TL;DR, Hiring in Vietnam
- Fully-loaded employer cost: ~21.5% on top of gross
- Social, health, and unemployment insurance are all statutory
- Trade union fee (2%) is mandatory even without a union presence
- 13th-month salary is contractual norm, not statutory
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Statutory employer costs in Vietnam
In Vietnam, employer social contributions total 21.5% on top of gross: 17.5% Social Insurance (retirement, sickness, maternity, work accident), 3% Health Insurance, 1% Unemployment Insurance. Add the 2% Trade Union fee paid to the Vietnam General Confederation of Labour regardless of union presence, and total employer cost is ~23.5%. Caps apply at 20× and 36× minimum wage depending on component.
| Contribution | Employer rate | Notes |
|---|---|---|
| Social Insurance (BHXH) | 17.5% | Capped at 20× regional minimum wage |
| Health Insurance (BHYT) | 3.0% | Same cap as Social Insurance |
| Unemployment Insurance (BHTN) | 1.0% | Vietnamese citizens only |
| Trade Union Fee | 2.0% | Paid even without a workplace union |
Mandatory employee benefits
Beyond statutory contributions, Vietnam law requires the following benefits the employer must fund.
- Annual leave
- 12 days minimum; +1 day per 5 years of service.
- 13th month (Tết bonus)
- Not statutory but universally expected, paid before Lunar New Year.
- Personal income tax
- Employee-side; progressive 5–35%, employer withholds.
Termination, notice and severance
Probation
Up to 60 days (skilled), 30 days (other), 6 days (unskilled).
Notice period
30 days (definite-term), 45 days (indefinite-term).
Severance
Half month per year of service for pre-2009 service; unemployment insurance covers post-2009.
Common compliance pitfalls
- Foreign employees need a Work Permit (and Visa/TRC), typically 6-8 weeks; EOR can sponsor.
- Definite-term contracts can renew once; second renewal must be indefinite-term.
- PIT residency triggers at 183 days, global income becomes taxable for residents.
Frequently asked questions
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.