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%). SI and HI contributions are capped at 20 times the reference level (equal to the statutory base salary of VND 2,530,000/month, or VND 50,600,000/month from July 1, 2026 under Decree 161/2026/ND-CP), while UI contributions are capped at 20 times the regional minimum wage (VND 106,200,000/month in Region I under Decree 293/2025/ND-CP).

Foreign employees on definite-term labor contracts of 12 months or more are covered by compulsory social insurance (Article 2.2 of Law 41/2024/QH15). The employer contributes 20.5% (17.5% SI + 3% HI) and the employee 9.5% (8% SI + 1.5% HI). Foreign employees do not contribute to unemployment insurance.

Under Law 109/2025/QH15, tax residents (present in Vietnam for 183+ days in a calendar year or in 12 consecutive months from first arrival, or maintaining a permanent/leased residence in Vietnam) 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 directly affects the overall tax obligation.

We process payroll by the 25th of each month (adjustable to your schedule). Mandatory SHUI contributions must be paid no later than the last day of the following month (Article 34.4 of Law 41/2024/QH15), and PIT withheld from salaries is declared quarterly (by the last day of the month following the quarter) under Circular 89/2026/TT-BTC. We manage all statutory 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 within the SHUI and PIT rules.

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 periodically (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 mandate a 13th-month salary. However, it is a widespread market practice in Vietnam, typically paid before Tet (Lunar New Year) as an annual bonus equal to one month's salary based on company performance and contractual terms. It is subject to Personal Income Tax, and whether it falls into the SHUI contribution base depends on whether it is a variable performance bonus or a fixed regular payment under Article 7 of Decree 158/2025/ND-CP.

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 corporate fines of VND 10–150 million depending on the number of affected employees (Article 24 of Decree 283/2026/ND-CP).

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. Under Law 41/2024/QH15 and Article 7 of Decree 158/2025/ND-CP, the compulsory social insurance salary base includes the contractual wage by job or title, salary allowances, and other supplements with a specific amount stated in the labor contract and paid regularly each pay period. Variable bonuses tied to work performance or productivity fall outside the contribution base, whereas support items (such as meals, transportation, or phone) are excluded only when they are not fixed amounts stated in the labor contract and paid regularly. Because improper structuring can trigger retroactive assessments during audits, each allowance should be reviewed carefully.