What does a $60,000 hire cost in Vietnam?
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Total annual employer cost
Full cost breakdown
Statutory contributions and typical benefits for an employee in Vietnam at $60,000 base salary.
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Key Takeaways for Hiring in Vietnam
- Vietnam requires local-language employment contracts, often with a bilingual version for foreign hires.
- Employers must comply with region-based minimum wages, mandatory social insurance, health insurance, and unemployment insurance.
- Employees receive 12 days of annual leave, with more leave granted based on tenure and job hazard level.
- Foreign employees follow additional rules for work permits, visa compliance, and employer reporting requirements.
Continent
Asia
Capital
Hà Nội
Currency
Vietnamese đồng (VND)
Language
Vietnamese
Payroll Cycle
Monthly
VAT
10%
Quick Facts For Hiring In Vietnam
Vietnam Employment Contract Overview
A well-structured contract is essential in Vietnam, especially with local-language requirements and detailed labor rules. Here’s how our standard employment contracts are set up to stay fully compliant.
What Do You Need To Include In A Vietnamese Employment Contract?
To avoid compliance issues in Vietnam, your employment contract needs to cover a few mandatory points.
Here are the details that must be included:
Employee Information
- Full name
- ID number
- Role / Job title
- Start date
- Contract duration
- Working hours
- Probation and notice conditions
- Termination provisions
- Address details
- Compensation details
- Leave entitlements
- End date (if applicable)
Payroll
Average employer cost
21.50%
| Category | Details |
|---|---|
| Avg employer tax | 21.50% |
Tax Breakdown
Personal Income Tax (PIT)
| Category | Rate / Details |
|---|---|
| Tax Residents | Subject to progressive rates from 5% to 35% on income exceeding VND 60 million per month |
| Non-Residents | Flat rate of 20% on Vietnam-sourced income |
| Deductions | Allowances for dependents and certain expenses are deductible |
Social Insurance Contributions
| Category | Rate / Details |
|---|---|
| Employees | 8% for Social Insurance (SI), 1.5% for Health Insurance (HI), and 1% for Unemployment Insurance (UI) |
| Employers | 17.5% for SI, 3% for HI, and 1% for UI |
| Foreign Employees | Required to contribute to HI if the employment contract is 3 months or longer; SI contributions are not mandatory unless specified by international agreements |
VAT
| Category | Rate / Details |
|---|---|
| VAT | The current standard rate of VAT is 10% |
Mandatory Employee Benefits in Vietnam
Employment of expats is supported in Vietnam.
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government |
Payroll Contributions |
Health Insurance is mandatory for both Vietnamese and foreign employees who work under indefinite-term contracts or fixed-term contracts of at least three months. |
| Pension/ Social Security | Government |
Payroll Contributions |
Social Insurance covers pension, sickness, maternity, occupational accident and disease, and death benefits. Contribution is mandatory for all Vietnamese employees working under any contract longer than one month, and for foreign employees with labor contracts of at least 12 months. |
| Other Statutory Benefits | Government |
Payroll Contributions |
Unemployment Insurance is required for Vietnamese employees working under contracts of at least three months. Foreign employees are generally exempt and do not need to contribute. |
Leave And Holiday Entitlement In Vietnam
Annual Leave
Full-time employees with at least 12 months of service receive 12 days of paid annual leave, with additional leave for employees working in hazardous roles.
If an employee works for less than 12 months, annual leave is prorated.
Employees also gain one additional day of leave for every five years of service with the same employer.
Public Holidays
Under Article 112 of the Labor Code, employees receive paid time off for the following holidays:
-
New Year’s Day (January 1)
-
Lunar New Year (Tết), five days (set annually by the Prime Minister)
-
Reunification Day (April 30)
-
International Labor Day (May 1)
-
National Day (September 2 plus one adjacent day)
-
Hung Kings Commemoration Day (tenth day of the third lunar month)
This totals 11 public holidays per year. Foreign employees also receive one traditional holiday and one National Day of their home country.
Sick Leave
Employees receive sick leave funded by the social insurance fund at 75% of their insured wages:
-
Up to 30 days per year with fewer than 15 years of contributions
-
Days four to 20: Paid at 60% of the employee’s base salary (paid by employer or Social Security depending on timing).
