A competitive salary is not the only thing employees value in Vietnam. Many employees also look forward to receiving a Tet bonus before the Lunar New Year as a sign of employer appreciation.
While Tet bonus 2026 is not legally guaranteed in every situation, it remains an important part of employee engagement, retention, and employer branding. Businesses that understand local practices are better positioned to attract talent, manage expectations, and stay aligned with Vietnamese workplace culture.
This guide explains how Tet bonus in Vietnam works, whether employers must provide it, how it differs from 13th month pay, what average bonus levels look like, and how companies typically develop their Tet bonus plans for 2026.
What You'll Learn
What Is a Tet Bonus in Vietnam?
The Tet bonus is a payment that many employers provide to employees before the Tet Holiday, Vietnam’s celebration of the Lunar New Year. It serves as both a reward for the previous year’s contribution and a way to recognize employees before the country’s most important holiday.
Although often called a Lunar New Year bonus, the Tet bonus is not a separate type of salary. Instead, it is a discretionary reward that reflects company performance, employee contribution, and internal bonus policies.
Providing Tet bonuses in Vietnam has become a common practice across many industries, especially in major business hubs such as Ho Chi Minh City and Hanoi. Some companies provide cash payments, while others supplement them with Tet gifts, shopping vouchers, travel support, or other holiday benefits.
Why Tet bonus matters to employers
For international companies operating in Vietnam, Tet bonuses are about more than year-end compensation.
A well-designed bonus program can help employers:
- Recognize employee performance
- Improve workforce morale before the holiday season
- Attract and retain skilled professionals
- Strengthen employer reputation in the local market
- Demonstrate appreciation for employees’ contributions
Although bonus expectations vary by locality, industry, and company size, many employees view Tet bonuses as an important part of their overall annual compensation package.
Is Tet Bonus Mandatory Under Vietnamese Law?
One of the first questions foreign businesses ask is whether they must pay Tet bonuses. The short answer is no, but there is important legal context behind that answer.
Under the Vietnamese Labor Code, employers are not automatically required to provide a Tet bonus every year. Instead, bonuses are generally treated as discretionary payments that an employer may offer based on business performance and internal compensation policies.
What the law says
Vietnamese labor law allows employers to establish their own bonus plans, provided they are developed transparently and communicated to employees.
When determining whether to provide bonuses, businesses often consider:
- Production and business results
- Individual employee performance
- Financial capacity
- Internal bonus regulations
- Collective labor agreements where applicable
This flexible legal framework allows companies to adapt their bonus policies to changing market conditions while remaining compliant with local employment laws.
When Tet bonuses become contractual
Although legal regulations do not generally require employers to provide a Tet bonus, obligations can arise if bonuses are included in:
- Employment contracts
- Company policies
- Collective labor agreements
- Official compensation regulations
If an enterprise has committed to providing certain bonuses for employees, those commitments should generally be honored unless amended according to applicable employment procedures.
For this reason, businesses entering Vietnam should ensure that bonus language is carefully drafted before implementation.
Tet Bonus vs 13th-Month Salary
Many international employers assume the Tet bonus and 13th-month pay are the same benefit. In practice, they are related but not always identical.
A 13th-month salary is typically calculated as an additional month’s pay based on an employee’s monthly salary or time worked during the year. A Tet bonus, however, is broader and may be based on business performance, individual achievements, or company policy.
Some employers combine both into one payment before the Vietnamese Lunar New Year, while others provide only one of them.
| Feature | Tet Bonus | 13th-Month Salary |
|---|---|---|
| Primary purpose | Reward employees before the Tet Holiday | Additional annual salary payment |
| Based on | Company policy, performance, financial capacity | Usually linked to monthly salary |
| Legally mandatory | Generally no | Generally no unless contractually agreed |
| Payment timing | Before Lunar New Year | Often paid around year-end or before Tet |
| Amount | Varies significantly | Frequently calculated from base salary |
How Much Is the Average Tet Bonus in 2026?
There is no nationwide standard for the average Tet bonus. Bonus levels vary widely depending on industry, company performance, employee role, and geographic location.
