{"id":16537,"date":"2025-11-20T15:25:51","date_gmt":"2025-11-20T08:25:51","guid":{"rendered":"https:\/\/vietnamteachingjobs.com\/blog\/?p=16537"},"modified":"2025-11-20T15:25:56","modified_gmt":"2025-11-20T08:25:56","slug":"how-severance-pay-is-calculated-in-vietnam","status":"publish","type":"post","link":"https:\/\/vietnamteachingjobs.com\/blog\/how-severance-pay-is-calculated-in-vietnam\/","title":{"rendered":"How Severance Pay is Calculated in Vietnam"},"content":{"rendered":"\n<p>Severance pay in Vietnam is calculated as <strong>half a month&#8217;s average salary multiplied by your years of service<\/strong>, based on your last <strong>6 consecutive months<\/strong> of earnings. Foreign teachers working <strong>12+ months<\/strong> receive <strong>0.5 months&#8217; salary per year worked<\/strong> (for example, 3 years of service equals 1.5 months&#8217; salary), paid within <strong>14 working days<\/strong> after contract termination under the 2019 Labor Code.<\/p>\n\n\n\n<p>The calculation formula applies to all foreign language teachers and education professionals who meet three conditions: worked regularly for <strong>12+ consecutive months<\/strong>, hold definite-term or indefinite-term contracts, and terminate employment under lawful circumstances specified in Article 34 of the Labor Code. Unlike Vietnamese employees, foreign teachers are <strong>not subject to unemployment insurance deductions<\/strong>, meaning your entire work period counts toward severance calculations without reductions for social insurance contributions.<\/p>\n\n\n\n<p>This guide follows the 2019 Labor Code (Law No. 45\/2019\/QH14), Decree 145\/2020\/ND-CP (effective February 1, 2021), and the 2014 Social Insurance Law (Law No.58\/2014\/QH13).<\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><div><strong>Quick Navigation Guide<\/strong><\/div><nav><ul><li class=\"\"><a href=\"#how-is-the-basic-severance-pay-formula-applied-in-vietnam\">How Is the Basic Severance Pay Formula Applied in Vietnam?<\/a><ul><li class=\"\"><a href=\"#step-1-calculate-your-average-monthly-salary\">Step 1: Calculate Your Average Monthly Salary<\/a><\/li><li class=\"\"><a href=\"#step-2-calculate-your-service-years\">Step 2: Calculate Your Service Years<\/a><\/li><li class=\"\"><a href=\"#step-3-apply-the-0-5-multiplier\">Step 3: Apply the 0.5 Multiplier<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#what-salary-components-are-included-in-severance-calculations\">What Salary Components Are Included in Severance Calculations?<\/a><ul><li class=\"\"><a href=\"#multiple-successive-contracts\">Multiple Successive Contracts<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#how-do-foreign-teachers-calculate-service-years-differently-from-vietnamese-employees\">How Do Foreign Teachers Calculate Service Years Differently from Vietnamese Employees?<\/a><ul><li class=\"\"><a href=\"#what-counts-as-total-time-worked\">What Counts as Total Time Worked<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#what-happens-when-teachers-have-multiple-consecutive-contracts\">What Happens When Teachers Have Multiple Consecutive Contracts?<\/a><ul><li class=\"\"><a href=\"#scenario-1-typical-contract-renewals-most-common\">Scenario 1: Typical Contract Renewals (Most Common)<\/a><\/li><li class=\"\"><a href=\"#scenario-2-short-contracts-avoiding-social-insurance\">Scenario 2: Short Contracts Avoiding Social Insurance<\/a><\/li><li class=\"\"><a href=\"#scenario-3-legitimate-contract-gaps\">Scenario 3: Legitimate Contract Gaps<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#when-must-employers-pay-severance-to-foreign-teachers\">When Must Employers Pay Severance to Foreign Teachers?<\/a><\/li><li class=\"\"><a href=\"#how-are-partial-years-rounded-in-severance-calculations\">How Are Partial Years Rounded in Severance Calculations?<\/a><ul><li class=\"\"><a href=\"#strategic-timing-insight\">Strategic Timing Insight<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#what-are-the-most-common-severance-calculation-mistakes\">What Are the Most Common Severance Calculation Mistakes?<\/a><ul><li class=\"\"><a href=\"#1-unemployment-insurance-deduction-error-most-common-for-foreign-teachers\">1. Unemployment Insurance Deduction Error (Most Common for Foreign Teachers)<\/a><\/li><li class=\"\"><a href=\"#2-wrong-salary-basis\">2. Wrong Salary Basis<\/a><\/li><li class=\"\"><a href=\"#3-successive-contract-errors\">3. Successive Contract Errors<\/a><\/li><li class=\"\"><a href=\"#4-missing-payment-deadline\">4. Missing Payment Deadline<\/a><\/li><li class=\"\"><a href=\"#5-improper-rounding\">5. Improper Rounding<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#are-foreign-teachers-exempt-from-any-severance-requirements\">Are Foreign Teachers Exempt from Any Severance Requirements?<\/a><ul><li class=\"\"><a href=\"#youre-not-eligible-if\">You&#8217;re NOT Eligible If:<\/a><\/li><li class=\"\"><a href=\"#you-are-eligible-if\">You ARE Eligible If:<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#how-can-teachers-verify-their-severance-calculation-is-correct\">How Can Teachers Verify Their Severance Calculation Is Correct?<\/a><ul><li class=\"\"><a href=\"#step-1-collect-salary-documentation\">Step 1: Collect Salary Documentation<\/a><\/li><li class=\"\"><a href=\"#step-2-calculate-service-years\">Step 2: Calculate Service Years<\/a><\/li><li class=\"\"><a href=\"#step-3-apply-formula\">Step 3: Apply Formula<\/a><\/li><li class=\"\"><a href=\"#step-4-verify-payment-components\">Step 4: Verify Payment Components<\/a><\/li><li class=\"\"><a href=\"#red-flags-indicating-calculation-errors\">Red Flags Indicating Calculation Errors:<\/a><\/li><li class=\"\"><a href=\"#action-if-calculation-disputed\">Action If Calculation Disputed:<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#frequently-asked-questions-about-severance-pay-in-vietnam\">Frequently Asked Questions About Severance Pay in Vietnam<\/a><ul><li class=\"\"><a href=\"#can-i-negotiate-higher-severance-than-the-legal-minimum\">Can I Negotiate Higher Severance Than the Legal Minimum?<\/a><\/li><li class=\"\"><a href=\"#what-if-my-employer-refuses-to-pay-severance\">What If My Employer Refuses to Pay Severance?