AYP Group allows you to provide localised benefits for employees in Vietnam within minutes. All on one manageable online dashboard.
- Health Insurance
- Worker Compensation Insurance
- Pension
- Unemployment Insurance
- Social Security
Vietnam
Currency
VND
Payroll Frequency
Monthly
Employer Taxes
21.5%
Overview
Capital
Hanoi
Currency
Vietnamese Dong (VND)
Date format
dd/mm/yyyy
Contributions
Employer
Employer Payroll Contributions
| 0.50% | Social Insurance (Labor, Adccident, and Occupational Disease Fund) |
| 14.00% | Social Insurance- Retirement & Death Gratuity Fund |
| 3.00% | Social Insurance– Sickness & Maternity Fund |
| 3.00% | Health Insurance |
| 1.00% | Unemployment Insurance |
| 21.50% | Total Employment Cost |
Employee
Employee Payroll Contributions
| 8.00% | Social Insurance- Sickness and Maternity Fund |
| 1.50% | Health Insurance |
| 1.00% | Unemployment Insurance |
| 10.50% | Total Employee Cost |
Employee Income Tax
| 5.00% | up to 5,000,000 VND |
| 10.00% | 5,000,001 VND – 10,000,000 VND |
| 15.00% | 10,000,001 VND – 18,000,000 VND |
| 20.00% | 18,000,001 VND – 32,000,000 VND |
| 25.00% | 32,000,001 VND – 52,000,000 VND |
| 30.00% | 52,000,001 VND – 80,000,000 VND |
| 35.00% | 80,000,001 VND and above |
Income Taxes
Minimum Wage
General
In Vietnam, the statutory minimum wage is set per region/zone as designated by the Government. For example, Zone 1 covers areas including urban areas of Hanoi, Ho Chi Minh City, and Hai Phong, along with some industrial regions of Binh Duong and Dong Nai.
Minimum wages per zone are as follows:
Zone 1: 4,420,000 VND
Zone 2: 3,920,000 VND
Zone 3: 3,430,000 VND
Zone 4: 3,070,000 VND
Payroll
Payroll Cycle
The payroll cycle in Vietnam is generally monthly and is usually paid on the last working day, or as agreed within the employment contract.
13th Salary
In Vietnam, it is customary to pay a 13th-month salary at the Lunar New Year or the end of the year. There is no legislation for 13th-month payments in Vietnam
Working Hours
General
In Vietnam, working hours must not exceed 8 hours a day or 48 hours per week.
Overtime
Work that exceeds the standard weekly working hours is optionally paid as overtime and is regulated by the employment contract or collective agreements. Overtime hours cannot exceed 50.00% of the total hours worked, 30 hours per month, or 200 hours per year.
Overtime pay is calculated at 150.00% on weekdays and increases to 200.00% for weekend overtime. Overtime worked during a public holiday is to be paid at 300.00% of the regular salary rate.
Leave & Public Holidays
Paid Time Off
Paid leave in Vietnam is set in the employment contract as a minimum of 12 days paid leave a year, in addition to any public holidays. This increases by one day for every five years of completed service.
Public Holidays
There are 11 public holidays.
Sick Days
All employees are entitled to up to 30 days of paid sick leave per year, increasing to 60 days in exceptional circumstances. Sick leave is paid by the Social Insurance Authority.
The social insurance fund pays the sick pay at 75.00% of the salary rate, based on the salary received in the month preceding the sickness absence.
All employees must provide a medical certificate within 48 hours of the first day of sickness.
Maternity / Paternity Leave
Maternity Leave
All female employees are eligible for maternity benefits, The time the female employee is entitled to take leave before and after birth is 06 months.From the 2nd child onwards, every child, the mother is entitled to 01 month leave additonally.
The maternity payment is made by social security authority for 6 months based on the salary contribute social insurance.
Paternity Leave
Male employees who are paying social insurance and whose wife gives birth are entitled to maternity leave. 5 days off (if the wife gives birth with normal way ) and 10 days off (if the wife gives birth to twins / normal way)….7 days off (if the wife gives birth with operation way ) and 14 days off (if the wife gives birth to twins /operation way)
The leave is paid by the Social Insurance Authority at a rate of 100.00% of the salary received in the month preceding the start of the paternity absence.
Parental Leave
Parental leave in Vietnam is available for childcare and entitles employees to up to 20 days parental leave per year until the child reaches the age of 3 and thereafter up to 15 days per year until the child reaches the age of 7. The childcare leave is paid by the Social Insurance Authority at the rate of 75.00% of the employees’ salary in the month preceding the start of the leave.
Other Leave
Depending on the contract, employees may be allowed additional leave types, once approved between the employer and employee for the following:
Bereavement: employees are entitled to 3 days of paid leave for the death of a family member.
Marriage: Employees are entitled to up to 3 days in case of marriage and one day for a child’s marriage.
Termination
Termination Process
The termination process is standard in Vietnam and is based on the Labour Law requirements unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.)
Notice of termination must be in writing and sent to the relevant governmental authorities.
Notice Period
Notice periods within Vietnam are generally between 30 and 45 days, but differ based on the type of contract:
3 working days for the seasonal contract (contract of less than one year);
30 days for a definite labor contract (between 1-3 years)
45 days for an indefinite labor contract.
Severance Pay
In Vietnam, severance pay is mandatory but just pay for the permanent employment who not contribute social medical unemployment insurance.if applicable and determined by the employee’s contract terms and length of service. (Working time to calculate severance allowance is the total time the employee has worked for the employer minus the time when the employee has joined unemployment insurance (UI) )
Statutory severance pay is calculated at 50.00% of an employee’s regular monthly salary rate for each year of service. However, suppose the severance payment is due to changes in the company structure, technology, or economic reasons. In that case, the severance pay is calculated at one month’s salary for each year of service.
Probation Period
For permanent employees, the probation period in Vietnam is generally based on the complexity and skill required to do the role and varies between 6 to 60 days. The wage for an employee during the probation period must be agreed upon in writing but cannot be less than 85.00% of the full-time permanent salary for the role.
Employees working under seasonal labor contracts are not subject to probation.
VISA
General
Foreign nationals typically require a work permit before entering Vietnam to take up employment. The Vietnamese work permit is a legal document authorizing the person to engage in employment and receive compensation from a company in Vietnam.
However, a foreigner may work in Vietnam without a work permit but a work permit exemption certificate in certain circumstances. This certificate is equivalent to the work permit, valid for up to 2 years, and serves as a basis for applying for a temporary residence card.
VAT
General
VAT is 10% standard rate.
Date of Updates
October 1, 2021
Why AYP
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