Guide · Vietnam
Vietnam EOR Cost 2026: Employer Contributions, Caps and Worked Examples
Hiring in Vietnam through an employer of record costs three things: the gross salary, the employer’s statutory contributions, and the provider’s monthly service fee. For a Vietnamese employee in 2026, employer social, health and unemployment insurance come to 21.5% of salary, plus a 2% trade union fee: 23.5% in total, with caps that lower the percentage on higher salaries.
What you pay for a Vietnam EOR hire
| Cost | What it covers | How often |
|---|---|---|
| Gross salary | The agreed monthly salary in dong, plus allowances | Monthly |
| Employer contributions | Social, health and unemployment insurance, and the trade union fee | Monthly |
| Customary pay | A Tet or year-end bonus, and meal, transport or phone allowances if agreed | Yearly; monthly |
| EOR service fee | The Vietnamese employer, contracts, payroll, insurance, tax and support | Monthly, per employee |
| Value added tax | Applies to the invoice where the law requires it | Monthly |
| Deposit | Security for payroll, returned after final settlement | Once, refundable |
| Pass-through costs | Bank charges, exchange-rate differences and any agreed benefits such as private medical cover | When incurred |
Employer and employee contributions in 2026
| Contribution | Employer | Employee | Notes |
|---|---|---|---|
| Pension and survivorship | 14% | 8% | Social insurance |
| Sickness and maternity | 3% | – | Social insurance |
| Occupational accident and disease | 0.5% | – | Social insurance; 0.3% for some approved employers |
| Health insurance | 3% | 1.5% | |
| Unemployment insurance | 1% | 1% | Vietnamese employees only |
| Trade union fee | 2% | – | Employer only, payable even without a union at the workplace |
| Total | 23.5% | 10.5% | Foreign employees on a contract of 12 months or more: 20.5% employer insurance plus the 2% union fee, and 9.5% employee, with no unemployment insurance |
Sources: Vietnam Social Security, Decree 105/2026/ND-CP on trade union finance, Labour Code 2019.
Personal income tax is withheld from the employee’s pay and does not add to your cost. For tax residents in 2026 it runs in five bands, from 5% on the first VND 10 million of monthly taxable income to 35% above VND 100 million, after a personal deduction of VND 15.5 million a month and VND 6.2 million for each registered dependant. Overtime premiums are not taxed. Non-residents pay a flat 20% on Vietnamese employment income. 2026 tax table
How contributions are calculated, and where they stop
Contributions are charged on the monthly salary for the job, salary allowances and any other fixed supplements agreed in the contract and paid regularly each pay period. The base can never be lower than the regional minimum wage.
- Social insurance, health insurance and the trade union fee stop rising at 20 times the reference level: VND 50.6 million a month from 1 July 2026 (VND 46.8 million before that).
- Unemployment insurance stops at 20 times the regional minimum wage: VND 106.2 million a month in Region I in 2026.
- Regional minimum wages from 1 January 2026: VND 5,310,000 a month in Region I, 4,730,000 in Region II, 4,140,000 in Region III and 3,700,000 in Region IV.
- Bonuses and welfare payments, such as certain meal support, can fall outside the insurance base. How allowances are written in the contract matters.
Worked examples: three hires in Region I, from July 2026
| Monthly figures (VND) | Sales support executive | Project coordinator | Finance and tax manager |
|---|---|---|---|
| Gross salary | 20,000,000 | 35,000,000 | 80,000,000 |
| Social insurance (17.5%) | 3,500,000 | 6,125,000 | 8,855,000 |
| Health insurance (3%) | 600,000 | 1,050,000 | 1,518,000 |
| Unemployment insurance (1%) | 200,000 | 350,000 | 800,000 |
| Trade union fee (2%) | 400,000 | 700,000 | 1,012,000 |
| Employer contributions | 4,700,000 (23.5%) | 8,225,000 (23.5%) | 12,185,000 (15.2%) |
| Monthly employment cost | 24,700,000 | 43,225,000 | 92,185,000 |
Vietnamese employees; social insurance, health insurance and the union fee capped at VND 50.6 million. Before allowances, Tet bonus, overtime, the EOR service fee and VAT.
Also budget for
- Tet bonus. Not required by law, but most employees expect a year-end or Tet bonus, often about one month’s salary. Decide whether your offer includes it and write it down.
- Allowances. Meal, transport and phone allowances are common in offers. Agree how they are structured, since that affects insurance and tax.
- Overtime. At least 150% on weekdays, 200% on weekly rest days and 300% on public holidays, with a night-work premium on top.
- Equal pay. Under the leasing rules, pay must be at least equal to your own staff doing similar work, so very low offers may need adjusting.
- End of employment. Unused annual leave is paid out. For employees with at least 12 months’ service, a severance allowance of half a month’s salary per year may apply for periods not covered by unemployment insurance, so it is usually small for employees who have always been insured.
EOR or your own company: how the costs compare
| Employer of record | Your own Vietnamese company | |
|---|---|---|
| Time to first hire | Once the role review is complete and documents are ready; we confirm the date in the proposal | Usually a few months, including investment and enterprise registration and a bank account |
| Set-up cost | No entity costs; a refundable deposit | Registration, legal and accounting advice, office address, capital contribution |
| Running cost | A monthly service fee per employee | Accounting, tax filings, payroll, insurance administration and annual reports |
| Employment cost | The same salary and contributions | The same salary and contributions |
| Limits | Listed roles, allowed purposes, up to 12 months per assignment | Any role, any length, within your licensed business lines |
| Best for | A temporary need in a listed role | A growing team and continuous local business |
How NNRoad quotes
We charge a monthly service fee per employee, and pass the employment cost through at cost. We quote after reviewing the role, because the job, the location, the term and the package change the numbers. Your proposal lists every line before you sign, and you receive one invoice per payroll month. For a quick estimate of the statutory part, use our Vietnam employer cost calculator.
Questions about the cost of hiring in Vietnam
How much does an employee cost in Vietnam on top of salary?
For a Vietnamese employee in 2026, employer social, health and unemployment insurance add 21.5% of salary and the trade union fee 2%: 23.5% in total. Above VND 50.6 million a month the percentage falls, because insurance and the union fee are capped. A Tet bonus and allowances usually come on top.
Is a 13th-month salary mandatory in Vietnam?
No. Vietnamese law leaves bonuses to the employer, but a year-end or Tet bonus is customary. Once it is promised in the contract or your bonus rules, it must be paid.
What is the minimum wage in Vietnam in 2026?
From 1 January 2026: VND 5,310,000 a month in Region I, 4,730,000 in Region II, 4,140,000 in Region III and 3,700,000 in Region IV, under Decree 293/2025/ND-CP. The region depends on where the employee works.
Do foreign employees pay social insurance in Vietnam?
Yes, if they have a work permit or an exemption and a contract of 12 months or more with a Vietnamese employer, unless they are intra-company transferees or covered by a social insurance agreement. They contribute to social and health insurance, but not unemployment insurance: 20.5% for the employer and 9.5% for the employee.
What does an employer of record cost in Vietnam?
A monthly service fee per employee on top of the employment cost. Providers price differently, so compare the full proposal line by line, including the deposit, VAT, exchange-rate handling and what happens when the assignment ends.
Want a proposal for your hire?
Tell us the role, the work location and the package. We will send the employment cost in dong and US dollars and our service fee, line by line.