<\/a><\/li><li class=\"\"><a href=\"#does-severance-pay-count-as-taxable-income\">Does Severance Pay Count as Taxable Income?<\/a><\/li><li class=\"\"><a href=\"#am-i-entitled-to-severance-if-i-resign-voluntarily\">Am I Entitled to Severance If I Resign Voluntarily?<\/a><\/li><li class=\"\"><a href=\"#what-happens-to-severance-if-my-school-closes-or-goes-bankrupt\">What Happens to Severance If My School Closes or Goes Bankrupt?<\/a><\/li><li class=\"\"><a href=\"#do-part-time-teachers-qualify-for-severance-pay\">Do Part-Time Teachers Qualify for Severance Pay?<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#need-more-information-on-vietnam-employment-rights\">Need More Information on Vietnam Employment Rights?<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-is-the-basic-severance-pay-formula-applied-in-vietnam\"><strong>How Is the Basic Severance Pay Formula Applied in Vietnam?<\/strong><\/h2>\n\n\n\n<p>The basic severance formula is: <strong>Severance Pay = 0.5 \u00d7 Average Monthly Salary (last 6 months) \u00d7 Years of Service<\/strong>. For example, a teacher earning <strong>VND 30,000,000<\/strong> monthly who worked <strong>3 years<\/strong> receives: 0.5 \u00d7 VND 30,000,000 \u00d7 3 = <strong>VND 45,000,000<\/strong> in severance pay.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Is-the-Basic-Severance-Pay-Formula-Applied-in-Vietnam-1024x682.jpg\" alt=\"How Is the Basic Severance Pay Formula Applied in Vietnam?\" class=\"wp-image-16539\" srcset=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Is-the-Basic-Severance-Pay-Formula-Applied-in-Vietnam-1024x682.jpg 1024w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Is-the-Basic-Severance-Pay-Formula-Applied-in-Vietnam-300x200.jpg 300w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Is-the-Basic-Severance-Pay-Formula-Applied-in-Vietnam-768x512.jpg 768w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Is-the-Basic-Severance-Pay-Formula-Applied-in-Vietnam.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-1-calculate-your-average-monthly-salary\"><strong>Step 1: Calculate Your Average Monthly Salary<\/strong><\/h3>\n\n\n\n<p>Your average monthly salary includes your <strong>base wage plus all fixed allowances<\/strong> from the last <strong>6 consecutive months<\/strong> before termination. According to Decree 145\/2020\/ND-CP Article 8, this calculation must use actual paid wages, not contracted amounts if they differ.<\/p>\n\n\n\n<p><strong>Example calculation:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total earnings for months 1-6: <strong>VND 180,000,000<\/strong><\/li>\n\n\n\n<li>Average: VND 180,000,000 \u00f7 6 = <strong>VND 30,000,000<\/strong><\/li>\n<\/ul>\n\n\n\n<p>The <strong>VND 30,000,000<\/strong> average becomes your salary basis for severance calculation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-2-calculate-your-service-years\"><strong>Step 2: Calculate Your Service Years<\/strong><\/h3>\n\n\n\n<p>For foreign teachers, service years equal your <strong>total time worked minus any previous severance payments received<\/strong> from the same employer. The 2019 Labor Code Article 46 specifies that foreign employees are <strong>not subject to unemployment insurance deductions<\/strong>, unlike Vietnamese staff.<\/p>\n\n\n\n<p><strong>Rounding rules according to Decree 145\/2020\/ND-CP Article 8:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>6 months or less<\/strong> of incomplete year = <strong>0.5 year<\/strong><\/li>\n\n\n\n<li><strong>More than 6 months<\/strong> of incomplete year = <strong>1.0 year<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Examples:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Worked <strong>2 years 4 months<\/strong> \u2192 counts as <strong>2.5 years<\/strong><\/li>\n\n\n\n<li>Worked <strong>2 years 8 months<\/strong> \u2192 rounds to <strong>3.0 years<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-3-apply-the-0-5-multiplier\"><strong>Step 3: Apply the 0.5 Multiplier<\/strong><\/h3>\n\n\n\n<p>Vietnamese law mandates <strong>half a month&#8217;s salary per year<\/strong> of service. This <strong>0.5 multiplier<\/strong> is fixed by Article 46 of the Labor Code and cannot be negotiated lower.<\/p>\n\n\n\n<p><strong>Complete calculation example:<\/strong><\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>VND 30,000,000 \u00d7 0.5 \u00d7 3 years = VND 45,000,000<\/code><\/pre>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-salary-components-are-included-in-severance-calculations\"><strong>What Salary Components Are Included in Severance Calculations?<\/strong><\/h2>\n\n\n\n<p>Severance calculations include your <strong>base salary plus all fixed monthly allowances<\/strong> averaged over the last <strong>6 consecutive months<\/strong>, but <strong>exclude<\/strong> one-time bonuses, annual bonuses, or variable performance payments. According to Decree 145\/2020\/ND-CP, only contractually fixed and regular payments count toward your severance salary basis.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Included in Calculation<\/strong><\/th><th><strong>Excluded from Calculation<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Base monthly salary<\/td><td>Annual bonuses (13th month)<\/td><\/tr><tr><td>Housing allowance (if fixed)<\/td><td>One-time performance bonuses<\/td><\/tr><tr><td>Transportation allowance (if fixed)<\/td><td>Overtime payments<\/td><\/tr><tr><td>Fixed teaching allowances<\/td><td>Variable incentive payments<\/td><\/tr><tr><td>Seniority supplements<\/td><td>Per diem or travel reimbursements<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Your <strong>base salary plus fixed allowances<\/strong> equals your severance calculation basis.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"multiple-successive-contracts\"><strong>Multiple Successive Contracts<\/strong><\/h3>\n\n\n\n<p>If you&#8217;ve worked under <strong>multiple consecutive contracts<\/strong> with the same employer, the Labor Code Article 46 requires using the <strong>average salary from the last 6 months before your final contract ends<\/strong>. This protects teachers whose salaries increased over time.