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Annual Leave in Vietnam 2026: Days & Unused Payout
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By Nguyen Quoc Trung — Deputy General Director · Updated
An employee who has worked a full 12 months for one enterprise is entitled to 12, 14 or 16 working days of annual leave on full pay, depending on the nature of the work (Article 113 of the Labour Code 2019, No. 45/2019/QH14, in force from 1 January 2021). When an employee resigns or loses their job with leave still untaken, the enterprise must pay wages for those days: the wage used as the basis is the contractual salary of the month immediately preceding the month of resignation or job loss (Decree 145/2020/ND-CP, Article 67(3)), which is then converted into a daily leave rate by dividing it by the number of ordinary working days in the month under the enterprise's calendar (the law fixes no set denominator) and multiplying by the number of leave days remaining.
This article is written for directors, HR managers and accountants who need to finalise annual leave and calculate leave pay, updated to the rules in force as of September 2026, including the new penalties of Decree 283/2026/ND-CP that apply from 10 September 2026.
Annual leave in Vietnam at a glance (2026):
- 12 working days of paid leave a year after 12 months with one employer; 14 or 16 days for heavy, hazardous or especially hazardous jobs (Article 113, Labour Code 2019).
- 1 extra day for every 5 years with the same employer: 13 days at 5 years, 14 at 10 years, 15 at 15 years (Article 114).
- Under 12 months: entitlement ÷ 12 × months worked, so 7 months in a normal job gives 7 days (Article 66, Decree 145/2020/ND-CP).
- Unused leave is paid only on termination, at the previous month's contract salary, within 14 working days (Articles 48 and 113).
- Not paying it costs a company a fine of VND 10–20 million for 1–10 affected employees, plus the unpaid amount and interest (Article 23, Decree 283/2026/ND-CP).
Updated 7 November 2026: added worked examples for four situations, the payment deadline after termination, a table of common mistakes with their cost, an FAQ and two charts.
How many annual leave days do employees get in Vietnam (12, 14 or 16)?
An employee who has worked a full 12 months for one employer is entitled to annual leave on full pay of 12 working days for work under normal conditions, 14 working days for minors, people with disabilities and those in heavy, hazardous or dangerous jobs, and 16 working days for especially heavy, hazardous or dangerous jobs (Article 113(1) of the Labour Code 2019, No. 45/2019/QH14). These are working days, not calendar days, so weekly rest days and public holidays are not counted towards the leave entitlement.
| Type of work | Leave per year (after a full 12 months) |
|---|---|
| Normal conditions | 12 working days |
| Minors, people with disabilities, heavy/hazardous/dangerous jobs | 14 working days |
| Especially heavy/hazardous/dangerous jobs | 16 working days |
Annual leave is different from public holidays, Tet and weekly rest days. Public holidays are the days the whole country rests on full pay under Article 112 — see the Vietnam public holidays 2026–2027; and when an employee works on a weekly rest day or a public holiday, that pay is calculated as overtime — see how overtime, night and holiday pay is calculated in 2026.
How does annual leave increase with length of service?
For every full 5 years of work for one employer, the number of annual leave days increases by a corresponding 1 day (Article 114 of the Labour Code 2019). Length of service is counted by the time attached to the same enterprise; it does not carry over from a previous workplace.
| Length of service at one enterprise | Annual leave (normal work) |
|---|---|
| Under 5 years | 12 days |
| A full 5 years | 13 days |
| A full 10 years | 14 days |
| A full 15 years | 15 days |
This is an illustration for work under normal conditions; the 14-day and 16-day baseline groups also gain days the same way, one day for every 5 years.
How is annual leave calculated for less than 12 months of service?
An employee who has worked less than 12 months for one employer earns annual leave in proportion to the number of months worked (Article 113(2) of the Labour Code 2019). The method is set out in Article 66(1) of Decree 145/2020/ND-CP: take the annual leave days plus any extra days for length of service (if any), divide by 12, then multiply by the number of months actually worked in the year.
For a partial working month, if the employee's total working days and paid leave days make up 50% or more of the ordinary working days in that month, the month counts as 1 month for leave purposes (Article 66(2)). The Labour Code 2019 and Decree 145/2020/ND-CP set no rounding rule for a fractional leave day, so any fraction is settled between the enterprise and the employee in the internal rules or the leave schedule.
