Vietnam

Vietnam, located in Southeast Asia, neighbors China, Laos, and Cambodia. The country is fertile ground for the growth of rice and other crops.
Contractor Management
EOR
Payroll
Currency
Vietnamese dong (VND)
Payroll Frequency
Monthly
Employer Taxes
21.50%

Overview

Population
~ 100 million
Language
Vietnamese
Capital
Hà Nội
Currency
Vietnamese dong (VND)
Country code
+84
Min wage
Varies by region, from VND 3.25 million to VND 4.68 million per month
Working hours
7:30 a.m. until 4:30 p.m.
Weekdays
Mondays to Fridays
Work hours per week
40 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
Avg employer tax

21.50%

Tax Breakdown

Personal Income Tax (PIT):

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:

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

VAT

The current standard rate of VAT is 10%

Tax Calculation for Vietnam
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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Vietnam typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Department of Labor, Invalids, and Social Affairs (DoLISA) and the Social Insurance Agency

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Vietnam
When drafting an employment contract for employees in Vietnam, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid for up to 30 days; thereafter, covered by social insurance
Maternity leave
  • 6 months, fully paid by the Social Insurance Fund
Paternity leave
  • 5 days for fathers who pay social insurance

Parental Leave:

  • Unpaid leave up to 6 months

Annual Leave
  • Minimum of 12 days per year
8 Public holidays in Vietnam
1st
New Year's Day
10th
Tet Holiday
11th
Vietnamese New Year's Eve
12th
Vietnamese New Year
13th
Tet holiday
14th
Tet holiday
15th
Tet holiday
16th
Tet holiday
21st
Hung Kings Festival
30th
Liberation Day/Reunification Day
1st
Labor Day
3rd
Labor Day observed
2nd
Independence Day
3rd
Independence Day
  • 1 Jan: International New Year's Day
  • 10 Feb: Tet Holiday
  • 11 Feb: Vietnamese New Year's Eve
  • 12 Feb: Vietnamese New Year
  • 13 Feb: Tet holiday
  • 14 Feb: Tet holiday
  • 15 Feb: Tet holiday
  • 16 Feb: Tet holiday
  • 21 Apr: Hung Kings Festival
  • 30 Apr: Liberation Day/Reunification Day
  • 1 May: International Labor Day
  • 3 May: International Labor Day observed
  • 2 Sep: Independence Day
  • 3 Sep: Independence Day Holiday

Termination Process

Notice Period

Varies based on contract type and tenure; typically 30 days

Severance Pay

Equal to 0.5 month's salary for each year of service

Termination Grounds

Must be based on statutory reasons; improper dismissal can lead to legal disputes

Probation Period

  • Maximum Duration:Up to 60 days
  • Benefits: Employees may not be entitled to full benefits during this period
  • Termination: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Vietnam
with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Vietnam.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hiring in Vietnam | Payroll, Tax & Employment Guide

Vietnam's rapid digital transformation and lower labor costs than its neighbors make it an attractive hiring destination. This guide walks you through the essentials so you can hire in Vietnam with confidence.

RemotePass makes hiring in Vietnam simple. We handle compliance, contracts, and payroll. You focus on growing your business.

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.

Quick Facts For Hiring In Vietnam

Continent
Asia
Capital
Hanoi
Currency
Vietnamese đồng (VND, ₫)
Language
Vietnamese
Payroll Cycle
Monthly
Pay Date
28th of the month

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.

Contract Type
Fixed-term/Open-ended
Local Language Required?
Yes
Bilingual?
Yes (Vietnamese + another language, typically English)
Probation Period
180 days for enterprise executives
60 days for roles requiring a junior college degree or higher
30 days for positions that require a secondary vocational certificate, professional secondary school qualification, or positions for technicians and skilled employees.
Minimum Paid Time Off
12 days per year, with one additional day for every five years of service
Public Holidays
11 public holidays.
Foreign employees receive one traditional holiday and one National Day of their home country.
Notice Period
Indefinite-term contracts: 45 days
Fixed-term contracts (12 - 36 months): 30 days
Short-term contracts (less than 12 months): Three working days

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)

How Does Payroll and Taxation Work in Vietnam?