<\/p>\n\n\n\n<p><strong>Example scenario:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contract 1 (2 years): VND 25,000,000\/month<\/li>\n\n\n\n<li>Contract 2 (1 year): VND 30,000,000\/month<\/li>\n\n\n\n<li>Last 6 months average: <strong>VND 30,000,000<\/strong> (this amount is used for calculation)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-do-foreign-teachers-calculate-service-years-differently-from-vietnamese-employees\"><strong>How Do Foreign Teachers Calculate Service Years Differently from Vietnamese Employees?<\/strong><\/h2>\n\n\n\n<p>Foreign teachers count their <strong>entire work period<\/strong> toward severance because they are <strong>not subject to unemployment insurance contributions<\/strong>, unlike Vietnamese employees who must subtract UI participation periods. According to Decree 145\/2020\/ND-CP Article 8, the formula for foreign employees is: <strong>Total Time Worked &#8211; Previous Severance Paid (if any)<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Do-Foreign-Teachers-Calculate-Service-Years-Differently-from-Vietnamese-Employees-1024x683.jpg\" alt=\"How Do Foreign Teachers Calculate Service Years Differently from Vietnamese Employees?\" class=\"wp-image-16540\" srcset=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Do-Foreign-Teachers-Calculate-Service-Years-Differently-from-Vietnamese-Employees-1024x683.jpg 1024w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Do-Foreign-Teachers-Calculate-Service-Years-Differently-from-Vietnamese-Employees-300x200.jpg 300w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Do-Foreign-Teachers-Calculate-Service-Years-Differently-from-Vietnamese-Employees-768x512.jpg 768w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Do-Foreign-Teachers-Calculate-Service-Years-Differently-from-Vietnamese-Employees.jpg 1279w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Employee Type<\/strong><\/th><th><strong>Service Calculation<\/strong><\/th><th><strong>Typical Result<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Foreign Teachers<\/td><td>Total work time minus previous severance paid<\/td><td>3 years work = 3 years counted<\/td><\/tr><tr><td>Vietnamese Employees<\/td><td>Total work time minus UI period minus previous severance<\/td><td>3 years work = approximately 1.5-2 years counted<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Foreign teachers receive <strong>significantly higher severance<\/strong> because the <strong>entire work period counts<\/strong> without UI deductions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-counts-as-total-time-worked\"><strong>What Counts as Total Time Worked<\/strong><\/h3>\n\n\n\n<p>According to Decree 145\/2020\/ND-CP Article 8, your total time includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Direct teaching hours and preparation time<\/li>\n\n\n\n<li>Probationary periods (if specified in your contract)<\/li>\n\n\n\n<li>Paid sick leave covered by your employer<\/li>\n\n\n\n<li>Maternity\/paternity leave with salary<\/li>\n\n\n\n<li>Work suspension periods through no fault of yours<\/li>\n\n\n\n<li>Public duty leave with salary<\/li>\n<\/ul>\n\n\n\n<p><strong>What does NOT count:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Unpaid leave exceeding <strong>5 consecutive working days<\/strong> without acceptable excuse<\/li>\n\n\n\n<li>Contract periods declared <strong>null and void<\/strong> due to illegal terms<\/li>\n\n\n\n<li>Time under contracts you <strong>unilaterally terminated<\/strong> in violation of law<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-happens-when-teachers-have-multiple-consecutive-contracts\"><strong>What Happens When Teachers Have Multiple Consecutive Contracts?<\/strong><\/h2>\n\n\n\n<p>When you&#8217;ve worked under <strong>multiple successive contracts<\/strong> with the same employer, all contract periods are <strong>combined for severance calculations<\/strong> as long as you never received severance payments between contracts. The Labor Code Article 20 specifies that successive contracts create <strong>continuous service history<\/strong> for severance purposes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"scenario-1-typical-contract-renewals-most-common\"><strong>Scenario 1: Typical Contract Renewals (Most Common)<\/strong><\/h3>\n\n\n\n<p>Many language centers use yearly contracts that auto-renew:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Year 1: VND 25,000,000\/month<\/li>\n\n\n\n<li>Year 2: VND 28,000,000\/month<\/li>\n\n\n\n<li>Year 3: VND 30,000,000\/month<\/li>\n\n\n\n<li><strong>Severance calculation:<\/strong> 3 years total service<\/li>\n\n\n\n<li><strong>Salary basis:<\/strong> Last 6 months average (VND 30,000,000)<\/li>\n\n\n\n<li><strong>Severance:<\/strong> 0.5 \u00d7 VND 30,000,000 \u00d7 3 = <strong>VND 45,000,000<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"scenario-2-short-contracts-avoiding-social-insurance\"><strong>Scenario 2: Short Contracts Avoiding Social Insurance<\/strong><\/h3>\n\n\n\n<p>Some schools use <strong>11.5-month contracts<\/strong> to avoid insurance obligations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contract 1: 11.5 months (VND 25,000,000\/month)<\/li>\n\n\n\n<li>Gap: 2 weeks<\/li>\n\n\n\n<li>Contract 2: 11.5 months (VND 26,000,000\/month)<\/li>\n\n\n\n<li>Gap: 2 weeks<\/li>\n\n\n\n<li>Contract 3: 11.5 months (VND 27,000,000\/month)<\/li>\n<\/ul>\n\n\n\n<p>If gaps are minimal and clearly designed to evade labor laws, Vietnamese courts may rule these as continuous employment. However, employers often dispute this, leading to legal battles.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"scenario-3-legitimate-contract-gaps\"><strong>Scenario 3: Legitimate Contract Gaps<\/strong><\/h3>\n\n\n\n<p>If you take <strong>extended unpaid leave<\/strong> (30+ days) between contracts or work elsewhere temporarily:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Previous contract severance may be settled separately<\/li>\n\n\n\n<li>New contract starts fresh service calculation<\/li>\n\n\n\n<li>Total severance equals sum of both calculations<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-must-employers-pay-severance-to-foreign-teachers\"><strong>When Must Employers Pay Severance to Foreign Teachers?