What type of Bonuses exist in Vietnam? Are the mandatory?

In Vietnam, the practice of providing additional annual compensation, such as the 13th month salary and various bonuses, is a common and highly appreciated aspect of employee remuneration. However, it's important to distinguish between what is mandatory by law and what is customary but not legally required.


13th Month Salary

  • Mandatory Status: Not legally required
  • Common Practice: The 13th month salary is a widely accepted and appreciated practice in Vietnam. While not mandated by law, many companies offer this additional salary as a bonus at the end of the year, typically in December. It serves as a form of year-end reward and financial boost for employees.


Tet Bonus

  • Mandatory Status: Not legally required
  • Amount: Approximately 10% of the gross salary
  • Timing: Paid in January
  • Purpose: The Tet Bonus is provided to celebrate the Lunar New Year (Tet), the most significant holiday in Vietnam. This bonus is a customary practice and is often given as a token of appreciation for employees' work over the past year. It is not a legal requirement but is highly valued and expected by employees.


Labor Day Bonus

  • Mandatory Status: Not legally required
  • Amount: Approximately 5% of the gross salary
  • Timing: Paid in May
  • Purpose: The Labor Day Bonus is given in recognition of International Workers' Day. This bonus is a customary practice to honor the contributions of employees. It is not mandated by law but is commonly offered by employers to show appreciation.


National Day Bonus

  • Mandatory Status: Not legally required
  • Amount: Approximately 5% of the gross salary
  • Timing: Paid in September
  • Purpose: The National Day Bonus celebrates Vietnam’s National Day. Like the other bonuses, it is a customary practice rather than a legal obligation, aimed at expressing appreciation to employees.

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