Vietnam
Hire Employees & Contractors

Vietnam

Compliantly hire your distributed team members in

Vietnam

Person working on laptop

Hiring in

Vietnam

isn't so simple. Borderless can help.

To hire new employees in

Vietnam

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

Vietnam

while staying fully compliant with local laws and compliance.

Primary Language

Vietnamese

Currency

Vietnamese đồng (₫, VND)

Payroll Frequency

Monthly

Public Holidays

10 - 12 days

Employer Taxes

23.50%

Cost of Living Index

$$ (96 of 140, 2023)

Statutory Leave

Minimum 12 days

Sick Leave

30 - 60 days

Maternity Leave

6 months

Important: Risks of misclassification

In many countries like

Vietnam

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

VND 3,250,000 to VND 4,680,000 per month depending on the region.

Overtime Pay

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory in Vietnam. Overtime is defined as any time worked beyond the normal working day. Including regular and overtime hours, employees are only permitted to work a total of 12 hours every day. For overtime hours, employees are paid:

  • 150% of the hourly rate on weekdays
  • 200% of the hourly rate on weekly days off
  • 300% of the hourly rate on public holidays

Additional Pay

There are no mandatory bonuses in Vietnam. However, most employers pay a Lunar New Year (Tet) holiday bonus.

Payroll Cycle

Wages are disbursed bi-monthly or once monthly.

Employer Costs & Taxes

  • 17.5%: Social Insurance
  • 3.00%: Health Insurance
  • 1.00%: Unemployment Insurance
  • 2.00%: Trade Union Fund (Charged for corporate employers only)
  • Employee Costs & Taxes

  • 8%: Social Insurance
  • 1.5%: Health Insurance
  • 1%: Unemployment Insurance
  • 5%: 0-60 million VND
  • 10%: 60-120 million VND
  • 15%: 120-216 million VND
  • 20%: 216-384 million VND
  • 25%: 384-624 million VND
  • 30%: 624-960 million VND
  • 35%: 960+ million VND
  • Employment Information

    Termination Process

    If a just cause is proven, such as dishonesty, negligence, fraud, or other work-related offenses, employee contracts may be terminated. That aside, notice should be provided in advance – provided both parties agree to it.

    Notice period

    The minimum notice period is 3 days and will be increased according to the type of contract.

    • 45 days if the contract is indefinite
    • 30 days if the contract is fixed term of 12 - 36 months
    • 3 working days if the contact is a fixed term under 12 months

    Probation Period

    In Vietnam, probationary periods are optional and can range in length from 6 to 60 days, depending on the level of expertise required for the post. During the test period, workers must be paid at least 85% of their regular pay, and they must be informed of the results at least 3 days beforehand.

    Severance Details

    In Vietnam, all employees who have been employed for more than a year are entitled to severance pay, unless they are terminated for:

    • Having committed acts of theft, embezzlement, disclosure of technological and business secrets, or other acts causing severe loss to the property and interests of the enterprise.
    • Having been transferred to another job as a disciplinary measure, the employee then again commits the same breach of labor discipline when the disciplinary measure is still in effect.

    Severance pay is half a month of salary per year of service. The amount of severance that may be paid is not restricted by law.

    Benefits of working in a country abroad

    Borderless Benefits Packages in

    Vietnam

    When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

    Medical Insurance
    Dental Insurance
    Vision Insurance
    Life Insurance
    Retirement Contributions

    Learn how to hire quickly and easily in

    Vietnam

    Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

    Book a demo