13th Month Salary and Tet Bonus in Vietnam: What Employers Must Pay
A 13th month salary is not required by Vietnamese law. Under Article 104 of the Labour Code 2019, bonuses, including a Tet bonus, are decided by the employer based on business results and each employee's performance. However, once a 13th month salary or Tet bonus is promised in an employment contract, collective agreement or bonus policy, the employer must pay it. Tet bonuses are taxable employment income, and they are usually paid in the weeks before Lunar New Year, which falls on 6 February 2027.
This guide explains the legal rules, the difference between a 13th month salary and a Tet bonus, tax and insurance treatment, and what Vietnamese employers paid for Tet 2026.
Key Takeaways
Vietnamese law does not require a 13th month salary or Tet bonus. Article 104 of the Labour Code leaves bonuses to the employer's bonus policy.
A 13th month salary or Tet bonus becomes binding when it is written into the employment contract, a collective agreement or the company's bonus policy.
Tet bonuses are taxable employment income and personal income tax (PIT) is withheld when the bonus is paid.
For Tet 2026, the average bonus was about VND 8.69 million per employee, and about VND 9.21 million at foreign-invested companies (Ministry of Home Affairs).
Is a 13th Month Salary Mandatory in Vietnam?
No. The Labour Code 2019 does not mention a 13th month salary at all. Article 104 defines a bonus as money, assets or other forms of reward that the employer gives employees based on business results and how well each employee completes their work.
Article 104 also sets two process rules:
The employer decides the bonus policy. The company sets the bonus rules, including who qualifies and how much they receive.
The policy must be made public. The bonus policy must be published at the workplace after consulting the employee representative organisation, where the company has one, such as a grassroots trade union.
In practice, the Ministry of Home Affairs repeats this position every year. In its 2026 instruction on Tet 2027 (Official Letter No. 12421/BNV-CTL&BHXH), it asks companies to build their Tet bonus plans on 2026 business results under Article 104 and to inform employees of the plan.
When a 13th Month Salary Becomes Binding
A bonus that is not required by law can still become a legal obligation. The employer must pay a 13th month salary or Tet bonus when it is promised in any of these documents:
The employment contract: a clause such as "13th month salary equal to one month's basic salary" is a contractual term, not a discretionary bonus.
A collective labour agreement: terms agreed with the trade union bind the company for the agreement's term.
The internal bonus policy: if the published policy promises a fixed Tet bonus, employees who meet its conditions can claim it.
Offer letters and written announcements: official emails or notices that promise a specific bonus can be used as evidence in a dispute.
The Ministry of Home Affairs asks local authorities to help companies and trade unions review employment contracts, collective agreements and pay and bonus policies before Tet. The aim is to make sure promised pay is paid and to prevent disputes around the holiday.
If business results are weak, a company can reduce or skip a discretionary Tet bonus. It cannot cut a 13th month salary that is promised as a fixed amount in the contract without the employee's agreement.
13th Month Salary vs Tet Bonus: What Is the Difference?
The two terms are often used interchangeably in Vietnam, but they work differently:
13th month salary: usually a fixed amount equal to one month's salary, often prorated for employees who joined during the year. Many foreign-invested companies write it into the employment contract.
Tet bonus: usually linked to company results and individual performance, so the amount can change every year. It is normally set out in the bonus policy rather than as a fixed contract amount.
Other year-end payments: some companies also give Tet gifts, vouchers or a separate performance bonus. Each should be described clearly in the policy so its tax and insurance treatment is clear.
Whichever model you use, write down who qualifies, how the amount is calculated, how new joiners and leavers are treated, and when it is paid.
How Much Do Vietnamese Employers Pay?
Official figures for Tet 2026 give a useful benchmark. The Ministry of Home Affairs reported in February 2026 that:
All enterprises: average Tet bonus of about VND 8.69 million per employee, up 13% year on year.
State-owned enterprises: about VND 9.44 million, up 23%.
Foreign-invested enterprises: about VND 9.21 million, up 12%.
Domestic private enterprises: about VND 7.37 million, up 9%.
Amounts vary widely between sectors and roles. In Ho Chi Minh City, the highest individual Tet 2026 bonus reported was about VND 1.84 billion, paid by a foreign-invested company (VCCI). Our guide to the average salary in Vietnam shows how base pay differs by city and industry, which helps set a bonus budget.