<\/strong><\/h2>\n\n\n\n<p>Vietnamese law mandates severance payment within <strong>14 working days<\/strong> after your final work day, not 14 calendar days. According to Labor Code Article 48, employers who miss this deadline face fines of <strong>VND 1,000,000-20,000,000<\/strong> (individual employers) or <strong>VND 2,000,000-40,000,000<\/strong> (organizations), plus mandatory interest at the highest demand deposit rate of state-owned banks.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/When-Must-Employers-Pay-Severance-to-Foreign-Teachers-1024x682.jpg\" alt=\"When Must Employers Pay Severance to Foreign Teachers?\" class=\"wp-image-16541\" srcset=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/When-Must-Employers-Pay-Severance-to-Foreign-Teachers-1024x682.jpg 1024w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/When-Must-Employers-Pay-Severance-to-Foreign-Teachers-300x200.jpg 300w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/When-Must-Employers-Pay-Severance-to-Foreign-Teachers-768x512.jpg 768w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/When-Must-Employers-Pay-Severance-to-Foreign-Teachers.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><strong>Payment timeline breakdown:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Day 0:<\/strong> Your last working day<\/li>\n\n\n\n<li><strong>Days 1-14 (working days):<\/strong> Employer must pay severance plus final salary plus unused leave<\/li>\n\n\n\n<li><strong>Day 15+:<\/strong> Employer faces administrative fines plus interest penalties<\/li>\n<\/ul>\n\n\n\n<p>The <strong>14 working days<\/strong> deadline excludes weekends, public holidays, and Tet holidays.<\/p>\n\n\n\n<p><strong>Example calculation of working days:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Final work day: Friday, December 20, 2024<\/li>\n\n\n\n<li>Deadline: Friday, January 10, 2025 (14 working days, excluding weekends and Tet)<\/li>\n<\/ul>\n\n\n\n<p><strong>What&#8217;s included in final payment:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Outstanding salary for days worked<\/li>\n\n\n\n<li>Unused annual leave converted to cash (Labor Code Article 113)<\/li>\n\n\n\n<li>Severance pay calculated per formula<\/li>\n\n\n\n<li>Pro-rated 13th month bonus (if applicable per contract)<\/li>\n<\/ol>\n\n\n\n<p>For comprehensive guidance on Vietnamese labor regulations for teachers, see our <a href=\"https:\/\/vietnamteachingjobs.com\/blog\/vietnam-labor-code-for-foreign-teachers\/\" target=\"_blank\" rel=\"noreferrer noopener\">Vietnam Labor Code for Foreign Teachers: Essential Guide 2025<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-are-partial-years-rounded-in-severance-calculations\"><strong>How Are Partial Years Rounded in Severance Calculations?<\/strong><\/h2>\n\n\n\n<p>Partial years follow strict rounding rules: work periods of <strong>6 months or less<\/strong> count as <strong>0.5 years<\/strong>, while periods <strong>exceeding 6 months<\/strong> round up to <strong>1.0 full year<\/strong>. This rounding system, mandated by Decree 145\/2020\/ND-CP Article 8, significantly benefits teachers who work slightly over standard contract periods.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Actual Time Worked<\/strong><\/th><th><strong>Counted Service Years<\/strong><\/th><th><strong>Example Severance (VND 30M base)<\/strong><\/th><\/tr><\/thead><tbody><tr><td>11 months<\/td><td>0.5 years<\/td><td>0.5 \u00d7 VND 30M \u00d7 0.5 = <strong>VND 7,500,000<\/strong><\/td><\/tr><tr><td>1 year + 3 months<\/td><td>1.5 years<\/td><td>0.5 \u00d7 VND 30M \u00d7 1.5 = <strong>VND 22,500,000<\/strong><\/td><\/tr><tr><td>1 year + 7 months<\/td><td>2.0 years<\/td><td>0.5 \u00d7 VND 30M \u00d7 2.0 = <strong>VND 30,000,000<\/strong><\/td><\/tr><tr><td>2 years + 4 months<\/td><td>2.5 years<\/td><td>0.5 \u00d7 VND 30M \u00d7 2.5 = <strong>VND 37,500,000<\/strong><\/td><\/tr><tr><td>2 years + 8 months<\/td><td>3.0 years<\/td><td>0.5 \u00d7 VND 30M \u00d7 3.0 = <strong>VND 45,000,000<\/strong><\/td><\/tr><tr><td>3 years + 6 months<\/td><td>3.5 years<\/td><td>0.5 \u00d7 VND 30M \u00d7 3.5 = <strong>VND 52,500,000<\/strong><\/td><\/tr><tr><td>3 years + 11 months<\/td><td>4.0 years<\/td><td>0.5 \u00d7 VND 30M \u00d7 4.0 = <strong>VND 60,000,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Working just <strong>1 extra month past 6 months<\/strong> increases your severance by <strong>0.5 years&#8217; worth<\/strong> (for example, <strong>VND 7,500,000 more<\/strong> on VND 30,000,000 salary).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"strategic-timing-insight\"><strong>Strategic Timing Insight<\/strong><\/h3>\n\n\n\n<p>Teachers terminating contracts should consider timing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Before month 6:<\/strong> No rounding benefit<\/li>\n\n\n\n<li><strong>After month 6 (even by 1 day):<\/strong> Rounds to full year<\/li>\n\n\n\n<li>Potential gain: <strong>VND 7,500,000<\/strong> for VND 30,000,000 monthly salary<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-the-most-common-severance-calculation-mistakes\"><strong>What Are the Most Common Severance Calculation Mistakes?<\/strong><\/h2>\n\n\n\n<p>The three most frequent errors are: incorrectly deducting unemployment insurance periods that <strong>don&#8217;t apply to foreign workers<\/strong>, using contracted salary instead of <strong>actual average earnings<\/strong> from the last 6 months, and failing to combine <strong>multiple successive contracts<\/strong> into continuous service.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/What-Are-the-Most-Common-Severance-Calculation-Mistakes-1024x682.jpg\" alt=\"What Are the Most Common Severance Calculation Mistakes?