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Minimum wage in Vietnam
Vietnam's payroll structure
Vietnam's social security
Vietnam's employee benefits
Seamless and compliant payroll in Vietnam and beyond
Payroll in Vietnam
Managing payroll in Vietnam is more than just paying salaries. It means staying on top of local labour laws and both required and optional employee benefits.
Vietnam enforces a region-based minimum wage system, which is revised periodically and varies by location. In 2024, monthly minimum wages range from approximately 3,250,000 VND to 4,680,000 VND depending on the region, forming the baseline for payroll calculations.
A standard payroll structure typically includes base salary, mandatory contributions (such as social, health, and unemployment insurance), allowances (for housing, meals, or transport), and performance-based bonuses. Employers must ensure compliance with statutory obligations including leave entitlements and retirement contributions.
On top of these legal requirements, employers are also offering non-statutory perks to stay competitive. These can include wellness allowances, flexible work options, or private health insurance — all of which help attract and retain great talent.
To manage these complex requirements efficiently, many international firms turn to payroll outsourcing in Vietnam. Working with a trusted payroll provider in Vietnam like CXC ensures timely processing, compliance with tax and labour codes, and accurate employee contributions. Several payroll companies in Vietnam offer end-to-end solutions, covering payroll computation, payslip distribution, tax filing, and statutory reporting.
Partnering with a specialist payroll agency in Vietnam can also reduce administrative burden and risk, especially for companies without a legal entity in the country. For multinational organisations, using global payroll Vietnam solutions helps unify payroll processes across borders while remaining compliant locally.
Selecting the right payroll service in Vietnam means choosing a partner with up-to-date regulatory knowledge and a strong track record in delivering accurate, secure, and scalable payroll support. CXC, as a trusted Employer of Record (EoR) and payroll solutions provider, offers tailored support to ensure full compliance and smooth operations.
Minimum wage in Vietnam
With a growing economy and a rising demand for skilled workers, Vietnam remains an attractive market for international employers. Yet businesses expanding into the country must carefully consider compliance with local wage regulations, including how the minimum wage in Vietnam is structured and enforced.
Minimum wage per hour in Vietnam
Vietnam applies a region-based minimum wage system, updated periodically by the National Wage Council. The most recent increase took effect on 1 July 2024. The government divides the country into four wage zones:
- Zone 1: Central districts of Hanoi and Ho Chi Minh City.
- Zone 2: Outer districts of those cities, plus Da Nang.
- Zone 3: Provincial towns such as Bac Ninh, Hai Duong, and Phu Tho.
- Zone 4: Rural and mountainous regions.
As of July 2024, the monthly wage floor ranges from 3,450,000 VND (approximately 135 USD) in Zone 4 to 4,960,000 VND (around 194 USD) in Zone 1. These monthly figures convert to hourly minimum wages as follows:
- Zone 1: 22,500 VND per hour.
- Zone 2: 20,000 VND per hour.
- Zone 3: 17,500 VND per hour.
- Zone 4: 15,600 VND per hour.
Employers using weekly or daily wage arrangements must ensure that the total compensation is at least equivalent to these regional minimums when converted. For example, to comply with the minimum wage per day in Vietnam, a worker in Zone 2 earning a full eight-hour shift would need to earn no less than 160,000 VND per day.
Vietnam’s minimum wage for foreigners
There is no officially designated Vietnam foreigner minimum wage. However, foreign employees are subject to the same regional wage floors as domestic workers. Companies must be cautious when hiring expatriates, especially on fixed-term or project-based agreements, and ensure total compensation meets or exceeds regional minimums.
In practice, wages for foreign workers are typically much higher than the statutory minimum, particularly in technical or senior roles. However, for entry-level or outsourced roles, employers must still comply with the legally binding regional wages. Notably, remote work legislation in Vietnam is not yet clearly defined, so even if foreign employees are working outside Vietnam, compliance with domestic employment law may still be prudent.
