HR & Labor
The minimum wage is between 2,400,000VND to 3,500,000VND depending on the geographical location of the employee.
The employer contributes 18% of the employee’s gross income.
The employee contributes 8% of the gross income. There is no salary ceiling.
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.
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.
The employer must provide its employees on a fixed contract with 30 days of notice and indefinite contracted employees with 45 days of notice.
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.
Employees are entitled to 12 paid vacation days.
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).