Hire in Vietnam compliantly. Navigate 23.5% employer social contributions across four insurance types plus a mandatory trade union fee, regional minimum wages that vary by zone, a 6-month maternity leave funded by social insurance and a Tet shutdown that halts operations for up to two weeks.
Capital
Hanoi
Language
Vietnamese
Average Salary
VND 8.7mil
Payroll Cycle
Monthly
Employer Cost
23.5%
Paid Leave
12 days
Public Holidays
11-12 days
Tax Rates
5-35%
Hiring guides covering regulations, contributions and costs when you hire in Vietnam. Updated for 2026.
Vietnam's average salary is approximately 8.7 million VND per month (~$340 USD) nationally, but this figure is heavily skewed by agricultural and informal sector jobs. Professional salaries in Hanoi and Ho Chi Minh City typically range from 12 to 18 million VND, while IT roles command 20 to 100+ million VND depending on seniority. Employers must add approximately 23.5% on top of gross salary for mandatory social insurance, health insurance, unemployment insurance, and trade union contributions. Vietnam's four-region minimum wage increased by 7.2% from 1 January 2026 under Decree 293, with Region I (Hanoi, HCMC) now set at 5.31 million VND per month. While the 13th month salary is not legally required, it is a near-universal market practice and the Tet bonus typically adds one to three additional months of pay per year.
Read ArticleVietnam ranks #9 globally in Employsome's Best Countries to Hire Developers Index, with over 600,000 IT professionals and 60,000 new graduates per year. Developer salaries range from 12 million VND/month for juniors to 100+ million VND for CTOs, with total employer costs adding 23.5% for mandatory social insurance. A mid-level developer hired through an EOR costs approximately $1,750 to $2,150/month total, a 65 to 75% saving versus equivalent US hires.
Read ArticleVietnam requires every foreign worker staying longer than 90 days to hold both a work permit and a work visa (LD1 or LD2). The employer must prove no Vietnamese candidate can fill the role before hiring a foreigner. Decree 219/2025 streamlined the process but document preparation still takes 2 to 3 months, and working without a permit carries fines of VND 15 to 25 million plus deportation. This guide covers every step with realistic timelines and costs.
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Vietnam’s four-zone minimum wage system, mandatory social insurance across three separate funds, a 2% trade union fee, and culturally expected 13th-month Tet bonus create a cost structure that is more complex than it appears. Any EOR quoting only salary and management fee is underquoting by at least 25%.
Our assessment of EOR providers in Vietnam evaluates SHUI accuracy, trade union fee compliance, work permit management and Tet bonus handling.
When you hire in Vietnam, the 12-day annual leave minimum is modest by Asian standards, but the 6-month maternity leave, 11-12 public holidays and culturally extended Tet period mean total time off can be substantial.
| Key Employment Facts | |
| Minimum Wage (Region I) | VND 5,310,000/month (~USD 204, from January 2026) |
| Probation Period | Up to 60 days (managers/specialists), 30 days (other roles), 6 days (simple work) |
| Standard Working Hours | 48 hours/week (8 hours/day, 6 days); many offices work 40 hours |
| Paid Annual Leave | 12 working days (normal conditions; +1 day per 5 years of service) |
| Notice Period | 30-45 days (indefinite contracts), 30 days (definite), 3 days (seasonal) |
| 13th Salary | Not statutory (culturally expected as Tet bonus) |
| Sick Leave | 30 days/year (SI-funded at 75% of salary; 40 days for heavy/hazardous work) |
| Maternity Leave | 6 months (180 days) at 100% via Social Insurance Fund |
| Paternity Leave | 5 working days (normal birth), 7 days (C-section/premature), 14 days (twins) |
Good to Know: Vietnam’s Labour Code 2019 caps standard working hours at 48/week, but most professional and office-based employers operate on a 40-hour, 5-day schedule. Overtime is capped at 40 hours/month and 200 hours/year (300 hours for certain industries). Overtime rates are 150% on weekdays, 200% on weekends and 300% on public holidays. The personal income tax deduction is VND 11 million/month for the individual and VND 4.4 million per dependent. Salaries must be paid in Vietnamese Dong, even for foreign employees, though the contract can reference a foreign currency equivalent. The pension eligibility period has been reduced from 20 years to 15 years under the Social Insurance Law 2024.
When you hire in Vietnam, total employer social contributions of 23.5% make it one of the higher-cost ASEAN markets for mandatory payroll charges. The trade union fee is the component most EOR providers miss in initial quotes.
| Employer Contributions (2026) | ||
| Contribution | Vietnamese Employees | Foreign Employees |
| Social Insurance (retirement, sickness, maternity, accident) | 17.5% | 17.5% |
| Health Insurance | 3% | 3% |
| Unemployment Insurance | 1% | N/A |
| Trade Union Fee | 2% | 2% |
| SI/HI cap | VND 46,800,000/month (20x reference salary) | |
| Total Employer | 23.5% | 22.5% |
| Employee Taxes (2026) | ||
| Tax / Contribution | Vietnamese Employees | Foreign Employees |
| Social Insurance | 8% | 8% |
| Health Insurance | 1.5% | 1.5% |
| Unemployment Insurance | 1% | N/A |
| Personal Income Tax | 5-35% (progressive, 7 brackets) | 5-35% (residents) / 20% flat (non-residents) |
| Personal deduction | VND 11m/month + VND 4.4m per dependent | |
| Total Employee Insurance | 10.5% | 9.5% |
Good to Know: For a Vietnamese employee earning VND 20,000,000/month (~USD 770) in HCMC, the employer pays: VND 3,500,000 in SI (17.5%), VND 600,000 in HI (3%), VND 200,000 in UI (1%), and VND 400,000 in trade union (2%) = VND 4,700,000 in mandatory contributions. Add the culturally expected 13th-month Tet bonus (amortized at VND 1,667,000/month) and total employer cost is approximately VND 26,367,000/month or 1.32x gross salary. The employee takes home roughly VND 16,500,000 after 10.5% insurance deductions and PIT. For high earners above the VND 46.8 million SI/HI cap, the effective employer rate drops. A foreign employee earning VND 80,000,000/month has SI/HI calculated only on VND 46.8 million, making the effective mandatory contribution rate approximately 14% instead of 22.5%.
Vietnam has 11-12 official paid public holidays, including 5 statutory Tet days. The government arranges extended breaks for Tet (9 days) and National Day (5 days) with compensatory working Saturdays. A new Vietnam Culture Day (November 24) has been added from 2026.
| Date | Holiday |
| January 1 | New Year’s Day |
| February 14-22 | Tet / Lunar New Year (5 statutory days; 9 consecutive days with weekends and compensatory days) |
| April 26 | Hung Kings’ Commemoration Day (Sunday, substitute Monday April 27) |
| April 30 | Reunification Day |
| May 1 | International Labour Day |
| September 1-2 | National Day (2 statutory days; 5-day break Aug 29 – Sep 2 with weekends) |
| November 24 | Vietnam Culture Day (new from 2026) |
Good to Know: Tet is Vietnam’s most disruptive holiday for business operations. The 2026 Tet falls on February 17 (Lunar New Year’s Day), with the government approving 9 consecutive days off (February 14-22). Many employees add annual leave before or after, creating absences of 2+ weeks. Post-Tet workforce attrition is significant: many workers change employers or relocate after receiving their Tet bonus. Plan recruitment accordingly. Overtime on public holidays pays 300% of normal wages. Private sector employers choose their own Tet arrangement from government-provided options but must notify employees at least 30 days in advance. If a holiday falls on a weekend, the next working day is a compensatory day off.
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