Bonus regime for officials and public employees, and armed forces in Vietnam from July 1, 2024

Bonus regime for officials and public employees, and armed forces in Vietnam from July 1, 2024 (Internet image)

On June 30, 2024, Hanoi issued Decree 73/2024/ND-CP, which stipulates the statutory pay rate and bonus regime for officials and public employees, and armed forces in Vietnam.

1. Bonus regime for officials and public employees, and armed forces in Vietnam from July 1, 2024

The bonus regime for officials and public employees, and armed forces in Vietnam is stipulated Clause 4 of Decree 73/2024/ND-CP as follows:

- Implement the bonus regime based on sudden work achievements and the annual evaluation and rating of task completion levels for the subjects stipulated in Clause 2, Article 2 of Decree 73/2024/ND-CP.

- The bonus regime stipulated in Clause 1, Article 4 of Decree 73/2024/ND-CP is used for ad-hoc rewards based on work achievements and annual periodic rewards based on evaluation and rating of work completion levels for each salary earner in the agency or unit. The head of the armed force unit as stipulated by the Ministry of Defense, the Ministry of Public Security (Hanoi, Vietnam); the head of the competent managing or delegated authority managing officials, and the head of the public service provider are responsible for developing a specific Regulation to implement the bonus regime applied to listed salary earners in the agency or unit; send it to the direct superior managing agency for management, inspection, and public posting in the agency or unit.

- The bonus regulation of the agency or unit stipulated in Clause 2, Article 4 of Decree 73/2024/ND-CP must include the following contents:

• Scope and subjects of application;

• Criteria for bonuses based on sudden work achievements and annual evaluation and rating of task completion levels for salary earners in the agency or unit;

• Specific bonus amounts for each case, not necessarily tied to the salary coefficient of each individual;

• Bonus consideration process and procedures;

• Other regulations as required by the management needs of the agency or unit (if necessary).

- The annual bonus fund as stipulated in Clause 4 of Decree 73/2024/ND-CP is separate from the reward fund as per the Emulation and Commendation Law 2022, and is determined as 10% of the total salary fund (excluding allowances) according to position, title, rank, and military rank of the listed salary earners in the agency or unit.

By the end of January 31 of the next year, if the agency or unit has not used up the annual bonus fund, it cannot transfer the unused fund to the bonus fund of the following year.

2. What is a bonus?

As stipulated in Article 103 of the Labor Code 2019, a bonus is an amount of money that the employer rewards the employee based on the annual business production results and the work completion level of the employee.

The bonus regulation is decided by the employer and publicly announced at the workplace after consulting with the representative labor collective organization at the facility.

More details can be found in Decree 73/2024/ND-CP effective from July 1, 2024.

Decree 24/2023/NĐ-CP ceases to be effective from the effective date of Decree 73/2024/ND-CP.

Vo Tan Dai

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