Tet bonus plans vary among industries
VietNamNet Bridge – While finance, pharmaceuticals and real estate sectors promise big Tet bonuses, some other industries that are now facing many challenges and difficulties may provide more modest benefits, says a Vietnamplus report.
The well-performing real estate sector is present on the top five with the highest bonuses, so the Tet bonuses offered by employers in the sector should be also among the top, according to a survey published by consulting firm Macconsult. The average bonus of this industry is VND65 million for senior positions.
Finance is another leader in terms of bonus giving and will probably give generous Tet rewards. Techcombank has recently unveiled their Tet bonus plan, with a reward equivalent to 1.5 to 6 months’ salary, in addition to the 13th-month pay.
The pharmaceutical industry is also forecast to award large Tet bonuses, when the average bonus for managers is now VND55 million per month. In addition, the pharmaceutical sector is frequently present on the list of industries with the highest salaries.
In contrast, employees in some struggling sectors will have to get lower Tet bonuses.
Manufacturing industries such as textile and footwear have been experiencing fierce competition this year. Emerging markets like Myanmar and Bangladesh have become attractive to investors as their labor costs are lower than Vietnam’s, and many customers no longer consider Vietnam the first choice.
Dinh Viet Thanh, deputy head of administration at Garment 10 Joint Stock Company, predicted 2017 would be an extremely difficult year for the textile industry with stronger competition from foreign-invested enterprises (FIEs) and other Asian nations.
“When market conditions turn bad, we will have to think about cost cuts. In tough times, Tet bonuses should be at modest levels,” Thanh said.
Remuneration calculations and balance of the production development plan to ensure stable employment is tough for labor-intensive enterprises like those in the textile industry, he said.
Le Anh Cuong, director of Macconsult, forecast businesses would give higher bonuses than last year. However, there may be virtually no difference from 2015, as the typical reward level will be a month’s salary.
“In 2016, all manufacturing enterprises have experienced hardships with the minimum wage hike, but bonuses in kind will not be as popular as in 2014, when economic difficulties forced many businesses to give their employees unsold products as bonuses,” Cuong said.
The average bonus on the last Lunar New Year holiday was one month’s salary, or about VND5.53 million per person. The highest reward was VND624 million, while the lowest was VND40,000, but certain businesses did not even have a Tet bonus plan, according to the Ministry of Labor, Invalids and Social Affairs.