Tet bonus - incomplete joy
In the middle of December (Lunar calendar), Ms. My Hoa (28 years old), an office worker in Hanoi, was excited to receive a Tet bonus of 30 million VND. She expected this amount of money to help her family cover year-end expenses, somewhat reducing financial pressure. But that joy quickly faded when she received her detailed salary statement: After deducting personal income tax (PIT), she only received 26 million VND.
“More than 4 million VND deducted is a large amount. With my income, Tet is already very expensive. I planned to use this money to buy Tet items for my family, but now I have to reconsider" - Ms. Hoa shared.
Ms. Hoa's family just bought an apartment at the end of 2024. The interest and principal to be paid to the bank each month is 15 million VND, accounting for most of the couple's income.
“This Tet, my husband said he wouldn’t dare to shop much because he had to pay off the house. The Tet bonus seemed like a lifesaver, but now that it’s all spent, there’s nothing left to save.”
Joy or burden?
Preliminary calculations show that the 26 million VND that Ms. Hoa actually received is only enough for a “simple” Tet. The cost of gifts for both sets of parents is about 10 million VND. Buying new clothes for the children and a peach tree for Tet will cost another 5 million VND. The family plans to use the remaining amount to buy food and a few necessary items.
However, Ms. Hoa said that all expenses must be cautious because the cost of living is increasing. Some essential goods have increased in price compared to last year. Ms. Hoa gave an example: Pork prices fluctuate from 150,000 to 180,000 VND/kg; vegetables and fruits have also increased; bus tickets to go home during Tet have also increased by 15-20% compared to normal days.
"Holding 26 million feels like water flowing. After spending for Tet, my monthly salary is just enough to pay off the house and cover the minimum expenses, there is nothing left to save" - Ms. Hoa confided.
Inadequacies in tax policy
Under current regulations, Tet bonuses are included in taxable income and subject to a progressive tax schedule. This means that workers with slightly higher incomes are subject to higher tax rates, ranging from 10% to 35%.
Although personal income tax is a legal obligation, many people believe that the current calculation method is unreasonable. The progressive tax threshold of at least VND11 million/month and the family deduction of VND4.4 million/dependent are no longer suitable to reality.
“The cost of living in big cities has doubled or tripled since the time this regulation was issued. Middle-income workers are still taxed as high-income earners,” Ms. Hoa commented.
Dr. Nguyen Ngoc Tu - a tax expert - said that the current personal income tax policy still has many shortcomings. He emphasized: "The family deduction threshold and the progressive tax schedule are outdated and no longer accurately reflect the current living standards of workers."
Associate Professor Dr. Pham The Anh - National Economics University - also believes that increasing the family deduction level, shortening the adjustment time, and redesigning the tax schedule to be suitable will not necessarily affect the state budget revenue. When workers receive tax reductions, they will increase labor productivity, increase investment in human capital, and comply with tax laws, which may help increase the state budget.
