Hire in Vietnam

Vietnam PEO &

Employer of Record

Hire & manage teams remotely in Vietnam without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Vietnamese

Salary Currency

Vietnamese Dong (VND)

Payroll tax

21.50%

Payroll Cycle

Monthly

Time zone

UTC +7

Capital city

Hanoi

Hire Employees in Vietnam

NNRoad provides employer of record (EOR) & professional employment organization (PEO) services to ensure that your business in Vietnam complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

The NNRoad Advantage ☺

Pay as you go

No set-up or overhead costs to global expansion.

Global account manager

One point of contact for all of our 50+ serviced countries and regions.

Compliance

Ensured compliant contracts and operations.

Fast Onboarding

Start working with your remote employees/contractors within a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports and employee pay stubs on our portal.

Employer of Record in Vietnam

Employer of Record (EOR) services are for companies who do not have a legal entity in Vietnam, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

01. Candidate Selection

You interviews & select the candidates you want to hire in Vietnam.

02. Employee Onboarding

We sign a local labor contract with your employees based in Vietnam.

03. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Vietnam.

04. Payroll Reporting

See all payroll reports on our platform & focus on your business in Vietnam.

DETAILS: Our EOR service includes: [click to expand]

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Vietnam

Professional Employment Organization (PEO) services are for companies who have a legal entity in Vietnam, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

01. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Vietnam.

02. Payroll Reporting

See all payroll reports on our platform & focus on your business in Vietnam.

DETAILS: Our PEO service includes: [click to expand]

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

Taxes & Payroll in Vietnam

Employee Income Taxes:

Individual income tax rates in Vietnam are based on progressive tax brackets.

Non-residents, on the other hand, are subject to a personal income tax at a fixed rate on income earned in Vietnam or on income related to Vietnam throughout the tax year, as well as at various different rates on non-employment income. However, this must be weighed against the rules of any applicable double taxation agreement (DTA).

Individuals can claim deductions for a number of different items, including personal allowances, health insurance premiums, and education expenses. Additionally, there are a number of tax incentives available for those who invest in stocks.

Tax Brackets

Annual taxable income (in million VND)

5%: VND0 – VND60
10%: VND60 – VND120
15%: VND120 – VND216
20%: VND216 – VND384
25%: VND384 – VND624
30%: VND624 – VND960
35%: VND960 and above

Sample Calculation

Yearly income = VND140 million
15% * 20,000,000 = 3,000,000
10% * 60,000,000 = 6,000,000
5% * 60,000,000 = 3,000,000
3,000,000+6,000,000+3,000,000 = 12,000,000
Yearly income tax = VND 12 million

Employer Costs in Vietnam

Both employers and employees in Vietnam are required to contribute to social insurance. There are three types of mandatory social security: social insurance, health insurance, and unemployment insurance.

Employers are required to make contributions to the pension fund for their employees. The amount of the contribution is a percentage of the employee’s salary, and is currently set at 5%. Employers are also required to make contributions to the health insurance and unemployment insurance funds for their employees. The amount of these contributions is a percentage of the employee’s salary, and is currently set at 3% for health insurance and 1% for unemployment insurance.

Employer Contribution

17.5% – Social insurance (including sickness, maternity, occupational diseases and accidents, retirement, and death)
3% – Health insurance
1% – Unemployment insurance
2% – Trade Union Fund (only for corporate employers)

Employee Contribution

8% – Social insurance
1.5% – Health insurance
1% – Unemployment insurance

Benefits & Insurance in Vietnam

The Vietnamese insurance sector is currently dominated by state-owned enterprises, but there is an increasing number of private insurers operating in the market. The insurance industry is regulated by the Ministry of Finance.

All employees in Vietnam are required to have three forms of insurance:

Healthcare Insurance

This permits employees to go to authorized medical facilities for medical examinations and inpatient and outpatient treatments.

Social Insurance

This sort of insurance includes a variety of benefits for employees, including sick leave, maternity leave, benefits for work-related accidents and diseases, pension allowance, and mortality allowance.

Unemployment Insurance

Unemployment insurance takes the place of severance pay in Vietnam. Workers will be paid an amount based on the period of time they have worked and how much their former employers contributed. The monthly unemployment benefit is equal to 60% of the average salary earned in the previous six months.

Common Work Benefits

In Vietnam, there are a number of benefits that come with working. These include:

– Health insurance: health insurance is mandatory for all employees. This ensures that workers are able to access medical care when they need it.

– Paid vacation: All workers are entitled to 20 days of paid vacation per year. This can be used for leisure or personal travel.

– Maternity leave: Women are entitled to 6 months of paid maternity leave. This allows them to take time off work to care for their new child.

– paternity leave: Fathers are also entitled to 2 weeks of paid paternity leave. This helps promote gender equality in the workplace and allows fathers to spend time bonding with their new child.

– Work from home: Due to the COVID-19 pandemic, many Vietnamese workers have been able to work from home. This has been a great perk for those who are able to take advantage of it.

These are just some of the benefits that come with working in Vietnam. With a strong benefits package, it’s no wonder that more and more people are choosing to work in this Southeast Asian count

Working Hours in Vietnam

Working Hours Per Week

In Vietnam, the working week typically runs from Monday to Friday, with Saturday and Sunday as the weekend. The working day usually starts at 8am and finishes at 5pm, although some businesses may operate on a shifted schedule. Overtime is relatively common and may be required during busy periods.

