Overview

Capital
Hanoi
Currency
Vietnamese Dong (VND)
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

17.5%
Social Insurance
3%
Health Insurance
1%
Unemployment Insurance
2%
Trade Union Fund* (Corporate employers only)
23.5% Total Employment Cost
Employee

Employee Payroll Taxes

8%
Social Insurance
1.5%
Health Insurance
1%
Unemployment Insurance
10.5%

Employee Income Tax

5%
0-60 million VND
10%
60-120 million VND
15%
120-216 million VND
20%
216-384 million VND
25%
384-624 million VND
30%
624-960 VND
35%
960+
Employer Taxes
3 HIGHEST
3 LOWEST
China
Brazil
Belarus
Vietnam
South Africa
Georgia
Macedonia
41.12%
36.8%
34%
23.5%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Vietnam
Georgia
Belarus
Ukraine
45%
28%
27.65%
10.5%
2%
1%
0%

Minimum Wage

General

The following wages are the minimum salary for untrained employees per region.

Region I: VND 4,420,000

Region II: VND 3,920,000

Region III: VND 3,430,000

Region IV: VND 3,070,000

The minimum salary for trained employees must be higher than at least 7% of the regional minimum base salary.

Minimum wage (per month)
$4000
$2663
$2491
$190
$36.80
$22
$2.33
Geneva
Luxembourg
Australia
Vietnam
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid on a monthly or semi-monthly basis on an agreed payday.

In case of prescribed force majeure events with no remedial actions are available, the payment can be delayed for 1 month.

Interest on late payment of salary must be paid to the employee if it is delayed by more than 15 days.

13th Salary

A bonus is not compulsory in Vietnam but is encouraged.

It is Vietnamese custom that the 13th salary is paid at Tet holiday or at the year-end.

Working Hours

General

Normal working time must not exceed 48 hours per week.

Overtime

Overtime can be implemented with the agreement of both the employer and employee.

The number of overtime hours cannot exceed 50% of the normal working hours in a day. Overtime cannot exceed 30 hours per month and a total of 200 hours per year, except for some cases stipulated by the Government in which overtime shall not exceed 300 hours per year.

The Overtime pay rate is as follows:

normal weekdays – 150%

weekend – 200%

public holidays – 300%

Overtime during a night shift will be according to the above classifications with the following rates respectively, 200% (or 210%), 270% and 390%.

Leave

Paid Time Off

Employees are entitled to a minimum of 12 days per year.

For every 5 years’ working for an employer, the annual leave increases by 1 day.

There is no specific regulation on the carryover policy in the law, however, it is interpreted by the authority that carryover is not allowed and unused leave must be paid in cash to the employee. In practice, many companies apply the carryover policy instead of making payment for the unused leave.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Vietnam
Malaysia
China
Federal
30
13
43
30
12
42
24
17
41
12
10
22
8
6
14
5
7
12
10
10
Public Holidays

There are 10 official paid holidays.

Sick Days

Sick leave is covered by the Social Insurance Authority. Employees who join compulsory Social Insurance are entitled to sick leave of up to 30 days (in general) and to maximum of 60 days (in certain circumstances).

Sick allowances: 75% of the salary of the month preceding the employee’s leave.

Maternity Leave

There are a number of maternity-related leaves:

Prenatal Check-ups Leave: up to 5 occasions, 1 day for each occasion. If her fetus is unstable, the mother is entitled to 2 days off for each check-up. Maximum entitlement: 10 days.

Mothers are entitled to a 6-month maternity leave. In the event of twins, the leave is extended by one month for each infant from the second one.

Maternity allowance: 100% of the salary of the month preceding the employee’s leave paid by the Social Insurance Authority.

PAID MATERNITY LEAVE (DAYS)
410
365
365
182
45
30
0
Bulgaria
Serbia
Albania
Vietnam
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Paternity leave can be 5 to 14 days, depending on the specific case.

Paternity allowance: 100% of the salary of the month preceding to the employee’s leave paid by Social Insurance Authority.

Parental Leave

Parents can take up to 20 days per year for parental leave until the child reaches the age of 3 and up to 15 days per year if the child is between the ages of 4 and 7.

Childcare leave allowances: 75% of the salary of the month preceding the employee’s leave paid by the Social Insurance Authority.

Other Leave

Paid leave:

Marriage Leave – 3 days

Children’s Marriage Leave – 1 day

Personal Leave (Death of spouse, child, parents, parents-in-law) – 3 days

Termination

Termination Process

Unilateral termination from the employee side only requires advanced notice.

Unilateral termination by an employer is restricted except for the case of expiry of the labor contract or if the employee reaches retirement age and applies for a pension. In most of the other cases, bilateral termination shall be applied.

Notice Period

The notice period is 3 working days for the seasonal contract, i.e. contract of less than 1 year; 30 days for definite labor contract, i.e. contract with for 1-3 years; or 45 days for an indefinite labor contract.

In a probation period, the employer must give the results 3 days before the end of the probation period.

 

Severance Pay

Severance pay is half a month’s salary per year of service.

When termination of the contract is due to changes in the structure or technology, or due to economic reasons, job loss allowance shall be applied in this case with the rate of 1 month salary for each year of work and at least equal to 2 months salary.

Probation Period

A probation period is optional and a common practice in Vietnam.

Employers and employees can negotiate a probationary contract, which must include the rights and responsibilities of both parties during the probationary period. The probationary period cannot be extended and each position can only have one probationary period.

The length of the probationary period is based on the complexity and skill required to do the work and varies between 6 to 60 days. The wage for an employee during the probation period must be agreed upon by both sides but cannot be less than 85% of the wage for the official job.

Employees working under seasonal labor contracts are not subject to probation.

VAT

General

VAT is 10% standard rate, with a reduced rate of 5% on essential goods and services.

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