The Most Accurate Way to Calculate the 2026 Tet Bonus: Applicable to Any Business

The Tet bonus is an important recognition that businesses give to their employees at the end of the year, showing appreciation for their efforts and contributions throughout a year of work. However, the Tet bonus does not have a legally fixed formula but is based on the specific regulations of each company. In this article, let’s explore the most common ways to calculate Tet bonuses in 2026, helping businesses build suitable policies and enabling employees to proactively understand their benefits.

1. The Most Accurate Tet Bonus Calculation for 2026

Below are the most accurate methods for calculating Tet bonuses in 2026, applied by many businesses to ensure transparency, fairness, and alignment with employee performance:

Method 1: Calculating Tet Bonuses Based on Average Annual Salary

This is a Tet bonus calculation method used by many private enterprises, especially suitable for companies with fluctuating monthly salaries and a clear year-end performance evaluation system.

Formula:

Where:

• Average 12-month salary: Total actual income for the year divided by 12.
• Actual working time: The number of months the employee worked during the year.
• Performance ratio: Determined by the company based on the level of work completion:
• Completed tasks: usually = 1
• Good or excellent performance: can be > 1
• Did not meet requirements: can be < 1

Illustrative example:

• Employee C worked for 9 months in 2025, with an average salary of 12 million VND/month, and a performance evaluation of “good work completion” (ratio 1.2) → Tet Bonus = 12 million × (9/12) × 1.2 ≈ 10.8 million VND.
• Employee D worked for 12 months, with an average salary of 7 million VND/month, but their performance did not meet requirements (ratio 0.8) → Tet Bonus = 7 million × 0.8 = 5.6 million VND.

This example shows that, regardless of equivalent working time or different salary levels, individual performance is still a direct determining factor for the Tet bonus amount, helping businesses encourage a strong work ethic and optimize their compensation policies.

Method 2: Calculating Tet bonus based on December’s salary

This is a fairly common method due to its simple and easy-to-understand calculation, often applied by businesses when they want to standardize the bonus amount and most of the staff have worked for the full year.

Formula:

Where:

• December salary: is the actual salary received at the end of the year.
• Bonus rate: usually 1 if tasks are completed; can be adjusted up or down based on performance evaluation.
• For employees who have worked a full 12 months and meet requirements, many businesses use the December salary as the Tet bonus amount.

Example:

• Employee C worked for 7 months in 2025, with a December salary of 12 million VND and a good performance rating (rate of 0.9) → Tet Bonus = 12,000,000 × (7/12) × 0.9 ≈ 6.3 million VND.
• Employee D worked a full 12 months, with a December salary of 15 million VND, and completed their tasks (rate of 1) → Tet Bonus = 15 million VND.

Method 3: Other Tet bonus calculation methods

Besides calculating based on average salary or December salary, many businesses opt for flexible bonus models to accurately recognize contributions and maintain internal fairness. Some common forms include:

• Calculating Tet bonus based on work performance (<a href="https://1office

  The law does not specify a fixed formula; the method for calculating Tet bonuses is developed by the company and clearly stated in its bonus policy. Some common methods include:

  • Bonuses based on a number of months’ salary (usually 1-3 months).
  • Bonuses based on the average annual salary multiplied by a bonus rate.
  • A combination of factors such as individual performance (KPI), seniority, and the company’s business results.

  For example: An employee who has worked for the full year with an average salary of 15 million VND/month and a bonus equivalent to one month’s salary. In this case, the Tet bonus would be around 15 million VND (subject to adjustment based on performance evaluation).

  Question 3: Do employees who have worked for less than 12 months receive a Tet bonus?

  They may still receive a bonus, but the amount is usually calculated based on the actual time worked. For instance, an employee who has worked for 6 months might receive a bonus equivalent to 6/12 of a month’s salary. The specific application depends on each company’s bonus policy. If the policy states that a full bonus is only given for a full year of work, employees with less than 12 months of service may not receive a bonus or may receive a smaller amount.

  Question 4: How are Tet bonuses calculated for factory workers?

  In principle, there is no separate calculation method required by law; it is applied similarly to office employees. Companies typically base it on:

  • Basic salary or average salary (based on product, shift, or time).
  • Actual time worked during the year.
  • Work performance, such as output and completion of quotas.

  For example: A worker who has worked for a full 12 months with an average salary of 8 million VND/month and a bonus of one month’s salary would receive a Tet bonus of 8 million VND. In the manufacturing sector, many units also apply bonuses based on team, group, or departmental business results.

  Question 5: Do employees who resign before Tet receive a bonus?

  Whether or not a bonus is received depends entirely on the company’s bonus policy, labor contract, or collective labor agreement. Since the law does not mandate Tet bonuses, if the policy requires employees to be actively working at the time of bonus payment (usually just before or after Tet), those who have already resigned may not be eligible. 

  Conversely, if the company has an agreement to award bonuses based on the previous year’s performance, or allows for calculation based on actual time worked, the employee may still be entitled to a portion of the bonus.

  Question 6: Are Tet bonuses subject to Personal Income Tax (PIT)?

  Yes. Tet bonuses are considered income from wages and salaries, so they are subject to PIT according to the progressive tax schedule (based on Circular 111/2013/TT-BTC and related documents). Companies usually withhold tax at the source if the payment is 2 million VND or more per instance (a temporary 10% withholding), which is then finalized at the end of the year. If the employee’s total annual income does not reach the taxable threshold, they may be eligible for a refund.

  Question 7: Are Tet bonuses subject to Social Insurance (SI) contributions?

  No. According to current regulations (Circular 06/2021/TT-BLDTBXH), bonuses under Article 104 of the Labor Code (including Tet bonuses) are not included in the salary base for calculating Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI) contributions. Therefore, neither the company nor the employee has to make insurance contributions on this bonus amount.

  Question 8: Do employees on probation receive a Tet bonus?

  Usually not, as the probationary period is not considered the completion of official duties according to most companies’ bonus policies. However, if there is a specific provision in the internal regulations or the probationary contract (such as a bonus prorated for the probationary period), the employee may still receive a portion. The law does not require companies to provide bonuses during this stage.

  Question 9: What are the common forms of Tet bonuses?

  The common forms of Tet bonuses applied in 2026 include:

  • Cash: The most common form, usually calculated based on a number of months’ salary.
  • In-kind gifts: Tet gift baskets, food items, home appliances, shopping vouchers, or even phones or motorbikes.
  • Non-monetary: Travel packages, support for travel expenses to go home, company shares (for listed companies), or a flexible combination of various bonus forms.

  

  Frequently asked questions about Tet bonuses

  Conclusion

  As can be seen, the method for calculating Tet bonuses does not have a fixed formula but depends on the regulations, business situation, and HR strategy of each company. A transparent and reasonable bonus policy not only motivates employees but also helps businesses retain talent and maintain long-term internal stability. To build and manage an effective Tet bonus policy, businesses can explore comprehensive business management solutions on 1Office, which help track performance, evaluate KPIs, and standardize bonus policies consistently and easily.