Guide to hiring employees in Vietnam

Guide to hiring employees in Vietnam

Complete guide to hiring employees in Vietnam. From taxation to salary standards, here's everything you need to know about having employees in Vietnam.

Employment taxes

As a standard, the employer in Vietnam must pay for four types of state insurance for employees as below:

  • Social Insurance: 17.5% of gross salary, capped at 20 times national minimum wage.
  • Health Insurance: 3%  of gross salary, capped at 20 times national minimum wage.
  • Unemployment Insurance: 1%  of gross salary, capped at 20 times regional minimum wage.
  • Labour Union Fee: 2% of gross salary, capped at 20 times national minimum wage.

In total, the total percentage for the above is usually 23.5% with a cap number at $330/person/month. However, due to the Covid situation, the Government has reduced the rate to 22% until July 2022. 

Sample calculation of employment taxes in Vietnam

Here is an example of the total cost of hiring an employee that receives a typical salary in Ho Chi Minh City:

Salary18,000,000
Social insurance 17.50%3,150,000
Health insurance 3%540,000
Unemployment insurance 1%180,000
Labor union fee 2%360,000
Total cost for the employer22,230,000

An employer of record service fee is 10% of the total employment cost.

Further reading on employment taxes in Vietnam: