How Do You Pay Remote Employees in Vietnam?

Step-by-Step Process for Paying Remote Employees in Vietnam

1. Verify that the worker is correctly classified as an employee under Vietnamese Labor Code guidelines, avoiding misclassification as an independent contractor.
2. Register your company with the Vietnamese tax authorities and obtain a tax code for payroll purposes.
3. Open a local bank account to facilitate payments in Vietnamese Dong (VND) as required by local regulations.
4. Collect required documentation, including labor contracts, personal income tax (PIT) registration, and social insurance registration.
5. Set a compliant pay schedule based on Vietnamese labor laws, typically monthly or bi-monthly.
6. Process payroll ensuring correct deductions for personal income tax, social insurance, health insurance, and unemployment insurance.
7. Pay employees via compliant methods such as bank transfer in VND and provide itemized payslips as required by law.
8. Remit payroll taxes and contributions to the General Department of Taxation and the Vietnam Social Security (VSS) on a monthly basis.
9. File annual personal income tax returns and provide employees with tax withholding certificates.
10. Ensure compliance with statutory reporting requirements, including labor reports to the Department of Labor, Invalids and Social Affairs (DOLISA).

What Are The Legal Ways To Pay Vietnam-Based Employees From Another Country?

Local Bank Transfer

• Best for: Employers with a registered Vietnamese entity paying employees via domestic bank transfers in VND.
• Pros: Cost-effective, reliable, and compliant with local currency regulations.
• Limitations: Requires a local bank account and registration with Vietnamese tax authorities.
• Compliance note: Payroll must comply with Vietnamese tax and labor laws; wages must be paid in VND and reported to local authorities.

Direct Payroll Services

• Best for: Companies with a Vietnamese entity that want to outsource payroll calculations, filings, and compliance.
• Pros: Ensures accurate tax withholding, automated filings with the General Department of Taxation, and reduces administrative burden.
• Limitations: Still requires entity setup and oversight of local compliance.
• Compliance note: Subject to Vietnamese tax regulations and labor laws; no restrictions on paying in VND, but strict reporting and deposit schedules apply. Playroll's Global Payroll services manage this end-to-end.

EOR Platform Disbursement

• Best for: Foreign companies hiring Vietnam-based employees without establishing a local entity.
• Pros: The EOR becomes the legal employer, handling payroll, tax filings, benefits, and compliance with Vietnamese authorities.
• Limitations: Higher cost than direct payroll and less direct control over employment contracts.
• Compliance note: EOR providers manage registration, tax remittance, and reporting obligations with the General Department of Taxation and VSS. Explore Playroll's Employer of Record services.

Contractor Payment Platforms

• Best for: Paying Vietnam-based independent contractors for project-based or flexible work arrangements.
• Pros: Simplified onboarding, cross-border payments, and reduced administrative overhead.
• Limitations: Does not cover employee benefits, tax withholding, or labor law protections; higher misclassification risk.
• Compliance note: Vietnamese authorities enforce strict classification rules; contractor platforms do not assume employer obligations. Explore Playroll's Contractor Management Platform.

What Taxes Do I Need To Handle for Vietnam Employees?

• Personal Income Tax (General Department of Taxation): Withheld from employee wages with progressive rates ranging from 5% to 35%.
• Social Insurance (Vietnam Social Security): Employer and employee contributions totaling 32% — employer pays 21.5% and employee pays 10.5%.
• Health Insurance (Vietnam Social Security): Employer and employee contributions totaling 4.5% — employer pays 3% and employee pays 1.5%.
• Unemployment Insurance (Vietnam Social Security): Employer and employee contributions totaling 2% — employer pays 1% and employee pays 1%.

Use Playroll's payroll tax calculator to estimate your total employer costs in Vietnam.

What Are the Biggest Compliance Risks When Paying Employees in Vietnam?

• Worker misclassification (Vietnamese Labor Code): Misclassifying employees as contractors can result in back taxes, penalties, and liability for unpaid benefits under Vietnamese labor laws.
• Payroll tax errors (General Department of Taxation): Incorrect tax calculations or late payments can incur penalties and interest charges.
• Permanent establishment risk (General Department of Taxation): Employing workers in Vietnam may create taxable presence for foreign companies, triggering corporate tax obligations.
• Late filings and reporting penalties (General Department of Taxation and VSS): Missing deadlines for tax and social insurance filings can result in fines and increased scrutiny from authorities.
• Wage law violations (DOLISA): Non-compliance with minimum wage or overtime regulations can lead to back pay claims and penalties.
• Social insurance non-compliance (Vietnam Social Security): Failing to register or remit contributions can result in penalties and legal action.

Pay Your Remote Employees in Vietnam

Pay your remote employees compliantly in Vietnam, without the heavy lifting. We support local payroll where you have your own entity or for international hires with Playroll’s EOR services.

• Accurate payroll processing: Gross-to-net processing, compliant payslips, and on-time payments — aligned with Vietnamese pay frequency requirements and itemized payslip obligations under labor laws.
• Taxes & contributions covered: Registrations, filings, and remittances to the General Department of Taxation and VSS across all relevant jurisdictions.
• Built for local compliance: We handle statutory obligations and year-end reporting, including personal income tax, social insurance, and health insurance filings in Vietnam.

Book a demo to run payroll in Vietnam with confidence.