1. Introduction
Vietnam’s rapidly growing economy and skilled workforce make it an attractive destination for employers. However, employment costs extend beyond salaries—employers must navigate social insurance contributions, leave entitlements, and evolving labor laws. This guide breaks down the total cost of hiring a full-time employee in Vietnam.
2. Average Gross Monthly Salaries
Salary ranges in Vietnam differ between sectors:
- Entry-level: VND 6,000,000 – 10,000,000
- Professionals: VND 12,000,000 – 25,000,000
- Tech/Engineering: VND 20,000,000 – 40,000,000
- Management: VND 40,000,000 – 80,000,000+
Minimum wage ranges from VND 3,450,000 to VND 4,680,000 depending on region.
3. Statutory Contributions and Employer Taxes
Vietnam requires employers to contribute a total of 21.5% of an employee’s gross salary to:
- Social Insurance: 17.5%
- Health Insurance: 3%
- Unemployment Insurance: 1%
These contributions are mandatory for Vietnamese employees and are submitted monthly.
4. Other Mandatory Costs
- Annual Leave: 12 days minimum per year
- Public Holidays: 11 days (can be up to 13 if Lunar New Year extends)
- Sick Leave: Paid by social insurance depending on tenure
- Maternity/Paternity/Childcare Leave:
- Maternity: 6 months paid (funded by social insurance)
- Paternity: 5–14 days (funded by social insurance)
- No statutory shared parental or childcare leave, but large employers may provide flexibly
5. Optional & Market-Driven Benefits
Common benefits include:
- Private health insurance
- Bonuses (Tet/13th-month pay is customary)
- Language training or tuition reimbursement
- Transportation or housing allowances
6. Hidden & Overlooked Costs
- Recruitment, onboarding, and probationary training
- Translation and legalization of contracts
- Government reporting obligations
- Leave payout liabilities
- Audit risks for misclassified freelancers or contractors
7. Advisory Notes for Employers
Vietnamese labor law mandates written employment contracts and careful tracking of benefits and leave. Employers must pay attention to probation periods, severance rules, and labor code changes. Working with a legal expert or EOR can reduce risk.
8. How AYP Helps You Manage Cost Efficiently
AYP manages employment onboarding, payroll, and social insurance submissions in Vietnam. We keep you compliant and cost-aware, so you can focus on growing your regional team with confidence.
9. Contact Us
Ready to hire in Vietnam? Contact AYP for expert-managed employment and payroll services.
