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Vietnamese đồng is the official currency of Vietnam. Its currency symbol is ₫, VND.
23.5% on top of employee salary.
Vietnamese is the official language and English is growing to be the second favoured language.
The population of Vietnam is 98.17 million (based on World Bank numbers as of 2021).
Salaries are paid monthly and it is customary (though not required) to pay a 13th month salary bonus.
To start growing your team in Vietnam, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary.
This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Vietnam has witnessed an economic boom over the past decade, with rates of economic growth reaching over 13% in 2022 and bringing new injections of foreign
investment and revenue. Vietnam’s young, dynamic workforce and low cost of living have proven beneficial to businesses relocating to the country. However, there has also
been an increase in the migration of Vietnamese workers to other neighbouring Asian countries, particularly Malaysia.
Vietnam is becoming a hotspot for remote working in Southeast Asia. Despite the generally lower cost of living than neighbouring countries such as Thailand and Indonesia,
Vietnam is favoured by digital nomads as cities like Hanoi provide the opportunity for a more lavish lifestyle. Additionally, obtaining the appropriate visas for remote working
in Vietnam is a less complicated process than in other nearby countries.
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| Social Insurance: | 17%. |
| Health Insurance: | 3%. |
| Accident Insurance: | 0.5%. |
| Control Union Fee: | 2%. |
| Unemployment Insurance: | 1%. |
Health Insurance and Benefits.
Pension.
Unemployment Insurance.
Occupational Accident and Disease Insurance.
Probation periods are common in Vietnam. They must not exceed 60 days for work that requires specialist or highly technical skills, or 30 days for other types of work.
Emerald Technology can onboard employees in Vietnam within 48 hours.
All Vietnamese and expatriate employees contribute a mandatory 1.5% of their salary into a health insurance fund, in addition to a 3% contribution by their employer.
The social and health insurance contribution, which applies to both Vietnamese employees and expatriate employees working in Vietnam, is calculated based on the salary,
allowance, and additional payments stated in the labour contract. It does not exceed 20x the common minimum salary provided by the government. The unemployment
insurance contribution, which is calculated and capped in the same way, is only required for Vietnamese employees.
Pregnant employees are eligible for six months of paid maternity leave at 100% of salary (the base salary for the social insurance contribution) for their first child, and an
additional 30 days for each additional child. Salary during this period is paid by the compulsory social insurance. The maximum entitlement is VND 29.800.000 and the
employer normally cover the difference where the employee’s actual gross salary base is higher than this amount. Fathers are eligible to receive 5-14 days of paid paternity
leave, depending on whether the child is born naturally or by C-section and whether it is a single or multiple birth.
Employees who suffer from illness and/or disability, or take leave in accordance with a doctor’s order, receive an allowance paid by Vietnam’s social insurance fund,
provided that they submit the required documentation supporting their leave (certificate issued by a public hospital doctor). The sick leave allowance is based on the
employee’s salary used to calculate the social insurance premium. The maximum annual entitlement is:
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Notice Periods: | Employers must give 30 working days’ notice for termination of fixed term labour contracts, and 45 working days’ notice for termination of indefinite labour contracts. They must have proper legal grounds for termination. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Severance Pay: | Upon termination of employment, a worker who has completed one year’s service is entitled to severance pay of half a month’s salary, plus other benefits (if any), for each year of service. Severance pay shall be paid within 7 days from the termination date. |
Employees who have completed at least one year’s service for an employer are entitled to 12 paid annual leave days, with a pro rata entitlement granted to employees with less than one year’s service. Employees receive one additional day for each additional five years they work for an employer. Employees are entitled to pay in lieu of annual leave days not taken by the end of the year. In practice, employers usually permit employees to carry over untaken annual leave to be taken no later than 31st March the following year. Employees working under hazardous conditions may earn more leave, and additional leave is often a negotiated supplementary benefit.
Vietnam’s official monthly minimum wage varies by region:
The maximum working hours in Vietnam are eight hours per day, six days per week. It is legally required that employers provide employees with one full day off per week, which is usually Sunday. In practice, normal working hours are 40 per week (eight hours per day, Monday-Friday). Overtime hours cannot exceed 30 per month or 200 per year, except from in special cases regulated by the government, where the annual maximum can be increased to 300 hours. Overtime pay is at least 150% of normal hourly salary on a normal working day, at least 200% on a weekly day off, and at least 300% on a public holiday or normal paid day off.
The payroll cycle in Vietnam for full time employees is monthly, paid on the last working day or as otherwise agreed within the employment contract. Part-time employees, independent contractors, and freelancers are paid their salaries as agreed within the employment contract.
Though there is no statutory requirement to do so, it is common for employers to pay a 13th month salary as a Christmas bonus. Employees may also receive smaller bonuses for public holidays.
Similar to other countries, Vietnam has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.
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