Global platform · Owned-entity global EOR
Public EOR feeFrom US$599 / month
Monthly cost at ₫40mUS$2,499
VN
Hiring employees in Vietnam (2026).
What it really costs an employer to hire in Vietnam in 2026, the employment rules that shape the contract, and how an Employer of Record lets you hire without opening a local entity. Every figure is tied to its legal source and effective date.
23.5%Employer cost on top
₫5,310,000Minimum wage / month
12 daysPaid annual leave
Days, not monthsTime to hire via EOR
Independent: no provider pays for placement and we use no affiliate links. How we are funded.
The most common mistake foreign employers make in Vietnam is underestimating what sits on top of the base salary. Employer insurance is 21.5% of gross and the trade union fund adds 2%, so budget 23.5% before any provider fee. An Employer of Record (EOR) runs local payroll, contracts and statutory filings so you can hire without a Vietnamese legal entity, but the cost structure applies either way.
Several inputs changed in 2026. The regional minimum wage rose about 7.2% in January, income tax moved to five bands with a higher personal deduction, the insurance cap rose to ₫50.6 million in July, and 24 November became a twelfth paid public holiday. The statutory week is 48 hours, annual leave starts at 12 days, maternity leave is six months, and a 13th-month salary is customary even though the law does not require it.
Vietnam at a glance
The statutory facts that drive a hire in Vietnam. Each row shows the legal instrument it comes from, the year it took effect, and whether it changed in 2026.
Pay & working time
Minimum wage, Regions II–IVper month
₫4,730,000 / ₫4,140,000 / ₫3,700,000New in 2026
Decree 293/2025/ND-CP · 2026
13th-month salaryunless promised in contract
Customary, not mandatoryCurrent
Labour Code 45/2019/QH14 · 2019
Employer cost & tax
Employer insurancesocial 17.5%, health 3%, unemployment 1%
21.5%Current
Social Insurance Law 41/2024 · 2026
Employee insurancesocial 8%, health 1.5%, unemployment 1%
10.5%Current
Social Insurance Law 41/2024 · 2026
Social & health insurance cap20 × ₫2,530,000 reference salary
₫50,600,000 / monthNew in 2026
Decree 161/2026/ND-CP · 2026
Unemployment insurance cap20 × Region I minimum wage
₫106,200,000 / monthNew in 2026
Insurance caps from 1 Jul 2026 · 2026
Personal deductionplus ₫6.2m per dependant
₫15,500,000 / monthNew in 2026
PIT Law 109/2025/QH15 · 2026
Leave & holidays
Contracts & termination
Employer noticeindefinite / 12–36 mo / < 12 mo
45 / 30 / 3 daysCurrent
Labour Code 45/2019/QH14 · 2019
Severance allowanceyears outside unemployment insurance
½ month per yearCurrent
Labour Code 45/2019/QH14 · 2019
Job-loss allowancerestructuring or redundancy
1 month per year, min. 2Current
Labour Code 45/2019/QH14 · 2019
Retirement age in 2026rising to 62 and 60
Men 61y 6m · Women 57yCurrent
Labour Code 45/2019/QH14 · 2019
“New in 2026” marks a figure that changed this year. Figures checked against the cited instruments on 14 Oct 2026.
What it costs to hire in Vietnam
Salary is only part of the bill. Here is what a Region I employee on ₫40,000,000 gross a month costs the employer in the second half of 2026.
Gross monthly salary₫40,000,000
Employer contributions23.5% of gross: insurance 21.5% + union fund 2%+ ₫9,400,000
Total employment cost₫49,400,000≈ US$1,900 at ₫26,000
Your EOR handles the filings. The EOR adds its own service fee on top of this total, from US$152 to US$599 a month at this salary, and runs income-tax withholding and insurance filings. The employee’s 10.5% and income tax come out of their pay, not yours. Compare fees at three salaries.
Above ₫50.6m gross, social and health insurance and the union fund stop growing, so the percentage falls: on ₫80m it is about 15%. Unemployment insurance continues to ₫106.2m.
Income tax in Vietnam
Monthly taxable incomePaid by employee · progressive · from 2026
₫0m – ₫10m
5%
₫10m – ₫30m
10%
₫30m – ₫60m
20%
₫60m – ₫100m
30%
Over ₫100m
35%
Taxable income is gross minus employee insurance, the ₫15.5m personal deduction and ₫6.2m per dependant. Non-residents pay a flat 20%. Source: PIT Law 109/2025/QH15.
Employer contributions
Social insurance17.5%
Health insurance3%
Unemployment insurance1%
Trade union fund2%
Total23.5%
Employee contributions
Social insurance8%
Health insurance1.5%
Unemployment insurance1%
Total10.5%
Employment-law essentials
The rules an EOR builds into your contracts, and the ones most likely to trip you up if you hire on your own.
Working time
Normal hours8 / day, 48 / week
Overtime pay150% · 200% · 300%
Night work premium+30%
Overtime cap40 h / month, 200 h / year
Pay & 13th salary
Minimum wage (Region I)₫5,310,000
Payroll cycleMonthly, in VND
Probation pay≥ 85% of salary
13th-month salaryCustomary
Leave
Annual leave12 days
Public holidays12 days
Maternity leave6 months
Paternity leave5–14 days
Sick pay (social insurance)75%, 30–60 days
Termination
Notice (indefinite contract)45 days
Notice (12–36 months)30 days
Severance½ month / year
Redundancy1 month / year, min. 2
Statutory minimums. Collective agreements or contracts can be more generous; an EOR applies whichever is more favourable to the employee.
