What are the Annual Leave Entitlements in Vietnam?

Annual leave is a key benefit for employees in Vietnam, allowing time for rest and recuperation from work. Understanding the laws governing annual leave entitlements ensures compliance for both employers and employees.


Annual Leave Entitlement

In Vietnam, employees are entitled to a minimum of 12 days of paid annual leave per year. For every five years of continuous service, employees receive an additional day of leave. This means that starting from the sixth year of employment, employees are entitled to a minimum of 13 days of annual leave.


Accrual of Annual Leave

  • First Year of Employment: During the first year, annual leave is typically pro-rated. This means the number of leave days is calculated based on the employee’s start date and the number of months worked.
  • Second Year Onwards: From the second year of employment, employees are entitled to the full allotment of annual leave days.


Carrying Over Accrued Leave

Employees have the right to accumulate and carry over any unused annual leave into the next year. However, this practice is subject to the employer's approval. By law, it is possible for employees to carry over accrued leave for up to three years.


Company Policies on Unused Leave

Vietnamese labor law does not mandate employers to extend the right to unused leave beyond the stipulated period or to provide a cash payout for any leave not taken, unless otherwise specified in the employment agreement. This grants companies the flexibility to set their own policies regarding how unused leave is managed. Employees are encouraged to consult their employment contracts and company handbooks for specific details on these policies.

By understanding the regulations and their company’s specific practices, both employees and employers can ensure that annual leave is handled in compliance with Vietnamese labor laws.

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