Annual Leave Calculation in Vietnam for Partial-Year Employees

Sep 15, 2026

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Annual Leave Calculation in Vietnam for Employees Working Less Than 12 Months

Employees who work for an employer for less than 12 months are still entitled to annual leave in Vietnam. However, their leave entitlement is not calculated as a full-year entitlement. Instead, it is determined in proportion to the actual number of months worked.

This rule applies regardless of why the employee worked for less than 12 months, including new hires, employees who resign during the year, or employees whose employment contract ends before completing a full year.

Table of Contents

How to calculate annual leave for partial-year employees

Under Clause 2, Article 113 of the 2019 Labor Code of Vietnam, an employee who works for an employer for less than 12 months is entitled to annual leave in proportion to the number of months actually worked.

Clause 1, Article 66 of Decree No. 145/2020/ND-CP provides the calculation method as follows:

Annual leave entitlement = (Standard annual leave entitlement + Additional leave based on seniority, if any) ÷ 12 × Actual working months in the year

In this calculation:

Standard annual leave entitlement means the number of annual leave days the employee would be entitled to if working for a full 12 months;
Additional leave based on seniority applies if the employee meets the relevant service requirement;
Actual working months in the year refers to the period during which the employee actually works for the employer in that year.

Standard annual leave entitlement

Under the 2019 Labor Code, an employee who works for a full 12 months for one employer is entitled to annual leave as follows:

12 working days for employees working under normal conditions;
14 working days for minor employees, employees with disabilities, and employees doing heavy, hazardous, or dangerous work;
16 working days for employees doing extremely heavy, hazardous, or dangerous work.

These figures are used as the base entitlement when calculating annual leave on a pro-rated basis for employees who work less than 12 months.

Additional annual leave based on seniority

Seniority must be considered separately when calculating annual leave.

Under Article 114 of the 2019 Labor Code, for every five years of service with the same employer, an employee is entitled to one additional day of annual leave.

For example, if an employee works under normal conditions, the standard entitlement is 12 working days per year. If the employee has completed five years of service with the same employer, the annual leave base becomes 13 working days.

If that employee works only part of the year, the pro-rated annual leave should be calculated based on 13 days, not 12 days.

In other words, seniority-based additional leave is added to the standard annual leave entitlement before applying the pro-rata calculation based on actual working months.

Does the reason for working less than 12 months matter?

No. The pro-rata annual leave rule applies to employees who work for less than 12 months, regardless of the reason.

Common situations include:

Employees who start employment during the year;
Employees who resign during the year;
Employees whose employment contracts are terminated before completing 12 months;
Other cases where the employee’s actual working period in the year is less than 12 months.

As long as the employee has actual working time with the employer, annual leave should be calculated proportionally.

Practical notes for employers

When calculating annual leave for employees who work less than 12 months, employers should:

Confirm the employee’s actual working months in the year;
Identify the correct standard leave entitlement: 12, 14, or 16 days;
Review the employee’s length of service with the company;
Add seniority-based leave if the employee meets the requirement;
Track accrued leave, used leave, and remaining leave in the HR system;
Make payment for unused annual leave where required by law.

Legal basis

Clause 2, Article 113 of the 2019 Labor Code of Vietnam;
Article 114 of the 2019 Labor Code of Vietnam;
Clause 1, Article 66 of Decree No. 145/2020/ND-CP.

Conclusion

Employees who work for less than 12 months are still entitled to annual leave in Vietnam. Their entitlement is calculated in proportion to the actual number of months worked.

Employers should first identify the correct standard annual leave entitlement, add any seniority-based additional leave if applicable, and then apply the pro-rata calculation based on the employee’s actual working months in the year.

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