\" class=\"wp-image-16542\" srcset=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/What-Are-the-Most-Common-Severance-Calculation-Mistakes-1024x682.jpg 1024w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/What-Are-the-Most-Common-Severance-Calculation-Mistakes-300x200.jpg 300w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/What-Are-the-Most-Common-Severance-Calculation-Mistakes-768x512.jpg 768w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/What-Are-the-Most-Common-Severance-Calculation-Mistakes.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"1-unemployment-insurance-deduction-error-most-common-for-foreign-teachers\"><strong>1. Unemployment Insurance Deduction Error (Most Common for Foreign Teachers)<\/strong><\/h3>\n\n\n\n<p><strong>Incorrect calculation:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Foreign teacher works 3 years<\/li>\n\n\n\n<li>Employer subtracts 3 years of UI period (doesn&#8217;t exist for foreign workers)<\/li>\n\n\n\n<li>Claims: 3 &#8211; 3 = 0 years \u2192 No severance due<\/li>\n<\/ul>\n\n\n\n<p><strong>Correct calculation:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Foreign teachers are not in UI system<\/li>\n\n\n\n<li>Full 3 years count<\/li>\n\n\n\n<li>Severance: <strong>VND 45,000,000<\/strong> (based on VND 30,000,000 salary)<\/li>\n<\/ul>\n\n\n\n<p><strong>Financial impact:<\/strong> VND 45,000,000 difference per example.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-wrong-salary-basis\"><strong>2. Wrong Salary Basis<\/strong><\/h3>\n\n\n\n<p><strong>Incorrect:<\/strong> Using only base salary (VND 20,000,000), ignoring fixed allowances (VND 10,000,000)<\/p>\n\n\n\n<p><strong>Correct:<\/strong> Including base plus fixed allowances (VND 30,000,000 total)<\/p>\n\n\n\n<p><strong>Financial impact:<\/strong> 33% underpayment (VND 30,000,000 vs VND 45,000,000 for 3 years)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-successive-contract-errors\"><strong>3. Successive Contract Errors<\/strong><\/h3>\n\n\n\n<p><strong>Incorrect:<\/strong> Treating 3 separate yearly contracts as independent<\/p>\n\n\n\n<p><strong>Correct:<\/strong> Combining all 3 years as continuous service<\/p>\n\n\n\n<p>If your salary grew from VND 25,000,000 to VND 30,000,000, correct method uses <strong>VND 30,000,000<\/strong> for the entire 3-year period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-missing-payment-deadline\"><strong>4. Missing Payment Deadline<\/strong><\/h3>\n\n\n\n<p>Employers missing the <strong>14 working days<\/strong> deadline face:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Administrative fines: VND 2,000,000-40,000,000 (organizations)<\/li>\n\n\n\n<li>Interest penalties: Highest bank rate<\/li>\n\n\n\n<li>Legal fees if employee files complaint<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-improper-rounding\"><strong>5. Improper Rounding<\/strong><\/h3>\n\n\n\n<p><strong>Incorrect:<\/strong> 2 years 8 months = 2.7 years<br><strong>Correct:<\/strong> 2 years 8 months = 3.0 years (more than 6 months rounds up)<\/p>\n\n\n\n<p><strong>Financial impact:<\/strong> VND 7,500,000 difference on VND 30,000,000 salary<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"are-foreign-teachers-exempt-from-any-severance-requirements\"><strong>Are Foreign Teachers Exempt from Any Severance Requirements?<\/strong><\/h2>\n\n\n\n<p>Foreign teachers are <strong>not exempt<\/strong> from severance pay requirements &#8211; the 2019 Labor Code applies <strong>equally to Vietnamese and foreign employees<\/strong> working under Vietnamese labor contracts. The only exceptions are: employees eligible for <strong>retirement pensions<\/strong> under social insurance laws, or employees <strong>absent without excuse for 5+ consecutive working days<\/strong> (Labor Code Article 36).<\/p>\n\n\n\n<p><strong>Common misconception:<\/strong> Some language centers incorrectly claim foreign teachers on yearly contracts aren&#8217;t entitled to severance. This is legally false. Vietnamese courts have consistently ruled that contract duration doesn&#8217;t affect severance eligibility &#8211; only the <strong>12-month minimum continuous service<\/strong> requirement matters.<\/p>\n\n\n\n<p><strong>Notable case precedent:<\/strong> In 2018, Ho Chi Minh City Court awarded <strong>VND 2,000,000,000 (approximately USD 87,000)<\/strong> to a foreign teacher at International German School who was unlawfully terminated without severance after 5 years of service. The court ruled that the teacher&#8217;s successive yearly contracts constituted continuous employment requiring full severance calculation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"youre-not-eligible-if\"><strong>You&#8217;re NOT Eligible If:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You voluntarily resign before completing 12 months<\/li>\n\n\n\n<li>You&#8217;re dismissed for serious misconduct (theft, violence, revealing trade secrets per Labor Code Article 125)<\/li>\n\n\n\n<li>You&#8217;re absent 5+ consecutive days without medical certificate or valid excuse<\/li>\n\n\n\n<li>You receive retirement pension under Vietnamese social insurance<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"you-are-eligible-if\"><strong>You ARE Eligible If:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your contract expires naturally after 12+ months<\/li>\n\n\n\n<li>Mutual agreement to terminate after 12+ months<\/li>\n\n\n\n<li>Employer-initiated termination for business reasons (restructuring, economic changes)<\/li>\n\n\n\n<li>Work permit becomes invalid (though this is disputable if employer&#8217;s fault)<\/li>\n<\/ul>\n\n\n\n<p>For more information on leave policies that count toward your service time, see <a href=\"https:\/\/vietnamteachingjobs.com\/blog\/vietnam-sick-leave-policy\/\" target=\"_blank\" rel=\"noreferrer noopener\">Vietnam Sick Leave Policy: 30 Days Paid Leave Per Year<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-can-teachers-verify-their-severance-calculation-is-correct\"><strong>How Can Teachers Verify Their Severance Calculation Is Correct?<\/strong><\/h2>\n\n\n\n<p>Verify your severance in 4 steps: confirm your <strong>last 6 months&#8217; average salary<\/strong> from payslips, calculate <strong>total service years<\/strong> from contract start\/end dates with proper rounding, apply the <strong>0.5 multiplier formula<\/strong>, and ensure payment is made within <strong>14 working days<\/strong> after termination. Request written calculation details from your employer before signing final documents.