Article 65 of Decree 145/2020/ND-CP also lists the periods treated as working time for leave purposes, even when the employee is not present at the workplace:
- Probation time, if the employee then continues to work for the enterprise
- Paid personal leave under Article 115(1)
- Sick leave adding up to no more than 2 months in a year
- Leave for occupational accidents or diseases adding up to no more than 6 months
- Maternity leave taken under social insurance law
How is annual leave calculated in Vietnam? Four worked examples for 2026
Annual leave in Vietnam is calculated as the yearly entitlement, including any seniority days, divided by 12 and multiplied by the months that count as working time (Article 66, Decree 145/2020/ND-CP). The table applies this formula to four common situations in 2026.
| Situation in 2026 | Months counted | Yearly entitlement | Annual leave |
|---|---|---|---|
| New hire from 1 March, normal job | 10 (March–December) | 12 days | 12 ÷ 12 × 10 = 10 days |
| Probation from 1 May, then signs a contract | 8 (probation counts, Article 65) | 12 days | 12 ÷ 12 × 8 = 8 days |
| Full year with 3 full months of sick leave | 11 (only 2 months of sick leave count) | 12 days | 12 ÷ 12 × 11 = 11 days |
| Hired on 1 January, resigns on 31 July | 7 (January–July) | 12 days | 12 ÷ 12 × 7 = 7 days |
In the last example the employee has already taken 3 days, so 4 days remain unused. The June contract salary is VND 15,600,000 and the company's standard month is 26 working days, so one day is worth VND 600,000. The payout is 4 × VND 600,000 = VND 2,400,000, paid without personal income tax from the 2026 tax year. Where the formula gives part-days, the law sets no rounding rule, so the work rules should say how fractions are treated.
How is unused annual leave paid out on termination in Vietnam?
Only on resignation or job loss with leave unused does the employee become entitled to wages for the untaken leave days (Article 113(3) of the Labour Code 2019). The wage used as the basis is the contractual salary of the month immediately preceding the month of resignation or job loss (Decree 145/2020/ND-CP, Article 67(3)); from that figure, the daily leave rate is derived by dividing by the number of ordinary working days in the month under the enterprise's calendar, then multiplying by the number of untaken leave days.
The daily leave rate follows the enterprise's actual working calendar, because the law fixes only the numerator — the preceding month's salary — without hard-setting a denominator of 24 or 26 standard working days. Take an example with assumed figures: an employee has 5 leave days left, and the preceding month's contractual salary is VND 13,000,000.
| Standard working days on the enterprise's calendar | Daily leave rate | Pay for 5 untaken leave days |
|---|---|---|
| 26 days | VND 500,000 | VND 2,500,000 |
| 24 days | about VND 541,667 | about VND 2,708,000 |
The two results differ only because the denominator differs, so the enterprise should state clearly how it determines the month's standard working days in its internal rules or employment contract, to avoid disputes when settling final pay.
It is also worth noting a common but outdated understanding: since 1 January 2021, the Labour Code 2019 allows payment for untaken leave only on resignation or job loss, having dropped the "for other reasons" case of the Labour Code 2012. So the claim that "unused leave is always paid out" does not match the law in force.
On tax, Article 4(8) of the Personal Income Tax Law No. 109/2025/QH15 classifies "wages and remuneration paid for days of untaken leave under the law" as income exempt from tax; for resident individuals, this applies from the 2026 tax period (Article 29(2)). Article 26(2) of Decree 253/2026/ND-CP makes clear that this exemption applies to pay for days of untaken leave under Article 113(3) of the Labour Code; the portion paid above the rate set by law is counted as taxable income (Article 26(3)). So pay for untaken leave made correctly under Article 113 and Article 67 above is not subject to personal income tax withholding.
See also: Severance Pay in Vietnam (2026): Eligibility, Formula and Examples
Which month's salary is the basis for paying unused leave?
The wage used to pay for untaken leave days on resignation or job loss is the contractual salary of the month immediately preceding the month in which the employee resigns or loses their job (Decree 145/2020/ND-CP, Article 67(3)). It is not a 6-month average, and it is not the salary of the final month.
This must be distinguished from leave days an employee actually takes while still working: that pay uses the contractual salary at the time of the leave (Article 67(2)). Only leave left untaken at the point of termination uses the preceding month's salary (Article 67(3)). Confusing these two reference points is why many spreadsheets produce figures that differ.
How long does an employer in Vietnam have to pay unused annual leave after termination?
When an employee leaves, an employer in Vietnam must pay unused annual leave, the final salary and all other amounts owed within 14 working days after the employment contract ends (Article 48(1), Labour Code 2019). The deadline can be extended to no more than 30 days, but only in the four cases listed below.
| Situation | Payment deadline |
|---|---|
| Normal termination or resignation | Within 14 working days of the contract ending |
| Employer (not an individual) ceases operation | May be extended, maximum 30 days |
| Change of structure or technology, or economic reasons | May be extended, maximum 30 days |
| Division, merger, sale, lease or conversion of the business, or transfer of its assets | May be extended, maximum 30 days |
| Natural disaster, fire, hostilities or a dangerous epidemic | May be extended, maximum 30 days |
The same 14-day window covers the final salary and any severance allowance, so payroll should close the leave balance in the same run.
