In the modern working environment, benefits related to salary on holidays and festivals are always a matter of concern for both employees and employers. According to Vietnamese labor law, employees are entitled to receive their full salary during official public holidays. However, if they work on these days, the salary calculation will follow a separate method with more favorable benefits compared to regular workdays. So, how is holiday pay specifically calculated? Let’s explore the details with KMC in the article below.
Public Holidays in Vietnam According to Legal Regulations
Each country has its own regulations regarding the number of public holidays, reflecting the cultural, traditional, and historical characteristics of that country. These holidays typically include national festivals, significant international events, religious anniversaries, and various New Year celebrations according to either the Gregorian or lunar calendar.
In Vietnam, the 2019 Labor Code clearly defines the official public holidays and outlines special salary policies for employees working on these days. As of 2025, employees in Vietnam are entitled to a total of 11 public holidays annually, as specified in Article 112 of the 2019 Labor Code, including:
- New Year’s Day: 1 day (January 1)
- Lunar New Year (Tết Nguyên Đán): 5 days
- Hung Kings’ Commemoration Day: 1 day (10th day of the 3rd lunar month)
- Victory Day: 1 day (April 30)
- International Labor Day: 1 day (May 1)
- National Day: 2 days (September 2 and one adjacent day before or after)
Additionally, foreign workers in Vietnam are entitled to one day off for their national traditional New Year and one day off for their national Independence Day.
According to current regulations, if a public holiday coincides with a regular weekly day off, employees will be granted an alternative day off on the next working day. Furthermore, employees who work on a public holiday are entitled to a higher salary coefficient compared to regular working days, ensuring their rights under labor laws are protected.
How is Employee Salary Calculated When Working on a Public Holiday?
According to regulations, employees are entitled to receive their full salary on public holidays as stipulated by the Labor Code. However, if they work on these days, their salary will be calculated in accordance with Article 98 of the 2019 Labor Code to protect their rights.
Specifically, overtime pay on public holidays and paid leave days is calculated as follows:
- Overtime on regular days: At least 150% of the employee’s regular wage.
- Overtime on weekly rest days: At least 200% of the employee’s regular wage.
- Overtime on public holidays and festivals: At least 300% of the employee’s regular wage, excluding the holiday pay.
- Overtime at night: An additional 30% compared to the regular day wage.
- Overtime at night on public holidays and festivals: In addition to the standard overtime pay, the employee will also receive an extra 20% of the regular daytime wage.
Therefore, when working on a public holiday, the employee’s salary will be significantly higher compared to regular days. Employers must ensure that wages are paid according to these regulations to safeguard the rights of employees.
How Are Employers Penalized for Failing to Pay Holiday and Festival Wages According to the Law?
Paying employees their wages on public holidays and festivals is an employer’s obligation under the law. If employers fail to comply with these regulations, they may face administrative penalties in accordance with Decree No. 12/2022/ND-CP. Specifically, the fine for failing to pay holiday and festival wages to employees ranges from VND 5,000,000 to VND 50,000,000, depending on the severity of the violation.
In addition, employers are required to notify employees of the Lunar New Year holiday schedule at least 30 days in advance. Failure to provide such notification or to pay full wages during this period may result in fines ranging from VND 500,000 to VND 15,000,000, depending on the number of affected employees.
In cases where employees work during holidays or festivals but do not receive overtime pay as stipulated by law, employers will also face fines ranging from VND 5,000,000 to VND 50,000,000, depending on the number of affected personnel. These penalties are intended to protect employees’ rights and ensure compliance with labor laws in the workplace.
Detailed and Accurate Calculation of Holiday and Festival Wages
When a Public Holiday Falls on a Weekend
When a public holiday falls on a weekend, particularly on Sunday, employers must determine the salary to be paid to employees based on the following formula:
Holiday Pay = (Contract Salary / Standard Working Days in the Month) × Number of Paid Public Holidays
In this formula:
- Contract Salary: The salary agreed upon between the employer and employee, which serves as the basis for calculating holiday pay.
- Standard Working Days in the Month: The actual number of working days as defined by the employer for that month.
Number of Paid Public Holidays: The number of public holidays during which the employee is entitled to full pay according to the law.
How to Calculate Holiday Pay for Piece-Rate Employees
Employees paid by piece rate will receive payment based on the number of products completed and the agreed price. When working on a holiday, they will also receive overtime pay as per regulations. The specific calculation is as follows:
Overtime Pay = Regular Product Price × Minimum 300% × Additional Products Completed
In this formula:
- The minimum 300% rate applies to public holidays, festivals, or paid leave days.
- If the public holiday coincides with a weekly rest day, the overtime pay will still follow the holiday rate.
If the overtime work occurs on a substitute rest day, the overtime pay will be calculated based on the weekly rest day rate.
Pay for Working on a Substitute Rest Day
According to Article 111, Clause 3 of the 2019 Labor Code, if a public holiday coincides with a weekly rest day, employees are entitled to take a substitute rest day on the following working day.
If an employee works on this substitute rest day, the salary will be calculated according to Clause 3, Article 55 of Decree 145/2020/ND-CP, meaning they will receive overtime pay for working on a weekly rest day.
Specifically, if working on a substitute rest day, employees will be paid at least 200% of their normal wage, excluding the holiday pay they would normally receive.
Holiday Pay for Time-Based Employees
For employees paid based on time, their salary will be determined by the actual hours worked. If they work on a holiday or festival, they will receive overtime pay based on the following formula:
Holiday Overtime Pay = Hourly Wage on Regular Workday × At Least 300% × Number of Overtime Hours Worked
In this formula:
- Hourly Wage: The actual wage paid per hour is calculated by dividing the total wage paid in a pay period by the total number of actual working hours for the employee.
- This wage does not include overtime pay, night shift pay, holiday or festival pay, or paid leave days. Furthermore, allowances such as transportation, phone, housing, childcare, and benefits for family events (marriage, birthday, or occupational diseases) are not included in the regular wage.
- The actual working hours cannot exceed the legal limits for regular work hours.
According to regulations, the minimum overtime pay for holidays, festivals, or paid leave days is 300% of the normal daily wage, excluding holiday pay for daily wage employees.
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This article provides detailed and up-to-date information on how holiday and festival pay should be calculated, helping employees understand their rights when working on public holidays. Since holiday pay is higher than regular workday pay, understanding the exact regulations will help employees avoid being disadvantaged when negotiating with employers.
If you need in-depth consultation or support on HR services and salary calculations, please contact KMC. We are committed to providing optimal solutions that ensure accuracy, transparency, and legal compliance!
- Website: https://kmc.vn/
- Hotline: +84 81 489 4789 or +84 91 988 9331
- Email: info@kmc.vn
