Payroll & HR Advisory

Employers contribute 17.5% for Social Insurance, 3% for Health Insurance, and 1% for Unemployment Insurance (total 21.5% of the insurance salary). Employees contribute 8% SI, 1.5% HI, and 1% UI (total 10.5%). Contributions are capped at 20x the base salary for SI/UI and 20x for HI.

Tax residents (present in Vietnam 183+ days in a calendar year) are taxed on worldwide income using progressive rates from 5% to 35%. Non-residents are taxed at a flat 20% on Vietnam-sourced income. Residency status determination is critical and can significantly impact the tax burden.

We process payroll by the 25th of each month (adjustable to your preference). SHUI contributions must be filed by the last day of the month, and PIT declarations are due by the 20th of the following month. We manage all deadlines and file on your behalf.

Yes. We handle mixed payrolls with different PIT treatment, SHUI obligations, and currency considerations. Expatriate payroll often involves shadow payroll calculations, housing allowances, and relocation benefits — all of which we structure for tax efficiency.

Yes. Under Vietnam's Labor Code 2019, employment contracts must comply with specific requirements on probation, termination notice, and mandatory clauses. We draft compliant contracts in both English and Vietnamese, and advise on contract types (definite vs. indefinite term).

Vietnam adjusts regional minimum wages annually (most recently via Decree 293/2025, effective January 2026). When changes occur, we reconfigure SHUI contribution bases, update payroll parameters, and notify you of any impact on your compensation structure.

No. The Labor Code does not require a 13th month salary. However, it is a very strong market expectation — over 90% of companies in Vietnam pay it, typically as a year-end bonus equal to one month's base salary. It is subject to Personal Income Tax but is NOT included in the SHUI contribution base. If you don't offer it, you will face significant challenges in recruitment and retention.

Under the Labor Code 2019: normal workdays at 150% of the base hourly rate, weekends at 200%, and public holidays at 300%. Night shift premiums add an additional 30%. Vietnam caps overtime at 40 hours/month and 200 hours/year (extended to 300 hours for specific industries like manufacturing and seafood processing). Exceeding these limits carries fines of VND 20–75 million.

Employees who have worked 12+ months and whose contracts end (not for disciplinary reasons) are entitled to severance pay: half a month's salary for each year of service. However, years during which the employer contributed to Unemployment Insurance (UI) are excluded from the calculation. For most FDI companies contributing UI since 2009, the practical severance obligation is often minimal — but the calculation must be done correctly to avoid disputes.

Partially. SHUI contributions are calculated on the 'insurance salary' — which includes base salary and certain fixed allowances listed in the employment contract. However, allowances for actual expenses (meals, transportation, phone) and performance bonuses are generally excluded from the SHUI base. The structuring must comply with Circular 59/2015 and subsequent guidance — an incorrect split can trigger retroactive SHUI assessments during audits.