Is the Lunar New Year bonus subject to social insurance contributions?
According to the provisions of the Law on Social Insurance 2014, from January 1, 2018, social insurance contributions include: "Salary, allowances and other supplements".
However, calculating social insurance contributions in the content of "other additional amounts" does not mean including all other amounts combined.
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To specifically regulate "additional amounts" that are not used as a basis for calculating social insurance, the Ministry of Labor, Invalids and Social Affairs issued Circular No. 47/2015 on regulations on amounts that are not used as a basis for paying social insurance.
Specifically: Additional amounts that do not have a specific amount of money along with the salary agreed upon in the labor contract, paid regularly or irregularly in each pay period associated with the work process and work performance of the employee.
The amounts not included in the social insurance contributions include: Innovation bonuses; mid-shift meal allowances; allowances for gasoline, telephone, travel, housing, childcare, child care; support when a relative dies, a relative gets married, a birthday, allowances for employees in difficult circumstances due to work-related accidents, occupational diseases, and other allowances and subsidies...
Based on the above regulations, the Tet bonus is not regular, continuous and fixed. Therefore, this amount will not be used as a basis for calculating social insurance contributions according to the provisions of the Law on Social Insurance 2014.