How to Calculate Holiday Pay in 2026 According to the Latest Labor Regulations

According to current regulations, during public holidays and Tet, employees are still entitled to their full salary as stipulated in their labor contract. This is one of the important benefits aimed at ensuring employee welfare. Therefore, understanding how to calculate holiday pay, especially when working or doing overtime on these days, is essential to ensure the legitimate rights of every employee.

What are the statutory public holidays in Vietnam?

The public holidays throughout the year are clearly defined by law to ensure the rights and welfare benefits of employees. In cases of working or doing overtime on a holiday, the salary is calculated under a special scheme and is usually significantly higher than a regular workday’s pay.

According to Article 112 of the 2019 Labor Code, employees are entitled to paid leave on the following public holidays and Tet:

• New Year’s Day: 01 day (January 1st)
• Lunar New Year (Tet): 05 days
• Reunification Day (April 30th): 01 day
• International Workers’ Day (May 1st): 01 day
• National Day (September 2nd): 02 days
• Hung Kings’ Commemoration Day (10th day of the 3rd lunar month): 01 day

For foreign employees working in Vietnam, in addition to the holidays mentioned above, they are also entitled to an additional:

• 01 day for their country’s traditional New Year
• 01 day for their country’s National Day

Additionally, depending on the year and actual circumstances, the Prime Minister will decide the specific holiday schedule for the Lunar New Year and National Day.

How to calculate holiday pay according to the latest regulations

How to calculate holiday pay when employees do not work

According to the Labor Code, if an employee takes leave on a statutory public holiday or Tet and is still legally employed by the company, they are entitled to receive their full salary for these days off.

For example, if the salary as per the labor contract is 300,000 VND/day, when taking a statutory holiday, the employee will still receive the full 300,000 VND for that day off, even though they did not actually work.

However, not all cases of taking a day off on a public holiday are paid. Some cases where holiday pay will not be calculated include:

• Employees on unpaid leave
• Employees on maternity leave under the social insurance scheme
• Individuals whose labor contracts were terminated before the holiday

Therefore, to be fully entitled to holiday pay, employees must ensure they still have a legal employment relationship and are eligible for salary payments according to company policies and current laws.

How to calculate holiday pay when employees work

Employees paid by time (most common)

If the employee is still entitled to their full holiday pay as per regulations, their total income for the holiday will include:

• 100% holiday pay
• 300% pay for working on the holiday

In total, the employee can receive up to: 100% + 300% = 400% of their daily wage

For example: If the daily wage is 300,000 VND, then:

• Working on a holiday will earn a minimum of 900,000 VND
• If they are still entitled to full holiday pay, the total income can be up to 1,200,000 VND per holiday.

See more: How to calculate overtime pay according to the latest regulations

Employees on piece-rate pay

For employees on piece-rate pay, wages are calculated based on the number of completed products and the agreed-upon unit price. If working on a public holiday or Tet, the employee will be paid at least 300% of the product unit price compared to a normal working day.

For example:

• Product unit price: 50,000 VND/product
• Made 5 extra products on a public holiday

=> Salary received: 50,000 × 300% × 5 = 750,000 VND.

Wages for employees working at night

Overtime pay for working at night on public holidays and Tet (from 10 PM to 6 AM) is typically calculated at a minimum of 490% of the normal hourly wage. This rate includes:

• 300% of the wage for working on public holidays and Tet
• 30% night shift allowance
• 20% additional allowance for overtime hours worked at night

Where:

• 300% is the salary rate for working on public holidays and Tet
• 30% is the night shift allowance
• 20% is the additional amount for working overtime at night
• The number of hours worked is the total working time from 10 PM to 6 AM.

For example, Mr. A has:

• Normal hourly wage: 100,000 VND/hour
• Works the night shift on a public holiday from 10 PM to 2 AM
• Total working time: 4 hours

Salary calculation:

• Holiday work pay (300%):
  100,000 × 300% = 300,000 VND/hour
• Night shift allowance (30%):
  100,000 × 30% = 30,000 VND/hour
• Night overtime allowance (20% of 300%):
  100,000 × 300% × 20% = 60,000 VND/hour

=> Total salary for 1 hour of night work on a public holiday: 300,000 + 30,000 + 60,000 = 390,000 VND/hour

=> Total salary for 4 hours of work: $390.000\times 4=\mathrm{1.560.000}$

Thus, Mr. A will receive 1,560,000 VND for 4 hours of night work on a public holiday.

Reference: TOP 15+ Best Payroll Software Trusted by Businesses Today

What is the salary multiplier for working during the Lunar New Year (Tet)?

The Lunar New Year (Tet) is the longest holiday of the year, and employees are entitled to at least 5 days off according to the Labor Code. If required by the company to work during this period, employees will receive a higher salary than on a normal working day.

According to current regulations, when working on Tet, employees are paid at least 300% of their normal daily salary, not including the holiday pay for those on a monthly salary. The actual amount received may be higher depending on whether they work during the day, at night, or work overtime. Below is the calculation for specific cases

Reference: Collection of Standard Holiday and Tet Announcement Templates

When is holiday pay not applicable?

