Employer of Record (EOR) in Vietnam:Compliant SHUI Insurance & HR Management
Hire Without a Vietnamese Entity
Vietnam Employer of Record (EOR) — hire employees in Vietnam without a local entity
If you want to hire employees in Vietnam but don’t want to incorporate a local entity, an Employer of Record (EOR) is the fastest and most compliant route. NNRoad becomes the legal employer on paper in Vietnam, while you keep full control over day-to-day work, targets, and performance management.
This model is commonly used to:
- Enter Vietnam quickly (sales, customer success, engineering, sourcing)
- Hire 1–20 employees before committing to entity setup
- Convert a contractor into a compliant employee relationship
- Support M&A integration while you harmonize HR processes
What NNRoad handles as the Vietnam EOR
- Locally compliant employment contract issuance and onboarding documentation
- Payroll processing, payslips, and statutory filings
- Statutory insurance (social/health/unemployment where applicable) and contributions coordination
- Benefits administration and compliant leave management
- Employment changes (salary adjustments, promotions, amendments)
- Compliant offboarding and final settlement support
What you control
- Hiring decision, role scope, and compensation strategy (we validate compliance)
- Daily supervision, work tools, KPIs, and performance reviews
- Team culture, policies, and approvals (we align with Vietnam labor requirements)
Related Vietnam solutions you may also need:
- Vietnam Payroll Outsourcing (if you already have a Vietnam entity)
- Hire Foreigners in Vietnam (work permit / immigration support workflows)
- On-Demand Talent in Vietnam (contractor/consultant model when appropriate)
Tip: For planning headcount cost, use the Vietnam Labor Cost Calculator and review Vietnam compliance resources before you finalize an offer.
Vietnam hiring snapshot (2026) — the rules that shape employment costs and compliance
Vietnam employment compliance is heavily shaped by statutory working-time rules, region-based minimum wages, and mandatory insurance contributions. Below is a practical “at-a-glance” view for international employers.
Vietnam employment quick facts
| Topic | Vietnam (high-level) |
|---|---|
| Normal working time | Up to 8 hours/day and 48 hours/week (many offices adopt 40 hours/week) |
| Overtime limits | Consent required; capped by day/month/year rules (with limited exceptions) |
| Public holidays | Fully paid public holidays including Tết (Lunar New Year); foreign workers also get 1 day for their traditional New Year and 1 day for their National Day |
| Annual leave | 12 working days/year in normal conditions (more for hazardous roles; increases with seniority) |
| Probation | Max duration depends on role type; probation wage must be at least 85% of the role wage |
| Salary currency | VND; foreign workers’ wages can be calculated in foreign currency (per labor contract) |
| Termination settlement | Final settlement generally within 14 working days (up to 30 in specific cases) |
Regional minimum wage (effective January 2026)
Vietnam uses region-based minimum wages. The applicable region depends on the employee’s work location and the employer’s operating locality (industrial zones can trigger the higher rate in some cases). Always confirm the correct region before issuing an offer.
| Region | Monthly minimum wage (VND/month) | Hourly minimum wage (VND/hour) |
|---|---|---|
| Region I | 5,310,000 | 25,500 |
| Region II | 4,730,000 | 22,700 |
| Region III | 4,140,000 | 20,000 |
| Region IV | 3,700,000 | 17,800 |
Official reference: Decree 293/2025/ND-CP (minimum wage levels).
Where Vietnam EOR adds the most value
- Correctly applying region-based wage compliance when employees work across provinces/cities
- Managing mandatory insurance contributions and payroll reporting cycles
- Preventing overtime and leave-policy mistakes that frequently trigger disputes
- Running compliant offboarding and final settlement timelines
How NNRoad’s Vietnam EOR employment process works
Our Vietnam EOR process is designed for speed and compliance. You approve the business terms; we operationalize employment locally.
Step-by-step workflow
- Role & location confirmation: job title, work location (affects minimum wage region), working schedule, and start date.
- Compensation & benefits design: base salary, allowances, bonus approach, and benefits package aligned to Vietnam market practice.
- Compliance validation: probation plan, working time, overtime approach, and mandatory policy requirements.
- Contract issuance: locally compliant employment contract and onboarding pack.
- Payroll go-live: monthly payroll, payslips, statutory contributions, and reporting.
- Ongoing management: contract amendments, salary reviews, leave tracking, and compliance support.
- Offboarding (if needed): notice, final pay settlement, and documentation return.
What we need from you to start
- Employee full name, work location (city/province), job title, and planned start date
- Compensation plan (monthly base, allowances, bonus approach)
- Working schedule (standard hours, shift or office schedule, overtime expectations)
- Any special requirements (remote work, equipment policy, IP/confidentiality needs)
Planning cost and timeline? Start here:
Employment contracts, probation, and workplace rules in Vietnam
Vietnam’s labor framework expects clear contracts, transparent payslips, and (for larger headcounts) formal internal working regulations. A strong EOR model prevents small process gaps from turning into disputes.
