Payroll and Benefits Guide Vietnam
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
0.50%
|
Social Insurance * (Labor, Accident, and Occupational Disease Fund) applied on income up to 46,800,000 VND monthly
|
| 14.00% | Social Insurance * (Retirement & Death Gratuity Fund) applied on income up to 46,800,000 VND monthly |
| 3.00% |
Social Insurance * (Sickness & Maternity Fund) applied on income up to 46,800,000 VND monthly
|
| 3.00% | Health Insurance, applied on income up to 46,800,000 VND monthly |
|
1.50%
|
Unemployment Insurance applied on income up to 99,200,000 VND monthly.) |
|
2.00%
|
Trade Union Fee applied on income up to 46,800,000 VND monthly |
| 23.50% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
8.00%
|
Social Insurance* |
|
1.50%
|
Health Insurance |
|
1.00%
|
Unemployment Insurance (the maximum salary for Unemployment insurance is 99,200,000 VND.) |
| 10.50% |
Total Employee Cost |
| Employee Income Tax | |
|
5.00%
|
Up to 5,000,000 VND annually |
|
250,000+10.00% on excess
|
5,000,001 VND – 10,000,000 VND annually |
|
750,000+15.00% on excess
|
10,000,001 VND – 18,000,000 VND annually |
|
1,950,000+ 20.00% on excess
|
18,000,001 VND – 32,000,000 VND annually
|
|
4,750,000+ 25.00% on excess
|
32,000,001 VND – 52,000,000 VND annually |
|
9,750,000+ 30.00% on excess
|
52,000,001 VND – 80,000,000 VND annually
|
| 18,150,000+ 35.00% on excess | 80,000,001 VND and above annually |
* Both local and foreign workers in Vietnam need to contribute to the Social Insurance Programme, according to the employer and employee contributions above.
* Effective January 1, 2026, Article 9 of the amended Law on Personal Income Tax introduces changes to the progressive tax schedule (reference link):
- Bracket 2: Tax rate reduced from 15% to 10%
- Bracket 3: Tax rate reduced from 25% to 20%
* Overall change: The progressive schedule is streamlined from 7 brackets to 5 brackets.
* Effective Jan 1 2026,
- Wages for night work and overtime are exempt from personal income tax.
- Payments for unused leave days are also exempt from personal income tax
Income tax
| Tax bracket | Taxable income/year (million VND) | Taxable income/month (million VND) | Tax rate (%) |
| 1 | Upto 120 | Upto 10 | 5 |
| 2 | Over 120 to 360 | Over 10 to 30 | 10 |
| 3 | Over 360 to 720 | Over 30 to 60 | 20 |
| 4 | Over 720 to 1.200 | Over 60 to 100 | 30 |
| 5 | Over 1.200 | Over 100 | 35 |
Employer taxes
Employee taxes
Minimum Wage
General
Please be informed that Vietnam Government issued Decree No.293/2025/ND-CP regulating the regional minimum wage for employees working under labor contracts. This Decree shall take effect from January 1, 2026, with the following change:
The regional minimum wage for HCMC, Hanoi area shall be 5,310,000 VND, according this the Cap monthly Salary contribution for Unemployment Insurance (UI) shall be 20@5,310,000VND = 106,200,000 VND ( before 01/01/2026 it was 99,200,000 VND)
Please see attached Decree N.293/2025/ND-CP or link here for your reference.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in Vietnam is generally monthly and is usually paid on the last working day or as agreed within the employment contract.
13th Salary
In Vietnam, it is customary to pay a 13th-month salary at the Lunar New Year or the end of the year.