Can unused annual leave be carried over to the next year?
The Labour Code 2019 sets no "3-day carry-over cap" for annual leave. The only rule on combining leave is that an employee may agree with the employer to take annual leave in several instalments or to combine it at most once every 3 years (Article 113(4) of the Labour Code 2019).
"Combining leave at most once every 3 years" is about how leave is scheduled — pooling up to three years of leave into one block by agreement — not a limit of only 3 days carried into the next year. The employer is responsible for setting the annual leave schedule after consulting employees. The law does not provide that leave is automatically lost if not fully taken within the year; carrying leave into the next year is decided by agreement between the two parties and by the enterprise's internal rules and leave schedule.
What is the fine for not paying out unused leave on termination (2026)?
Failing to pay, or underpaying, wages for untaken leave days when an employee resigns or loses their job is a wage violation under Article 23(2) of Decree 283/2026/ND-CP (in force from 10 September 2026), fined according to the number of affected employees, from VND 5,000,000 to VND 50,000,000 for an individual and double that for an organisation under Article 7(1).
| Number of affected employees | Fine for an individual | Fine for an organisation (double) |
|---|---|---|
| 1–10 employees | VND 5–10 million | VND 10–20 million |
| 11–50 employees | VND 10–20 million | VND 20–40 million |
| 51–100 employees | VND 20–30 million | VND 40–60 million |
| 101–300 employees | VND 30–40 million | VND 60–80 million |
| 301 or more employees | VND 40–50 million | VND 80–100 million |
So the "VND 100 million" figure is correct only when an organisation offends against 301 or more employees; it is not a flat penalty. Beyond the fine, Article 23(5)(a) requires the enterprise to pay the full wages plus interest calculated at the highest non-term deposit rate published by state-owned commercial banks at the time of the penalty.
A separate act — breaching the rules on annual leave, such as not letting employees take their leave — is fined under Article 24(2) of Decree 283/2026/ND-CP: from VND 10,000,000 to VND 20,000,000 for an individual and VND 20,000,000 to VND 40,000,000 for an organisation, a fixed amount not scaled by headcount. The full picture of fines and back-collection under this decree is in social insurance fines 2026 under Decree 283.
What are the most common annual leave mistakes in Vietnam and what do they cost?
The costliest annual leave mistakes in Vietnam come from using the wrong salary month, counting calendar days instead of working days and withholding tax on the payout. Each mistake is shown below with its cost and a quick check.
| Mistake | Cost | How to check |
|---|---|---|
| Paying unused leave on a 6-month average or the final month's salary | Underpayment: a company fine of VND 10–20 million for 1–10 employees, plus the shortfall and interest (Article 23(2) and (5)(a), Decree 283/2026/ND-CP) | Use the contract salary of the month before termination (Article 67(3), Decree 145/2020/ND-CP) |
| Counting public holidays and weekly rest days as leave days | Employees lose leave days; may be treated as breaching annual leave rules: VND 20–40 million for a company (Article 24(2), Decree 283/2026/ND-CP) | Leave is counted in working days only |
| Letting unused leave lapse at year end without an agreement | Disputes; any balance still owed at termination must be paid, or the row 1 fine applies | Write carry-over rules in the work rules; the law has no automatic forfeiture (Article 113(4)) |
| Withholding personal income tax on the unused leave payout | The employee is short-paid and the tax must be refunded and the return corrected | Exempt from the 2026 tax year (Article 4(8), Law 109/2025/QH15; Article 26(2), Decree 253/2026/ND-CP) |
| Not stating the standard working days in the work rules | 5 unused days are worth VND 2,500,000 on 26 days but about VND 2,708,000 on 24 days: a VND 208,000 dispute per employee | Fix the divisor in the work rules or contract |
| Not letting employees take annual leave | A company fine of VND 20–40 million (Article 24(2), Decree 283/2026/ND-CP) | Publish the yearly leave schedule after consulting employees (Article 113(4)) |
How does Nhan Kiet finalise leave balances and pay out leave for clients?
The hard part of annual leave is not the formula but tracking the leave balance throughout employment and then settling it correctly when the employee leaves. Nhan Kiet keeps each person's leave record on its system; when an employee resigns, it finalises the leave balance and pays out untaken leave under Article 113(3) of the Labour Code 2019 and Article 67(3) of Decree 145/2020/ND-CP, along with closing the social insurance book and completing the exit file.
Nhan Kiet has operated since 2009 and is now in its 17th year, under labour sub-leasing Licence No. 15/2019/SHCM (first issued as No. 029/LDTBXH — 2015), serving more than 40,000 workers and more than 500 clients across 34 provinces and cities. A company that wants to move leave tracking, leave-pay calculation and employer responsibilities to a single point of contact can look at labour compliance services; if only payroll and the exit paperwork for finalising leave are needed, use payroll outsourcing services.
