The Tet bonus is a vital employee benefit in Vietnam, widely anticipated during the Lunar New Year celebrations. Although Tet bonuses are not mandatory under the Labor Code 2019, employers are encouraged to implement transparent policies to foster employee satisfaction and recognize contributions.
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Legal Definition and Policy Framework
The Labor Code 2019 outlines bonuses, including Tet bonuses, as financial or non-financial rewards given based on:
- Annual business performance.
- Employees’ individual work results.
Employers hold discretion regarding the decision to offer a bonus, its form (cash or non-monetary), and the value. However, transparency is critical, requiring bonus policies to be shared publicly within the workplace.
Employer Responsibilities Regarding Tet Bonus
Under the Labor Code 2019, employers must adhere to the following regulations:
- Consult Trade Unions: Bonus policies must be developed with input from trade unions.
- Ensure Fairness: Apply clear and consistent criteria to avoid disputes.
- Communicate Policies: Publish and share Tet bonus policies openly with employees.
Practices in Vietnam
The discretionary nature of Tet bonuses results in diverse practices across companies:
- Generous Rewards: Some employers offer significant cash bonuses, company products, or additional benefits.
- Symbolic Gifts: Smaller businesses may provide token rewards or gifts to employees.
- No Bonus: Certain companies may forgo offering Tet bonuses due to financial constraints or business performance.
Contact LawPlus for Expert Guidance
For professional advice on labor regulations under the Labor Code 2019, connect with LawPlus:
- Website:
- Email:
- Hotline: 0965 052 039 (Vietnamese) | 0966 008 030 (English)
- Address: 86 Xuan Thuy Street, Thao Dien Ward, Thu Duc City, Ho Chi Minh City, Vietnam.
Related:
- Handling when employees leave without prior notice
- Granting work permits for foreigners working in Vietnam.
- Procedures for granting work permits for foreigner workers working in Vietnam.
