Countrypedia · Asia Pacific
Hiring in Vietnam
A practical guide to employing staff in Vietnam — contracts, working time, leave, termination, social insurance and employer costs for 2026.
Currency
Vietnamese dong (VND)
Payroll cycle
Monthly
Employer contributions
21.5% social insurance + 2% union fee
Minimum wage
VND 5,310,000 / month (Region I)
Annual leave
12 days (+1 per 5 years)
Top PIT rate
35%
Language
Vietnamese
Truerix presence
In-country coverage
Employment contracts
The Labour Code 2019 allows indefinite-term contracts and definite-term contracts of up to 36 months. After two definite-term contracts, the next must be indefinite. Contracts must be written in Vietnamese (bilingual versions are common).
- Probation: up to 180 days for managers, 60 days for roles requiring college qualifications, 30 days for intermediate roles and 6 working days for others; pay must be at least 85% of the full salary.
- Foreign employees need a work permit (or exemption certificate) and a temporary residence card.
Working hours
| Normal hours | 8 hours a day, 48 hours a week (40 hours is common in offices) |
|---|---|
| Overtime limits | 40 hours a month; 200 hours a year (300 in certain sectors) |
| Overtime pay | 150% on weekdays, 200% on rest days, 300% on public holidays |
Minimum wage
Regional minimum wages from 1 January 2026 (Decree 293/2025):
| Region I (e.g. urban Hanoi and Ho Chi Minh City) | VND 5,310,000 per month |
|---|---|
| Region II | VND 4,730,000 per month |
| Region III | VND 4,140,000 per month |
| Region IV | VND 3,700,000 per month |
Leave and holidays
| Annual leave | 12 working days, plus 1 day for every 5 years of service |
|---|---|
| Public holidays | 11 days, including the Lunar New Year (Tet) |
| Sick leave | Paid by social insurance at 75% of the contribution salary, 30–70 days a year depending on service |
| Maternity | 6 months, paid by social insurance at 100% of average contribution salary |
| Paternity | 5–14 working days, paid by social insurance |
| Personal leave | 3 days for marriage, 3 days for death of a close relative |
Notice and severance
| Employee resignation notice | 45 days (indefinite contracts), 30 days (12–36 month contracts), 3 days (under 12 months) |
|---|---|
| Employer termination | Only on grounds set out in the Labour Code, with the same notice periods and procedures |
| Severance allowance | Half a month’s salary per year of service not covered by unemployment insurance |
| Job-loss allowance (restructuring) | 1 month’s salary per year of service, at least 2 months |
Payroll and employer costs
Social insurance is paid monthly to Vietnam Social Security; PIT is withheld and declared monthly or quarterly.
| Employer contributions | Social insurance 17.5% + health insurance 3% + unemployment insurance 1% = 21.5% |
|---|---|
| Employee contributions | Social insurance 8% + health insurance 1.5% + unemployment insurance 1% = 10.5% |
| Contribution cap | 20 times the statutory base salary (unemployment insurance: 20 times the regional minimum wage) |
| Trade union fee | 2% of the social insurance salary fund, paid by the employer |
| Foreign employees | Contribute to social and health insurance (not unemployment insurance) on contracts of 12 months or more |
Personal income tax from 2026 (monthly taxable income)
| Up to VND 10 million | 5% |
|---|---|
| VND 10 – 30 million | 15% |
| VND 30 – 60 million | 25% |
| VND 60 – 100 million | 30% |
| Above VND 100 million | 35% |
| Deductions | VND 15.5 million personal deduction + VND 6.2 million per dependant |
Benefits and practice
- A Tet bonus (13th month) is customary, though not statutory.
- Lunch, phone and transport allowances are common and partly tax-exempt.
- Private health insurance on top of the state scheme is standard for professional staff.
Hire in Vietnam with Truerix
Truerix employs your Vietnamese staff compliantly — Labour Code contracts, social insurance registration, PIT withholding and work permits for foreign staff handled for you.
Last reviewed: October 2026. This guide is general information, not legal or tax advice. Rates and thresholds change regularly; Truerix confirms the current position before every hire.
Sources: Native Teams – Vietnam payroll changes 2026 · InCorp Vietnam – 2026 minimum wage · InCorp Vietnam – Payroll guide 2026 · Vietnam Social Security
Sources: Native Teams – Vietnam payroll changes 2026 · InCorp Vietnam – 2026 minimum wage · InCorp Vietnam – Payroll guide 2026 · Vietnam Social Security