Authority Payment
| Authority Payment | Dates | Methods |
|
Managing Tax Department (regional department) |
– By the last day of the first month of the quarter following the quarter in which the tax obligation arises if the company declared PIT on quarterly basis; – By the 20th of the next month following the month in which the tax obligation arises if the company declared PIT on monthly basis |
– ICP’s bank account; or – Local account owned by client |
|
Managing Social Insurance Department (regional department) |
Monthly; Last working day of that month |
– ICP’s bank account; or – Local account owned by client |
|
Managing Labour Union/ General Confederation of Labor (regional department) |
Monthly; Last working day of that month |
– ICP’s bank account; or – Local account owned by client |
Working Hours
General
Working hours must not exceed 8 hours a day or 48 hours per week.
Overtime
- Maximum Ordinary Hours: The standard work limit is 8 hours per day or 48 hours per week. The State encourages employers to apply a 40-hour work week.
- Consent Required: Overtime work is only permitted if the employer obtains the written consent of the employee regarding the overtime hours, location, and nature of the work.
- Overtime Limits (Normal Circumstances):
- Daily: Must not exceed 50% of the normal working hours in a day, and the total work (ordinary + overtime) must not exceed 12 hours per day.
- Monthly: Must not exceed 40 hours per month.
- Annual: Must not exceed 200 hours per year.
- Extended Annual Limit: The annual cap may be extended to 300 hours per year only for specific essential sectors approved by the government (e.g., textiles, electricity, telecommunications, seasonal production, and export processing), and with employee consent.
Mandatory Overtime Pay Rates (Labour Code Article 98)
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the ordinary hourly wage. Night work attracts an additional premium, which is cumulative with overtime pay.
| Day/Condition | Minimum Premium Rate (Statutory) | Total Pay Rate | Notes |
| Normal Overtime (Working Days) | +50% of the regular hourly wage. | 150% | For work exceeding 8 hours/day or 48 hours/week. |
| Weekly Rest Day (Weekends) | +100% of the regular hourly wage. | 200% | This premium applies for work on the designated weekly rest day. |
| Public Holiday / Tet (Lunar New Year) | +200% of the regular hourly wage. | 300% | This premium is mandatory and is paid in addition to the employee’s normal daily holiday pay. |
Night Work Overtime
Night work is defined as the period from 10:00 PM to 6:00 AM and requires two separate premiums to be added:
- Night Work Premium: Employees working at night must receive a minimum of 30% of their regular hourly wage.
- Night Overtime Supplement: If the work performed at night is also overtime, the employee must receive an additional 20% of the overtime rate ($150\%$, $200\%$, or $300\%$).
Example of Cumulative Rate (Regular Day Night Overtime):
A typical night overtime hour on a working day would be paid at a minimum of:
This results in a minimum total of 210% of the regular hourly wage.
Leave
Annual Leave (vacation)
Annual leave is a minimum of 12 working days per year. This increases by one day for every five years of consecutive service.
Public Holidays
Public holidays falling on weekends are moved to the next working day in lieu.
| Date | Day | Holiday | Holiday Notes |
|---|---|---|---|
| January 1, 2026 | Thursday | New Year’s Day | |
| February 16, 2026 | Monday | Tet Eve (Lunar New Year Eve) | |
| February 17, 2026 | Tuesday | Tet Nguyen Dan (Lunar New Year Day) | |
| February 18, 2026 | Wednesday | Tet Holiday (Day 2) | |
| February 19, 2026 | Thursday | Tet Holiday (Day 3) | |
| February 20, 2026 | Friday | Tet Holiday (Day 4) | |
| April 26, 2026 | Sunday | Hung Kings Commemoration Day* | |
| April 27, 2026 | Monday | Hung Kings Holiday (Observed) | |
| April 30, 2026 | Thursday | Reunification Day | |
| May 1, 2026 | Friday | International Labor Day | |
| August 31, 2026 | Monday | National Day Holiday** | |
| September 1, 2026 | Tuesday | National Day Holiday** | |
| September 2, 2026 | Wednesday | National Day (Independence Day) |
In addition to these public holidays, an expatriate employee is also entitled to 1 day off for the traditional new year and 1 day off for the national day of their home country.
