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:

Salary	18,000,000
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 employer	22,230,000

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

Further reading on employment taxes in Vietnam:

• The Essential Guide To Payroll Management in Vietnam
• Employing Foreign Workers in Vietnam