Employment contract essentials (what should be defined upfront)
- Job title, scope, and primary work location (important for minimum wage region)
- Base wage, allowances, bonus policy reference (if used), and pay cycle
- Working time arrangement (daily/weekly), overtime approach, and rest days
- Probation arrangement (if any) and probation wage
- Confidentiality and IP (especially important for software, product, and design roles)
Probation rules you should plan for
- Probation can be applied only once per job and is capped by role type.
- Probation cannot be applied to labor contracts under 1 month.
- Probation wage must be at least 85% of the wage for that job.
Internal working regulations (important when scaling headcount)
Employers with larger teams typically need written internal working rules covering topics like working time, discipline, safety, and workplace conduct. Vietnam also has registration requirements once headcount reaches a certain threshold.
- If you plan to scale in Vietnam, build a policy framework early (leave, overtime approval, code of conduct, data/security rules).
- NNRoad supports compliant policy alignment under the EOR arrangement and helps operationalize local HR processes.
Payslips and wage transparency
Vietnam requires clear wage breakdown communication at each pay cycle, including wage, overtime pay, night work pay, and deductions (if any) with reasons. This is a key compliance point for audits and disputes.
For deeper legal context, see:
Vietnam payroll, taxes, and statutory contributions (what an EOR manages monthly)
In Vietnam, payroll compliance is not just about payslips—it includes statutory contributions, region-based wage floors, and tightly managed overtime and leave records.
Payroll setup that fits Vietnam operations
- Monthly payroll with clear wage breakdown (base, overtime, deductions, net pay)
- Bank transfer support (common for professional roles)
- Overtime approval workflow aligned to Vietnam’s overtime caps
- Leave tracking aligned to public holidays (especially Tết) and annual leave rules
Mandatory insurance contributions (Vietnamese vs foreign employees)
Vietnam statutory costs typically include social insurance, health insurance, and unemployment insurance (unemployment generally applies to Vietnamese employees). Contribution rules can vary by employee type and eligibility.
| Category | Employee contribution (typical) | Employer contribution (typical) | Notes |
|---|---|---|---|
| Vietnamese employees | 10.5% | 21.5% | Includes social/health/unemployment contributions (standard structure; caps may apply) |
| Foreign employees (when subject) | 9.5% | 20.5% | Unemployment typically not included; occupational accident fund may be reduced to 0.3% for eligible high-risk employers |
Note: Contribution bases, caps, and eligibility can change. As part of onboarding, NNRoad confirms the correct application for the employee profile, work location, and contract type.
Personal income tax (PIT) withholding
- Vietnam applies different tax approaches for residents vs non-residents and generally requires employer withholding for employment income.
- Cross-border scenarios (short-term assignments, split payroll, tax equalization) need careful planning to avoid double taxation or reporting gaps.
If you already have a Vietnam entity and only need payroll execution, see Vietnam Payroll Outsourcing.
Working time, overtime, and leave planning (including Tết)
Working time and leave rules are among the most common “hidden compliance risks” for international employers in Vietnam—especially when teams work across time zones or during seasonal peak periods.
Normal working time & overtime limits
- Normal working time is capped by daily/weekly limits, and overtime requires employee consent.
- Overtime is capped by (i) daily limits, (ii) a monthly cap, and (iii) an annual cap, with limited sector-based exceptions.
Vietnam public holidays (fully paid)
- Calendar New Year: 1 day
- Lunar New Year (Tết): 5 days (exact schedule announced annually)
- Victory Day: 1 day (April 30)
- International Labor Day: 1 day (May 1)
- National Day: 2 days (Sept 2 and one adjacent day)
- Hùng Kings’ Commemoration Day: 1 day (lunar calendar)
- Foreign employees also receive 1 day for their traditional New Year and 1 day for their National Day
Annual leave (paid)
- 12 working days/year for normal working conditions
- Higher annual leave for certain categories (e.g., hazardous roles, employees with disabilities)
- Seniority increases: typically +1 day for every 5 full years with the employer
Tết planning (practical payroll advice)
- Expect multi-day shutdowns and travel peaks around Tết—plan coverage and payroll cutoffs early.
- International employers should also align approval cycles (overtime, leave, expense) to Vietnam holiday timing.
Benefits & compensation practices that help you hire and retain in Vietnam
Vietnam compensation is not only about base salary. A competitive, compliant package improves offer acceptance and retention—especially in major hiring hubs like Ho Chi Minh City and Hanoi.
Common benefit components (market practice)
- Allowances: meal, phone/internet, transportation, or role-based allowances (structured compliantly)
- Variable pay: performance bonus structures (where appropriate and documented)
- Healthcare: statutory health coverage plus optional private medical for key roles
- Annual health check: frequently used as an employee experience benefit
- Learning & development: training budget and certification support for technical roles
13th-month / Tết bonus (important cultural context)
Many employers choose to offer a year-end or Tết-related bonus as a retention mechanism. While not always legally required, it is often expected in competitive talent markets. NNRoad can help you structure bonus language clearly (and avoid accidental “guarantees”).
If your preferred engagement model is contractor-based, explore On-Demand Talent in Vietnam and ensure the relationship is correctly classified.
