Quick answer
In Vietnam a Tết bonus or 13th-month pay is added to your income for the month your employer pays it and taxed on the progressive table, but no insurance is deducted from it. The tax on the bonus = that month's tax with the bonus − the tax without it. On a VND 20m salary with a VND 20m bonus and no dependants, the month's tax rises from VND 120,000 to 1,740,000, so the bonus loses VND 1,620,000 and you keep 18,380,000.
Key points
- The bonus is taxed in the month it is paid, together with that month's salary; no social, health or unemployment insurance applies.
- The tax on a bonus is usually a higher share than on your salary because the bonus falls into higher brackets.
- VND 20m salary, VND 20m bonus, no dependants: VND 1,620,000 extra tax; each dependant lowers it further.
- Splitting the bonus over two months lowers the withholding; the annual finalisation recalculates, so the yearly tax barely changes.
- 13th-month pay is not required by law: bonuses follow the employer's bonus rules (Article 104 of the 2019 Labour Code).
Want a quick answer for bonuses from VND 5 to 200 million at different salaries? Vietnam Tết bonus tax table by amount
How are Tết bonuses and 13th-month pay taxed in Vietnam?
This calculator works out the extra personal income tax when you receive a Tết bonus, 13th-month salary or year-end bonus in Vietnam. Enter your monthly salary, the bonus (an amount, a number of months of salary, or 13th-month pay pro-rated by the months you worked), your dependants and the month the bonus is paid. You get the extra tax, the bonus after tax, the take-home pay for that month, what changes if the bonus is split over two months and roughly how much may come back at the annual finalisation. It uses the same tax, insurance and deduction rules as the site's gross–net salary and income tax calculators.
How to calculate tax on a Tết bonus
- 1
Enter your gross monthly salary without the bonus (salary plus taxable allowances paid every month).
- 2
Choose how the bonus is set: type the amount, enter a number of months of salary (for example 1.5), or pick “13th month” and enter the months worked this year. For the last two, choose whether it is based on gross or insured salary.
- 3
Enter the number of registered dependants and the month your employer pays the bonus (usually January or December).
- 4
If your insured salary is lower than gross, enter it under “More options”; the bonus carries no insurance, so insurance in the bonus month stays on that salary.
- 5
Read the extra tax and the bonus after tax, the with/without comparison, the two-month split and the annual finalisation box. Press “Share” to send a link with your figures filled in.
Extra tax from a Tết bonus (no dependants, paid January 2027)
Calculated with the tool itself: 10.5% insurance on salary, VND 15.5m personal deduction a month, five-bracket table.
| Monthly salary | Bonus | Extra tax | Bonus after tax | Split over 2 months |
|---|---|---|---|---|
| VND 10m | VND 10m | VND 172,500 | VND 9,827,500 | VND 0 |
| VND 15m | VND 15m | VND 792,500 | VND 14,207,500 | VND 542,500 |
| VND 20m | VND 20m | VND 1,620,000 | VND 18,380,000 | VND 1,240,000 |
| VND 25m | VND 25m | VND 2,531,250 | VND 22,468,750 | VND 2,187,500 |
| VND 30m | VND 30m | VND 4,135,000 | VND 25,865,000 | VND 3,000,000 |
| VND 40m | VND 40m | VND 7,060,000 | VND 32,940,000 | VND 6,060,000 |
Swipe sideways to see the whole table →
“Split over 2 months”: total extra tax if half is paid in January and half in February 2027. Dependants reduce the tax.
Tết payments: taxable or not?
| Payment | Taxable? | Note |
|---|---|---|
| Cash Tết bonus, 13th-month pay, year-end bonus | Yes | Added to salary income in the month paid. |
| Tết gifts or bonuses in kind from the employer | Yes | Valued at the market price when received. |
| Employer spending on staff for holidays and Tết | Yes | A benefit paid by the employer. |
| Bonuses with State emulation titles and commendations | No | Under the law on emulation and commendation. |
| Cash or gifts from trade union funds | No | Not of a salary nature. |
| Overtime on Tết (300%), pay for untaken annual leave | No | Exempt under the 2025 Personal Income Tax Law. |
| Lucky money and cash gifts between family and friends | No | Not taxable income. |
Based on Personal Income Tax Law No. 109/2025/QH15 (Articles 3 and 4) and Decree 253/2026/NĐ-CP (Articles 8 and 17).
Worked examples
VND 20m salary, VND 20m Tết bonus, no dependants
Normal month: 20,000,000 − 2,100,000 insurance − 15,500,000 = 2,400,000 subject to tax, tax VND 120,000. Bonus month: 40,000,000 − 2,100,000 − 15,500,000 = 22,400,000; tax = 10,000,000 × 5% + 12,400,000 × 10% = VND 1,740,000. The bonus costs VND 1,620,000 in tax, leaving 18,380,000.
VND 30m salary, one dependant, two months' bonus
Bonus VND 60m. Bonus month: 90,000,000 − 3,150,000 − 15,500,000 − 6,200,000 = 65,150,000 subject to tax, reaching the 30% bracket: tax VND 10,045,000. A normal month's tax is 257,500, so VND 9,787,500 is withheld from the bonus (16.3%). Split over two months it is 6,545,000.
13th-month pay after eight months
Salary VND 24m, started in May: 13th-month pay = 24,000,000 × 8 / 12 = VND 16,000,000. The month's tax rises from 299,000 to 1,698,000, so VND 1,399,000 goes in tax and 14,601,000 is left.
