Tong Thi Minh, director general of the Ministry of Labour, Invalids andSocial Affairs' salary department, spoke with Hai quan (Customs)newspaper about whether the festive bonus should be legalised.
* Tet bonuses vary according to the industry and Government agenciesand is subject to budget constraints. Does Vietnam have any legalmechanisms or policies on Tet (Lunar New Year) bonuses?
Principally speaking, the Tet bonus must not exceed 30 percent of themonthly wage. If any company gives the Tet bonus to their employees,that is how they structure their worker's income in that year.
In the past, the Tet bonus was only awarded to those who had conductedgood performances. But in recent years, it has become more common withalmost everyone receiving bonuses for the Lunar New Year.
That's why it cannot be interpreted as a bonus. Instead, it is part ofthe accumulated wage for the whole 12 months. Under the Labour Law,there is a chapter about remuneration and awards.
However, the annual award for workers has not been enshrined in law.This is a key reason why the Tet bonus varies from one company toanother, depending the employer's budget capacity.
As a PR stunt, some companies will boast about giving big bonuses totheir workers. However, in reality, the real sum will be meagre. But, insuch a case, we can't do any thing about it.
In myopinion, it is unlikely that we will be able regulate the Tet bonus inan official legal document as it would be very difficult to enforceacross the vast range of industries and sectors.
For profitable companies, awarding bonuses is not a critical concern.However, it has been a tough time for Vietnamese companies in recentyears with many challenges, with many on the edge of bankruptcy. Tetbonuses have become a burden for them.
For foreigninvested companies, I don't think we can force employers to give Tetbonuses to their workers. It is a matter between the employers andemployees. Their final decisions are confidential.
* More recently, there has been a rumour that the Tet bonus will be legalised. What's your reaction to this claim?
In my opinion, giving Tet bonuses is an issue that needs more consideration. It can't be legalised immediately.
To legalise something takes a lot of work; including surveys andresearch. Of course, such a decision must satisfy both parties - theemployer and employees.
I myself always support higher pay for employees. But it is not the right time to legalise Tet bonuses.
If we look at what has been practised over the past few years, employees still receive bonuses for the Lunar New Year.
Additionally, there is a comprehensive system of legal documentsprotecting employee salaries. What's more important, is that bothemployers and employees comply with legal documents and justify payrises for workers.
There is no question, wages arebased on a salary scale enshrined in the law. but bonuses are oftenbased on performance and agreed upon by the two parties.
* What do you think about the bonus for the 2014 Lunar New Year Festival?
In previous years, enterprises often sent us their bonus plans.
For the 2014 Tet bonus, I think it can be categorised into threegroups: generous bonuses comprising hundreds of millions of dong;average bonuses and no bonuses at all.
As I havementioned above, there is no legal document forcing the employers togive Tet bonuses to their employees. It all depends on their willingnessto pay and financial capacity.
* Currently,employers decide whether to give Tet bonuses to their employees. As aresult, employees don't have a say in this decision. What is your viewon this?
Tet bonuses are a custom, not anentitlement. Be it a big or small bonus, it is a sign of gratitude toemployees for their work and encouragement to perform well in the newyear.
The fairness of giving awards to employees is a very important issue for the employers to think about.
* Do you think the Ministry of Labour, Invalids and Social Affairswill adopt any special policies to support workers in the upcoming Tetseason?
Up to now the government has issued aninstruction for workers of bankrupt companies to receive their wages forwork they have completed.
For those which arestill operating, but not at a full steam, it is a matter of negotiatingbetween the employers and employees.
However, inthe case of those working at enterprises where employers have fled orfailed to pay worker salaries, the government has asked localgovernments to use local budgets to subsidise outstanding workerpayments.
Salaries of employees and management ofthe enterprises must be disclosed, under the law. Only by doing so, willthe salaries and bonuses of employees be increased.-VNA
* Tet bonuses vary according to the industry and Government agenciesand is subject to budget constraints. Does Vietnam have any legalmechanisms or policies on Tet (Lunar New Year) bonuses?
Principally speaking, the Tet bonus must not exceed 30 percent of themonthly wage. If any company gives the Tet bonus to their employees,that is how they structure their worker's income in that year.
In the past, the Tet bonus was only awarded to those who had conductedgood performances. But in recent years, it has become more common withalmost everyone receiving bonuses for the Lunar New Year.
That's why it cannot be interpreted as a bonus. Instead, it is part ofthe accumulated wage for the whole 12 months. Under the Labour Law,there is a chapter about remuneration and awards.
However, the annual award for workers has not been enshrined in law.This is a key reason why the Tet bonus varies from one company toanother, depending the employer's budget capacity.
As a PR stunt, some companies will boast about giving big bonuses totheir workers. However, in reality, the real sum will be meagre. But, insuch a case, we can't do any thing about it.
In myopinion, it is unlikely that we will be able regulate the Tet bonus inan official legal document as it would be very difficult to enforceacross the vast range of industries and sectors.
For profitable companies, awarding bonuses is not a critical concern.However, it has been a tough time for Vietnamese companies in recentyears with many challenges, with many on the edge of bankruptcy. Tetbonuses have become a burden for them.
For foreigninvested companies, I don't think we can force employers to give Tetbonuses to their workers. It is a matter between the employers andemployees. Their final decisions are confidential.
* More recently, there has been a rumour that the Tet bonus will be legalised. What's your reaction to this claim?
In my opinion, giving Tet bonuses is an issue that needs more consideration. It can't be legalised immediately.
To legalise something takes a lot of work; including surveys andresearch. Of course, such a decision must satisfy both parties - theemployer and employees.
I myself always support higher pay for employees. But it is not the right time to legalise Tet bonuses.
If we look at what has been practised over the past few years, employees still receive bonuses for the Lunar New Year.
Additionally, there is a comprehensive system of legal documentsprotecting employee salaries. What's more important, is that bothemployers and employees comply with legal documents and justify payrises for workers.
There is no question, wages arebased on a salary scale enshrined in the law. but bonuses are oftenbased on performance and agreed upon by the two parties.
* What do you think about the bonus for the 2014 Lunar New Year Festival?
In previous years, enterprises often sent us their bonus plans.
For the 2014 Tet bonus, I think it can be categorised into threegroups: generous bonuses comprising hundreds of millions of dong;average bonuses and no bonuses at all.
As I havementioned above, there is no legal document forcing the employers togive Tet bonuses to their employees. It all depends on their willingnessto pay and financial capacity.
* Currently,employers decide whether to give Tet bonuses to their employees. As aresult, employees don't have a say in this decision. What is your viewon this?
Tet bonuses are a custom, not anentitlement. Be it a big or small bonus, it is a sign of gratitude toemployees for their work and encouragement to perform well in the newyear.
The fairness of giving awards to employees is a very important issue for the employers to think about.
* Do you think the Ministry of Labour, Invalids and Social Affairswill adopt any special policies to support workers in the upcoming Tetseason?
Up to now the government has issued aninstruction for workers of bankrupt companies to receive their wages forwork they have completed.
For those which arestill operating, but not at a full steam, it is a matter of negotiatingbetween the employers and employees.
However, inthe case of those working at enterprises where employers have fled orfailed to pay worker salaries, the government has asked localgovernments to use local budgets to subsidise outstanding workerpayments.
Salaries of employees and management ofthe enterprises must be disclosed, under the law. Only by doing so, willthe salaries and bonuses of employees be increased.-VNA
