Vietnam Employment Guide

Understanding Vietnam's Leave Policy Framework

For international companies expanding into Vietnam, navigating the local leave regulations is crucial for compliance and employee satisfaction. Vietnam offers a comprehensive leave system that balances legal requirements with cultural traditions.

National Public Holidays

Vietnamese employees are entitled to 10-11 national public holidays annually. When these holidays fall on weekends, employees typically receive compensatory time off on the following Monday. The government may also announce additional bridge days when holidays occur on Tuesdays or Thursdays to create extended weekends.

Employees required to work on public holidays are eligible for premium compensation at 300% of their standard daily wage.

Annual Leave Entitlements

Both full-time and part-time employees accrue paid annual leave from their first day of employment. The standard entitlement is 12 days per year, accumulating at a rate of one day per month. The leave year runs from January 1st to December 31st.

For employees with extended leave entitlements (common in senior positions), the accrual rate adjusts proportionally based on their total annual leave allocation divided by 12 months.

Family Leave Provisions

Vietnam offers generous family leave benefits. Eligible employees receive six months of fully paid maternity leave, while fathers can take five days of paid paternity leave. The paternity leave can be used flexibly as five separate single-day absences.

Leave Compensation Calculations

Sick Leave Compensation

Sick pay calculations use the employee's social insurance contribution base from the previous month. For short-term illness (up to 180 days), employees receive 75% of their base salary. Long-term illness payments vary based on social insurance contribution history:

• 30+ years: 65% of base salary
• 15-30 years: 55% of base salary
• Under 15 years: 45% of base salary

All sick leave payments must meet minimum wage thresholds set by regional authorities.

Maternity Leave Compensation

Eligible employees receive 100% of their social insurance base salary during maternity leave. Single births qualify for six months of leave, with additional time for multiple births. The social insurance fund covers these payments for compliant employers.

Paternity Leave Compensation

Fathers receive paid leave based on delivery circumstances: 5 days for normal single births, 7 days for C-sections, and additional time for multiple births. Compensation comes from social insurance for compliant employers or directly from employers at 70% of normal wages for non-compliant cases.

Practical Implementation Considerations

Companies like SailGlobal have successfully implemented these policies by integrating local compliance requirements with international HR standards. Regular audits of social insurance base calculations and clear communication about leave entitlements help prevent compliance issues.

Understanding these regulations helps multinational companies create competitive compensation packages while maintaining legal compliance in Vietnam's dynamic labor market.