Hiring and employment
How employment in Vietnam is set up: contracts, probation, working time, internal labour regulations and the EOR route when there is no entity.
Vietnam hiring guide · 2026
Hiring in Vietnam: what employers need to know.
Hiring routes with or without a local entity, employment contracts and probation, working time and leave, minimum wages, employer cost, personal income tax, work permits and termination. Written by the team that runs these processes every month, with the sources cited.
Vietnam employment snapshot
- Payroll cycleMonthly
- CurrencyVND
- Working week48 hours
- Public holidays12 days
- Annual leave12 days +
- Region I minimum wage5,310,000 VND
- Employer statutory cost~23.5%
- Employee contributions10.5%
- Personal income tax5–35%
Reviewed 21 September 2026. Figures have different effective dates; see each section and the official sources. Employer cost includes the standard contributions and funding in the payroll section, subject to caps and eligibility.
Hiring routes
Choose the employment model and HR support for your Vietnam team.
Your Vietnam entity can employ directly, with outsourced payroll support, or you can review an EOR arrangement when your own entity is not ready. HR Compliance & Setup supports the documents and processes for the selected model. Foreign employees may have additional work-authorization, contract and insurance requirements, depending on their circumstances.
-
Legal employer: you
You already have a Vietnam entity
Your company is the legal employer. Truzand runs the monthly payroll, PIT and statutory-insurance administration, employment documents and employee records within the agreed scope.
- Payroll reports
- Payslips
- PIT & insurance records
-
Employed locally through Truzand
No entity yet, but people to hire
Truzand's EOR (Employer of Record) route employs the person locally under the agreed terms. You manage the daily work, responsibilities, performance and business priorities.
- Employment contract
- Monthly payroll
- Statutory benefits
-
For your own HR setup
Setting up or reviewing the HR side
Internal labour regulations, contract templates, statutory registrations, Work Permit, Visa and TRC coordination and a review of what is already in place.
- Checklists
- Templates
- Permit & TRC tracker
Employment law
Contracts, probation, working time and leave.
The Labour Code of 2019 (in force since 2021) and Decree 145/2020 set the framework below. Employers with ten or more employees also need registered internal labour regulations that mirror it.
Employment contracts
- Indefinite-term contract
- No fixed end date. Continued employment after the permitted definite-term renewals generally requires this form, subject to statutory exceptions.
- Definite-term contract
- Up to 36 months, generally renewable once before an indefinite-term contract is required. Exceptions include foreign employees, older employees and other cases in Article 20 of the Labour Code.
- Written and electronic contracts
- Written contracts, including qualifying electronic contracts, are the general rule. Oral contracts under one month are allowed only outside the statutory exceptions. Bilingual versions can help the parties understand their obligations.
- Internal labour regulations
- Employers with 10 or more employees need written internal labour regulations, registered with the labour authority, before disciplinary action can rely on them.
Probation
| Position | Maximum probation |
|---|---|
| Enterprise managers | up to 180 days |
| Positions requiring a college degree or higher | up to 60 days |
| Intermediate vocational or technical positions | up to 30 days |
| Other work | up to 6 working days |
- Probation salary is at least 85% of the agreed salary for the job.
- One probation period per job; none for contracts of under one month.
- Either party may end the probation without notice or compensation. The employer informs the employee of the result when it ends.
Working time and overtime
- Normal hours
- Normally up to 8 hours a day and 48 hours a week. A weekly arrangement can allow up to 10 normal hours a day within the 48-hour week. A 40-hour week is encouraged. Weekly rest is normally at least 24 consecutive hours; special work cycles have separate rules.
- Overtime limits
- Normally requires employee consent. Daily overtime is limited to 50% of normal daily hours; under a weekly arrangement, normal hours plus overtime must not exceed 12 a day. The usual limits are 40 hours a month and 200 a year, with up to 300 a year only in specified cases.
- Overtime pay
- At least 150% for overtime on ordinary working days, 200% on weekly rest days and 300% on public holidays or paid leave days. The 300% excludes the holiday pay due to employees paid by the day. Night work adds at least 30%; night overtime attracts a further statutory payment.
