Is “Tet bonus” subject to social insurance contribution and personal income tax?

Being one of the benefit regimes besides salary, allowance, KPI bonus, etc., “Tet bonus” is also believed to be a great concern for employees. Currently, enterprises are not obliged to give Tet bonus by the law, and Tet bonus can be in cash or in kind depending on each company’s bonus regulation. This is only seen as an amount with the purpose of encouraging employees’ morale. However, many employees, even employers, still get confused about whether the Tet bonus they receive will be included in the payment of social insurance and personal income tax or not.

PL & Partners would like to deliver to readers the analysis and answers to the above questions as follows.

Tet bonus is known as a form of bonuses specified in Article 104 of the Labor Code 2019:

Article 104. Bonuses

1. A bonus is a monetary amount, asset, or other type of benefit provided by an employer to reward employees based on production or business outcomes or the performance of the employees.

2. The regulation on bonuses shall be decided and publicly announced at the workplace by the employers after consultation with employees’ representative organizations at the grassroots level where such organizations exist.

Is Tet bonus required for social insurance payment?

  • Clause 2, Article 5 of the Law on Social Insurance 2014 stipulates that the compulsory social insurance contribution rate shall be calculated based on an employee’s MONTHLY SALARY.
  • In which, monthly salary to be calculated as social insurance premiums from 01/01/2021 is stipulated in Clause 26, Article 1 of Circular 06/2021/TT-BLDTBXH, including job- or position-based salary; salary-based allowance to compensate factors such as working conditions, job complexity, employee’s living condition, and employment attraction, and additional amounts which can be determined as specific amounts in addition to the salary agreed upon in the labor contract, and are regularly paid in each period of salary payment (Circular No. 10/2020/TT-BLDTBXH).

Also in Clause 3, the amounts not included in social insurance contributions include:

  • Bonus.
  • Invention awards.
  • Mid-shift meal.
  • ….

=> From the above provisions, Tet bonus of employees shall NOT BE INCLUDED IN THE EMPLOYEE’S SALARY AS THE BASIS FOR SOCIAL INSURANCE PAYMENT. Therefore, employees shall not be liable for deducting Tet bonus to pay social insurance.

Is Tet bonus required for personal income tax payment?

  • Incomes subject to personal income tax are wages, remunerations, and other amounts of similar nature paid in cash or in kind, and allowances. (Clause 2, Article 2 of Circular 111/2013/TT-BTC).
  • Tet bonus in Article 104 of the Labor Code 2019 mentioned above is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance, as a result, it shall be considered as INCOME OF SIMILAR NATURE OF WAGES AND REMUNERATIONS.
  • Besides, Point b, Clause 2, Article 3 of the Law on Personal Income Tax stipulates that allowances which are NOT SUBJECT TO PERSONAL INCOME TAX, include: those paid under legal provisions on preferential policies for people with meritorious services; national defence and security allowances; hazard or danger allowances for working in business lines or jobs at places where exist hazardous or dangerous elements; allowances for attraction of labor, area allowance specified by law; allowances for sudden difficulties, allowances for occupational accident or disease, maternity paid in a lump sum or child adoption allowances; allowances for loss of capacity for work, lump sum pension, monthly survivorship allowances, severance and job-loss allowances specified in the Labor Code, other allowances paid by the Social Insurance, and allowances not having the nature of salary, wage according to the Government’s regulations => Tet bonus is NOT INCLUDED IN the list of allowances exempt from Personal Income Tax.

Thereby, it can be seen that the Tet bonus is an income that has the nature of wages and remunerations, and is not included in the list of allowances that are exempt from PIT. Therefore, Tet bonus is a taxable income and employees are responsible for paying tax in accordance with the law.


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The article is based on the current legal regulations at the time of writing, and it may no longer be valid or relevant at the time you read it due to changes in the law. The article, therefore, is seen as reference only.
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