on Emulation and Commendation.
[...]
According to the above provisions, the Tet bonus is a bonus and is considered income from wages and salaries of the employee. Therefore, the Tet bonus must be subject to personal income tax.
The Tet bonus is subject to personal income tax. However, employees only have to pay personal income tax after deducting reductions, social insurance contributions, other deductions, etc., reaching the taxable level of personal income tax.
