Vietnam Annual Leave: 2026 Statutory Guide & Compliance

Apr 07, 2026

HR & Payroll

Vietnam Annual Leave: The Complete Statutory Guide for 2026

Maintaining a clear understanding of Vietnam Annual Leave regulations is not only a matter of employee well-being but a critical legal requirement for any business operating in the territory.

Based on the latest statutory frameworks, here is the definitive guide to managing Vietnam Annual Leave.

Table of Contents

Statutory Annual Leave Entitlements

Employees who have worked for a full 12 months for an employer are entitled to annual leave and enjoy full salary as follows:

12 working days: For an employee who works under normal conditions
14 working days: For minor employees, employees with disabilities, employees in heavy, hazardous, or dangerous occupations.
16 working days: For workers in particularly heavy, hazardous, or dangerous occupations.

For New Hires: If an employee has worked for less than 12 months, their leave is calculated proportionally to their total months of service.

Pro-Rated Formula for New Hires or Partial Years:

\text{Annual Leave} = \frac{(\text{Standard Leave} + \text{Seniority Days})}{12} \times \text{Actual Months Worked}

Note: A month is counted as “01 full month” for accrual if the employee completes at least 50% of the standard working days (including paid leave) in that month.

The Seniority Bonus

Vietnam law rewards long-term tenure. For every 05 full years of service at the same organization, the employee’s annual leave entitlement increases by 01 additional day.

Advanced Rights: Travel Time & Salary Advances

Travel Time: If an employee travels by road, rail, or sea and the round-trip exceeds 2 days, the 3rd day onward is added as extra travel time (granted once per year).
Salary Advances: Employees can request a salary advance at least equal to the wages of the leave days taken if the leave starts before the regular payday.

Employer’s responsibility to regulate the annual leave schedule

The employer is responsible to stipulate the annual leave schedule after consulting with the employees and must notify them in advance.

Therefore, employers, especially those in the manufacturing industry should pay attention to prescribing an appropriate annual leave schedule and notify the employee in advance in case employees are requested to arrange their annual leave in line with business and production activities of the enterprise.

What Counts as Working Time for Accrual?

Under Vietnamese law, certain periods of absence are legally treated as active service for leave calculation:

Probation periods (if the employee continues employment afterward).
Apprenticeship or training periods followed by a labor contract.
Paid personal leave (marriage, bereavement).
Maternity/Paternity leave under social insurance regulations.
Sick leave (accumulated up to 2 months/year).
Unpaid leave approved by the employer (accumulated up to 1 month/year).
Work suspension periods not caused by the employee’s fault.

Important FAQ: Resets and Payouts

Is Annual Leave Reset Every Year?

Technically, yes. Leave is intended to be used within the calendar year. However:

Aggregation: Employees may negotiate to combine/bank leave for up to 03 years at a time.
Policy Power: Employers have the right to set the leave schedule. If your Internal Labor Regulations state that leave must be used by a certain date (e.g., March 31st of the following year), the remaining balance can be legally reset if not used.

Is it Mandatory to Pay for Unused Leave?

The rules for payouts are very specific:

Active Employees: Employers are not required to pay cash for unused leave if the employee is still working. The law prioritizes physical rest.
Termination or Resignation: Payment is mandatory. If an employee leaves (for any reason) with an unused balance, the employer must pay salary for those days, calculated based on the average salary of the 06 months preceding the departure.

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