Firms in Ho Chi Minh City (HCMC) are expected to give a low year-end bonus for the 2021 Lunar New Year due to the impacts of Covid-19, as new regulations come out allowing manufacturers to give out commodities as bonuses.
One-third of all HCMC-based companies can only afford a bonus worth 50% to 75% of that in 2020 or 1 month of regional minimum salary, according to reports from the Ho Chi Minh City Export Processing and Industrial Zones Authority (Hepza).
Several firms in the garment and footwear industry are unlikely to give out New Year bonuses at all due to the lack of orders throughout 2020, said Mr. Huynh Van Tuan, chairman of the trade union of Hepza.
On the other hand, there are a handful of companies that were able to make big bucks, one planning to spend as much as VND48 billion (about US$2 million) on Lunar New Year bonus.
Additionally, companies from January 1, 2021, can give out cash or commodities or other forms of compensation as bonuses after consulting with related workers’ union.
The Department of Labor, Invalids and Social Affairs of HCMC is working with relevant units to monitor the 2021 Lunar New Year payment and bonus situation, as well as labor relations at companies in HCMC.
“Special focus will be reserved for companies severely affected by the pandemic, as well as those with a history of workers’ rights violation”, said Director of the Department Le Minh Tan.
This article was posted on @Sggp