Payroll in Vietnam follows a clear set of rules around currency, regional minimum wages, working hours, and mandatory insurance contributions. Understanding these basics helps you stay compliant and ensures salaries are processed smoothly every month.

Payroll Setup

Salary currency

Salaries must be paid in Vietnamese đồng (VND, ₫) This is mandatory for Vietnamese employees.

Foreign employees may be paid in foreign currency if the contract specifically allows it.

Minimum Wage

Minimum wage varies by region:

  • Region one: VND 4,960,000

  • Region two: VND 4,410,000

  • Region three: VND 3,860,000

  • Region four: VND 3,450,000

Hours per Week

40 hours per week / Eight hours per day

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

A thirteenth-month salary is not legally required but it's widely practiced, and commonly paid before Lunar New Year.

Gross Salary Structure

Vietnam doesn’t follow a standardized gross salary structure. Employers typically define salary components based on internal policy and market practice.

What Payroll Taxes Do Employers Pay in Vietnam?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Social Insurance:

Employers contribute 17.5 percent of the maximum salary base for Social Insurance.

The base is 20 times the basic wage (2,340,000 VND x 20 = 46,800,000 VND).

Maximum employer contribution: 46,800,000 x 0.175 = 8,190,000 VND.

Health Insurance:

Employers contribute 3% of the same salary base.

Maximum employer contribution: 46,800,000 x 0.03 = 1,404,000 VND.

Unemployment Insurance:

Employers contribute 1% of the maximum regional unemployment insurance salary.

The maximum salary limits are:

  • Region 1: 99,200,000 VND

  • Region 2: 88,200,000 VND

  • Region 3: 77,200,000 VND

  • Region 4: 65,000,000 VND

Example: 1% of 99,200,000 VND = 992,000 VND.

Trade Union Fee:

Employers must pay 2% of the salary base used for Social Insurance (46,800,000 VND).

Maximum contribution: 46,800,000 x 0.02 = 936,000 VND.

What Payroll Taxes Do Employees Pay In Vietnam?

Individual Income Tax

10.5% of the maximum monthly salary limit

Social Contributions


Social Insurance:

Employees contribute 8% of the maximum Social Insurance salary base.

The base is 20 times the basic wage (2,340,000 VND x 20 = 46,800,000 VND)

Maximum employee contribution: 46,800,000 x 0.08 = 3,744,000 VND.

Health Insurance:

Employees contribute 1.5% of the same salary base.

Maximum employee contribution:

46,800,000 x 0.015 = 702,000 VND.

Unemployment Insurance:

Employees contribute 1% of the regional unemployment insurance salary limit.

Example: one percent of 99,200,000 VND (Region one) = 992,000 VND.

Salary limits per region:

  • Region one: 99,200,000 VND

  • Region two: 88,200,000 VND

  • Region three: 77,200,000 VND

  • Region four: 65,000,000 VND

Individual Income Tax Employment income is taxed using progressive tax rates.

Before calculating taxable income, employees receive a personal allowance of 11,000,000 VND per month and a dependent allowance of 4,400,000 VND per month for each registered dependent.

Personal Income Tax Brackets in Vietnam

Based on monthly taxable income (after allowances):

Income Bracket Tax Rate
Up to 5 million VND

5%

Over 5 million to 10 million VND

10%

Over 10 million to 18 million VND

15%

Over 18 million to 32 million VND

20%

Over 32 million to 52 million VND

25%

Over 18 million to 32 million VND

20%

Over 52 million to 80 million VND

30%

Above 80 million VND

35%

Hiring cost calculator 

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VN
*
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Employer cost
Total monthly cost of employment
Gross monthly salary costs
Estimated taxes and contributions
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
Gross yearly salary costs
Estimated taxes and contributions
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

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

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

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.

Key Elements of an Employment Contract in Vietnam
When drafting an employment contract for employees in Vietnam, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Simplify Hiring in Vietnam With RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Vietnam.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Vietnam

Got Questions? Find Answers Here

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):

  • Region 1: VND 4,960,000
  • Region 2: VND 4,410,000
  • Region 3: VND 3,860,000
  • Region 4: VND 3,450,000

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.

