Hire and pay employees in

Vietnam, hassle-free

Hire and pay employees in Vietnam, hassle-free

With Deel, your business can easily hire employees in Vietnam. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Vietnam is 3 days with Deel.

Currency

Vietnamese dong (VND)

Capital

Hanoi

Official Language

Vietnamese

Payroll Cycle

Monthly

Onboard, pay and manage employees in Vietnam with Deel.

Usually, to hire in Vietnam, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Vietnam quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Vietnam
built right in

Deel allows you to provide localized benefits for employees in Vietnam within minutes. All in one manageable online dashboard.

  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Vietnam

Navigate the tabs below to learn everything you need to know about hiring an employee in Vietnam

Minimum Wage Requirements

The monthly minimum wage in Vietnam is specific to the region the employee lives in:
- Zone 1: 4,680,000 VND
- Zone 2: 4,160,000 VND
- Zone 3: 3,640,000 VND
- Zone 4: 3,250,000 VND

Individual Income Tax

The individual income tax ranges from 5% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Gross Annual Income Tax Rate (%)
Up to VDN 60,000,000 5%
Up to VDN - 120,000,000 10%
Up to VDN 216,000,000 15%
Up to VDN 384,000,000 20%
Up to VDN 624,000,000 25%
Up to VDN 960,000,000 30%
Over VDN 960,000,000 35%

Payroll Cost

The employer's cost is 23.5% of the employee's salary.The maximum monthly salary for the calculation of the social insurance, health insurance, and control union fee is VND 36,000,000. 

The maximum monthly salary for the calculation of the unemployment insurance contribution is 20 times the monthly minimum wage of the employee’s region of residence (up to VDN 93,600,000).

  • Social Insurance - 17%
  • Health Insurance - 3%
  • Accident Insurance - 0.5%
  • Control Union Fee - 2%
  • Unemployment Insurance - 1%

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work no more than 12 hours a day, including normal and overtime hours. For overtime hours, employees are paid:

  • 150% of the hourly rate on weekdays
  • 200% of the hourly rate on weekly days off
  • 300% of the hourly rate on public holidays

Maternity Leave

Pregnant employees who have contributed to social security for at least 3 months are entitled to 6 months of paid leave. 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

Employees who have contributed to social security for at least 3 months are entitled to 5 days of paid paternity leave. The employee will receive 100% of the salary during this period, and Social Security will be responsible for this pay.

Parental Leave

In Vietnam, no law covers parental leave. However, employees may be entitled to maternity leave and paternity 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 Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

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 months

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.

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:

  1. New Year’s Day: 1 day
  2. Lunar New Year: 5 days (in 2024, this runs from February 8-14 and includes two additional days off due to weekend)
  3. Hung King’s Festival: 1 day
  4. Reunification Day: 1 day
  5. Labour Day: 1 day
  6. Independence Day: 2 days

Onboarding

Onboarding takes 3 business days

Employment Contract Details

Contracts can be written in English. They must be in writing and signed by both parties.

A contract must include:

  • name
  • start date
  • length of the employment
  • job description
  • termination conditions

Probation Period

Probation periods are mandatory. The minimum probation period is 6 days and the maximum probation period is 180 days. Probation periods vary depending on the job type.

Job Type Probation Period Length (days)
Managerial Position* 180
Junior College Degree 60
Skilled Employees 30
Other 6

*The legal department must usually approve contracts with 180 days of the probation period before the agreement with the employee.

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Hiring in Vietnam, hassle-free

With Deel, your business can easily hire employees in Vietnam with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Vietnam and 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

23.5%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Vietnam?

View our Employee Cost Calculator

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