Leave
- Annual leave
- 12 working days after 12 months' service (14 for minors, employees with disabilities and heavy or hazardous work; 16 for especially heavy or hazardous work), pro rata for shorter service, plus one day for every five years with the same employer.
- Paid personal leave
- Own marriage 3 days; a child's marriage 1 day; death of a parent, parent-in-law, spouse or child 3 days. Unpaid leave by agreement.
- Maternity and paternity
- Maternity leave is normally six months, with extra leave for multiple births. From 1 July 2026, a qualifying second-child birth gives the mother seven months and an eligible father 10 working days under the Population Law and Decree 168/2026/ND-CP. The mother must have one living biological child at delivery; social-insurance eligibility and multiple-birth rules apply. Other eligible fathers normally receive 5–14 working days, with extra days in specified multiple-birth cases.
- Sick leave
- Eligible employees normally receive 75% of the insured salary. Annual entitlement is 30–60 working days in normal conditions, or 40–70 in qualifying hazardous work or difficult areas, depending on contribution history. Listed long-term illnesses have further benefit rules.
Public holidays
| Holiday | Days |
|---|---|
| New Year's Day | 1 day (1 January) |
| Lunar New Year (Tet) | 5 days |
| Hung Kings' Commemoration | 1 day (10th day of the 3rd lunar month) |
| Reunification Day | 1 day (30 April) |
| International Labour Day | 1 day (1 May) |
| National Day | 2 days (2 September and an adjacent day) |
| Vietnam Culture Day | 1 day (24 November; from 2026) |
Minimum wage
Regional minimum wages from 1 January 2026.
Decree 293/2025/ND-CP sets the monthly and hourly floors below from 1 January 2026. Regions are assigned at commune, ward and special-zone level; the same city can span more than one region.
On smaller screens, scroll the table horizontally to read the area details.
| Region | Monthly | Hourly | Areas · selected examples |
|---|---|---|---|
| Region I | 5,310,000 VND | 25,500 VND |
|
| Region II | 4,730,000 VND | 22,700 VND |
|
| Region III | 4,140,000 VND | 20,000 VND |
|
| Region IV | 3,700,000 VND | 17,800 VND |
|
Check the full official list for all 34 provinces and cities
- These are selected examples using the administrative names in the 2026 appendix, not a complete national list. A province or city can contain several wage regions; check the exact commune, ward or special zone in the official appendix.
- Use the region where the employer operates; a branch or unit operating in another region uses that region. Industrial or other designated zones spanning different wage regions use the highest applicable minimum, as specified in Article 3 of Decree 293/2025/ND-CP.
- The floor applies to normal working hours and agreed work. More favourable existing contractual or collective-agreement entitlements must be reviewed and preserved as required by the decree.
- The unemployment-insurance contribution ceiling is 20 times the applicable regional monthly minimum: Region I 106,200,000; II 94,600,000; III 82,800,000; IV 74,000,000 VND.
Payroll and employer cost
What an employee costs on top of gross salary.
Statutory contributions add about 23.5% to the insured salary for a Vietnamese employee, and the employee's own share of 10.5% is withheld from gross pay together with personal income tax.
| Contribution (2026) | Employer | Employee |
|---|---|---|
| Social insurance: retirement and survivorship | 14% | 8% |
| Social insurance: sickness and maternity | 3% | — |
| Occupational accident and disease | 0.5% | — |
| Health insurance | 3% | 1.5% |
| Unemployment insurance | 1% | 1% |
| Trade union fee | 2% | — |
| Total on the insured salary | 23.5% | 10.5% |
- Contributions are calculated on the salary, salary-based allowances and other regular amounts stated in the contract, up to the caps: 20 times the reference salary for social and health insurance (2,530,000 VND from 1 July 2026, so 50,600,000 VND) and 20 times the regional minimum wage for unemployment insurance. The social/health insurance ceiling was 46,800,000 VND through 30 June 2026; use the ceiling for the payroll period concerned.
- Foreign employees with a Vietnam employer and a definite-term contract of at least 12 months generally join compulsory social insurance, subject to exclusions such as qualifying intra-company transfers, retirement age at contract signing and applicable treaties. Health-insurance eligibility must be assessed separately. Foreign employees do not join unemployment insurance. Employer trade-union funding generally applies even without an internal union.