-
40 days per year with 15 to 30 years of contributions
-
60 days per year with more than 30 years of contributions
Maternity Leave
Female employees are entitled to six months of paid maternity leave, including:
-
Up to two months before birth
-
An additional 30 days for each extra child in cases of multiple births
Paternity Leave
Male employees receive paid paternity leave within 30 days of their child’s birth:
-
Five days for a natural birth
-
Seven days for a caesarean section
-
10 days if the wife gives birth to twins, plus three days for each child after the second
-
14 days if twins are delivered by caesarean section
Other Types of Leave
Under Article 115, employees also receive statutory personal leave:
-
Marriage: Three days paid
-
Child’s marriage:One day paid
-
Death of spouse, parent, or child: Three days paid
-
Death of sibling, grandparent, or for a parent’s marriage:One day unpaid
Additional unpaid leave may be approved based on agreement with the employer.
Termination and Offboarding in Vietnam
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Vietnamese Employee Resignation
Notice
Form
The employee should submit a written resignation notice to the employer.
Notice period
For indefinite-term labor contracts, the employee must give the employer at least 45 days’ notice.
Payment in lieu of notice or notice waiver
This is only possible if the employer agrees to shorten the notice period or accepts payment instead. This decision is entirely at the employer’s discretion.
End-of-Service Benefits
Severance/Gratuity
Employees who have worked for at least 12 months continuously are entitled to severance allowance upon termination if the employee resigns due to employer’s fault or certain reasons stipulated by law. The severance allowance is typically half a month’s salary for each year of employment.
Other Benefits
-
All unpaid wages
-
Accrued but unused annual leave
-
Bonuses (if applicable)
-
Any other benefits stipulated in the labor contract or company policies.
Termination Documentation
-
Serious breach of labor discipline or company regulations (e.g., intentional violations causing serious consequences)
-
Criminal conviction relating to the employee’s work duties (final judgment)
-
Fraud or deliberate acts that harm the employer’s interests
-
Repeated violations after prior warnings, as defined in the Labor Code and guiding regulations
Employer Termination With Cause in Vietnam
Acceptable grounds
-
Serious breach of labor discipline or regulations by the employee (e.g., intentional violation causing serious consequences).
-
Criminal conviction related to the employee’s work duties (final judgment).
-
Fraud or deliberate acts harming the employer’s interests.
-
Repeated violations after warnings, etc., as defined in the Labor Code and related legal documents.
Notice
Form
The employer must issue a written termination decision.
Notice period
If the termination is for cause, the employer must give at least three working days’ written notice before the termination date.
Payment in lieu of notice or notice waiver
For termination with cause, the employer is not required to pay wages in lieu of notice.
End-of-Service Benefits
Severance
The employee is not entitled to severance allowance when terminated with cause, unless a specific law or collective agreement states otherwise.
Other Benefits
-
The employer must pay the employee all wages, bonuses, and other benefits accrued up to the termination date.
-
Unused annual leave and other lawful entitlements must be settled according to the law.
Termination Documentation
-
A written termination decision specifying the cause of dismissal.
-
Settlement of all final payments and delivery of relevant documents such as work certificate, social insurance book or confirmation of insurance status.
Employer Termination Without Cause in Vietnam
Acceptable Grounds
-
Employee’s inability to meet job requirements despite training and reassessment.
-
Other lawful reasons not related to employee misconduct as allowed under the Labor Code.
Form
The employer must deliver a written termination notice to the employee.
Notice period
The employer must give at least 45 days’ notice for indefinite-term contracts.
Payment in lieu of notice or notice waiver
The employer may choose to pay the employee instead of requiring them to work the notice period. This payment equals the salary and allowances the employee would have earned during that time.
End-of-Service Benefits
Severance
-
Employees with at least 12 consecutive months of service are entitled to severance when terminated without cause.
-
Severance pay is calculated as half a month’s salary for each full year of employment (or proportionally for periods less than one year).
Other Benefits
-
Full payment of all wages, bonuses, and allowances up to the termination date.
-
Payment for accrued but unused annual leave.
-
Settlement of other benefits according to labor contract or company policies.
Termination Documentation
-
A written termination decision explaining the reason
-
Final settlement documents, including final pay and the work certificate
-
Completion of social, health, and unemployment insurance procedures
Mutual Termination Agreements in Vietnam
Notice
Form
Both parties must sign a written mutual termination agreement.
Notice period
There is no mandatory notice period when both parties agree on the end date.
Waiver of notice
Because the termination is mutual, either party can agree to waive notice or accept payment in lieu.
End-of-Service Benefits
Severance
-
Severance is not required unless the agreement includes it, or the termination results from the employer’s initiative or reasons defined by law.
