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.
Setting up a local legal entity in Vietnam can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.
This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.
With decades of experience in global compliance and deep local knowledge, we ensure smooth adherence to local laws and regulations across borders.
Unmatched coverage for employment across 180 countries.
An employee portal paired with dedicated, human support.
Reliable, cost-effective services with no annual commitments.
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.
As of January 1, 2025, Vietnam's minimum wage varies by region. For example, in Hanoi and Ho Chi Minh City, the minimum wage is set at VND 4,420,000 per month, while in rural areas, it may be lower.
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.
One of the biggest risks in global hiring is payroll mismanagement. In Vietnam, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.
Key Ways an EOR Supports Payroll in Vietnam:
In Vietnam, work permits and visas are essential for employers hiring foreign workers. The process involves obtaining approvals, submitting applications, and meeting eligibility criteria such as health checks, qualifications, and background verification. The key visa types include the LĐ1 Visa for foreign workers exempt from permits, the LĐ2 Visa for those requiring a work permit, the DN1 Visa for enterprise-related employment, and the DN2 Visa for service providers and treaty-based activities. Employers must adhere to legal requirements and timelines to ensure compliance with Vietnamese labor laws when sponsoring foreign employees.
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.
In Vietnam, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.
An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Vietnam actually want and need.
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.
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As of January 1, 2024, Vietnam's minimum wage rates are:
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