Product-based salary is one of forms of salary payment based on the agreement between the employer and employee. So, how are Tet bonuses for employees receiving product-based salary in accordance with Vietnam’s regulation?
Article table of contents
According to Article 96 of the Labor Code 2019 of Vietnam on forms of salary payment, the employer and employee shall reach an agreement on whether the salary is time-based, product-based (piece rate) or a fixed amount.
Salary shall be paid in cash or transferred to the employee’s personal bank account. In case of bank transfer, the employer shall pay the costs of account opening and transfer.
Regarding salary payment time, an employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.
In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.
The above are the regulations on the payment of wages to employees receiving product-based salary in the Labor Code 2019 of Vietnam, with no significant change compared to the provisions in the Labor Code 2012.
Regarding Tet bonuses for employees receiving product-based salary, according to Article 104 of the Labor Code 2019 of Vietnam:
Article 104. 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).
Thus, regulations on bonuses do not discriminate between employees working under which type of contract or form of receiving salary, instead, it is based on: firstly, business performance; secondly, the employees’ performance. Based on these two factors, enterprises will decide whether to give Tet bonuses to employees, how much to reward and in what form. A new point of the Labor Code 2019 of Vietnam is that employers can reward employees not only with money but also in other forms such as property, spirit, etc.
In short, the Tet bonus for employees receiving product-based salary will be decided by each enterprise and employer, specified in the Regulations on bonuses of each company.
Thuy Tram
- Key word:
- Labor Code 2019