In recent years, businesses have continued adjusting Tet bonuses in 2026 based on economic conditions, labor market competition, and overall production and business results.
Factors influencing bonus levels
Several factors affect the average bonus employers choose to offer.
These commonly include:
- Company financial performance
- Employee performance throughout the year
- Industry profitability
- Seniority and length of service
- Position within the organization
- Local labor market competition
- Regional differences between Hanoi, Ho Chi Minh City, and other provinces
Highly profitable companies may provide the highest Lunar New Year bonus, while smaller businesses or those facing challenging market conditions may offer more modest holiday bonuses or fixed bonuses.
Rather than focusing on a specific VND amount, employers should benchmark compensation against comparable businesses across industries and consider overall employee expectations within their sector.
How Employers Decide Tet Bonus Plans
There is no single formula for creating Tet bonus plans. Most organizations develop their approach by balancing business performance with employee expectations and long-term workforce strategy.
For global employers entering Vietnam, this process should be viewed as part of broader compensation planning rather than a one-time holiday expense.
Common considerations when managing bonuses
Before finalizing Tet bonus plans, employers typically review several business factors.
These often include:
- Annual production and business performance
- Overall financial capacity
- Individual and team performance
- Market competitiveness
- Employee retention objectives
- Existing collective labor agreement obligations
- Internal compensation philosophy
Some businesses choose performance-based bonuses, while others provide fixed bonuses to all eligible employees. Larger enterprises may combine cash bonuses with Tet gifts, gift cards, or additional leave benefits.
Why planning ahead matters
Successful employers begin managing bonuses well before the Tet Holiday season.
Early planning allows HR and finance teams to:
- Forecast payroll costs accurately
- Communicate bonus expectations clearly
- Maintain consistency across departments
- Reduce misunderstandings between employees and employers
- Support stronger employee engagement before the holiday period
For international companies expanding into Vietnam, aligning Tet bonuses for 2026 with local expectations while maintaining a sustainable global compensation strategy can strengthen both compliance and employer reputation.
How Tet Bonuses Are Commonly Calculated
One of the most common questions employers ask is how much a Tet bonus should be. The answer is that there is no mandatory formula under Vietnamese labor law. Instead, the amount is usually determined by company policy, employee performance, and the overall business results during the year.
While some businesses pay a full month’s salary, others provide a smaller annual bonus or a fixed monetary reward. The approach often varies across industries, company size, and the financial situation of the company.
Common methods used to calculate Tet bonuses
The following approaches are commonly used when businesses pay Tet bonuses:
| Calculation method | How it works | Common use |
|---|---|---|
| Fixed cash amount | Every eligible employee receives the same amount | Small businesses and startups |
| One month's salary | Bonus equals one month's basic salary | Common practice in larger enterprises |
| Performance-based | Amount depends on individual performance and KPIs | Professional services and multinational companies |
| Company profit sharing | Bonus varies according to annual business performance | Manufacturing and large enterprises |
| Prorated bonus | Calculated based on months worked during the year | New hires and employees joining mid-year |
Many employers also combine multiple approaches. For example, a company may offer a guaranteed minimum payment together with a performance-based top-up.
Factors that influence the final bonus
When deciding the amount of a Tet bonus, employers commonly consider:
- Individual performance during the year
- Overall company profitability
- Business objectives achieved
- Length of service
- Position and level of responsibility
- Internal compensation policies
- Market practices within the industry
Although employees often compare bonuses across companies, there is no single benchmark. The average Tet bonus and the highest bonus reported each year can vary significantly between sectors and locations such as Hanoi and Ho Chi Minh City.
Alternative Holiday Bonuses Beyond Cash
Cash remains the most common bonus in Vietnam, but it is far from the only option. Many employers supplement or partially replace cash payments with benefits that recognize employee contributions while strengthening workplace culture during the Tet Holiday.
This flexibility allows businesses to reward employees even when financial conditions make larger cash bonuses difficult.
