How Vietnam severance is calculated
For eligible termination after at least 12 months of regular service, the ordinary allowance is half a month of the six-month average contractual wage per qualifying year. Subtract excluded periods before rounding the remaining service. Article 46 · Article 8
Worked example: service exclusions matter
1 March 2021–31 October 2026 is 68 months. Subtract 39 months of qualifying exclusions: 29 months remain. Two years and five months rounds to 2.5 years.
2.5 years × 0.5 × ₫85,000,000
₫106,250,000Illustration only. The exclusions and eligibility must match the employee’s records.
Questions before you leave
Can foreign employees receive Vietnam severance?
Yes, when the statutory conditions are met. The Ministry of Home Affairs confirmed this in its 18 August 2026 government response. Nationality does not automatically exclude an employee.
Why are insurance periods deducted?
The calculation removes unemployment-insurance periods, periods with the equivalent employer contribution paid alongside wages, and service already settled by severance or job-loss allowance. Social insurance is a different category: participation alone is not this deduction.
How does service rounding work?
Complete 12-month years count in full. A remaining period of up to six months counts as half a year; over six months counts as a full year. Exactly two years stays two years; two years and five months becomes 2.5. The calculator includes your final employed day. Any residual days are provisionally treated as a partial month; confirm payroll treatment if that affects the result.
Is Vietnamese severance the same as Korean retirement pay?
No. This tool applies Vietnamese employment rules, including the half-month rate and qualifying-service exclusions. It does not calculate Korean statutory retirement pay or resolve claims under a separate Korean employment arrangement.
What if I am made redundant or my work permit expires?
Redundancy may fall under job-loss allowance in Article 47 and needs a separate calculation. Termination solely because a work permit expires is Article 34(12), outside Article 46’s listed grounds. If several grounds apply or the termination is disputed, obtain a case-specific assessment.
What should I ask payroll for?
Your service record including probation and leave, the last six contractual wage amounts, unemployment-insurance or replacement-payment records, details of past allowance payments, and the documented legal termination ground. Check final salary and unused leave separately.
Legal sources & review history
Source provisions reviewed: 11 September 2026. Version 1.0 covers ordinary severance; it is an estimate, not a legal determination. The Vietnamese source text governs.
- Labour Code 45/2019/QH14 — Articles 34, 40 and 46
- Decree 145/2020/NĐ-CP — Article 8 (service, exclusions, rounding and wages)
- Government response on foreign-worker severance — 18 August 2026
11 September 2026 — Initial English and Korean release. Added eligibility screening, separate exclusions, half-year rounding and six-month wage averaging.