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Are businesses required to give 2024 New Year bonuses to employees?
Pursuant to Article 104 of the 2019 Labor Code, it is stipulated that:
- Bonus is the amount of money or property or other forms that the employer rewards the employee based on the production and business results and the employee's level of work completion.
- The bonus regulations are decided by the employer and publicly announced at the workplace after consulting with the employee representative organization at the workplace where there is an employee representative organization at the workplace.
Thus, according to the above regulations, bonuses are not mandatory payments that businesses must make to employees.
In other words, businesses are not required to give 2024 New Year bonuses to employees. Whether or not to give 2024 New Year bonuses to employees will be decided by the business based on the business's internal bonus regulations in addition to the business's production and business situation and the employee's level of work completion.
Are businesses required to develop a 2024 New Year bonus policy?
Pursuant to Clause 2, Article 104 of the 2019 Labor Code, the bonus regulations are decided by the employer and publicly announced at the workplace after consulting with the employee representative organization at the workplace where there is an employee representative organization at the workplace.
Accordingly, enterprises have the right to decide on the 2024 New Year bonus regulations after consulting with the organization representing employees at the facility (if any) and must publicly announce the 2024 New Year bonus regulations at the workplace for employees to know.
How much will a business be fined if it does not publicly announce the 2024 New Year bonus regulations?
According to regulations, businesses must publicly announce the 2024 New Year bonus regulations at the workplace so that employees know before implementation.
In case an enterprise fails to publicly announce the 2024 New Year bonus regulations at the workplace before implementation, it will be fined from VND 10,000,000 to VND 20,000,000 according to the provisions of Point a, Clause 1, Article 17 of Decree 12/2022/ND-CP.
In addition, if an enterprise does not consult the organization representing employees at the facility where there is an organization representing employees at the facility when developing the 2024 New Year bonus regulations, it will be fined from VND 10,000,000 to VND 20,000,000 according to the provisions of Point c, Clause 1, Article 17 of Decree 12/2022/ND-CP.
Is the 2024 New Year bonus subject to personal income tax?
Pursuant to Point e, Clause 2, Article 2 of Circular 111/2013/TT-BTC, bonuses in cash or non-cash in any form, including bonuses in securities, are subject to personal income tax, except for the following bonuses:
- Bonuses accompanying titles conferred by the State, including bonuses accompanying emulation titles, forms of rewards according to the provisions of law on emulation and rewards, specifically:
+ Bonuses accompanying emulation titles such as National Emulation Fighter; Emulation Fighter at the level of Ministries, branches, central organizations, provinces, and centrally-run cities; Emulation Fighter at the grassroots level, Advanced Worker, Advanced Fighter.
+ Bonuses with other forms of rewards.
+ Bonuses with titles awarded by the State.
+ Bonuses accompanying awards given by Associations and organizations under Central and local political organizations, socio-political organizations, social organizations, and socio-professional organizations in accordance with the charter of that organization and in accordance with the provisions of the Law on Emulation and Commendation.
+ Bonuses with Ho Chi Minh Prize and State Prize.
+ Bonus with Medals, Badges.
+ Bonus with Certificate of Merit.
The authority to decide on rewards, the amount of rewards accompanying the above emulation titles and forms of rewards must comply with the provisions of the Law on Emulation and Rewards.
- Bonuses accompanying national and international awards recognized by the Vietnamese State.
- Bonuses for technical improvements, inventions and discoveries recognized by competent State agencies.
- Rewards for detecting and reporting violations of the law to competent State agencies.
Thus, the 2024 New Year bonus that employees receive is still subject to personal income tax according to the above regulations.
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