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Capital City
Hanoi
Currency
Vietnames Dong
(
₫
)
Timezone
GMT +7
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
23.50%
Languages
Vietnamese
Capital City
Hanoi
Currency
Vietnames Dong
(
₫
)
Timezone
GMT +7
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
23.50%
Languages
Vietnamese
Hiring in Vietnam offers access to a rapidly growing economy with a dynamic workforce and favorable business environment.
The country's strategic location in Southeast Asia provides access to a burgeoning market and a gateway to regional trade opportunities.
Vietnam's young and skilled labor force, combined with its competitive labor costs, makes it an attractive destination for businesses seeking to expand their operations.
Additionally, the government's commitment to economic reforms and incentives for foreign investment further enhance Vietnam's appeal as a hub for business growth and development.
Businesses can only operate smoothly in Vietnam if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Vietnam below, to avoid any compliance issues.
Essential hiring details in Vietnam include:
We can help you get a new employee started in Vietnam quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
The standard working hours in Vietnam are 8 hours per day or 48 hours per week, and employers are encouraged to adopt a 40-hour workweek with Saturdays and Sundays off.
In Vietnam, overtime is any work exceeding 48 hours per week, compensated at a rate of at least 150% of the usual salary. Weekend work pays 200% and public holidays pay 300%. Overtime is capped at 40 hours per month and 200 hours per year, with exceptions regulated by the government allowing up to 300 hours annually.
In Vietnam, probation periods vary based on qualification and position, spanning from 6 days for unskilled workers to 180 days for high-level executives, as dictated by the Labor Code. Agreed upon by both parties, this period is crucial for evaluating an employee's suitability for the role.
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1 January - 31 December is the 12-month accounting period that businesses in Vietnam use for financial and tax reporting purposes.
The payroll cycle in Vietnam is usually monthly, with employees being paid by the last working day of the month.
The minimum wage for employees in Vietnam is typically 21,562.50 VND - 31,000 VND reigion per hour, amounting to ~3.45M VND - 4.96M VND per month for a typical 40 hour work week.
There is no statutory requirement for employers to pay a 13th salary.
Employer payroll contributions are generally estimated at an additional 23.5% on top of the employee salary in Vietnam.
In Vietnam , the typical estimation for employee payroll contributions cost is around 10.5%.
Income tax in Vietnam is 'Pay As You Earn'. The individual income tax ranges from 5% to 35%. Income tax is calculated according to progressive rates.
Pensions are part of the social insurance scheme which employers and employees make mandatory contributions. The standard retirement age in Vietnam is current 62 for men and 60 for women. Employees can opt for early retirement if they have contributed to the social insurance fund for at least 20 years and are at least 5 years younger than the standard retirement age. However, early retirement will result in a reduced pension amount.
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The annual leave entitlement in Vietnam is 12 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Vietnam has 7 mandatory national public holidays in a year.
In Vietnam, all employees, whether full-time or part-time, receive 12 working days of paid time off (PTO) annually. PTO accrues monthly at a rate of 1 day per month, with an additional day granted for every five years of employment.
Female employees in Vietnam are entitled to 6 months of maternity leave, extended by 1 month for twins and 2 months for triplets. During this leave, they receive maternity benefits from Social Security equivalent to 100% of their normal salary, capped at 20 times the national minimum wage.
Fathers in Vietnam are entitled to paternity leave, ranging from 5 days for a single child (7 days for a C-section) to 10 days for twins (14 days for a C-section).
Employees who are ill, disabled, or on doctor-ordered leave receive an allowance from Vietnam's social insurance fund upon submission of required documentation (typically issued by public hospital doctors). The allowance rate is 75% of the employee's salary used as a basis of social security contributions. The allowance amounts are:
There are no legal provisions for additional parental leave.
3 days of leave at 100% pay from employer.
1 day of leave at 100% pay from employer.
3 days of leave at 100% pay from employer.
Ending employment in Vietnam can be intricate as there's no at-will termination outside the probation period. Termination must adhere to statutory grounds and formal procedures, including:
The minimum notice period in Vietnam is 3 days and varies depending on the contract type:
In Vietnam, employees with over a year of service are entitled to severance pay, except for terminations for just cause. It equals half a month's wages for each year of employment, mandated by the Vietnamese Labor Code. The salary used for this calculation is the average salary of the employee over the last six months before termination.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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