- A 13th-month salary is customary, not statutory. Once it is promised in a contract, regulation or offer it is binding, and it is taxable income.
- The table shows standard rates for an ordinary Vietnamese employee, including employer trade-union funding. Special eligibility, contribution bases, approved reductions and exemptions can change the total; it is not a flat surcharge on every gross salary.
The monthly payroll cycle
- Salary is paid monthly, in VND, on the date the contract states; foreign employees may be paid in a foreign currency where the contract allows.
- Employers withhold PIT and the employee's insurance share, pay both together with the employer share, and issue a payslip.
- New hires are registered for social insurance within 30 days of the contract start; changes and leavers are reported monthly.
- Records to keep per employee: contract and appendices, payroll ledger, PIT withholding records, insurance book number, leave balance and any disciplinary file.
Personal income tax
Progressive rates for residents, a flat rate for non-residents.
Employers withhold PIT every month from employment income after the family deductions and compulsory insurance. The five-band schedule and deductions below apply to resident employment income for the 2026 tax year under the new PIT law. Read the current consolidated law.
| Monthly taxable income | Rate |
|---|---|
| Up to 10,000,000 VND | 5% |
| 10,000,001 – 30,000,000 VND | 10% |
| 30,000,001 – 60,000,000 VND | 20% |
| 60,000,001 – 100,000,000 VND | 30% |
| Over 100,000,000 VND | 35% |
- Who is a tax resident
- Residence is assessed using the 183-day presence test or the statutory regular-residence criteria. A long lease alone should not be treated as decisive without checking presence and evidence of tax residence abroad. Residents generally pay progressive PIT on worldwide employment income; non-residents generally pay 20% on Vietnam-sourced employment income, subject to applicable treaty rules.
- Deductions for the 2026 tax year
- Personal deduction 15,500,000 VND a month and 6,200,000 VND a month for each registered dependant, plus the employee's compulsory insurance contributions and qualifying charitable donations.
- What is taxable
- Salary, bonuses and taxable benefits generally enter the PIT calculation. Under Article 4(8) of the new PIT law, qualifying night-work pay, overtime pay and pay for untaken leave are exempt; the exemption is no longer limited to the overtime premium. Keep supporting records and check the applicable tax period and implementing rules.
- Declaration and finalization
- Employers withhold and declare PIT monthly, or quarterly where eligible. Year-end employer finalization is generally due by the last day of the third month after year-end; direct individual finalization by the last day of the fourth month, subject to non-working-day rules. Authorization and exemption conditions must be checked for each employee.
Foreign employees
Work permits, visas and residence cards.
Work authorization and immigration permission are separate requirements. Check the work-permit or exemption route and the appropriate visa or residence category before employment starts. Truzand coordinates the agreed steps within HR Compliance & Setup.
Getting a work permit
- Confirm the route and prepare one application. Check the role, employer and any exemption. Decree 219/2025/ND-CP combines explanation of foreign-labour demand with the work-permit application, instead of requiring the former separate approval step.
- Employee documents. Passport, health check, criminal-record certificate, and evidence of the qualification and experience for the position as manager, executive, expert or technical worker; foreign documents legalised and translated.
- Application and issue. The statutory decision period is 10 working days after a complete application is received, not a guarantee of total onboarding time. Permits can last up to two years, with one extension of up to two years subject to the conditions.
- After the permit. For the applicable employment route, sign the labour contract, arrange the appropriate visa or residence document, assess compulsory insurance eligibility and track renewal dates.
Visa types employers meet
- LĐ1 / LĐ2 work visas and TRC
- LĐ2 covers work-permit holders; LĐ1 covers qualifying permit-exempt workers. Eligible LĐ1/LĐ2 temporary residence cards can run for up to two years, subject to passport validity and the underlying employment and immigration documents.
- DN1 / DN2 business visas
- Business-entry categories do not by themselves authorize employment. Check both the immigration purpose and the work-permit or exemption requirements before an assignment starts.
