Vietnam Gross to Net Salary Calculator
Understanding Your Results
Our Vietnam Payroll Tax Calculator provides a comprehensive breakdown of payroll obligations for both employers and employees. The results are divided into two main sections: Employer Contributions and Employee Contributions based on employee’s gross/net salary.
Keep in mind that the Total Cost to the Employer also includes an estimate of RecruitGo’s Employer of Record service fee for employers. This gives a more realistic outlook for foreign employers who plan on hiring talent in Vietnam.
Employer Contributions
Employers in Vietnam are responsible for several mandatory contributions based on the employee’s gross salary. These contributions are capped based on the government’s regulations to ensure affordability and compliance. Here’s a breakdown of each contribution:
- Social Insurance (SI): Employers contribute 17.5% of the gross salary. The contributions are capped at a maximum salary of 46,800,000 VND, ensuring that high earners do not excessively burden the system.
- Health Insurance (HI): A 3% contribution is made by employers, also capped at the same maximum salary as SI (46,800,000 VND). This insurance covers medical expenses for employees and their dependents.
- Unemployment Insurance (UI): Employers contribute 1% of the gross salary for Vietnamese employees. The maximum salary caps vary by region:
- Region 1: 99,200,000 VND
- Region 2: 88,200,000 VND
- Region 3: 77,200,000 VND
- Region 4: 69,000,000 VND
- Trade Union Contribution (TU): Employers are required to contribute 2% of the gross salary, capped at 46,800,000 VND. This fee supports the activities of trade unions and the welfare of employees.
- Employer of Record (EOR) Fee: For companies using EOR services, an additional fee of 10% of the total cost is applied. This fee is capped at 6,331,250 VND, ensuring it remains reasonable even for higher salaries.
Employee Contributions
Employees also contribute to the social safety net, with deductions taken directly from their gross salary. The key components are:
- Social Insurance (SI): Employees contribute 8% of their gross salary, capped at the same maximum salary as the employer’s contribution (46,800,000 VND).
- Health Insurance (HI): Employees pay 1.5% of their gross salary, with the same cap of 46,800,000 VND. This ensures access to healthcare services.
- Unemployment Insurance (UI): Applicable only to Vietnamese employees, this contribution is 1% of the gross salary, with regional caps as mentioned above.
- Personal Income Tax (PIT): After deducting SI, HI, UI, and other allowable deductions, such as the personal deduction (11,000,000 VND) and dependent deduction (4,400,000 VND per dependent), the remaining taxable income is subject to progressive PIT rates.
Special Considerations for Foreign Employees
Foreign Employees: Foreign employees are not required to contribute to unemployment insurance (UI). However, they must contribute to:
- Social Insurance (SI): 8% of their gross salary, capped at 46,800,000 VND.
- Health Insurance (HI): 1.5% of their gross salary, also capped at 46,800,000 VND.
Foreign employees are subject to the same personal income tax (PIT) obligations as Vietnamese employees, calculated based on their total income, including salary, allowances, and bonuses.
Progressive Personal Income Tax (PIT) Rate in Vietnam 2024
Vietnam employs a progressive PIT system where the tax rate increases with higher levels of income. The following table outlines the progressive rates applicable to the taxable income in 2024:
| Taxable Income (VND) | Tax Rate (%) |
|---|---|
| Up to 5,000,000 | 5 |
| 5,000,001 to 10,000,000 | 10 |
| 10,000,001 to 18,000,000 | 15 |
| 18,000,001 to 32,000,000 | 20 |
| 32,000,001 to 52,000,000 | 25 |
| 52,000,001 to 80,000,000 | 30 |
| Above 80,000,000 | 35 |
The PIT is calculated on the taxable income after deducting eligible expenses, social insurance contributions, and allowances such as the personal deduction (11,000,000 VND) and dependent deduction (4,400,000 VND per dependent).
Changes in Salary Taxes in Vietnam during 2024
The regulations and caps for social insurance, health insurance, and other contributions have been updated as of 2024. Employers and employees should be aware of these changes to ensure compliance and proper financial planning. This includes:
- Increased salary caps for social and health insurance contributions.
- Adjustments to the unemployment insurance salary caps across different regions.
These changes reflect the government’s ongoing efforts to balance social welfare benefits with economic growth and employer affordability.
