Calculation of annual leave according to the latest regulations of law

Leave, also known as annual leave, is one of the benefits employees enjoy when entering into a labor contract. Therefore, employees need to pay attention to the benefits and regimes they are entitled to, such as how many days of annual leave do they get? How is the salary paid for annual leave? If not taking a break, can an employee get paid? When the employee leaves the job without taking the full number of annual leave days, will he/she be paid for such day?

The number of leave days when working full 12 months

Article 113 of Labor Code 2019 stipulates: Any employee who has been working for an employer for fully 12 months is entitled to fully-paid annual leave, which is stipulated in his/her employment contract as follows:

  • For employees who work in normal working conditions: 12 working days.
  • For employees that are minors, the disabled, employees who do laborious, toxic or dangerous works: 14 working days.
  • For employees who do highly laborious, toxic or dangerous works: 16 working days.

Subject to working seniority, the annual leave of an employee shall increase by 01 day for every 05 years of employment. An employee may reach an agreement with the employer on taking annual leave in instalments or combining annual leave over a maximum period of up to 03 years.

The number of leave days when working less than 12 months?

When the employee has been working for less than 12 months, he/she is still entitled to a number of paid leave days proportional to the number of working months.

Periods included in working time as the basis for calculation of annual leave: (Legal basic: Article 65 Decree 145/2020/ND-CP)

  • Vocational training and apprenticeship period if the employee keeps working for the employer after the end of the vocational training or apprenticeship period;
  • Probation period if the employee keeps working for the employer after the end of the probation period;
  • Personal fully-paid leave;
  • Unpaid leave if accepted by the employer and not exceeding 01 month per year totally;
  • Leave taken due to occupational accidents or diseases if not exceeding 6 months totally;
  • Sick leave if not exceeding 02 months per year totally;
  • Maternal leave;
  • Period of performance of duties of the internal employee representative organization that is included in working time;
  • Work suspension and leave through no fault of the employee;
  • Suspension period after which the employee is exonerated or exempt from disciplinary actions.

*** In case where a worker has not worked for a full month, if his/her total number of working days and paid leave days (public/New Year holidays, annual leave, paid leave for personal business) account for 50% or more of the agreed normal working days in a month, that month shall be regarded as a full working month for calculating the annual leave days.

HOW TO CALCULATE ANNUAL LEAVE

* Working less than 12 months:

Annual leave= the number of annual leave days + the number of additional leave days subject to working seniority (if any) / 12 x actual number of working months in the year

In which:

– The number of annual leave days of employees is from 12 to 16 days depending on working condition and working subjects.

For example: In 2020, Mr. B has worked for company ABC in normal working condition for 03 months, excluding 02 months of probation. Accordingly, the number of working months of Mr. B is 05 months. Thereby, we can determine the number of annual leave days of Mr. B as follows:

The number of annual leave days = 12 days / 12 x 5 months = 5 days

* Working for full 12 months:

Annual leave = the number of annual leave days + the number of additional leave days subject to working seniority (if any)

For example: Mr. C has worked for company ABC under normal conditions since December 2015. From 12/2012- 12/2020, Mr. C would be entitled to 12 leave days each year. From the sixth month, in 2021, Mr. A will be entitled to 13 days of annual leave.

What are the benefits of annual leave period?

  • An employee is entitled to fully-paid annual leave, which is stipulated in his/her labor
  • When an employee takes his/her annual leave before salary payment is due, he/she may receive an advance payment of at least salary for the entitled days of leave.
  • An employee who, due to employment termination or job loss or other reasons, has not taken or not entirely taken up his/her annual leave shall be paid in compensation for the untaken leave days.
  • When taking annual leave, should the employee travel by road, rail, water and the travel days, the traveling time in excess to 02 days will be added to the annual leave days, and this policy shall only be granted once for an annual leave in a year.

Salary used as the basis for calculating the payment of the annual leave

  • The salary used as the basis for calculating the payment for employees in the annual leave shall be the salary in the labor contract at the time the employee take the annual leave.
  • The salary used as the basis for calculating the payment for employees in untaken leave days or fully untaken annual leave days is The salary under labor contract of the preceding 06 months before the employee terminates or loses his/her jobs.
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