Minister of Labor, Invalids and Social Affairs explains about Tet bonus levels of enterprises

Minister Pham Thi Hai Chuyen: The regulation on Tet bonus is decided by the employer and signed in the labor contract from the beginning of the year.

Lunar New Year is approaching. Giving Tet bonuses has long become a social custom and is an opportunity for employers to express their gratitude to their employees and colleagues who have worked together to overcome difficulties and develop production throughout the year.

Because the Tet bonus regime has not been legalized, whether or not the bonus is given, how much or how little, depends on the employer's ability, generosity or agreement between the employer and the employee.

This year the economic situation has had many positive changes, many businesses have announced their Tet bonuses quite early but there are still many concerns about Tet bonuses.

Minister of Labor, War Invalids and Social Affairs Pham Thi Hai Chuyen will discuss this issue with the people.

PV: Dear Minister, not long ago, a leader of the Ministry of Labor, War Invalids and Social Affairs commented that the Tet bonus in 2016 will be higher than in 2015 because GDP has increased, industrial production value has increased, and wages and incomes are more stable. So what is the actual situation of Tet bonuses in agencies and enterprises up to this point?

Minister of Labor, War Invalids and Social Affairs Pham Thi Hai Chuyen (Photo: KT)

Minister Pham Thi Hai Chuyen:This year, the production and business situation of enterprises is indeed better, so according to the report of more than 31,000 enterprises up to this point, the 2015 Lunar New Year bonus compared to 2014 increased by 2%, the highest unit is about 600 million. According to the report, about 80% of enterprises plan to have bonuses, while 13% are not able to give Tet bonuses.

PV: A listener sent a letter to the Column asking: Last year, a relative of mine was very sad when the Company gave Tet bonuses in the form of biscuits. This year, it was my turn to be informed that Tet bonuses were in the form of cooking oil and MSG. I read the newspaper and listened to the radio and learned that there are garment companies that give Tet bonuses in the form of the company's clothing products. So why doesn't the Ministry of Labor, War Invalids and Social Affairs have a regulation that Tet bonuses must be in cash?

Minister Pham Thi Hai Chuyen:The regulation on Tet bonus is decided by the employer and signed in the labor contract at the beginning of the year or labor agreement, and will be made public after discussion with the company's union.

Therefore, there are businesses that cannot afford bonuses, so they do not dare to write bonuses in their contracts at the beginning of the year, but the majority of businesses that we know that give bonuses are not because they produce well, but because they are aware from the beginning that employees are the main decision makers for their company. Therefore, the vast majority of businesses have regulations in their contracts at the beginning of the year, but due to some difficulties, there are no bonuses.

I think that if a company has a bonus, it should give it to its employees in cash for the following reasons because in reality, 100,000 in wages is not equal to one bonus because it has a great incentive for employees to be more excited and more attached to the company.

Moreover, the material meaning is very practical, because most low-income workers also want to have a bonus to take care of their family during Tet, or to go home to celebrate Tet with their parents. Therefore, the fact that businesses give material rewards is because they want to encourage their workers, but it is not a Tet bonus.

PV:With the spirit of not letting people go without Tet, it is known that this year more than 10,000 billion VND and 7,000 tons of rice have been prepared to give to families of meritorious people, policy families, and the poor on the occasion of the Lunar New Year 2016. This is a tradition that the Ministry of Labor, War Invalids and Social Affairs has carried out for many years. Many listeners who are eligible for support have sent letters to the Column asking how the Ministry is implementing the work of identifying households in need of this support? And when will they receive this support, Minister?

Minister Pham Thi Hai Chuyen:For those with meritorious services, we have submitted to the President a Decision from January 8, 2016 to support Tet gifts at two levels: 400,000/person and 200,000/person, totaling 437 billion VND, and over 2 million meritorious services receive Tet gifts from the President.

For poor households lacking food, up to now, 11 provinces have requested over 12,000 tons of food, with the directive that localities, when having a decision from the Prime Minister, must deliver food to the poor before the 25th of Tet so that they can have a full Tet.

PV:As the Minister just said, up to this point, only 11 provinces have requested support, so what about the provinces that will continue to request support in the future, Minister?

Minister Pham Thi Hai Chuyen:Yes, only 11 provinces have requested support. So we cannot know all the provinces that need support, because Son La and Lai Chau provinces are not included - these provinces have very high poverty rates, and the ability of the local authorities to solve the problem themselves is not certain, so it is expected that the provinces will have requests in the near future.

We hope that time is running out, so the provinces must determine that when the Prime Minister makes a decision, the localities must proactively deliver the food support to the poor within the time limit./.

PV: Thank you very much, Minister!./.

According to VOV