Employers should also ensure that contracts align with minimum wage regulations, whether referencing a Vietnam minimum wage per month, per hour, or daily. Businesses engaging temporary or seasonal workers should seek proper guidance to ensure they comply with wage expectations based on the region. While no official Vietnam seasonal employment contract template is published, employment agreements must reflect relevant legal wage minimums regardless of duration.
Vietnam's payroll structure
Vietnam has a growing and dynamic labour market, with employment practices that reflect a balance of local customs and statutory obligations. For employers operating in or expanding to Vietnam, managing payroll effectively requires awareness of national laws and regional norms that shape how compensation is structured, calculated, and reported.
Vietnam’s payroll calculation
The country’s payroll cycle typically runs on a monthly basis, with salary payments made on the last working day of each month or on a mutually agreed date as per the employment contract. A 13th-month salary is commonly paid at the end of the year or during the Lunar New Year holiday as a bonus.
The employee payroll in Vietnam begins with calculating gross salary. From there, several mandatory deductions apply:
- Social insurance (SI): 17.5% employer contribution and 8% employee contribution, capped at 46,800,000 VND.
- Health insurance (HI): 3% employer and 1.5% employee, also capped at 46,800,000 VND.
- Unemployment insurance (UI): 1% contribution from both employer and employee, with regional caps.
Employers also deduct personal income tax (PIT) from taxable income. PIT is calculated after deducting insurance contributions, a personal allowance of 11,000,000 VND per month, and 4,400,000 VND for each dependent. The remaining amount is taxed at progressive rates.
For instance, an employee earning 20,000,000 VND per month would have the following deductions:
- SI: Employer – 3,500,000 VND; Employee – 1,600,000 VND.
- HI: Employer – 600,000 VND; Employee – 300,000 VND.
- UI: Employer and Employee – 200,000 VND each.
The taxable income after deductions would be 6,900,000 VND. PIT is then applied accordingly.
Vietnam’s payroll taxes
Vietnam’s payroll tax obligations extend beyond income tax. Employers are legally responsible for reporting and remitting social security contributions to relevant state agencies. These obligations apply to both local and foreign staff, although foreign workers may have different conditions depending on their visa and work permit status.
It is also important to factor in regional minimum wages, which vary by location, as well as special wage rules for night shifts or overtime. Payroll inaccuracies can result in fines or legal disputes, making compliance a priority.
Payroll processing in Vietnam
Processing payroll in Vietnam involves more than salary disbursement. Accurate recordkeeping, on-time tax reporting, and compliance with government decrees are all part of the process. Many employers choose to work with a local payroll provider or global Employer of Record (EoR) service to handle administrative complexity.
Foreign employees are subject to the same core contributions as local staff. Employers should closely monitor updates from Vietnam’s Ministry of Labour, as policy changes can affect salary caps, tax thresholds, and deduction percentages.
A well-managed payroll system supports employee satisfaction, reduces compliance risk, and aligns with Vietnam’s growing professionalism in the labour sector. Whether you are setting up your first team or scaling operations, having clarity on payroll expectations is a vital part of success.
Vietnam's social security
Employers operating in Vietnam need to be aware of the country’s mandatory social security framework and broader statutory benefit obligations. These contributions not only support employees during retirement or periods of illness and unemployment but also ensure long-term workforce sustainability. Vietnam’s regulations are evolving to extend coverage and strengthen the safety net across more employment types.
Vietnam’s social security contributions
Social security contributions in Vietnam are compulsory for both employers and employees. They are made up of three main components: social insurance, health insurance, and unemployment insurance. These payments are calculated based on the monthly salary specified in the labour contract, capped at 20 times the statutory minimum wage. Contributions must be made for employees with contracts of three months or more.
- Social insurance: Employers contribute 17.5% of the salary, which includes 14% for retirement and survivorship, and 3% for workplace accidents and disease. Employees contribute 8%, directed towards retirement and death benefits.
- Health insurance: The employer’s contribution is 3% of the salary. The employee’s share is typically incorporated into this, especially in the case of short-term foreign hires.