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Can-Teachers-Verify-Their-Severance-Calculation-Is-Correct-1024x682.jpg\" alt=\"How Can Teachers Verify Their Severance Calculation Is Correct?\" class=\"wp-image-16543\" srcset=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Can-Teachers-Verify-Their-Severance-Calculation-Is-Correct-1024x682.jpg 1024w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Can-Teachers-Verify-Their-Severance-Calculation-Is-Correct-300x200.jpg 300w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Can-Teachers-Verify-Their-Severance-Calculation-Is-Correct-768x512.jpg 768w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/How-Can-Teachers-Verify-Their-Severance-Calculation-Is-Correct.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-1-collect-salary-documentation\"><strong>Step 1: Collect Salary Documentation<\/strong><\/h3>\n\n\n\n<p>Gather your <strong>last 6 months of payslips<\/strong> showing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Base salary paid<\/li>\n\n\n\n<li>Fixed allowances (housing, transport, teaching)<\/li>\n\n\n\n<li>Deductions (taxes, but not for foreign workers&#8217; non-existent UI)<\/li>\n<\/ul>\n\n\n\n<p>Calculate average: (Month 1 + Month 2 + &#8230; + Month 6) \u00f7 6<\/p>\n\n\n\n<p><strong>Example:<\/strong><\/p>\n\n\n\n<pre class=\"wp-block-code\"><code>January: VND 29,000,000\nFebruary: VND 29,500,000\nMarch: VND 30,000,000\nApril: VND 30,000,000\nMay: VND 30,500,000\nJune: VND 31,000,000\nAverage = VND 180,000,000 \u00f7 6 = VND 30,000,000<\/code><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-2-calculate-service-years\"><strong>Step 2: Calculate Service Years<\/strong><\/h3>\n\n\n\n<p>Use your contract start date and final work date:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Start: September 1, 2021<\/li>\n\n\n\n<li>End: June 30, 2025<\/li>\n\n\n\n<li>Duration: 3 years, 10 months<\/li>\n\n\n\n<li>Rounded: <strong>4.0 years<\/strong> (more than 6 months rounds up)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-3-apply-formula\"><strong>Step 3: Apply Formula<\/strong><\/h3>\n\n\n\n<pre class=\"wp-block-code\"><code>Severance = 0.5 \u00d7 Average Salary \u00d7 Service Years\nSeverance = 0.5 \u00d7 VND 30,000,000 \u00d7 4.0\nSeverance = VND 60,000,000<\/code><\/pre>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-4-verify-payment-components\"><strong>Step 4: Verify Payment Components<\/strong><\/h3>\n\n\n\n<p>Your final settlement should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Severance: VND 60,000,000<\/li>\n\n\n\n<li>Final salary: June 2025 prorated<\/li>\n\n\n\n<li>Unused annual leave: 12 days unused \u00d7 daily rate<\/li>\n\n\n\n<li>Total payment: Sum of above within 14 working days<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"red-flags-indicating-calculation-errors\"><strong>Red Flags Indicating Calculation Errors:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employer mentions &#8220;unemployment insurance deduction&#8221; for foreign workers<\/li>\n\n\n\n<li>Amount seems low compared to 0.5 \u00d7 monthly \u00d7 years formula<\/li>\n\n\n\n<li>Employer refuses to provide written calculation breakdown<\/li>\n\n\n\n<li>Payment delayed beyond 14 working days without explanation<\/li>\n\n\n\n<li>Employer claims yearly contracts don&#8217;t accumulate service time<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"action-if-calculation-disputed\"><strong>Action If Calculation Disputed:<\/strong><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Request written explanation citing specific Labor Code articles<\/li>\n\n\n\n<li>Document everything: emails, contracts, payslips, termination notice<\/li>\n\n\n\n<li>File complaint with local Department of Labor, Invalids and Social Affairs (DOLISA)<\/li>\n\n\n\n<li>Legal consultation: Contact employment law firms specializing in foreign worker rights<\/li>\n\n\n\n<li>Deadline: File disputes within 1 year of termination (Labor Code Article 189)<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"frequently-asked-questions-about-severance-pay-in-vietnam\"><strong>Frequently Asked Questions About Severance Pay in Vietnam<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/Frequently-Asked-Questions-About-Severance-Pay-in-Vietnam-1024x682.jpg\" alt=\"Frequently Asked Questions About Severance Pay in Vietnam\" class=\"wp-image-16544\" srcset=\"https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/Frequently-Asked-Questions-About-Severance-Pay-in-Vietnam-1024x682.jpg 1024w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/Frequently-Asked-Questions-About-Severance-Pay-in-Vietnam-300x200.jpg 300w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/Frequently-Asked-Questions-About-Severance-Pay-in-Vietnam-768x512.jpg 768w, https:\/\/vietnamteachingjobs.com\/blog\/wp-content\/uploads\/2025\/11\/Frequently-Asked-Questions-About-Severance-Pay-in-Vietnam.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"can-i-negotiate-higher-severance-than-the-legal-minimum\"><strong>Can I Negotiate Higher Severance Than the Legal Minimum?<\/strong><\/h3>\n\n\n\n<p>Yes, the <strong>0.5 months&#8217; salary per year<\/strong> is the <strong>legal minimum<\/strong> &#8211; you can negotiate higher severance in your employment contract, but employers <strong>cannot pay less<\/strong> than this statutory rate. Enhanced severance packages (for example, 1 month per year) are common in international schools and premium language centers.<\/p>\n\n\n\n<p>According to Labor Code Article 46, the 0.5 multiplier establishes the floor, not the ceiling. Many international schools offer enhanced severance as competitive benefits:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Standard formula:<\/strong> 0.5 months per year (legally required)<\/li>\n\n\n\n<li><strong>Enhanced packages:<\/strong> 0.75-1.0 months per year (competitive schools)<\/li>\n\n\n\n<li><strong>Executive contracts:<\/strong> 1.5-2.0 months per year (director\/management level)<\/li>\n<\/ul>\n\n\n\n<p>Always ensure enhanced severance terms are <strong>written explicitly in your contract<\/strong> &#8211; verbal promises aren&#8217;t enforceable under Vietnamese law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-if-my-employer-refuses-to-pay-severance\"><strong>What If My Employer Refuses to Pay Severance?