- DT1 – DT4 investor visas
- Investor categories depend on investment value and statutory criteria. Eligible ĐT1, ĐT2 and ĐT3 residence cards have maximum terms of 10, 5 and 3 years respectively; ĐT4 does not itself qualify for a temporary residence card.
Probation and termination
Notice periods, grounds and what is paid at the end.
Employer unilateral termination requires a statutory ground and the applicable procedure. The table gives general notice periods; particular grounds, protected periods and legally permitted no-notice cases need separate review. Employees generally may resign with the applicable notice.
| Contract | Statutory notice |
|---|---|
| Indefinite-term contract | 45 days |
| Definite-term contract of 12 to 36 months | 30 days |
| Contract of under 12 months | 3 working days |
| Listed specialised positions (for example aircraft crew, ship masters, enterprise managers) | 120 days, or a quarter of the term for shorter contracts |
Grounds for employer termination
- Repeated failure to perform, assessed under a written performance regulation the employees' representative organisation has been consulted on.
- Prolonged illness: treatment of 12 months for indefinite contracts, 6 months for 12 to 36 month contracts, or more than half the term for shorter ones.
- Absence of five consecutive working days or more without a legitimate reason.
- Force majeure, natural disaster or epidemic that forces a reduction after all remedies have been tried.
- The employee reaches retirement age, or provided untruthful information at recruitment that affected the decision to hire.
- Employee resignation
- Employees may resign without giving a reason, with the same notice periods. Certain breaches by the employer allow resignation without notice.
- Protected periods
- Employer unilateral termination is restricted during treatment for sickness or injury, approved leave, pregnancy, maternity leave or care of a child under 12 months. The Labour Code includes an exception for prolonged illness meeting the statutory conditions.
- Severance allowance
- For eligible termination cases after at least 12 months of regular service: half a month of the qualifying average salary per eligible year. Deduct unemployment-insured periods and periods already compensated; eligibility and rounding rules matter.
- Job-loss allowance
- For qualifying job losses after at least 12 months of regular service: one month of the qualifying average salary per eligible year, with a statutory two-month minimum. Deduct unemployment-insured and previously compensated periods and follow the required workforce procedures.
- Final settlement
- Outstanding salary, unused annual leave and allowances are settled within 14 working days, extendable to 30 in defined cases. The employer returns the insurance book and issues the documents the employee needs for unemployment benefit.
Compliance calendar
What recurs, and how often.
Orientation only. Each authority sets its own deadlines and they depend on the entity, the employee and the applicable regime; the tracker in an engagement carries the actual dates.
- MonthlyPayroll cut-off, payslips and payment; PIT withholding declaration; social, health and unemployment insurance contributions.
- QuarterlyPIT declaration where the quarterly regime applies; review of leave balances and variable pay inputs.
- Twice a yearLabour usage reports and related statutory records, with deadlines set by the labour authority.
- AnnuallyPIT finalization for the previous year and an annual review of employment records. Check wage and reference-salary changes on their legal effective dates; track permit and contract renewals by each employee's expiry date.
Key 2026 parameters used in the tools
- Personal deduction (from 1 Jan 2026)15,500,000 VND / month
- Dependent deduction (from 1 Jan 2026)6,200,000 VND / month
- Base (reference) salary (from 1 Jul 2026)2,530,000 VND
- Region I minimum wage (2026)5,310,000 VND / month
- Employer statutory contributionsSI 17% · HI 3% · UI 1% · OA 0.5% · union fee 2%
- Employee contributionsSI 8% · HI 1.5% · UI 1%
Frequently asked questions
Before you hire in Vietnam.
General answers. The agreed scope and the individual case decide what applies.
Do I need a Vietnam entity before I can hire?
No. With a Vietnam entity your company employs staff directly and Truzand can administer payroll. Without one, the EOR (Employer of Record) route lets you start with one person while you decide whether an entity is worth setting up.
How long does it take to onboard the first employee?
For a Vietnamese employee under EOR, typically a couple of weeks once the terms and documents are agreed. For a foreign employee, add the work permit process, which depends on the position, the documents available and the authority's processing time.
Is the 13th-month salary compulsory?
No. It is customary, and most employers pay it before Tet. Once it is written into a contract, regulation or offer letter it becomes an obligation, and it is taxable income for the employee.
