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- Employee Cost Calculator
- Vietnam
Employee cost calculator in Vietnam
Looking to hire in Vietnam? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
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Request a demoFrequently Asked Questions (FAQs)
What are the mandatory employer contributions and statutory benefits required in Vietnam?
Employers in Vietnam must contribute to the Social Insurance Fund (17.5%), Health Insurance Fund (3%), and Unemployment Insurance Fund (1%) based on the employee’s monthly salary, as per the Law on Social Insurance and related regulations. Statutory benefits also include annual paid leave (at least 12 days), maternity/paternity leave, and sick leave as mandated by the Vietnamese Labour Code.
How is payroll tax calculated and what are the employer/employee obligations in Vietnam?
Payroll tax in Vietnam consists of Personal Income Tax (PIT) withheld by the employer from the employee’s salary at progressive rates ranging from 5% to 35%. Employers are responsible for withholding PIT, submitting monthly or quarterly declarations, and ensuring all statutory social, health, and unemployment insurance contributions are made accurately on behalf of both parties.
What are some common hidden or indirect costs employers should anticipate when hiring in Vietnam?
Employers should budget for the 13th month salary, which is a customary bonus paid before Tet (Lunar New Year), as well as potential severance pay obligations in cases of contract termination. Additional indirect costs may include onboarding, training, and compliance-related administrative expenses.
Which legal requirements significantly impact employment costs in Vietnam?
Vietnam’s regional minimum wage (Nghị định 38/2022/NĐ-CP) sets salary floors that vary by location, directly influencing total employment costs. The Labour Code also imposes restrictions on overtime, mandates written contracts, and requires severance pay of at least 0.5 month’s salary for each year of service in eligible terminations.
What unique employment practices and contract norms exist in Vietnam?
Probationary periods are common and typically range from 6 to 60 days depending on the role, with lower salaries during probation allowed by law. Fixed-term and indefinite-term contracts are both used, but written contracts are legally required for most employment, and non-statutory benefits such as meal allowances or private health insurance are often included to attract talent.
