Country Payroll Guide Vietnam

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Vietnam Minimum Wage

Key Facts

Capital
Hanoi
Date format
dd/mm/yyyy
Currency
Vietnamese Dong (VND)
VAT
the standard rate is 10%

Contributions

Employers

Social Insurance
Social Insurance - 17.50%
Health Insurance
Health Insurance - 3%
Unemployment Insurance
Unemployment Insurance - 1%
Trade Union Fund
Trade Union Fund (Applicable to corporate employers only) - 2%
Total Employment Cost
Total Employment Cost - 23.50%

Employees

Social Insurance
Social Insurance - 8%
Health Insurance
Health Insurance - 1.5%
Unemployment Insurance
Unemployment Insurance - 1%
Total Employee Cost
Total Employee Cost - 10.50%

Minimum Wage

Minimum Wage

There are four different regions in Vietnam with separate minimum wages:

  • Region 1 – VND 4,420,000.
  • Region 2 – VND 3,920,000.
  • Region 3 – VND 3,430,000.
  • Region 4 – VND 3,070,000.

These figures are for untrained employees.

All trained employees will receive at least 7% more of their regions’ minimum wage.

Payroll

Payroll Cycle
Bi-Weekly
13th Salary

Common.

Income Tax

Employee Income Tax (1)
0 - 60 million VND - 5%
Employee Income Tax (2)
60 - 120 million VND - 10%
Employee Income Tax (3)
120 - 216 million VND - 15%
Employee Income Tax (4)
216 - 384 million VND - 20%
Employee Income Tax (5)
384 - 624 million VND - 25%
Employee Income Tax (6)
624 - 960 million VND - 30%
Employee Income Tax (7)
624 - 960 million VND - 35%

Working Hours

General Working Hours

48 hours per week.

Overtime

Overtime may not exceed 30 hours each month and/or 200 hours each year. The overtime rates is calculated as follows:

  • Weekdays – 150%
  • Weekends – 200%
  • Public holidays – 300%

Leave

Paid Time Off

12 days a year. After five years of employment for the same employer, an employee will receive an additional one day.

Public Holidays

10 days.

Sick Days

Employees are generally entitled to 30 days sick leave each year. This will be calculated at 75% of the employee’s salary from the month before the leave is taken.

Maternity Leave

There are several leaves regarding maternity leave:

  • Prenatal Check ups – five days
  • Maternity Leave – six months with an additional month for twins.

The Social Insurance Authority will pay 100% of the allowance.

Paternity Leave

Up to 14 days (paid by the Social Insurance Authority).

Parental Leave

Parents are entitled to 20 days each year until the child reaches three years if age. From three – seven years of age, they are entitled to 15 days each year.

Other Leave

Marriage Leave – Three days

Children’s Marriage Leave – One day

Personal Leave (Death of spouse, child, parents, parents-in-law) – Three days

Termination

Termination Process

Unilateral termination from the employee side only requires advanced notice. Unilateral termination by an employer is restricted except for the case of expiry of the labor contract or if the employee reaches retirement age and applies for a pension.

Notice Period

Notice periods are as follows:

  • 3 working days for a seasonal contract
  • 30 days for a definite contract
  • 45 days for an indefinite contract
Severance Pay

Severance pay is equal to half a month’s salary for each year of service.

Probation Period

Not required by law, however a probationary period is common in Vietnam. During a probationary period the wage can be no less than 85% of the official wage.

Visa

Employment Visa

N/A