What does an employee cost on top of gross salary?
Around 23.5% of the insured salary for a Vietnamese employee, up to the contribution caps, plus any benefits the contract promises. The Employment Cost Calculator shows the full breakdown for a given gross salary and region.
Can I engage people as contractors instead?
Only for genuinely independent work. Where there is a wage, management and supervision, the Labour Code treats the relationship as employment, with the insurance, PIT and termination rules that follow.
When do statutory figures change?
Only when the relevant law, resolution or decree takes effect; there is no guaranteed annual minimum-wage adjustment date. This guide distinguishes the 1 January 2026 wage floors, the 2026 resident PIT rules and the 1 July 2026 insurance reference-salary change. Check the period and official source before running payroll.
Go deeper
Guides, calculators and services by topic.
Payroll and employer cost
Gross-to-net mechanics, employer and employee contribution rates, caps, regional minimum wages and what a monthly payroll cycle involves.
Personal income tax
Progressive brackets, personal and dependent deductions, monthly declarations and annual finalization for residents and expatriates.
Social, health and unemployment insurance
Who contributes what, the contribution bases and caps, sick and maternity claims, unemployment benefits and one-time social insurance.
Foreign employees
Work Permit, Visa and Temporary Residence Card coordination, insurance position of expatriates, and the exit steps when an assignment ends.
Labour reporting and compliance calendar
Recurring labour reports, statutory deadlines, trade union matters and investment project reporting for enterprises in Vietnam.
More tools
Free reference tools for Vietnam salary, tax and insurance.
Live · EN / VI
Vietnam Employment Cost Calculator
Estimate the full monthly cost of employing a person in Vietnam: gross salary, employer statutory contributions, trade union fee, personal income tax and the employee's take-home pay, in VND or USD.
Open calculator Live · ENVietnam Expansion Pathway
Answer 6–8 short questions in English about your plans for a suggested pathway: EOR (Employer of Record), Outsourced Payroll Services, HR Compliance & Setup or further entity review.
Start the assessment- Gross ↔ Net Salary CalculatorCompulsory insurance · Personal income tax · Employer cost
- Personal Income Tax CalculatorProgressive schedule · Family deductions · Bracket breakdown
- Lump-sum (One-time) Social Insurance BenefitAdjustment coefficients · Compulsory and voluntary · Contribution periods
- Unemployment Benefit CalculatorBenefit amount · Benefit duration · Preserved period
Next step
Have a specific Vietnam employment question?
Tell us the situation. Truzand will point you to the relevant service path, the inputs needed and the practical next steps. General information becomes a scoped engagement only when agreed in writing.
Useful information to include
- Whether you already have a Vietnam legal entity
- The employees or roles the question concerns
- Documents and registrations already in place
- Deadlines you are working towards
Official sources & review date
Reviewed 21 September 2026. Sources are Vietnamese government publications; check the original text and effective date for the case concerned.
- Labour Code 45/2019/QH14 — contracts, hours, leave and termination
- Decree 145/2020/ND-CP — working conditions and labour relations
- Resolution 28/2026/QH16, Article 2 — Vietnam Culture Day; effective 1 July 2026
- Decree 293/2025/ND-CP — minimum wages; effective 1 January 2026
- Official minimum-wage appendix — full commune, ward and special-zone list
- Social Insurance Law 41/2024/QH15 — coverage and benefits; effective 1 July 2025
- Decree 161/2026/ND-CP — base salary of 2,530,000 VND from 1 July 2026
- Decree 374/2025/ND-CP — unemployment insurance; effective 1 January 2026
- PIT Law 109/2025/QH15, as amended — consolidated text 112/VBHN-VPQH; resident employment rules apply from tax year 2026
- Decree 219/2025/ND-CP — foreign workers; effective 7 August 2025
- Ministry of Home Affairs clarification — short assignments under 90 days
- Population Law 113/2025/QH15 and Decree 168/2026/ND-CP — second-child maternity benefits from 1 July 2026
General information prepared by Truzand Company Limited for orientation; not legal, tax or immigration advice. Requirements and outcomes depend on individual circumstances, the competent authorities, current rules and the agreed scope.