-
Parties may negotiate severance or other financial benefits as part of the agreement.
Other Benefits
-
Payment of all wages, bonuses, allowances, and accrued annual leave
-
Any additional compensation agreed by both parties
Termination Documentation
-
A written mutual termination agreement signed by both parties clearly stating the termination date and terms.
-
Final settlement documents covering payment and benefits.
-
Completion of social insurance and health insurance procedures related to the termination.
Offboarding Process for the End of Fixed-term Contracts in Vietnam
If the Fixed-Term Contract Ends Normally
Notice
- No advance notice is required if the contract expires as scheduled and neither party chooses to renew.
- If either party wants to end the relationship before the expiration date, standard notice periods apply.
End-of-Service Benefits
Severance/Gratuity
- Employees generally do not receive severance when a fixed-term contract ends normally.
- Severance applies only if the employer terminates the contract prematurely or does not renew it under certain conditions (e.g., continuous contracts, etc.).
Other Benefits
Employees must receive full payment for all work performed, including wages, bonuses, allowances, and compensation for unused annual leave.
If the Employer Terminates Early
Notice
Employer must provide written notice:
- At least 30 days before termination for fixed-term contracts less than 12 months.
- At least 45 days for contracts over 12 months (treated like indefinite contracts).
End-of-Service Benefits
Severance/Gratuity
- Employees are entitled to severance pay if the employer terminates the contract early without cause.
- Severance pay is calculated as half a month’s salary for each full year worked.
Other Benefits
- Full payment of wages, bonuses, allowances up to termination date.
- Payment for accrued but unused annual leave and any other agreed benefits.
Final Payment Timing & Immigration and Visa Compliance in Vietnam
Final Payment Deadline
- Under Article 48 of the Labor Code 45/2019/QH14, employers must settle all final payments; salary, unused leave, severance (if any), and other entitlements, within 14 working days of termination.
- In special cases (e.g., force majeure), this period can be extended but must not exceed 30 days.
Penalty
- Employers who delay payment beyond the legal deadline are subject to administrative penalties under Decree No. 12/2022/NĐ-CP.
- Fines range from VND 1 million to VND 100 million, depending on the number of affected employees and severity.
- Late payments also require interest calculated using the State Bank’s demand deposit rates.
Visa and Immigration Compliance
For foreign employees, upon termination:
- The employer must notify the immigration authority about the termination of the foreign worker’s employment status.
- The employer is also responsible for revoking or cancelling the work permit via the Department of Labor, Invalids and Social Affairs (DoLISA) within 15 days of termination (Article 20 of Decree No. 152/2020/NĐ-CP).
- The foreign employee must exit Vietnam if they do not have another legal basis to stay (e.g., new job, residence permit).
- The visa linked to the work permit may also become invalid upon work permit cancellation, and an exit plan should be prepared accordingly.
Supporting Guides
Frequently Asked Questions
Do employment contracts need to be in Vietnamese?
Yes. Contracts must be in Vietnamese. For foreign employees, you’ll typically need a bilingual version (Vietnamese + English or another language). The Vietnamese version is the legally binding document if there’s any dispute.
What’s the difference between social insurance for Vietnamese and foreign employees?
Vietnamese employees working under any contract longer than 1 month must contribute to social insurance. Foreign employees only need to contribute if their contract is at least 12 months. Unemployment insurance is mandatory for Vietnamese employees but not for foreign workers.
Is the 13th-month salary mandatory in Vietnam?
No, it’s not legally required. However, it’s widely practiced and commonly paid before Lunar New Year. If you offer it, document it clearly in employment contracts or company policies.
How quickly can I get a work permit for a foreign employee?
Work permit processing has been streamlined to about 10 days. However, you’ll need to prepare supporting documents in advance, including the labor contract, health certificates, and criminal background checks.
What are the regional minimum wages?
Vietnam has 4 wage regions with different minimums (as of 2025):
The region is determined by the workplace location, not where the employee lives.
How quickly must I pay final wages after termination?
Within 14 working days of termination. In special cases (like force majeure), this can extend to 30 days maximum. Late payments result in administrative fines ranging from VND 1 million to VND 100 million, plus interest.
When do I owe severance pay?
Severance is required for employees with at least 12 consecutive months of service when you terminate without cause or when they resign due to employer fault. It’s calculated as half a month’s salary for each year of employment. Employees who resign voluntarily or are terminated with cause generally don’t receive severance.
