Guide · Tết bonus
The 13th-month salary in Vietnam.
Whether the Tết bonus is required, how employers usually calculate it, and how it is taxed.
Updated 22 October 2026 · General information, not legal or tax advice
Short answer
Is the 13th-month salary mandatory in Vietnam?
No. The 13th-month salary, usually paid as a Tết bonus before Lunar New Year, is customary in Vietnam but not required by law. Article 104 of the Labour Code 2019 leaves bonuses to the employer's own policy, decided on business results and the employee's performance. It becomes binding once it is promised in the labour contract, a collective agreement or a published bonus policy. Most employers pay one month's salary for a full year of service, pro-rated for people who joined part-way through the year. When paid, it is subject to personal income tax in the month it is paid, but it sits outside the social-insurance contribution base. For budgeting, a full 13th month adds about 8.3% to annual base pay, with no insurance on top.
How it is calculated
Common ways to calculate it.
| Service in the year | Common rule | Bonus |
|---|---|---|
| Full 12 months | One month's salary | ₫30,000,000 |
| 6 months | 6/12, pro-rated | ₫15,000,000 |
| 3 months | 3/12, pro-rated | ₫7,500,000 |
Some employers link part of the bonus to performance or require the employee to still be employed on the payment date. Whatever rule you choose, write it down: once promised, it is enforceable.
Tax and insurance
How the Tết bonus is taxed.
- Income tax: the bonus is employment income, added to the month it is paid; the higher monthly figure can push withholding into a higher band, which the annual finalisation evens out.
- Social insurance: not included in the contribution base, so no employer or employee contributions are due on it.
- Timing: usually paid with the last payroll before Tết; in 2026 Tết fell on 16–20 February.
We write the rule you choose into the contract, calculate it and pay it on the pre-Tết payroll date you set. See personal income tax 2026 and public holidays 2026.
Sources: Labour Code 2019, Article 104; Law on Social Insurance 2024 (41/2024/QH15).
Questions
13th-month salary: frequently asked questions
Is the Tết bonus required by law in Vietnam?
No. Article 104 of the Labour Code leaves bonuses to the employer's policy. It becomes binding once promised in the contract, a collective agreement or a bonus policy.
Is the 13th-month salary taxable?
Yes. It is employment income subject to personal income tax in the month it is paid.
Is social insurance paid on the 13th-month salary?
No. It sits outside the social-insurance contribution base.
How much does a 13th month add to cost?
About 8.3% of annual base pay for a full year's service, with no insurance on top.
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