A written employment contract (in Vietnamese and/or the foreign language) between the employer and the employee discussing the implied terms of employment.


The payroll frequency is agreed in the employment contract by the employee and the employer.

HR & Labor

Working Hours: Working hours are maximum 8 hours per day or 48 hours per week. Employees are entitled to minimum 24 consecutive hours of rest per week. If employees work overtime, they are entitled to 150% of their regular wages if it is during the working week and day time. If they work on the weekend and day time, they are entitled to 200% of their regular wages
If the employee works during a public holiday or a paid leave, they are entitled to 300% of their regular wages. If employees are working night hours, they are entitled to 130% of their regular wages and if they work overtime during those night hours, they receive additional 20% added to their regular wages. Minimum Working Age: Employee must be 15 years old to be legally employed.


To work in Vietnam, employee must obtain a work permit that is issued by the Department of Labor, Invalid and Society for 36 months, the employees must reapply for renewal after 3 years.

Minimum Wage

The minimum wage is between 2,400,000VND to 3,500,000VND depending on the geographical location of the employee.

Pension Fund

The employer contributes 18% of the employee’s gross income.

The employee contributes 8% of the gross income. There is no salary ceiling.

Severance Payments

Employees are entitled to severance pay if they have worked in the company for 12 consecutive months or more. If the employee during their employment time has contributed to the unemployment insurance fund, they are not entitled to any severance payments.

Advance Notice

If an employee is on a fixed term contract, he/she must provide 30 days notice, while an employee on an indefinite contract must provide 45 days of notice.

Termination Procedure

The employer must provide its employees on a fixed contract with 30 days of notice and indefinite contracted employees with 45 days of notice.

Sick Days

The amount of sick days are calculated based on the employee’s salary and the amount contributed to the social insurance. If the employee has been contributing for less than 15 years, they are entitled to 30 sick days per year. Between 15 and 30 years of contribution, the employee is entitled to 40 sick days and
60 days per year, if the employee has been contributing for over 30 years.

Vacation Days

Employees are entitled to 12 paid vacation days.

Public Holidays

There are 5 official paid holidays.

Additional Employee Withholdings

1) Health Insurance
2) Unemployment Insurance

1) Employer contributes 3%
2) Employer contributes 1%

1) Employee contributes 1.5%
2) Employee contributes 1%


VAT is 10% standard rate, , with reduced rates of 0% (exports) or 5% (essential goods/services).