Nghỉ việc được nhận những tiền gì? Có phải tính thuế TNCN? What kind of money do you get when quitting your job? Is PIT required?

This article summarizes the payments received upon resignation or termination of employment that workers should be aware of to understand what benefits they are entitled to when leaving a job.

Payments received from the company @manabox.ketoanthue Unemployed but still getting money, what’s this about? #unemploymentinsurance #severanceallowance #resignation #happyresignation #resignationwithmoney ♬ original sound – Manaboxvn

1.1 Salary for days worked not yet paid Labor Code 2019 – Article 48. Responsibilities when terminating an employment contract

1. Within 14 working days from the date of termination of the employment contract, both parties have the responsibility to fully settle amounts related to the rights of each party, except in the following cases which may be extended but not exceed 30 days:

a) The employer who is not an individual ceases operations; b) The employer changes its structure, technology, or for economic reasons; c) Division, separation, merger, acquisition; sale, lease, conversion of business type; transfer of ownership or usage rights of assets of the enterprise or cooperative; d) Due to natural disasters, fire, enemy damage, or dangerous epidemics.

2. Salaries, social insurance, health insurance, unemployment insurance, severance allowances, and other employee benefits under collective labor agreements and employment contracts are prioritized for payment in case the business or cooperative ceases operations, is dissolved, or goes bankrupt.

1.2. Severance allowance Labor Code 2019 – Article 46. Severance allowance

1. When the employment contract terminates according to clauses 1, 2, 3, 4, 6, 7, 9, and 10 of Article 34 of this Code, the employer is responsible for paying a severance allowance to the employee who has worked regularly for them for 12 months or more, with each year of service compensated with half a month’s salary, except in cases eligible for pension under the social insurance law and as stipulated in point e of clause 1 of Article 36 of this Code.

1.3. Unemployment allowance Labor Code 2019 – Article 47. Unemployment allowance

1. The employer pays an unemployment allowance to an employee who has worked regularly for them for 12 months or more and has lost their job according to clause 11 of Article 34 of this Code, with each year of service paid one month’s salary but at least equal to two months’ salary.

1.4. Payment for unused annual leave Labor Code 2019 – Article 113. Annual leave

…3. In case of resignation or job loss without having taken annual leave or without having used up the annual leave days, the employer shall pay the salary for the unused days.

1.5. Other payments according to the Employment Contract, Labor Regulations, Collective Labor Agreement depending on the company policy 1.6. Special cases if an employee is wrongfully dismissed Afterwards, if the employer does not want to rehire the employee and the employee agrees, they will still receive:

Salary, social insurance contributions, health insurance, unemployment insurance for the days the employee was not allowed to work An additional amount of at least two months’ salary under the employment contract Compensation of at least two months’ salary under the employment contract to terminate the employment contract.

Insurance payments that may be received due to the employee completing procedures 2.1. Unemployment benefits According to Article 49 of the Employment Law 2013: Eligibility

An employee specified in clause 1 of Article 43 of this Law who is contributing to unemployment insurance is entitled to unemployment benefits if the following conditions are met:

1. Termination of the employment contract or work contract, except for the following cases:…

2.2. One-time social insurance benefit After resigning, an employee may choose to:

Preserve the period of social insurance contributions to accumulate when able to continue participating in social insurance until the retirement age with 20 years of contributions, then receive a pension and health insurance card Receive a one-time social insurance benefit, after one year of resignation

Are the allowance and compensation payments subject to personal income tax? According to official letter 48772/Ct-htr, under Clause 2 of Article 2 of Income Subject to Tax: “2. Income from salaries, wages: Income from salaries, wages is the income an employee receives from the employer, including:…b) Various allowances and subsidies, except for the following allowances and subsidies:

b.6) Emergency hardship allowance, occupational accident or disease allowance, one-time maternity or adoption allowance, maternity benefits, post-maternity convalescence and rehabilitation benefits, allowance for reduced work capacity, one-time retirement allowance, monthly survivor’s benefit, severance allowance, unemployment benefit, and other allowances as stipulated by the Labor Code and Social Insurance Law.

Excerpt from official letter 813/TCT-TNCN:

Based on the above regulations and the opinion of the Ministry of Labor, War Invalids and Social Affairs in Official Letter No. 4754/LĐTBXH-LĐTL dated December 2, 2013, the severance allowance paid by Scancom Vietnam LLC to Mr. Thanh (determined according to the provisions of Article 42 of the Labor Code 1994) is deductible when determining taxable income. The amount the company paid to Mr. Thanh for violating the notice period is compensation and is exempt from personal income tax.

Based on the above regulations and the documents attached to official letter No. 15062/BTC-TCT, the amount of 5 months’ salary that Scancom Vietnam LLC agreed with Mr. Nguyen Nhat Thanh is additional compensation for the employee to terminate the employment contract. According to point 12, part III section A of Circular No. 84/2008/TT-BTC dated September 30, 2008, by the Ministry of Finance, this additional compensation (5 months’ salary) is another type of compensation as prescribed by law and is exempt from personal income tax.

Excerpt from official letter 3168/CT-TTHT

Based on the above regulations, in the case of Ms. if the Representative Office pays compensation for damages due to the unilateral termination of the employment contract contrary to the provisions of the Labor Code, these compensation amounts are income exempt from personal income tax according to the regulations.

If the Representative Office pays an allowance to Ms. for resignation beyond the provisions of the Labor Code and Social Insurance Law, this payment must be included in the taxable personal income, in the case at the time of payment support, Ms. has made a resignation decision and has resigned then the Company deducts personal income tax at the rate of 10% on the total payment amount from two million (2,000,000) VND/occurrence upwards, at the end of the year Ms. has a duty to directly file a tax settlement with the tax authority according to the progressive tax scale.

Compiled by: Nguyen Viet Anh – Consultant

This newsletter is for reference only, not specific advice for any case.