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Asia

Vietnam

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Employer of Record (EOR) in Vietnam

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Vietnam Introduction

Vietnam is a country in southeast Asia bordered by China, Laos, and Cambodia. The country is divided into the highlands and Hong River Delta in the north, the Annamite Range and coastal lowlands in the center, and the Mekong Delta in the south. Vietnam is considered a developing country and one of the fastest growing economies of the 21st century.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 6 months of maternity leave, paid at 100% of the full salary by social insurance. New fathers can receive between 5-14 days of paid paternity leave.

Vietnam has parental leave that entitles employees to 20 days of parental leave per year before the child turns 3, and up to 15 days per year before the child turns 7. This leave is paid by social insurance at 75% of the regular salary.

Sick Leave

Employees are can receive up to 30 days of paid sick leave each year, increasing to 60 days for exceptional circumstances. This leave is paid by social insurance at around 75% of the regular salary.

Paid Leave

Vietnam has 13 public holidays, and employees can receive 12 days of paid time off each year. The amount increases by 1 day every 5 years of employment. Employees can also take leave for bereavement or marriage.

Wage Requirements and Working Hours

The minimum wage varies in Vietnam, but the average is VND 4,680,000 per month. A standard workweek is 48 hours at 8 hours per day. Overtime work has a maximum of 200 hours per year, paid at between 150%-300% of the regular salary.

Termination Process

Process

Terminations in Vietnam have to be done for just cause, and notices must be given in writing and sent to the relevant government authorities.

Notice Period

Notice periods are generally 30-45 days, and vary based on the type of employment contract.

Severance Pay

Severance pay depends on the employment contract terms and length of time worked at the company, and is usually calculated as 0.5 month of wages for each year worked at the company, (1 month of wages per year if the termination is due to economic reasons or restructuring).

Additional Information

While not mandatory, it is customary in Vietnam to pay a 13th-month salary bonus for the Lunar New Year or the end of the year.

OVERVIEW
Language(s):
Vietnamese
Currency:
Vietnamese Dong (VND)
Capital City:
Hanoi
Population:
98.2 Million
Cost of Living Rank:
87th
VAT (Valued Added Tax):
10%
Employer TaxES
21.5%
(estimated)

★  0.5% - Accident Insurance

★  17% - Social Insurance

★  3% - Health Insurance

★  1% - Unemployment Insurance

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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Available in 150+ countries
How Remofirst employs in Vietnam

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Vietnam get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Vietnam are paid on time in Vietnamese Dong (VND). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Vietnam, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.