Popular alternatives to cash bonuses
| Benefit | Why employers provide it |
|---|---|
| Gift hampers | Traditional Tet gifts for employees and families |
| Shopping vouchers | Flexible spending for Lunar New Year purchases |
| Additional paid leave | Supports travel and family celebrations |
| Company products | Common for retail and consumer brands |
| Team celebrations | Reinforces employee engagement before Tet |
| Wellness benefits | Health checks, insurance upgrades, or wellbeing allowances |
Providing holiday bonuses does not always mean paying large sums of money. For many organizations, combining modest cash payments with meaningful employee benefits creates a positive experience while remaining financially sustainable.
Building a competitive reward strategy
Businesses planning to give Tet bonuses should aim for consistency rather than simply matching competitors.
Employees generally value:
- Transparent communication
- Fair bonus criteria
- Timely payments before the Lunar New Year
- Recognition of performance
- Consistency from year to year
A well-designed reward strategy supports employee retention and demonstrates appreciation without creating unrealistic expectations for future years.
Tax and Payroll Considerations
Once a company decides to provide a Tet bonus, payroll administration becomes just as important as determining the payment amount. Employers should ensure bonuses are processed correctly under applicable tax and payroll requirements to avoid compliance issues.
Accurate payroll planning also helps employees understand how their salary and bonus payments will appear during the Tet period.
Payroll considerations for employers
When preparing Tet bonus payments, employers should review:
| Payroll area | Employer consideration |
|---|---|
| Payroll timing | Schedule payments before the Tet Holiday where possible. |
| Personal income tax | Determine whether bonus payments are subject to applicable tax rules. |
| Payroll reporting | Include bonuses correctly within payroll records. |
| Employment contracts | Ensure bonus policies align with contractual terms and company regulations. |
| Internal policies | Apply bonus calculations consistently across eligible employees. |
Compliance matters to review
Although Vietnamese labor laws in Vietnam do not generally stipulate mandatory Tet bonus amounts, employers should ensure their bonus practices remain consistent with:
- Internal bonus policies
- Employment agreements
- Collective labor agreements where applicable
- Current guidance from the Ministry of Labor, War Invalids and Social Affairs
- Applicable payroll and tax reporting obligations
For multinational businesses, consistency across local and global payroll processes is equally important. Partnering with an Employer of Record (EOR) or global payroll provider can simplify administration while reducing compliance risk.
Employer Checklist for Managing Tet Bonuses
Preparing early helps employers avoid payroll delays and communicate expectations clearly before the busy Lunar New Year period.
The checklist below provides a practical framework for managing bonuses for employees.
Tet bonus preparation checklist
| Task | Why it matters |
|---|---|
| Review company bonus policy | Ensure consistency with internal guidelines. |
| Confirm available budget | Align bonuses with the financial situation of the company. |
| Identify eligible employees | Apply consistent eligibility criteria. |
| Calculate bonus amounts | Use transparent and documented calculation methods. |
| Review payroll and tax treatment | Ensure accurate payroll processing. |
| Communicate bonus arrangements | Reduce employee uncertainty before Tet. |
| Schedule payments | Complete payroll before the holiday period where possible. |
| Maintain documentation | Support future audits and internal recordkeeping. |
What Should Employers Remember?
A thoughtful Tet bonus strategy is about more than deciding how much to pay. It is an opportunity to recognize employee contributions, strengthen retention, and demonstrate fairness while maintaining compliance with Vietnamese employment practices.
Some of the most important points to remember include:
- Tet bonuses are generally not legally mandatory, but many employers provide them as an established market practice.
- There is no single calculation formula; bonuses are commonly based on salary, performance, company results, or a combination of these factors.
- Cash payments are common, but gift hampers, vouchers, extra leave, and other holiday benefits are also widely used.
- Payroll, tax reporting, and internal bonus policies should be reviewed before processing bonus payments.
- Transparent communication helps employees understand eligibility and reduces misunderstandings.
- Businesses should balance employee expectations with the financial situation of the company and long-term sustainability.
As your business grows in Vietnam, managing payroll, compliance, and employee benefits becomes increasingly important. Whether you’re expanding through an Employer of Record (EOR), global payroll, Professional Employer Organization (PEO) support, and mobility solutions. Visit the Empleyo homepage to learn more, or contact us to discuss how we can support your expansion into Vietnam and beyond.
