Tet bonus is a matter of concern for many employees after a year of dedication and hard work. From January 01, 2021, when the Labor Code 2019 of Vietnam officially takes effect, enterprises must pay transfer fees if they give Tet bonuses via ATM cards to employees.
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According to Article 104 of the Labor Code 2019 of Vietnam, 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. 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).
From 2021, the State allows enterprises to give Tet bonuses to employees in many other forms, not just allowing enterprises to reward employees with bonuses in cash as before. Forms of Tet bonus 2021 include:
- An amount of money;
- Property: products, services available in the enterprise or real assets with the needs of employees;
- Other forms.
In the case that enterprises give Tet bonuses to employees in cash, they can be paid through cash or transfer according to the provisions of the Labor Code 2019 of Vietnam.
Specifically, according to Clause 2 Article 96 of the Labor Code 2019 of Vietnam, salary payment forms are prescribed as follows:
“Article 96. Salary payment forms
2. 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.”
Thus, according to the above provisions, it is understood that from 2021, when giving Tet bonuses in cash to employees, enterprises are responsible for paying in cash or via employees' personal accounts opened at banks (via ATM card). However, in the case of bonus money via the employee's personal account, the enterprise must pay fees related to account opening and bonus transfer (this is a new regulation compared to current one).
Currently, according to Article 94 of the Labor Code 2012 of Vietnam, wages may be paid by cash or via the employee’s personal account opened at a bank. In case the wage is paid into the bank account, the employer shall negotiate with the employee on any fees related to the opening and maintenance of the account. Accordingly, it means that in the case of enterprises giving Tet bonuses to employees via ATM cards, enterprises may not have to pay the fees related to opening accounts and transferring bonuses.
It can be seen that, in order to protect the interests of employees through paying salaries or Tet bonuses, the fees related to opening accounts and transferring salaries and Tet bonuses will be paid by enterprises from 2021. Concurrently, employees will no longer bear all costs related to opening accounts and transferring Tet wages and bonuses.
Ty Na
- Key word:
- Labor Code 2019
- Tet bonus
