Today we will learn about whether the December bonus is required to be paid to employees and understand properly about the December bonus.

Currently, Vietnamese law does not regulate and recognize the concept of December bonus. December bonus is considered as the custom of salary between enterprises and employees. December bonus or fourteenth, fifteenth month salary is the amount of money that enterprises reward employees based on their financial ability and annual business and production results. Therefore, the December bonus is an optional payable.

In order to avoid misunderstandings between employees and enterprises, employees should learn about the bonus regulations of the enterprise before signing a labor contract or find out about the December bonus or other bonuses stated in the employment contract.

Regulations on the company's December bonus or annual bonuses will be specified in the enterprise's salary policy or collective bargaining agreement.

In summary, the December bonus is actually a bonus and this is an optional amount of money that is not required to be paid according to the labor law, but it depends on the agreement between the employee and the enterprise. Normally, in the relationship between an enterprise and an employee, if the employee works continuously for full twelve months, he or she will be entitled to the full December bonus. If the employee does not work full twelve months in the year, the enterprise shall pay a part of the December bonus in proportion to the actual time that person has worked at the enterprise. For example, if you work six months out of the year then at the end of the year you will receive fifty percent of your December bonus, if you work three months out of the year you get twenty-five percent of your December bonus.

Please note that the December bonus and annual bonuses will not be required to pay social insurance, health insurance and unemployment insurance but must be added to the income subject to personal income tax.