Vietnamese dong (VND)
Hire employees in Vietnam. No entity needed.
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.
Vietnam also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Vietnam quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
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 - Unisure (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
- 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%|
The employer's cost is 23.5% of the employee's salary.
- 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
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.
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
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
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
- Hung King’s Festival: 1 day
- Reunification Day: 1 day
- Labour Day: 1 day
- Independence Day: 2 days
Employment Contract Details
Contracts can be written in English. They must be in writing and signed by both parties.
A contract must include:
- start date
- length of the employment
- job description
- termination conditions
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)|
|Junior College Degree||60|
*The legal department must usually approve contracts with 180 days of the probation period before the agreement with the employee.
Hiring 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.
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