Common misunderstandings
- Applying a flat 10% to the bonus.
- Employees on contracts of three months or more are withheld on the progressive table using the whole month's income. The tax on the bonus is the difference between the month with and without it, which can be above or below 10%.
- Deducting insurance from the bonus.
- Bonuses are not part of the salary used for social, health and unemployment insurance, so insurance in the bonus month does not rise.
- Thinking the bonus belongs to the year it was earned for.
- It is taxed when paid. A 2026 bonus paid in January 2027 falls into the 2027 tax year and is finalised with your 2027 income.
Is splitting the bonus over two months worth it?
The tax table works per month, so a large bonus paid at once pushes that slice of income into the 10%, 20% or 30% bracket. Paid half now and half next month, each month goes over by less, so the immediate withholding is usually lower: for a VND 20m salary and 20m bonus it is VND 1,240,000 instead of 1,620,000.
The difference is not a permanent saving: at the annual finalisation the whole year's income is added up, the annual deductions are applied and the annual table (thresholds × 12) is used. Splitting mainly improves your cash flow around Tết; any over-withholding is corrected at the finalisation.
Why the annual finalisation often gives money back
Your employer only withholds based on each month's income. The bonus month is unusually high, so it is withheld at a higher bracket; across the year the bonus is effectively spread over 12 months and taxed lower. With a VND 20m salary and 20m bonus, VND 3,060,000 is withheld over the year but the tax for the year is only 2,440,000, so VND 620,000 is refunded or offset.
With one employer and an authorisation, the employer files for you; with two or more income sources you file yourself. The finalisation box in the calculator assumes the same salary for 12 months and only this bonus, so treat it as an estimate.
Is 13th-month pay mandatory in Vietnam?
No. Article 104 of the 2019 Labour Code defines a bonus as money, property or another form the employer gives based on business results and how well the employee completed their work. The employer decides the bonus rules and publishes them at the workplace after consulting the grassroots employee representative organisation, if there is one.
So the law neither requires a 13th-month salary or Tết bonus nor sets a minimum. If your employment contract, collective agreement or bonus policy promises it, the employer must pay as promised. Pro-rating by months worked (salary × months / 12) is common practice, not a legal formula. The same rules apply to foreign employees on Vietnamese employment contracts.
Tết payments that are not taxed
Under the 2025 Personal Income Tax Law and Decree 253/2026/NĐ-CP, bonuses in cash or in kind from your employer are salary income, and gifts such as hampers or vouchers are valued at market price. Not counted as taxable income: bonuses that come with State emulation titles and commendation awards, national or international prizes recognised by the State, recognised technical innovation awards, and money or gifts from trade union funds that are not of a salary nature.
Working on Tết pays at least 300%, and all lawful overtime and night pay is exempt, as is pay for untaken annual leave. Lucky money between family and friends is not taxable, because gifts are only taxed when they are securities, capital contributions, real estate or assets that must be registered.
Glossary
- Extra tax from the bonus
- The bonus month's tax minus the tax that month would have without the bonus: what the bonus really costs in tax.
- 13th-month pay
- A year-end bonus usually equal to one month's salary, often pro-rated for employees who worked part of the year.
- Withholding
- Tax your employer keeps back each time it pays you, based on that month's income; not your final tax for the year.
- Annual finalisation
- Recalculating the whole year's tax after it ends to pay more or get back the difference from what was withheld.
Frequently asked questions
Is a Tết bonus taxed in Vietnam?
Yes. Tết bonuses, 13th-month pay and year-end bonuses in cash or in kind are salary income, added to the month they are paid for withholding. If that month's income after insurance and family deductions is still below the taxable level, no tax is due.
Is insurance deducted from a Tết bonus?
No. Bonuses are not part of the monthly salary for social, health or unemployment insurance, so you pay the same insurance as every month and only income tax rises.
How much tax is due on a VND 20 million bonus?
It depends on your salary. On a VND 20m salary with no dependants, a VND 20m bonus adds VND 1,620,000 of tax; with one dependant it adds 1,120,000. On a VND 10m salary the same bonus adds only VND 845,000. The lookup table lists every level.
How is 13th-month pay calculated for part of a year?
Usually monthly salary × months worked / 12, so eight months on VND 24m gives VND 16m. This is common practice, not a legal rule: the formula and the base salary follow your employer's bonus policy.
Which tax year does a bonus paid in January 2027 belong to?
2027. Salary income is taxed when it is paid, so a bonus for 2026 paid in January 2027 is withheld in January 2027 and finalised with your 2027 income.
Are Tết gifts in kind taxable?
Yes, if your employer gives them: their market value is added to taxable income. Money or gifts from trade union funds that are not of a salary nature are not taxed.
Does splitting the bonus over two months reduce tax?
It reduces the immediate withholding, not much of the yearly tax. At the finalisation the 12 months are added up and the annual table is applied, so any over-withholding from a single large payment is refunded or offset.
Does the calculator work for non-residents?
No. Non-resident individuals pay a flat 20% on Vietnamese-sourced employment income, so the extra tax is simply 20% of the bonus. The calculator is for tax residents on the progressive table.
Is the data I enter stored?
No. The calculation runs entirely in your browser; your figures only go into the link (after #!) if you press “Share”, and that part is never sent to the server.
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