<\/strong><\/h3>\n\n\n\n<p>File a written complaint with your local Department of Labor, Invalids and Social Affairs (DOLISA) within 1 year of termination, documenting your employment period, salary records, and termination circumstances. DOLISA mediates disputes and can impose administrative fines of <strong>VND 2,000,000-40,000,000<\/strong> on non-compliant employers, plus mandatory interest on delayed payments.<\/p>\n\n\n\n<p>The complaint process follows Labor Code Article 189:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Mediation:<\/strong> DOLISA attempts resolution within 30 days<\/li>\n\n\n\n<li><strong>Labor Arbitration:<\/strong> If mediation fails, case moves to arbitration within 7 working days<\/li>\n\n\n\n<li><strong>Court:<\/strong> Final recourse through People&#8217;s Court if arbitration unsatisfactory<\/li>\n<\/ol>\n\n\n\n<p>Documented cases show most disputes resolve at mediation stage when employees provide clear evidence (contracts, payslips, termination notice).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"does-severance-pay-count-as-taxable-income\"><strong>Does Severance Pay Count as Taxable Income?<\/strong><\/h3>\n\n\n\n<p>Severance pay in Vietnam is <strong>partially tax-exempt<\/strong> &#8211; you only pay personal income tax (PIT) on amounts <strong>exceeding 6 months&#8217; average salary<\/strong> under Circular 111\/2013\/TT-BTC. For example, if severance equals 3 years of service (1.5 months&#8217; salary), the entire amount is tax-free; if it exceeds 12 years (6 months&#8217; salary threshold), only the excess is taxed.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Service Period<\/strong><\/th><th><strong>Severance Amount<\/strong><\/th><th><strong>Tax Status<\/strong><\/th><\/tr><\/thead><tbody><tr><td>3 years<\/td><td>1.5 months<\/td><td>100% tax-free<\/td><\/tr><tr><td>6 years<\/td><td>3 months<\/td><td>100% tax-free<\/td><\/tr><tr><td>12 years<\/td><td>6 months<\/td><td>100% tax-free (threshold)<\/td><\/tr><tr><td>15 years<\/td><td>7.5 months<\/td><td>1.5 months taxable (excess)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Amounts <strong>equal to or less than 6 months&#8217; salary<\/strong> are <strong>completely tax-free<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"am-i-entitled-to-severance-if-i-resign-voluntarily\"><strong>Am I Entitled to Severance If I Resign Voluntarily?<\/strong><\/h3>\n\n\n\n<p>Generally no &#8211; voluntary resignation typically forfeits severance rights under Labor Code Article 46, unless you resign due to <strong>employer violations<\/strong> (unpaid salary, unsafe conditions, contract breaches) per Article 35. In these specific cases, resignation is treated as constructive dismissal, preserving your severance eligibility with full payment required within 14 working days.<\/p>\n\n\n\n<p><strong>Resignation scenarios:<\/strong><\/p>\n\n\n\n<p><strong>No severance:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Standard resignation with proper 30-45 days&#8217; notice<\/li>\n\n\n\n<li>Career change to new employer<\/li>\n\n\n\n<li>Personal reasons (family, relocation)<\/li>\n<\/ul>\n\n\n\n<p><strong>Severance protected:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Unpaid salary for 15+ days after due date<\/li>\n\n\n\n<li>Unsafe working conditions threatening health<\/li>\n\n\n\n<li>Contract violations (employer doesn&#8217;t provide agreed benefits)<\/li>\n\n\n\n<li>Harassment or discrimination documented formally<\/li>\n<\/ul>\n\n\n\n<p>If resigning due to employer violations, document everything before submitting resignation to preserve legal claims.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"what-happens-to-severance-if-my-school-closes-or-goes-bankrupt\"><strong>What Happens to Severance If My School Closes or Goes Bankrupt?<\/strong><\/h3>\n\n\n\n<p>Employee wage claims, including <strong>severance pay<\/strong>, hold <strong>first-priority status<\/strong> in bankruptcy proceedings under Vietnamese law &#8211; your severance must be paid <strong>before<\/strong> other creditors, shareholders, or secured debts. The Labor Code Article 98 and Enterprise Law 2020 classify unpaid salaries and severance as priority claims settled immediately from available assets.<\/p>\n\n\n\n<p><strong>Bankruptcy payment hierarchy:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Employees&#8217; claims (outstanding salary plus severance) &#8211; <strong>FIRST PRIORITY<\/strong><\/li>\n\n\n\n<li>Tax obligations<\/li>\n\n\n\n<li>Secured creditors<\/li>\n\n\n\n<li>Unsecured creditors<\/li>\n\n\n\n<li>Shareholders (last)<\/li>\n<\/ol>\n\n\n\n<p>Document your severance claim immediately when bankruptcy proceedings begin. Contact DOLISA and the appointed bankruptcy administrator to register your wage claim. In practice, employees typically recover substantial amounts of owed severance in school bankruptcies due to priority status.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"do-part-time-teachers-qualify-for-severance-pay\"><strong>Do Part-Time Teachers Qualify for Severance Pay?<\/strong><\/h3>\n\n\n\n<p>Yes, part-time teachers working <strong>12+ consecutive months<\/strong> qualify for severance using the <strong>same 0.5 months&#8217; salary per year formula<\/strong>, calculated on their <strong>actual average earnings<\/strong> from the last 6 months. The Labor Code does not distinguish between full-time and part-time status &#8211; only <strong>continuous service duration<\/strong> and <strong>regular employment<\/strong> matter for eligibility.