Sick Days
As of 1 July 2025, Vietnam’s updated Social Insurance Law has taken effect. Under these regulations, workers are entitled to sick leave at a duration between 30 to 70 days paid by the Social Insurance Authority at a rate equal to 75% salary, depending on the employee’s social insurance contribution history and working conditions, regardless of illness type.
After the maximum entitlement period ends, additional sick leave can be taken with a reduced rate of payment of 65% salary for those with over 30 years of SI contributions, 55% salary for those with 15 to 30 years of SI contributions or 50% salary for those with less than 15 years of SI contributions).
It is permitted to take half day sickness leave which will be compensated a half the standard daily rate. Leave exceeding half a day but less than a full day will be compensated at the full daily rate.
Employees who take sick leave for 14 days or more in their first month or initial month return after long-term sick leave are still required to pay their monthly social insurance contributions.
Employees must provide a medical certificate for sickness which employers will need to send to Social Insurance.
Maternity Leave
Female employees are entitled to a total of 6 months maternity leave – a maximum of 2 months can be taken as prenatal leave and the remainder as postnatal leave. An additional 1 month leave is given where there are multiple births.
Additionally, female employees are entitled to up to 5 prenatal check-up leaves, with a maximum of 2 paid days per check-up.
Maternity leave is paid by the Social Insurance Authority at a rate of 100% of the average monthly salary on which Social Insurance premiums are based on the six months preceding their leave, capped at a maximum salary during maternity of 20 times the minimum common salary.
To initiate the Social Insurance subsidies, within 30 days after giving birth, the mother must submit the hospital discharge papers, birth certificate of the newborn baby and an application to receive maternal subsidies.
Employees who miscarry or lose a baby from 22 weeks onward are entitled to full 6-month maternity leave if they have contributed to compulsory social insurance for at least 6 months within the 12 months prior to the expected date of childbirth. If not, they are entitled to 50 days of leave
Paternity Leave
Fathers are entitled to leave of:
- For natural births: 5 working days
- For birth by cesarean, premature, other complications: 7 working days
- For natural birth twins: 10 working days
- For the birth of triplets or more more: 10 days + 3 days per additional child.
Leave must be taken within 60 days of the child’s birth.
Leave is paid by the Social Insurance Authority at a rate of 100% of the salary received in the month preceding the start of the paternity absence.
Parental Leave
Parental leave in Vietnam is available for childcare and entitles employees to up to 20 working days of parental leave per year until the child reaches the age of 3 and thereafter up to 15 working days per year until the child reaches the age of 7.
Vietnamese nationals will have this leave paid by the Social Insurance Authority at the rate of 75% of the salary in the month preceding the start of the leave.
Other Leave
Depending on the contract, employees may be allowed additional leave types, once approved between the employer and employee for the following:
- Bereavement: Employees are entitled to 3 days of paid leave for the death of a spouse, biological or adoptive parent; spouse’s biological or adoptive parent, biological or adopted child. 1 day of unpaid leave should be given for the death of a grandparent or biological sibling.
- Marriage: Employees are entitled to up to 3 days in case of marriage and one day for a child’s marriage. 1 day of unpaid leave should be given for the marriage of a parent or sibling.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Termination justification is based on the criteria outlined in the labor law regulations, including repeated failure to perform work to the required standard or misconduct.
Due to the nature of termination in Vietnam, it is very common to end an employment relationship through using a Mutual Termination Agreement.
It is not permitted to terminate a worker whilst they are on paid time off.
| Salary payment interval / date | Final payment on termination | Bank account/payment method requirement |
|---|---|---|
| Wages must be paid for the agreed wage-period, which for most monthly-paid employees is monthly, and the period shall not exceed one month. | Upon termination the employer must pay all wages and other monetary claims due. For eligible employees (with ≥ 12 months’ service) the employer must pay severance allowance per Law (half-month salary × years of service) in applicable cases. | Wages must be paid in money (legal tender). |
Notice Period
Notice of termination must be in writing and the length of the notice period varies based on the type of contract:
- 45 days for an indefinite labor contract by the employee and the employer
- 30 days for a definite labor contract (between 1-3 years)
- 3 working days for the seasonal contract (contract of less than one year)
- No notice is required during the probation period
Severance Pay
Vietnamese labor law requires employers to provide severance payments to terminated employees who have been regularly working for the employer for a period of 12 months or more.