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Vietnam

Vietnam, located in Southeast Asia, neighbors China, Laos, and Cambodia. The country is fertile ground for the growth of rice and other crops.
Contractor Management
EOR
Payroll
العملة
Vietnamese dong (VND)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
21.50%

نظرة عامة

التركيبة السكانية
~ 100 million
اللغة
Vietnamese
العاصمة
Hà Nội
العملة
Vietnamese dong (VND)
رمز الاتصال الدولي
+84
الحد الأدنى للأجور
Varies by region, from VND 3.25 million to VND 4.68 million per month
ساعات العمل
7:30 a.m. until 4:30 p.m.
أيام الأسبوع
Mondays to Fridays
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
متوسط ​​ضريبة صاحب العمل

21.50%

تحصيل الضرائب

Personal Income Tax (PIT):

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:

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

ضريبة القيمة المضافة

ضريبة القيمة المضافة

The current standard rate of VAT is 10%

حساب الضريبة في Vietnam
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Vietnam عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Department of Labor, Invalids, and Social Affairs (DoLISA) and the Social Insurance Agency

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Vietnam
عند إعداد عقد عمل للموظفين في Vietnam يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Paid for up to 30 days; thereafter, covered by social insurance
إجازة الأمومة
  • 6 months, fully paid by the Social Insurance Fund
إجازة الأبوة
  • 5 days for fathers who pay social insurance

Parental Leave:

  • Unpaid leave up to 6 months

الإجازة السنوية
  • Minimum of 12 days per year
8 عطلات رسمية في Vietnam
1st
New Year's Day
10th
Tet Holiday
11th
Vietnamese New Year's Eve
12th
Vietnamese New Year
13th
Tet holiday
14th
Tet holiday
15th
Tet holiday
16th
Tet holiday
21st
Hung Kings Festival
30th
Liberation Day/Reunification Day
1st
Labor Day
3rd
Labor Day observed
2nd
Independence Day
3rd
Independence Day
  • 1 Jan: International New Year's Day
  • 10 Feb: Tet Holiday
  • 11 Feb: Vietnamese New Year's Eve
  • 12 Feb: Vietnamese New Year
  • 13 Feb: Tet holiday
  • 14 Feb: Tet holiday
  • 15 Feb: Tet holiday
  • 16 Feb: Tet holiday
  • 21 Apr: Hung Kings Festival
  • 30 Apr: Liberation Day/Reunification Day
  • 1 May: International Labor Day
  • 3 May: International Labor Day observed
  • 2 Sep: Independence Day
  • 3 Sep: Independence Day Holiday

عملية إنهاء العقود

Notice Period

Varies based on contract type and tenure; typically 30 days

Severance Pay

Equal to 0.5 month's salary for each year of service

Termination Grounds

Must be based on statutory reasons; improper dismissal can lead to legal disputes

Probation Period

  • Maximum Duration:Up to 60 days
  • Benefits: Employees may not be entitled to full benefits during this period
  • Termination: Either party can terminate with appropriate notice

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في Vietnam
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Vietnam.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

Hiring in Vietnam | Payroll, Tax & Employment Guide

Vietnam's rapid digital transformation and lower labor costs than its neighbors make it an attractive hiring destination. This guide walks you through the essentials so you can hire in Vietnam with confidence.

RemotePass makes hiring in Vietnam simple. We handle compliance, contracts, and payroll. You focus on growing your business.

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.

Quick Facts For Hiring In Vietnam

Continent
Asia
Capital
Hanoi
Currency
Vietnamese đồng (VND, ₫)
Language
Vietnamese
Payroll Cycle
Monthly
Pay Date
28th of the month

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.

Contract Type
Fixed-term/Open-ended
Local Language Required?
Yes
Bilingual?
Yes (Vietnamese + another language, typically English)
Probation Period
180 days for enterprise executives
60 days for roles requiring a junior college degree or higher
30 days for positions that require a secondary vocational certificate, professional secondary school qualification, or positions for technicians and skilled employees.
Minimum Paid Time Off
12 days per year, with one additional day for every five years of service
Public Holidays
11 public holidays.
Foreign employees receive one traditional holiday and one National Day of their home country.
Notice Period
Indefinite-term contracts: 45 days
Fixed-term contracts (12 - 36 months): 30 days
Short-term contracts (less than 12 months): Three working days

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)

How Does Payroll and Taxation Work in Vietnam?

