Hire in Vietnam
Salary Currency
Vietnamese Dong (VND)
Capital
Hanoi
Contract Language
Vietnamese
Payroll Cycle
Monthly
Our quickstart guide to hiring in Vietnam
Learn everything you need to know about hiring an employee in Vietnam
Wage & Tax Obligation
Minimum Wage Requirements
Vietnam has a regional minimum wage system, which varies by location. As of 2023, the minimum monthly wages are approximately:
Region I: 4,680,000 VND (~$200)
Region II: 4,160,000 VND (~$175)
Region III: 3,640,000 VND (~$155)
Region IV: 3,250,000 VND (~$140)
These amounts may be updated annually, so it's essential to check for the most current figures.
Individual Income Tax
Vietnam employs a progressive tax system for individual income tax (IIT) with rates ranging from 5% to 35% based on income levels. The tax brackets are as follows:
Up to 5 million VND: 5%
5 million to 10 million VND: 10%
10 million to 18 million VND: 15%
18 million to 32 million VND: 20%
32 million to 52 million VND: 25%
52 million to 80 million VND: 30%
Above 80 million VND: 35%
Employers are responsible for withholding IIT from employees' salaries and remitting it to the tax authorities.
Payroll Cost
Payroll costs include the employee's gross salary plus additional statutory contributions. Employers typically pay:
Social insurance: 17.5% of gross salary (Employer: 14%; Employee: 3.5%)
Health insurance: 3% of gross salary (Employer: 2%; Employee: 1%)
Unemployment insurance: 1% of gross salary (Employer: 1%; Employee: 0%)
Total payroll costs, therefore, are higher than the gross salary due to these mandatory contributions.
Overtime Pay & Maximum Hours
The standard working hours are 48 hours per week, typically 8 hours per day. Overtime is permitted but regulated:
Overtime pay is calculated at:
150% of the regular hourly rate for weekdays.
200% for weekends.
300% for public holidays or paid leave days.
Employers cannot require more than 200 hours of overtime per year for regular employees and must obtain permission for additional hours.
Leave Management
Maternity Leave
Female employees are entitled to 6 months of maternity leave, with social insurance coverage during this period. 2 weeks of leave can be taken before the child's birth. The employee will receive 100% of the average salary based on social insurance contributions over the last 6 months. Social Security will be responsible for this pay.
Paternity Leave
Fathers are entitled to 5 consecutive days of paid paternity leave. This leave can be taken anytime within 30 days after the child's birth.
During paternity leave, employees are eligible for payments from social insurance, similar to maternity leave provisions for mothers..
Parental Leave
In Vietnam, no law covers parental leave. However, employees may be entitled to maternity and paternity leave.
Sick Leave
Sick Leave
Employees are entitled to paid sick leave for up 30 days. The employee will receive 75% of their salary while on leave paid by Social Security. Leave can be extended depending on the employee, but an extension is done on a case by case basis.
Termination Policy
Termination Requirements
Terminations in Vietnam can be complex. There is no at-will termination in Vietnam for employers outside the probation period and termination must be done for just cause.
Compliant terminations include:
Voluntarily by the employee
By mutual agreement
Unilaterally by the employer based on:
probation period
objective grounds
disciplinary dismissal
performance due to unsuitability for the job
By the expiration of the contract
Notice Period
The minimum notice period is 3 days and will be increased according to the type of contract.
45 days if the contract is indefinite
30 days if the contract is fixed term of 12 - 36 months
3 working days if the contact is a fixed term under 12 month.
Severance for Employees
In Vietnam, all employees who have worked for over a year and are terminated are entitled to severance pay, unless they are terminated for:
Having committed acts of theft, embezzlement, disclosure of technological and business secrets, or other acts causing severe loss to the property and interests of the enterprise.
Having been transferred to another job as a disciplinary measure, the employee then again commits the same breach of labor discipline when the disciplinary measure is still in effect.
Severance pay is half a month of salary per year of service. There is no law capping the amount of severance that can be paid.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 12 working days of paid time off (PTO) a year. PTO accrues monthly at 1 day per month. For every five years working for an employer, the annual leave increases by 1 day.
Public Holidays
Vietnam celebrates 6 national holidays (11 days total) and some regional holidays based on the location of the employee. National public holidays include:
New Year’s Day: 1 day
Lunar New Year: 5 days (in 2024, this runs from February 8-14 and includes two additional days off due to weekend)
Hung King’s Festival: 1 day
Reunification Day: 1 day
Labour Day: 1 day
Independence Day: 2 days
Disclaimer
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. Anemone HR disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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