Vietnam mandates 11 paid public holidays under Labor Code 2019, and when employees work on these days, you must pay at least 300% of their normal daily wage under Article 98(1)(c)—these costs hit your payroll directly, not the Social Insurance Fund. Understanding which leave types you pay versus SI-funded benefits drives accurate budgeting: you cover annual leave and any agreed holiday overtime entirely, while statutory sickness and maternity benefits are funded by the Social Insurance regime for eligible employees under the Law on Social Insurance 2014, subject to contribution and documentation conditions.
Resolution No. 80-NQ/TW (January 7, 2026) proposes adding Vietnam Culture Day (November 24) as a 12th holiday from 2026, pending Labor Code amendment—confirm official status before finalizing payroll calendars. The critical compliance risk: internal handbooks exceeding statutory minimums become binding contracts, and misalignment between handbook provisions and actual payroll practice triggers labor disputes with back-pay exposure.
Leave entitlements are one component of broader employment obligations—for contract rules, termination procedures, and workplace compliance, see Vietnam employment law and HR compliance for FDI companies.
Vietnam Public Holidays 2026: Complete Calendar
Vietnam recognizes 11 mandatory paid public holidays—employees receive full wages without working, and you must pay 300% of normal daily wages for any hours worked on these days under Labor Code 2019 Article 112. From 2026, a 12th holiday may be added following Resolution No. 80-NQ/TW. Public holidays differ from regular working days in one important way. When a holiday falls on a weekend, employees typically receive a compensatory day off on the adjacent weekday, though specific arrangements depend on annual government decrees. The Ministry of Home Affairs coordinates the official calendar, with particular attention to Tết extensions that can span 7–9 consecutive days.2026 Public Holiday Calendar
| Holiday | Date | Days |
|---|---|---|
| New Year | January 1 | 1 |
| Tết (Lunar New Year) | January 26–30 (subject to annual government decree confirmation) | 5 |
| Hung Kings Commemoration | 10th day, 3rd lunar month (April 6, 2026 Gregorian) | 1 |
| Reunification Day | April 30 | 1 |
| International Labor Day | May 1 | 1 |
| National Day | September 2 | 2 |
Tết Holiday Extensions: What Changes Each Year
The government issues official decisions each year detailing Tết dates and compensatory day arrangements. In some years, working schedules include Saturday adjustments based on those decisions and employer agreements. Many FDI companies grant additional discretionary leave during this period. Only the five statutory days require mandatory paid leave—anything beyond creates contractual obligations once documented in employment policies.Vietnam Culture Day (November 24): 2026 Status Update
Resolution No. 80-NQ/TW, issued January 7, 2026, proposes November 24 as Vietnam Culture Day—this would become the 12th mandatory public holiday. Here’s the catch: a formal Labor Code amendment is required before implementation. The amendment process is underway as of early 2026 but not yet enacted. Monitor official government gazettes and confirm the holiday’s official status before finalizing 2026 payroll calendars. ⚠️ COMPLIANCE ALERT: Resolution No. 80-NQ/TW proposes Vietnam Culture Day (November 24) as a new public holiday. As of January 2026, Labor Code amendment is pending—confirm official status before updating 2026 payroll calendars.Leave Entitlements: Who Pays—Employer vs Social Insurance
You pay 100% of annual leave and any agreed public holiday overtime costs. The Social Insurance Fund covers statutory sickness and maternity benefits for eligible employees who meet contribution conditions under the Law on Social Insurance 2014. Getting this cost allocation right is essential for payroll budgeting. Statutory minimums establish baseline entitlements. Many FDI employers adopt enhanced policies offering additional leave days or higher pay rates—these enhanced provisions become contractually binding once documented in employment contracts or company handbooks, creating obligations beyond legal minimums.Annual Leave: 12 Days Minimum, Full Employer Cost
You must provide at least 12 paid annual leave days for employees working under standard conditions, with higher minimums for hazardous roles, heavy-labor positions, and longer-tenured employees under Articles 113–115 of Labor Code 2019. You pay 100% of the employee’s regular salary during annual leave. Unused leave may be carried forward or paid out upon termination depending on company policy and mutual agreement. Annual leave pay is calculated on gross salary including regular allowances—for detailed gross-to-net breakdowns and SHUI deduction impact, see employer payroll costs and gross-to-net calculation guide.Sick Leave: Understanding the Employer-SI Split
The Social Insurance regime pays statutory sickness benefits for eligible employees from the outset—provided proper documentation is filed. Benefit duration depends on working conditions and contribution history: 30 days per year for normal conditions, 40 days per year for hazardous or heavy-labor roles under Article 26 of the Law on Social Insurance 2014. Long-term illness extends coverage up to 180 days under Article 28. In practice, many FDI employers cover short sick leave (1–3 days) directly from payroll as a company benefit without filing SI claims. This is common practice, not a statutory requirement. The key is documentation: medical certificates and SI claim forms shift costs from your payroll to the SI Fund for eligible employees.Maternity Leave: 6 Months, Social Insurance Funded
Female employees receive six months of maternity leave funded by the Social Insurance Fund—the benefit equals 100% of the employee’s average SI contribution salary over the six months preceding leave, calculated under Articles 32–38 of the Law on Social Insurance 2014. This is based on the SI contribution salary, which may differ from the employee’s actual current pay. You don’t bear direct payroll costs during this period, but you must maintain the employee’s position and seniority. Additional leave for complications or multiple births may extend the period, with the SI Fund continuing coverage. Labor Code 2019 Article 137 protects employees from dismissal during pregnancy and maternity leave. In practice, role changes or restructuring during this period trigger wrongful termination claims—approach any organizational changes with documented business justification prepared before leave begins. Maternity and sickness benefits depend on active SI contributions—for 2026 rates, caps, and expat participation rules, see Vietnam social insurance 2026 rates and compliance framework.Cost Allocation by Leave Type