According to the Labor Code, employees are entitled to take public holidays and Tet off with full pay if they are legally employed under a labor contract. However, in practice, there are some exceptional cases where holiday pay is not provided.

Unpaid leave extending through a public holiday

If an employee requests unpaid leave and the leave period includes a public holiday, their entitlement to holiday pay may be affected depending on the agreement with the company. In many cases, the company may not pay for this holiday.

Labor contract expires before the holiday

When the labor contract has terminated before the holiday, the employee is no longer eligible for holiday pay as per regulations.

Not meeting eligibility conditions as per agreement

Some special cases may not be entitled to holiday pay, such as:

• Employees on probation without a clear agreement on holiday benefits
• Short-term seasonal workers who do not meet the conditions of their contract
• Employees suspended from work due to disciplinary violations during the holiday period

However, if an actual employment relationship has been established and the employee is working under a legal contract, they are still entitled to holiday pay according to general legal regulations.

Some notes on calculating holiday pay

Understanding these important notes will help minimize errors in the payroll, ensure employee rights, and avoid legal risks for the business.

For employees

• Understand the right to holiday pay: Employees are entitled to take leave and receive full pay on public holidays and Tet according to Article 112 of the 2019 Labor Code if they are working legally under a labor contract.
• Clearly understand the pay rate for working on holidays: If working on a public holiday, employees must be paid at least 300% of their daily wage, not including the holiday pay if they are still entitled to full pay for that day.
• Check your actual payslip: You should cross-reference the number of workdays, overtime hours, and the actual salary to ensure the company is paying correctly according to regulations.

For businesses

• Apply the correct method for calculating holiday pay: Businesses need to calculate wages based on the actual payment method, such as time-based, product-based, or piece-rate pay, to ensure compliance with legal regulations.
• Establish a transparent salary policy: Clearly define the calculation methods for holiday pay, overtime, and allowances in the internal regulations or collective labor agreement.
• Differentiate between public holidays and compensatory leave days: Businesses need to accurately identify which are official public holidays and which are compensatory leave days to apply the correct 300% or 200% pay rate.
• Maintain complete records: Documents such as timesheets, payrolls, salary unit prices, and timekeeping records should be carefully stored for reference when needed or during labor inspections.

1HRM – AI-Integrated Payroll Software, Optimizing Holiday Pay Management for Businesses

Calculating pay for holidays, Tet, overtime, or night shifts is often complex, especially for businesses with multiple shifts, branches, or hundreds of employees. Even a small error in formulas or timekeeping data can lead to complaints and negatively impact the employee experience.

With 1HRM Payroll, businesses can automate the entire timekeeping, payroll, and benefits process on a single system. The standout features of 1HRM Payroll include:

• Automatically calculate holiday pay in compliance with legal regulations
• Flexibly set multipliers of 200%, 300%, 400% depending on the shift
• Synchronize timekeeping, overtime, and compensatory leave data in real-time
• Minimize errors from manual payroll calculations in Excel
• Generate payrolls and payslips quickly and transparently

Additionally, the AI integrated into 1HRM helps businesses detect anomalies in timesheets and payroll, optimize the payroll process, and save significant time for the HR & accounting departments.

Frequently Asked Questions

If I work on a public holiday, do I get a day off in lieu?

If you work on a public holiday at the company’s request, whether you get a day off in lieu depends on the company’s policy or the agreement between both parties. However, the employee must still be paid at least 300% of their daily wage according to the law.

How is salary calculated for working on January 1st?

If an employee works on January 1st (New Year’s Day), the business must pay at least 300% of their normal daily wage, not including the holiday pay for employees on a monthly salary. If they work at night or overtime, the employee is also entitled to additional allowances and overtime pay as regulated.

If I take unpaid leave, am I entitled to holiday pay?

No. If unpaid leave extends through a public holiday, the employee will not be paid for that holiday, as per the agreement with the business.

Are probationary employees entitled to holiday pay?

If there is a legal employment agreement with the business, probationary employees are still entitled to holiday pay as regulated.

If I work half a day on a public holiday, is it calculated at 300% pay?

Yes. The employee’s salary will be calculated based on the actual hours worked on the public holiday at a rate of at least 300%.

Are seasonal workers entitled to holiday pay?

If they have an employment contract and meet the regulated conditions, seasonal workers are still entitled to holiday pay.

Is it legal for a company to pay less than 300% for holiday work?

No. According to the Labor Code, it is a violation for a business to pay less than the minimum rate of 300% when an employee works on a public holiday.

If I work online or remotely on a public holiday, am I entitled to holiday pay?

Yes. If an employee works on a public holiday at the company’s request, they will be paid holiday wages as if they were working on-site.

Conclusion

This article has provided details on how to calculate holiday pay according to the latest provisions of the Labor Code, including cases of taking leave with full pay, working on a public holiday, working overtime, working night shifts, or when a public holiday coincides with a weekly day off. We hope the information provided by 1Office will help employees clearly understand their rights, while also assisting businesses in calculating payroll accurately, transparently, and in compliance with the law.