The severance payment is equal to half a month’s wages for each year of employment.
Probation Period
For permanent employees, the probation period in Vietnam is generally based on the complexity and skill required to do the role and varies between 6 to 60 days; for managerial roles up to 180 days might be used.
The wage for an employee during the probation period must be agreed upon in writing but cannot be less than 85% of the full-time permanent salary for the role.
Common Benefits
- Meal allowance per month: CAP 730,000 VND (nontaxable)
- Commuting expenses (from and to the office e.g., train tickets/bus, average petrol) per month and in practice, companies will pay 50 USD per month in Vietnam (taxable)
- Gym membership per month: Fees cost about 60 USD/per month for good service (taxable)
- Internet coverage per month: In practice, the company will pay 50 USD per month in Vietnam (taxable)
- Customary to provide 13th salary bonus across all sectors.
Immigration
Foreign nationals typically require a work permit before entering Vietnam to take up employment.
The Vietnamese work permit is a legal document authorizing the person to engage in employment and receive compensation from a company in Vietnam.
However, a foreigner may work in Vietnam without a work permit with a work permit exemption certificate in certain circumstances.
This certificate is equivalent to the work permit, valid for up to two years, and serves as a basis for applying for a temporary residence card.
VAT
General
The VAT rate in Vietnam is 8% (temporarily reduced from the regular rate of 10%). The reduction has been extended until the 31 December 2026.
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Payroll and Benefits Guide
in Vietnam
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Holiday Notes |
|---|---|---|---|
| January 1, 2026 | Thursday | New Year’s Day | |
| February 16, 2026 | Monday | Tet Eve (Lunar New Year Eve) | |
| February 17, 2026 | Tuesday | Tet Nguyen Dan (Lunar New Year Day) | |
| February 18, 2026 | Wednesday | Tet Holiday (Day 2) | |
| February 19, 2026 | Thursday | Tet Holiday (Day 3) | |
| February 20, 2026 | Friday | Tet Holiday (Day 4) | |
| April 26, 2026 | Sunday | Hung Kings Commemoration Day* | |
| April 27, 2026 | Monday | Hung Kings Holiday (Observed) | |
| April 30, 2026 | Thursday | Reunification Day | |
| May 1, 2026 | Friday | International Labor Day | |
| August 31, 2026 | Monday | National Day Holiday** | |
| September 1, 2026 | Tuesday | National Day Holiday** | |
| September 2, 2026 | Wednesday | National Day (Independence Day) |
I like it
In Vietnam if the employee on Leave of Absence then car allowance is applicable for calculating LOA period
Hi Devanth, thank you for your question. Car allowance is calculated during the LOA period, please note that this is a taxable allowance.
Hi,
Is the 13th month salary usually paid to employees that quit the business before the bonus is paid?
Hi Theodore, thank you for your question. As 13th salaries aren’t required by law, you would have to check your employment agreement to understand the terms of the bonus.
What are the mandatory forms submission to statutory authority in Vietnam by each year end for Employee and employer?
Workers tax filings must be submitted each year via Form 05/QTT-TNCN. The worker must determine whether they need to undertake an annual tax finalisation in any given year or if a worker only has income from a single employer during the year then they can authorise their employer to finalise on their behalf.
where can we find the template of this form? is there a guideline on how to fill it up?
The form can be found on the General Department of Taxation’s website in Vietnam – https://etaxvn.gdt.gov.vn/nccnn/Request. You can also find links to the forms and guidance on completion through legal websites such as https://lawnet.vn/en/laws/vietnam-in-2024-what-documents-are-included-in-pit-finalization-dossiers-submitted-by-individuals-w-147760.html