Employers must give employees a minimum of 1 full day off per week. Normally, the work week is Monday – Friday, 8 hours a day, 40 hours a week.

Overtime

The time and date that employees are engaged may trigger and influence overtime compensation. Weekends, public holidays, and night hours—defined as 10:00 p.m. to 6:00 a.m.—are all common triggers for overtime beyond regular working hours. If a company triggers overtime, it will be obligated to compensate employees beyond the wages outlined in their contract. The following are the percentages in excess of standard that are to be applied:

Weekday, day time: 150%
Weekend, day time: 200%
Public holidays, paid leave days: 300%
Weekday, night time: 30% above aforementioned rates

Termination Laws in Vietnam

When an employer decides to terminate an employee in Vietnam, they must do so in accordance with the provisions of the employment contract and Vietnamese labor law. The employer must first give the employee a written notice of termination, and then the employee must be given a chance to appeal the decision. If the termination is upheld, the employee is entitled to severance pay and other benefits as required by law.

If an employee dies, goes missing, loses civil capacity, reaches retirement age, is sentenced to prison, or is banned from performing the job by a court ruling, the labor contract ceases by operation of law. It also comes to an end if the company goes out of business.

Unilateral Termination

The unilateral termination can be used in five situations by an employer:

The employee does not follow the provisions of the contract, the collective bargaining agreement, or the company’s internal rules when doing the work. Employers should keep in mind that the assignment must be specified in detail in the contract. After receiving two written warnings within one month, the employee may be fired.
After a set amount of time, depending on the type of contract
The employee has been on leave due to illness or an accident. For an indefinite contract, this is 12 months; for a definite-term contract, it is six months; and for a seasonal contract, it is half the contract duration. If the employee’s health improves after termination, the employer should think about rehiring him or her.
The company needs to scale down or reduce staff due to fire, natural disaster.
If an employee is called to military service, is in detention, has been sent for forced re-education or drug rehabilitation, or has agreed to a suspension with the employer, a labor contract can be stopped for absences of 15 days or more.
Because of structural or technological developments, economic reasons, or a merger or consolidation, the company needs to lay off personnel.

Severance

Severance pay is available to employees who have worked for the company for more than 12 months. For each year working at the company, the severance amount is half a month’s salary. Salary is defined as the average monthly payment received by an employee over the previous six months, including all payments other than base wage.

Notice Period

Employers must provide employees with a minimum statutory notice period of 45 days if the contract is for an indefinite term and 30 days if the contract has a definite term.

Employment Contract in Vietnam

Employment Contract

Employers in Vietnam are required by law to sign an official employment contract with new hires. This contract reviews the terms of the employee’s compensation, benefits, and termination requirements in details. Offer letter and labor contracts should always mention the salary and bonuses (if applicable) in Vietnamese dongs.

Probation Period

Probation can last anywhere from 6 to 60 days, depending on the employee’s qualifications and education. During the probation term, an employee’s wage must be agreed upon by all parties, but it must be at least 85 percent of the job’s wage.

Types of Leaves in Vietnam

Annual Leave

Employees are entitled to 12 days of paid vacation (excluding holidays) and an additional day for every five years of service.

Sick Leave

Employees on sick leave are entitled to a monthly benefit given by the Social Insurance Fund. The employee must provide a medical certificate from a medical facility.

Sick leave is regulated by the Labor Code. Employees are entitled to paid sick leave if they have worked for at least 12 months for the same employer. The amount of paid sick leave is based on the length of time the employee has been with the company, with a maximum of 30 days per year. Employees can carry over any unused sick leave to the next year, but it cannot be used for more than 90 days in total.

Unpaid sick leave is also an option for employees who have not worked for their current employer for at least 12 months, or who have used up all their paid sick leave. Unpaid sick leave can be taken for up to 60 days in a year.

Maternity Leave

Vietnam has one of the most generous maternity leave policies in the world, offering new mothers up to 6 months of paid time off. This is significantly higher than the global average.

This policy is part the country’s commitment to supporting families and ensuring that children have a strong start in life. It also reflects the country’s traditional values, which place a high importance on motherhood.

If new mothers have twins or triplets, they receive an additional 30 days for each child.

This policy provides much-needed support for families in Vietnam and helps to ensure that children have a strong start in life. It is also a reflection of the country’s traditional values, which place a high importance on motherhood.

Paternity Leave

A male employee who pays social insurance fees is entitled to 5 to 14 days of paternity leave. Paternity leave is paid by the Social Insurance Authority and is equal to 100 percent of the previous month’s earnings.

Childcare Leave

Employees are eligible for 20 days of parental leave per year for children under the age of three, and up to 15 days per year for children aged four to seven.

Public Holidays in Vietnam

As a general rule, employees are entitled to paid leave on public holidays. However, there are some exceptions to this rule. For instance, employees who are required to work on public holidays may be entitled to overtime pay.

Public Holidays

New Year’s Day – January 1

Tet Nguyen Dan – From January 31 to February 4

Hung Kings Temple Festival – April 10-11

Reunification Day – April 30

Labour Day – May 1-3

National Day Holiday – September 1-2

Resources

Hiring employees in Vietnam: A Comprehensive Guide 2023