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.