Vietnam mandates firms to issue year-end bonuses

Vietnam is mandating companies to award sufficient wages and year-end bonuses to its employees.

While it is expected that the bonus for Tet, the Vietnamese New Year, would fall by 15-20% this year, most employees can still expect to receive a bonus of between one to two months’ salary, said Tran Thi Thanh Ha, Head of the Labour Relations Division, the Vietnam General Confederation of Labour (VGCL).

The Vietnam Textile and Apparel Association, for example, reported that the average salary of employees increased by about 5-7% this year, while one month’s salary would be paid to all employees as part of their Tet bonus.

To prevent against labour shortages, the government is also urging companies to roll out policies that encourage their employees to return to work after the 2023 Tet holiday, which takes place from January 21-26.

READ: Vietnam set to hike wages starting July 2023

Localities have also been told to work closely with the Ministry of Labour, Invalids and Social Affairs (MoLISA) to review the list of employees who have lost their jobs, and to introduce support policies to cushion the impact of unemployment. This would be done in collaboration with the VGCL and the Vietnam Social Security.