Hiring foreign nationals to work in Vietnam (work permits, exemptions, and payroll impact)
When hiring non-Vietnamese talent to work in Vietnam, compliance depends on the correct work authorization route and proper onboarding documentation. Vietnam’s framework includes both work permits and recognized exemption pathways (depending on the case).
Work permit vs work-permit exemption
- Work authorization rules are governed by Vietnam’s foreign worker decree framework.
- Documents issued abroad often require consular legalization and Vietnamese translation/authentication (unless exempt).
- Applications may be submitted online via Vietnam’s National Public Service Portal (where applicable).
Payroll and currency for foreign employees
- Vietnam labor rules allow wages in labor contracts to be calculated in VND, or in foreign currency for foreign workers in Vietnam.
- Tax withholding and statutory contributions must still be handled correctly according to the employee’s tax status and eligibility.
Statutory contributions for foreign employees
Foreign employees who are subject to compulsory insurance typically contribute 9.5% and employers typically contribute 20.5% (structure can include retirement/survivorship, health, sickness/maternity, and occupational accident/disease funds depending on eligibility).
Learn more:
Termination, severance, and final settlement — how to offboard compliantly in Vietnam
Vietnam offboarding is structured: notice periods, lawful grounds, severance logic, and a strict final settlement timeline. A compliant process reduces dispute risk and protects your employer brand in the Vietnam talent market.
Notice periods (employee and employer)
- Notice periods vary by contract type (indefinite vs fixed-term). In many cases, 45/30/3 working-day notice rules apply depending on contract length and circumstances.
- Employer unilateral termination requires statutory grounds and correct notice (or valid no-notice scenarios).
Severance and job-loss allowances (when applicable)
- Severance allowance may apply to eligible termination cases for employees with at least 12 months of service, commonly calculated as half-month wage per working year (after certain offsets).
- Job-loss allowance can apply in restructuring/layoff scenarios and may be subject to a minimum payout rule.
Final settlement timeline & document return
- Final settlement is generally required within 14 working days from termination (extendable up to 30 days in specific cases).
- Employers must complete certification procedures for insurance contribution periods and return relevant documents held on behalf of employees.
EOR vs payroll outsourcing vs contractors in Vietnam (choose the right model)
Choosing the correct engagement model in Vietnam is a compliance decision—not just a commercial one. Here’s a practical comparison.
Quick decision guide
| Model | Best for | Key requirement | Main risk if misused |
|---|---|---|---|
| Employer of Record (EOR) | Hiring employees in Vietnam without your own entity | NNRoad is legal employer; you direct daily work | Low (when implemented correctly) |
| Payroll Outsourcing | You already have a Vietnam entity and need compliant payroll execution | Your entity is employer; provider runs payroll/admin | Compliance exposure remains with your entity |
| Contractor / consultant | Short-term, project-based scope with true independence | Clear services agreement; contractor autonomy | Misclassification into employment relationship |
A note on labor leasing
Vietnam also regulates “labor lease” as a conditional business line with licensing requirements and time limits. This is different from a standard employment relationship and must be approached carefully. NNRoad’s approach is designed to support compliant hiring outcomes aligned to Vietnam’s legal framework.
Explore related pages:
Ready to hire in Vietnam? (Next steps)
If you share a few details, we can propose a compliant EOR structure for Vietnam and align the cost model:
- Number of hires and target start dates
- Work location(s) in Vietnam (city/province)
- Role titles and whether any are foreign nationals
- Compensation range and benefits expectations
Helpful next resources:
QUICK FAQs
Is an Employer of Record legal in Vietnam?
An EOR arrangement is commonly used to hire employees compliantly without creating a local entity. The key is that employment contracts, payroll, working time, leave, and offboarding must follow Vietnam labor rules and avoid models that require special licensing (e.g., regulated labor leasing scenarios).
Can we pay salaries in USD or another currency?
Vietnam labor rules require wages in labor contracts and paid wages to be calculated in VND, or in a foreign currency for foreign workers in Vietnam. In practice, payroll execution still needs to align with local reporting and withholding requirements.
What are Vietnam’s overtime limits?
Overtime requires employee consent and is capped by daily, monthly, and annual limits, with specific sector-based exceptions. A compliant workflow should define approval and tracking before employees start.
How many public holidays does Vietnam have?
Vietnam provides fully paid public holidays including Calendar New Year, Tết (Lunar New Year), Victory Day, Labor Day, National Day (2 days), and Hùng Kings’ Day. Foreign employees also receive 1 additional day for their traditional New Year and 1 day for their National Day.
Do foreign employees need to contribute to Vietnam statutory insurance?
Depending on eligibility, foreign employees may be required to participate in compulsory insurance funds. A common structure shows 9.5% employee and 20.5% employer contributions when applicable, excluding unemployment insurance in many cases.
How does termination settlement work in Vietnam?
Final settlement is generally required within 14 working days of termination (up to 30 days in certain scenarios). Employers also need to complete procedures related to insurance contribution certifications and return employee documents held by the employer.