| Leave Type | Duration | Who Pays | Legal Base |
|---|---|---|---|
| Annual Leave | 12–16 days | Employer 100% | Labor Code 2019, Art. 113 |
| Sick Leave (short-term, employer practice) | 1–3 days | Employer (common practice, not statutory) | Company policy |
| Sick Leave (SI-covered) | 30–40 days/year; up to 180 days long-term | Social Insurance Fund | SI Law 2014, Art. 26 & 28 |
| Maternity Leave | 6 months | Social Insurance Fund (based on SI contribution salary) | SI Law 2014, Art. 34 |
| Public Holiday Work | Per day | Employer 300% | Labor Code 2019, Art. 98(1)(c) |
Compliance Risks: Where FDI Employers Trip Up
Labor Code 2019 establishes clear leave entitlements and cost responsibilities, but FDI employers frequently encounter compliance gaps that trigger disputes and financial liability. Three risk areas stand out: policy-practice misalignment, overtime miscalculation, and SI claim failures.Policy-Practice Mismatch: The Hidden Dispute Trigger
Internal handbooks exceeding statutory minimums become binding contractual obligations. If your policy grants 15 days of annual leave but your payroll system only accrues 12 days, employees can claim the difference plus damages for breach of contract. Tax authorities and labor inspectors scrutinize these discrepancies during audits. The most common compliance gap: employee handbooks, Internal Labor Regulations (ILR), and payroll software contain conflicting leave accrual rules—each document shows different entitlements under Article 19 of Labor Code 2019. This creates exposure when employees file complaints, as arbitration councils compare all three documents and rule based on the most favorable interpretation. Leave entitlements documented in employment contracts override handbook provisions when they conflict—review Vietnam labor contract types, probation rules, and written contract requirements for proper structuring.Overtime and SI Claim Errors That Cost You Money
You must pay 300% of normal daily wage for public holiday work under Article 98(1)(c)—not the 200% rate for standard weekend overtime. The 300% multiplier applies to normal daily wage, which must meet regional minimums. Confirm current wage floors in Vietnam’s 2026 minimum wage rates and employer compliance impact. Many payroll systems default to weekend overtime rates, resulting in systematic underpayment. The real risk: back-pay claims covering your entire workforce for up to two years. For a 50-person company where 10 employees work holidays occasionally, this can mean VND 50–100 million (~USD 2,000–4,000) in back-pay exposure. Verify that payroll configurations correctly distinguish public holiday overtime from standard overtime rates. Systematic overtime underpayment is among the top triggers for collective labor disputes—understand escalation risks in Vietnam labor dispute resolution and employer compliance procedures. The other costly mistake: paying sick leave directly without filing SI claims. The Law on Social Insurance 2014 covers sickness benefits for eligible employees from Day 1 with proper medical certificates and claim forms under Articles 25–28. Many FDI employers absorb these costs through payroll—either due to administrative oversight or misunderstanding the reimbursement process. Proper documentation and timely claim submission shift these expenses off your payroll. ⚠️ COMPLIANCE ALERT: Internal handbooks exceeding statutory minimums become binding contracts. If your policy grants 15 days annual leave but you only provide 12, employees can claim the difference plus damages. Role changes during maternity leave trigger wrongful termination claims—see employee termination legal grounds and severance calculation procedures for compliant restructuring processes.Payroll Planning Summary
Understanding the employer-SI cost split across leave types drives accurate payroll budgeting. You bear 100% of annual leave and public holiday overtime costs. The Social Insurance Fund covers statutory sickness and maternity benefits for employees who meet eligibility and contribution conditions, with allowances calculated on SI contribution salary rather than current actual pay. Proper classification and documentation ensure cost optimization and reduce unnecessary payroll burden. Beyond leave costs and SHUI, employers must also account for trade union fee obligations calculated on the social insurance salary base when budgeting total employment costs. Vietnam Culture Day’s proposed addition as a 12th public holiday from 2026 requires monitoring of Labor Code amendments and timely payroll calendar updates. Confirm official status through government decrees before finalizing workforce planning. Internal policies exceeding statutory minimums create binding obligations. Annual reviews of employee handbooks, ILR documents, and payroll configurations prevent disputes from policy-practice misalignment—focus audits on leave accrual discrepancies, overtime rate settings, and SI claim submission processes. Indochina Link Vietnam provides payroll compliance audits for FDI employers. We review internal policies against Labor Code requirements, identify cost optimization opportunities, and ensure your leave management aligns with Vietnamese labor law. Contact us for a compliance review. Disclaimer: This content provides general information about Vietnamese labor law and does not constitute legal advice. Consult qualified legal counsel for specific compliance guidance. Information current as of January 2026.Frequently Asked Questions
Vietnam has 11 mandatory public holidays in 2026 under Labor Code 2019 Article 112: New Year (1 day), Tết (5 days), Hung Kings (1 day), Reunification Day (1 day), Labor Day (1 day), National Day (2 days). Vietnam Culture Day (November 24) is pending Labor Code amendment.
You must pay 300% of normal daily wage for public holiday work—this is direct employer cost, not reimbursable from Social Insurance. Additional compensatory day off may also be required depending on company policy and collective bargaining agreements.
Not yet. Resolution No. 80-NQ/TW (January 7, 2026) proposes November 24 as Vietnam Culture Day, but formal Labor Code amendment is required before it becomes a mandatory paid holiday. Monitor the official gazette for 2026 implementation status.