Things to watch in Vietnam
Details that are easy to miss until they show up as a surprise cost or a compliance gap.
- Statutory cost is 23.5%, not 21.5%. Insurance is 21.5%, but the 2% trade union fund is also paid by the employer. Budget 23.5% of gross up to the ₫50.6m cap.
- The insurance cap rose on 1 July 2026. Social and health insurance now stop at ₫50.6m, up from ₫46.8m. Several provider pages still quote the old cap and 2024 minimum wages.
- The 13th-month salary is expected. It is not law, but candidates assume it, usually paid before Tết. Leaving it out cuts annual cash pay by about 8%.
- Termination grounds are narrow. An employer can only end a contract on grounds the Labour Code lists, with notice. Mutual agreement is the usual route, so document performance from the start.
- Foreign employees need a work permit. It takes longer than the employment contract, and foreign staff join social and health insurance with some exemptions. They also get their home country’s New Year and National Day off.
What changed in 2026
Checked against official sources on 14 Oct 2026.
Regional minimum wage up about 7.2% (Decree 293/2025).
Five-band PIT scale and higher deductions: ₫15.5m personal, ₫6.2m per dependant (Law 109/2025/QH15).
Tết Bính Ngọ: five statutory days within a nine-day public-sector break.
Reference salary to ₫2,530,000, lifting the insurance cap to ₫50.6m (Decree 161/2026).
24 November becomes a paid public holiday, Vietnamese Culture Day (Resolution 28/2026/QH16).
EOR vs. opening your own entity in Vietnam
Use an EOR when…
- You are hiring one to a handful of people in Vietnam.
- You want someone working in days or weeks, not months.
- You would rather not run local payroll, tax and insurance filings.
- You are testing the market before committing.
Open your own entity when…
- You are scaling a large local team long-term.
- Per-employee EOR fees outweigh the cost of running an entity, around 5–7 staff on a US$599 fee.
- You need to contract, invoice or hold licences locally.
- You need full control of employment terms and IP.
Break-even figures and setup costs are in EOR vs own entity.
Choosing an EOR for Vietnam
Providers ranked on our published weighted score, with each one’s published starting fee as checked on 14 Oct 2026.
#1 · 3.90
Global platform · Multi-country platform
Public EOR feeFrom US$599 / month
Monthly cost at ₫40mUS$2,499
Truzand
#3 · 3.70Vietnam specialist · Expert-led local delivery
Public EOR fee8% of employment cost, US$80–250 / month
Monthly cost at ₫40mUS$2,052
Asia-focused provider · EOR as a step to own entity
Public EOR fee15–25% of employment cost / month
Monthly cost at ₫40mUS$2,185–2,375
Global platform · Platform with detailed Vietnam scope
Public EOR feeRequest quote
Staffing group · Staffing plus payroll employment
Public EOR fee15–25% of employment cost / month
Monthly cost at ₫40mUS$2,185–2,375
Global platform · Lowest flat global fee
Public EOR feeFrom US$199 / month
Monthly cost at ₫40mUS$2,099
Payroll, PEO / employment service and full HR outsourcing
Public EOR feeRequest a quote
EOR within staffing, outsourcing and mobility
Public EOR feeRequest a quote
Quote-only cards are Vietnam workforce and HR firms that offer EOR or payroll-staffing services but publish no fee.
Compare all EOR providers in Vietnam →Best employer of record in Vietnam: ranked providers →
FAQs
Do I need a Vietnam entity to hire an employee?
To employ directly, yes. Without one, an Employer of Record can be the local legal employer while you direct the work.
What does an employee cost on top of salary?
About 23.5% of gross: 21.5% statutory insurance plus a 2% trade union fund, on salary up to the caps. Add the EOR fee, benefits and any 13th-month payment.
What is the minimum wage in Vietnam in 2026?
From 1 January 2026 it is ₫5,310,000 a month in Region I, ₫4,730,000 in Region II, ₫4,140,000 in Region III and ₫3,700,000 in Region IV. The region of the workplace decides which applies.
Is the 13th-month salary mandatory?
No. It is customary and expected in many sectors, but only binding if the contract or bonus policy promises it.
How hard is it to terminate an employee?
An employer can only terminate on grounds listed in the Labour Code, with 3 to 45 days’ notice and, where applicable, severance. Mutual agreement is the common route.
How many paid holidays are there?
Twelve from 1 July 2026, after Vietnamese Culture Day on 24 November was added. Foreign employees also get one day for their country’s New Year and one for its National Day.
Sources
- Decree 293/2025/ND-CP
- Decree 161/2026/ND-CP
- Insurance caps from 1 Jul 2026
- Social Insurance Law 41/2024
- PIT Law 109/2025/QH15
- Labour Code 45/2019/QH14
- Resolution 28/2026/QH16
- Government Tết 2026 schedule
General information only, not legal or tax advice. Spotted an outdated figure? Tell the editors.