- Unemployment insurance: Both employer and employee contribute 1% each.
These Vietnam social security contributions are regulated by the Vietnam Social Security authority.
Other statutory benefits in Vietnam
Vietnamese labour laws also provide several other statutory entitlements, including paid annual leave, public holidays, maternity and paternity leave, and sick leave. Notably, retirement benefits play a major role in the system.
According to Decree No. 135/2020/ND-CP, the retirement age is increasing gradually to 62 for men (by 2028) and 60 for women (by 2035). Those in hazardous roles or facing reduced work capacity may retire up to five years earlier. Conversely, individuals with high technical qualifications may retire up to five years later. A monthly pension is available to those who have met the retirement age and contributed for at least 20 years.
Those who do not meet the contribution threshold may receive a lump-sum payout instead of a monthly pension. Vietnam’s social security system ensures equal pension rates for men and women who fulfil the same requirements.
Vietnam’s veterans pension benefits
Vietnam’s veterans pension benefits fall under a separate scheme and are handled by government authorities. Veterans may be entitled to preferential pension entitlements and additional veterans social security benefits, depending on their service period, injuries sustained, and contributions to the national effort. These programmes are distinct from the general social security scheme in Vietnam and are managed by the Ministry of Labour, Invalids and Social Affairs (MOLISA).
Vietnam's employee benefits
In Vietnam, competitive employee benefits are an important part of hiring and retention strategies, especially in industries facing talent shortages. While the law mandates a range of statutory benefits, many employers go beyond the minimum by offering non-statutory perks that help boost employee satisfaction, loyalty, and productivity.
Non-statutory benefits for employees in Vietnam
Non-statutory benefits, also referred to as fringe benefits, are not legally required but are commonly provided by employers aiming to attract and retain top talent. These benefits vary widely depending on company size, industry, and workforce demographics, but certain offerings are especially prevalent.
One of the most popular perks is the 13th-month salary, often paid around the Lunar New Year (Tet). Though it is not mandatory, this bonus is widely expected by employees and serves as a strong motivator. Similarly, meal allowances are a common benefit—monthly allocations (usually non-taxable) help employees cover daily food expenses.
Transportation support is also frequently offered. This can include petrol stipends, train or bus reimbursements, or company-arranged shuttle services. While these commuting expenses are considered part of taxable income, they remain a valued form of support, especially in cities with long commutes.
To support remote or hybrid teams, some companies provide home internet coverage as part of a connectivity stipend. Like transport, these are usually taxable but help offset the costs of working from home. Others extend home office stipends to improve comfort and productivity.
Additional benefits often include:
- Private health and dental insurance, which supplements the statutory health scheme.
- Accident insurance for added protection.
- Training and development programmes to improve skills.
- Company vehicles or transport reimbursements for key personnel.
- Gym memberships or wellness programmes promoting physical health.
- Travel allowances for holidays or business trips.
These Vietnam employee benefits are not just incentives—they signal an investment in the well-being and long-term commitment of staff.
Benefits for foreign employees in Vietnam
Benefits for foreign employees in Vietnam often mirror those provided to local staff, but may include tailored support such as relocation allowances, accommodation stipends, and international health coverage. Employers hiring international talent often go a step further to include tax advisory services or schooling support for dependents.
Foreign workers on contracts of three months or longer are generally subject to the same benefits of employee in Vietnam in terms of social security contributions. However, employers may supplement these with enhanced non-statutory benefits to remain competitive in international recruitment.
Seamless and compliant payroll in Vietnam and beyond
Handling payroll and employee benefits in Vietnam goes beyond compliance; it is also about aligning compensation packages with local market standards. Every country also has its own customs, norms and expectations about employee compensation. If your approach does not align with what employees are used to, you might struggle to keep top talent.
When you partner with CXC to hire workers in Vietnam, we will take care of everything from tax withholding and social contributions to bonuses and benefits. This way, you do not have to worry about getting it right and you can focus on growing your business.
Compliantly hire workers anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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