There are only 4 days left until International Women's Day on 8/3, and the most concerning question right now is whether the company is required to give gifts to female employees on this day in Vietnam. If so, what is the required minimum gift value? Regarding this issue, the LAWNET would like to answer as follows:
Article table of contents
According to the provisions of Point 3.7, Clause 3, Article 6 of Vietnam's Decision 1910/QD-TLD, one of the main expenditure of the trade union is to propagate and organize activities on the occasion of Women’s Day (March 8), Vietnamese Women’s Day (October 20), Vietnamese Family Day (June 28), International Day of Happiness (March 20) and Population Day (December 26).
3.7. Expenditure on organizing activities about gender and gender equality
- Expenditure on propagating gender and gender equality, which shall be integrated with activities about population, reproductive health, family planning, prevention and fighting against family violence.
- Expenditure on purchasing kindergarten appliances and facilities at these entities (if any); supporting trade unionists and employees whose children are learning at such kindergartens.
- Expenditure on propagating and organizing activities on the occasion of Women’s Day (March 8), Vietnamese Women’s Day (October 20), Vietnamese Family Day (June 28), International Day of Happiness (March 20) and Population Day (December 26).
- Expenditure on the operations of the board of feminine housework at public level, Club of feminine housework at internal trade union level; the organization of competitions for well-done feminine housework candidates and emulation contests for candidates who are excellent at work and perfect at home.
The boards of Defense Trade Union and People’s Public Security Trade Union shall follow the instructions provided by the Ministry of National Defense and the Ministry of Public Security of Vietnam.
Thus, the grassroots trade union executive committee will base its decision on the trade union's financial situation that it may or may not spend in propagating and organizing activities on the occasion of Vietnamese Women's Day on October 20. If spending, gifts can be paid in kind or in other forms depending on the union's financial capacity.
At the same time, according to current regulations, employers are entitled to give gifts to employees on the occasion of March 8 and they will be deducted when determining taxable income if they are within certain limits.
Specifically, according to Clause 4, Article 1 of Vietnam's Decree 91/2014/ND-CP and Clause 1, Article 9 of Vietnam's Decree 218/2013/ND-CP, expenditures of a welfare nature are directly paid to employees that enterprises have invoices and documents as prescribed, such as: expenses for filial piety and joy of themselves and their families; expenses for vacation; expenses for treatment support; expenditures on additional support for learning knowledge at training institutions; expenses to support the families of employees affected by natural disasters, enemy sabotage, accidents, and illness; spending on rewarding children of employees with good academic achievements; expenses to support travel expenses on public holidays and New Year's Eve for employees; and other welfare-related expenses under the guidance of the Ministry of Finance; the total expenditure not exceeding one month's average salary actually made in the tax year will be deducted when determining the income subject to corporate income tax.
Thus, it can be seen that the current law does not require the company to give gifts to female employees on the occasion of October 20, but only for encouragement and the value of the gift is not mandatory but depends on the trade union's financial situation to spend. Normally, the value of gifts for female employees on this day in units and enterprises will not exceed one month's salary.
- Key word:
- Decision 1910/QD-TLD of Vietnam