<\/p>\n\n\n\n<p><strong>Example calculation for part-time teacher:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Teaching hours: 40 hours\/month<\/li>\n\n\n\n<li>Hourly rate: VND 300,000<\/li>\n\n\n\n<li>Monthly earnings: VND 12,000,000<\/li>\n\n\n\n<li>Service period: 2 years<\/li>\n\n\n\n<li>Severance: 0.5 \u00d7 VND 12,000,000 \u00d7 2 = <strong>VND 12,000,000<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Critical requirement:<\/strong> Your part-time contract must be formal (written, signed, registered) and demonstrate regular continuous employment &#8211; sporadic freelance work doesn&#8217;t qualify.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"need-more-information-on-vietnam-employment-rights\"><strong>Need More Information on Vietnam Employment Rights?<\/strong><\/h2>\n\n\n\n<p>Understanding severance pay is just one aspect of navigating Vietnam&#8217;s employment landscape as a foreign teacher. Labor law compliance, contract negotiations, and workplace rights require careful attention to protect your interests.<\/p>\n\n\n\n<p><strong>Explore More Employment Rights Guidance:<\/strong><\/p>\n\n\n\n<p>Vietnamese labor regulations cover comprehensive protections for foreign teachers beyond severance calculations. From sick leave entitlements to contract termination procedures, staying informed helps you make confident career decisions and avoid costly mistakes.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/vietnamteachingjobs.com\/blog\/category\/life-in-vietnam\/employment-rights-contracts\/\" target=\"_blank\" rel=\"noreferrer noopener\">Visit our EMPLOYMENT RIGHTS &amp; CONTRACTS category<\/a><\/strong> for detailed guides on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Work permit requirements and renewals<\/li>\n\n\n\n<li>Contract negotiation strategies<\/li>\n\n\n\n<li>Annual leave and holiday entitlements<\/li>\n\n\n\n<li>Tax obligations for foreign teachers<\/li>\n\n\n\n<li>Dispute resolution procedures<\/li>\n\n\n\n<li>Social insurance benefits<\/li>\n<\/ul>\n\n\n\n<p>Stay protected and informed &#8211; bookmark our employment rights resources for quick reference whenever questions arise about your legal protections in Vietnam.<\/p>\n\n\n\n<p>Severance pay in Vietnam follows a clear legal framework &#8211; <strong>0.5 months&#8217; average salary per year of service<\/strong>, calculated from your <strong>last 6 consecutive months&#8217;<\/strong> earnings, paid within <strong>14 working days<\/strong> after termination. Foreign teachers benefit significantly because the <strong>entire work period counts<\/strong> without unemployment insurance deductions that reduce Vietnamese employees&#8217; calculations.<\/p>\n\n\n\n<p><strong>Key protections to remember:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum <strong>12 months<\/strong> service triggers eligibility<\/li>\n\n\n\n<li>Partial years round up after 6 months (valuable for timing)<\/li>\n\n\n\n<li>Multiple contracts combine into continuous service<\/li>\n\n\n\n<li>Payment deadline violations incur fines plus interest<\/li>\n\n\n\n<li>Disputes must be filed within 1 year at DOLISA<\/li>\n<\/ul>\n\n\n\n<p><strong>Critical verification:<\/strong> Always request written calculation details before signing termination documents. Compare your employer&#8217;s calculation against the verified formula using your actual payslips and contract dates. If discrepancies appear, document everything and seek legal counsel immediately.<\/p>\n\n\n\n<p>Vietnamese labor law strongly protects employee rights &#8211; understanding these protections ensures you receive full severance compensation earned through your teaching service. Keep thorough records, verify calculations independently, and don&#8217;t hesitate to file complaints through proper channels if employers don&#8217;t honor their legal obligations.<\/p>\n\n\n<div class=\"kk-star-ratings kksr-auto kksr-align-left kksr-valign-bottom\"\n    data-payload='{&quot;align&quot;:&quot;left&quot;,&quot;id&quot;:&quot;16537&quot;,&quot;slug&quot;:&quot;default&quot;,&quot;valign&quot;:&quot;bottom&quot;,&quot;ignore&quot;:&quot;&quot;,&quot;reference&quot;:&quot;auto&quot;,&quot;class&quot;:&quot;&quot;,&quot;count&quot;:&quot;0&quot;,&quot;legendonly&quot;:&quot;&quot;,&quot;readonly&quot;:&quot;&quot;,&quot;score&quot;:&quot;0&quot;,&quot;starsonly&quot;:&quot;&quot;,&quot;best&quot;:&quot;5&quot;,&quot;gap&quot;:&quot;5&quot;,&quot;greet&quot;:&quot;Rate this post&quot;,&quot;legend&quot;:&quot;0\\\/5 - (0 votes)&quot;,&quot;size&quot;:&quot;24&quot;,&quot;title&quot;:&quot;How Severance Pay is Calculated in Vietnam&quot;,&quot;width&quot;:&quot;0&quot;,&quot;_legend&quot;:&quot;{score}\\\/{best} - ({count} {votes})&quot;,&quot;font_factor&quot;:&quot;1.25&quot;}'>\n            \n<div class=\"kksr-stars\">\n    \n<div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n    \n<div class=\"kksr-stars-active\" style=\"width: 0px;\">\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n                \n\n<div class=\"kksr-legend\" style=\"font-size: 19.2px;\">\n            <span class=\"kksr-muted\">Rate this post<\/span>\n    <\/div>\n    <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Severance pay in Vietnam is calculated as half a month&#8217;s average salary multiplied by your years of service, based on your last 6 consecutive months of earnings. Foreign teachers working 12+ months receive 0.5 months&#8217; salary per year worked (for example, 3 years of service equals 1.5 months&#8217; salary), paid within 14 working days after [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[142,147,16],"tags":[],"class_list":["post-16537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment-rights-contracts","category-dispute-resolution","category-life-in-vietnam"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/posts\/16537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/comments?post=16537"}],"version-history":[{"count":0,"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/posts\/16537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/media\/16538"}],"wp:attachment":[{"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/media?parent=16537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/categories?post=16537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vietnamteachingjobs.com\/blog\/wp-json\/wp\/v2\/tags?post=16537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}