How Tet Bonuses Are Taxed and Insured
Personal income tax
Tet bonuses and 13th month salaries are taxable employment income. The employer adds the bonus to the employee's taxable income and withholds PIT when the bonus is paid. For tax residents, this uses the five-bracket progressive rates of 5% to 35% that apply from the 2026 tax year, so a large bonus can push part of that month's income into a higher bracket. Our Vietnam personal income tax guide for foreigners explains residency and the full rate table.
Social insurance
A Tet bonus paid under the bonus policy is generally not part of the salary used for compulsory social insurance contributions. The contribution base covers salary, allowances and other regular amounts paid in each pay period, and a one-off bonus does not fit that definition. If a payment is in fact a regular monthly amount described as a "bonus", the social insurance agency may treat it as part of salary. Our Vietnam payroll guide covers contribution rates and caps.
Corporate income tax
For the bonus to be a deductible expense for corporate income tax (CIT), the conditions and amounts should be set out in the employment contract, collective agreement, financial regulation or bonus policy, and the bonus must actually be paid with proper records. Under Decree No. 320/2025/ND-CP, salary payments of VND 5 million or more must also be made by non-cash means, such as bank transfer, to be deductible.
When to Pay the Tet Bonus
There is no legal deadline for a discretionary Tet bonus. Most companies pay it with the last salary before Tet or in the week before the holiday. For Tet 2027, Lunar New Year's Day falls on 6 February 2027, so most payments are likely in late January or early February 2027. Our list of Vietnam public holidays in 2027 shows the full Tet holiday and other dates to plan around.
If the 13th month salary is in the contract, pay it on the date the contract or policy sets. Planning early also helps with cash flow, since Tet bonuses, December payroll and year-end tax work all fall in the same weeks.
A Checklist for Employers Before Tet 2027
Review your documents: check employment contracts, offer letters, collective agreements and the bonus policy for any promised 13th month salary or Tet bonus.
Decide the bonus plan: base the amount on 2026 results, as the Ministry of Home Affairs advises, and set rules for new joiners, leavers and employees on leave.
Consult and announce: consult the trade union or employee representative where there is one, then announce the plan to employees.
Prepare payroll: calculate PIT on the bonus, confirm whether any part counts toward social insurance, and pay by bank transfer.
Keep records: keep the policy, the approval, payment records and payslips to support tax deductions and answer employee questions.
For other employment changes to plan for in 2027, see our Vietnam labour law updates.
Frequently Asked Questions
Is the Tet bonus compulsory in Vietnam?
No. Under Article 104 of the Labour Code 2019, bonuses follow the employer’s bonus policy and depend on business results and employee performance. A Tet bonus becomes compulsory only when the employment contract, collective agreement or bonus policy promises it.
Is the 13th month salary taxable in Vietnam?
Yes. A 13th month salary or Tet bonus is taxable employment income. The employer withholds personal income tax when it pays the bonus, using the progressive rates for residents or the flat 20% rate for non-residents.
Do employees who resign before Tet get a Tet bonus?
It depends on the bonus policy and the employment contract. The law does not require a Tet bonus for employees who leave, but if the contract or policy promises a prorated 13th month salary to leavers, the employer must pay it. Clear written rules avoid disputes.
Is the Tet bonus subject to social insurance?
Generally no. A one-off Tet bonus paid under the bonus policy is not part of the salary used for compulsory social insurance contributions. Regular monthly payments labelled as bonuses may be treated as salary.
When is Tet 2027?
Lunar New Year’s Day 2027 falls on Saturday, 6 February 2027. Most employers pay Tet bonuses in the last weeks of January or the first days of February.
Our Services
Plan Your Tet Payroll With VINEX
VINEX helps foreign-invested companies in Vietnam review employment contracts and bonus policies, run monthly and year-end payroll, and handle PIT and social insurance filings. If you are planning your first Tet bonus in Vietnam, our team can help you set clear rules and pay on time.
Contact VINEX for a free consultation on payroll and Tet bonus planning.
This article is general information as of 9 November 2026, not legal or tax advice.
Sources
Labour Code No. 45/2019/QH14, Article 104 (bonuses).
VietnamPlus: Ministry of Home Affairs asks for reports on wages and Tet 2027 bonuses before 25 November, 2 November 2026.
VietnamPlus: Lunar New Year average bonus for workers up 13%, 5 February 2026.
VCCI: FDI firms lead Lunar New Year bonuses in Vietnam, 9 January 2026.
Decree No. 158/2025/ND-CP on compulsory social insurance; Decree No. 320/2025/ND-CP guiding the Law on Corporate Income Tax.
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