Payroll in Vietnam follows a clear set of rules around currency, regional minimum wages, working hours, and mandatory insurance contributions. Understanding these basics helps you stay compliant and ensures salaries are processed smoothly every month.

Payroll Setup

Salary currency

Salaries must be paid in Vietnamese đồng (VND, ₫) This is mandatory for Vietnamese employees.

Foreign employees may be paid in foreign currency if the contract specifically allows it.

Minimum Wage

Minimum wage varies by region:

  • Region one: VND 4,960,000

  • Region two: VND 4,410,000

  • Region three: VND 3,860,000

  • Region four: VND 3,450,000

Hours per Week

40 hours per week / Eight hours per day

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

A thirteenth-month salary is not legally required but it's widely practiced, and commonly paid before Lunar New Year.

Gross Salary Structure

Vietnam doesn’t follow a standardized gross salary structure. Employers typically define salary components based on internal policy and market practice.

What Payroll Taxes Do Employers Pay in Vietnam?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Social Insurance:

Employers contribute 17.5 percent of the maximum salary base for Social Insurance.

The base is 20 times the basic wage (2,340,000 VND x 20 = 46,800,000 VND).

Maximum employer contribution: 46,800,000 x 0.175 = 8,190,000 VND.

Health Insurance:

Employers contribute 3% of the same salary base.

Maximum employer contribution: 46,800,000 x 0.03 = 1,404,000 VND.

Unemployment Insurance:

Employers contribute 1% of the maximum regional unemployment insurance salary.

The maximum salary limits are:

  • Region 1: 99,200,000 VND

  • Region 2: 88,200,000 VND

  • Region 3: 77,200,000 VND

  • Region 4: 65,000,000 VND

Example: 1% of 99,200,000 VND = 992,000 VND.

Trade Union Fee:

Employers must pay 2% of the salary base used for Social Insurance (46,800,000 VND).

Maximum contribution: 46,800,000 x 0.02 = 936,000 VND.

What Payroll Taxes Do Employees Pay In Vietnam?

Individual Income Tax

10.5% of the maximum monthly salary limit

Social Contributions


Social Insurance:

Employees contribute 8% of the maximum Social Insurance salary base.

The base is 20 times the basic wage (2,340,000 VND x 20 = 46,800,000 VND)

Maximum employee contribution: 46,800,000 x 0.08 = 3,744,000 VND.

Health Insurance:

Employees contribute 1.5% of the same salary base.

Maximum employee contribution:

46,800,000 x 0.015 = 702,000 VND.

Unemployment Insurance:

Employees contribute 1% of the regional unemployment insurance salary limit.

Example: one percent of 99,200,000 VND (Region one) = 992,000 VND.

Salary limits per region:

  • Region one: 99,200,000 VND

  • Region two: 88,200,000 VND

  • Region three: 77,200,000 VND

  • Region four: 65,000,000 VND

Individual Income Tax Employment income is taxed using progressive tax rates.

Before calculating taxable income, employees receive a personal allowance of 11,000,000 VND per month and a dependent allowance of 4,400,000 VND per month for each registered dependent.

Personal Income Tax Brackets in Vietnam

Based on monthly taxable income (after allowances):

Income Bracket Tax Rate
Up to 5 million VND

5%

Over 5 million to 10 million VND

10%

Over 10 million to 18 million VND

15%

Over 18 million to 32 million VND

20%

Over 32 million to 52 million VND

25%

Over 18 million to 32 million VND

20%

Over 52 million to 80 million VND

30%

Above 80 million VND

35%

حاسبة تكلفة التوظيف

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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

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

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

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.

Key Elements of an Employment Contract in Vietnam
When drafting an employment contract for employees in Vietnam, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Simplify Hiring in Vietnam With RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Vietnam.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Vietnam

Got Questions? Find Answers Here

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):

  • Region 1: VND 4,960,000
  • Region 2: VND 4,410,000
  • Region 3: VND 3,860,000
  • Region 4: VND 3,450,000

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.

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