Tracking and closing annual leave correctly in Vietnam takes five steps; the table shows what Nhan Kiet does at each step and the legal rule it checks.
| Step | What Nhan Kiet does | Rule checked |
|---|---|---|
| Every month | Updates each employee's leave ledger with days taken and the balance | Article 113, Labour Code 2019 |
| Under 12 months | Prorates the entitlement by months counted as working time | Articles 65–66, Decree 145/2020/ND-CP |
| On termination | Freezes the balance and values it at the previous month's contract salary | Article 113(3); Article 67(3), Decree 145/2020/ND-CP |
| Within 14 working days | Pays the unused leave with the final salary, without withholding personal income tax | Article 48(1); Article 4(8), Law 109/2025/QH15 |
| Closing the file | Closes the social insurance book and completes the leaving documents | Article 48(3), Labour Code 2019 |
To discuss handing over leave tracking and termination payroll, send the number of employees, their workplaces and start dates through the contact section at the end of this article.
Annual leave in Vietnam: frequently asked questions
Do seasonal or short fixed-term workers in Vietnam get annual leave?
Yes. Any employee in Vietnam who has worked less than 12 months gets annual leave in proportion to the months worked (Article 113(2), Labour Code 2019), so a 3-month contract in a normal job earns 3 days.
Is annual leave paid in Vietnam?
Yes. Annual leave in Vietnam is paid at full contract salary, using the salary in force when the leave is taken (Article 113(1), Labour Code 2019; Article 67(2), Decree 145/2020/ND-CP).
How many days of annual leave can be taken in one month in Vietnam?
The Labour Code sets no monthly limit. In a normal job leave builds up at an average of 1 day per month, and the employer sets the leave schedule after consulting employees (Article 113(4)).
Can an employer in Vietnam decide when employees take annual leave?
The employer sets the annual leave schedule after consulting employees and must notify them in advance (Article 113(4), Labour Code 2019). Employees may agree to split leave into several periods or combine up to 3 years of leave in one period.
Can an employee in Vietnam get salary in advance before annual leave?
Yes. If annual leave starts before payday, the employee in Vietnam may receive a salary advance under Article 101(3) (Article 113(5), Labour Code 2019).
Is travel time added to annual leave in Vietnam?
Yes. If the round trip by road, rail or waterway takes more than 2 days, travel time from the 3rd day is added to annual leave, once a year (Article 113(6), Labour Code 2019).
Does probation count towards annual leave in Vietnam?
Yes, if the employee continues working for the same employer after probation (Article 65, Decree 145/2020/ND-CP).
Is the unused annual leave payout taxed in Vietnam?
No, from the 2026 tax year it is exempt from personal income tax when paid under Article 113(3) of the Labour Code; any amount above the legal level is taxable (Article 4(8), Law 109/2025/QH15; Article 26(2)–(3), Decree 253/2026/ND-CP).
Do foreign employees in Vietnam get the same annual leave?
Yes. Foreign employees working in Vietnam are covered by the Labour Code (Article 2(3), Labour Code 2019), so the same 12, 14 or 16-day rules and seniority days apply.
Sources
- Labour Code 2019 (No. 45/2019/QH14) — Article 113 (annual leave), Article 114 (length of service); in force from 1 January 2021; Article 2(3) (foreign employees), Article 48 (payment within 14 working days), Article 101(3) (salary advance), Article 113(4)–(6) (leave schedule, advance, travel time)
- Decree 145/2020/ND-CP — Articles 65, 66, 67 (time counted for leave, proration, wage for untaken days); in force from 1 February 2021
- Personal Income Tax Law No. 109/2025/QH15 — Article 4(8) (tax exemption for wages paid for days of untaken leave), Article 29 (application from the 2026 tax period); in force from 1 July 2026
- Decree 253/2026/ND-CP — Article 26(2) and (3) (exemption of pay for days of untaken leave; the portion above the statutory rate is taxable); in force from 1 July 2026
- Decree 283/2026/ND-CP — Article 23 (wages), Article 24 (working and rest time), Article 7 (organisations fined double); in force from 10 September 2026
This article summarises the rules for orientation; specific situations need individual advice.
Contact us
Companies that need to finalise leave balances, calculate pay for untaken leave when an employee leaves, or standardise lawful exit paperwork can contact:
- Nguyen Quoc Trung — Deputy General Director
- Phone: 0908 636 108 — trungnguyen@nhankiet.vn
- Switchboard: 028 3505 4224
- Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City
Call +84 908 636 108 or see labour compliance, payroll outsourcing, EOR Vietnam.