Enterprises make efforts to ensure Tet employee bonus

Dinh Sy Phuc, trade union chairman of Taekwang Vina – a South Korean textile firm located in the southern province of Dong Nai – told VIR that the company’s union is preparing Lunar New Year gifts for workers along with a bonus.

“This year, the company spent $20.3 million on the Lunar New Year bonus with the highest level being 150 per cent of the month’s salary, which is calculated based on the basic salary in collaboration with heavy, hazardous, and dangerous allowance,” Phuc said.

According to him, although the bonus level remains the same, it is calculated based on the new salary of 2024. The company will increase basic salary by VND100,000 ($4.20) and allowances by VND50,000 ($2.10) for employees. In addition, employees whose salaries are due for a rise will receive an increase of 3 per cent. Thus, the actual amount of money received by workers will be higher than last year’s Lunar New Year.

“It is an effort of the boards of directors in the context of falling orders and difficulties surrounding the leather and footwear industry. However, we are aware that ensuring the bonus and allowance in the difficult period is a necessary task to retain people in the context of the competition in recruiting,” Phuc explained.

“If we do not ensure their livelihoods for them, they may leave the company to work for companies elsewhere, or return to their hometowns,” he added.

Along with the bonus, the company has also prepared vehicles or two-way tickets to ensure workers get home to enjoy the Lunar New Year holiday.

Another company in garment and textiles, South Korea’s Changshin Vietnam Co., Ltd., announced its total package for Lunar New Year bonus at $27.4 million. The number was made final after seven rounds of negotiations with the board of directors and the trade union.

This move illustrates the company’s efforts to get through the economic storm as many other footwear companies in Vietnam have shut down or cut staff. The company boasts the largest number of workers in Dong Nai with 37,000, but it saw orders plunge 20 per cent in 2023 due to weak global demand, and company leaders want to retain workers by raising their wages.

In addition, employees will receive an additional allowance of 5-8 per cent of basic salary, depending on position. For new employees joining the company this year, the company commits a bonus of $21. Compared to last year, this year’s bonuses have increased $12.50 per worker, depending on seniority.

The Nike footwear supplier will also raise the monthly salary for all workers by $6.20, which is set to cost the company over $240,000 extra each month.

“We hope that our efforts to ensure the bonus and increase salary will encourage workers so that they remain loyal and dedicate themselves to the company so that it can overcome this difficult period,” said Dang Tuan Tu, trade union chairman of Changshin.

Nguyen Xuan Duong, vice chairman of the Vietnam Textile and Apparel Association added, “Lunar New Year bonuses of southern businesses will not be the same every year, while northern businesses have mostly responded that they will try to keep the bonus level the same as last year.”

According to a survey by the Hanoi Small and Medium Enterprises Association, this year’s bonus levels will depend on different industries and markets, and the actual levels of employees are also different.

Mac Quoc Anh, vice president and general secretary of the association, shared, “Some businesses have given an additional 10 per cent bonus to employees working in sales, marketing, administration, and accounting departments. Meanwhile, unskilled workers or high-quality workers who can work with modern machinery and equipment are also rewarded with an additional 5-10 per cent of their salary.”

According to information from the Hanoi Labour Confederation, the average salary of workers in 2023 was equal to 2022. However, the average Lunar New Year bonus for employees in all types of businesses decreased from 1.41 per cent to 2.44 per cent compared to 2023.

In Ho Chi Minh City, the average Lunar New Year bonus is kept at the same level as last year, an average of $519 per person, according to a report by the City’s Labour, Invalids and Social Affairs sector.

The Ministry of Labour, Invalids and Social Affairs (MoLISA) has announced its 2024 Lunar New Year bonus: accordingly, the average bonus is almost $290 per worker, equivalent to last year.

According to Trinh Thanh Dinh, chairman of the union of Tan De Sporting Goods Manufacturing JSC, despite ending a troubled business year with the number of orders falling about 15 per cent and overtime dipping from up to 250 hours per year to around 180 hours, the company has tried to maintain welfare policies and ensure continuous employment.

“We consider employees to be our most valuable asset, and all policies aim to benefit and protect their rights,” he said. “Thus, workers will trust and be willing to accompany the business to maintain operations, even in difficult times.”

Tan De currently has up to 10 factories in Thai Binh province, with a total workforce of about 18,000. Since the beginning of the year, the company has spent more than $1.35 million on Lunar New Year gifts for employees.

The Department of Industrial Relations and Wage, a unit of MoLISA, will imminently produce a general report on the salary and bonus situation as well as salary debt and social insurance debt when localities fully report.

The report will describe the overall picture of salaries and bonuses for localities with large workforces such as Hanoi, Ho Chi Minh City, Dong Nai, Bac Ninh, and Bac Giang.

Craig Bradshaw, CEO Masan High-Tech Materials In 2023, the company’s production and business activities encountered many difficulties due to the impact of the global economic crisis. However, all employee were united and devoted themselves to helping us overcome those difficulties and contribute to revenue growth, even though the results were not as strong as expected. Putting employees at the centre of our sustainable development strategy, the company values and recognises the efforts and contributions of employees. In particular, understanding the increasing financial needs of each family during the Lunar New Year break, the company has a plan for bonuses to employees before the Lunar New Year holiday. The company currently has more than 1,500 employees with an average income of $530. In addition to maintaining jobs and stabilising income sources for employees, the company also cooperates with its trade union to implement programmes to bring employees a warm and fulfilling Lunar New Year. These include a Tet 360-degree event series; a gift programme for all employees, the Spring Swallow Wings programme, giving gifts to 30 employees in difficult circumstances from the Masaners Fund, and awarding scholarships to seven excellent children of the company’s employees. In which, our Tet market with the service of leaders and direct managers is giving away nearly 1,500 food and drink packages to employees as well as traditional chung cake wrapping. These activities not only bring a warm atmosphere but also help care for and share with employees and their families. The company continues to promote a strong and bright corporate culture with a spirit of solidarity and social responsibility in order to build a positive working environment, connecting members, and offering a warm and loving “second home” for each employee. The company’s leaders hopes that these efforts and commitments will be the best source of encouragement to help the entire team overcome all challenges during this difficult period and continue to build and develop together in 2024, worthy of the title “Typical Enterprise for Employees” and being a “Great Place to Work”.

Expectations muted for holiday bonus Businesses are facing varying levels of pressure to maintain traditional Lunar New Year cash bonus plans for their workforce.