Easily Hire, Manage, and Pay Your Employees in Vietnam
RecruitGo’s Employer of Record (EOR) service in Vietnam enables you to hire top Vietnamese talent quickly and compliantly – without the cost and delay of setting up a local company. You focus on growth; we handle the legal, HR, and payroll heavy lifting.
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Key Considerations for Hiring Employees in Vietnam
Navigate the tabs below for insights to hiring remote talent in Vietnam. From minimum wage to tax implications, leave policies, and termination laws, we’ve got you covered.
Minimum Wage Requirements
The monthly minimum wage in Vietnam varies depending on the region where the employee resides:
- Zone 1: 4,680,000 VND
- Zone 2: 4,160,000 VN
- Zone 3: 3,640,000 VND
- Zone 4: 3,250,000 VND
Personal Income Tax Structure
The individual income tax in Vietnam follows progressive rates, ranging from 5% to 35%. Various factors, including household status and the number of children, may influence the overall tax rates.
Gross Annual Income (VND) and the Tax Rate (%)
- Up to VDN 60,000,000: 5%
- Up to VDN 120,000,000: 10%
- Up to VDN 216,000,000: 15%
- Up to VDN 384,000,000: 20%
- Up to VDN 624,000,000: 25%
- Up to VDN 624,000,000: 25%
- Over VDN 960,000,000: 35%
Employer Expenses
The employer’s cost amounts to 23.5% of the employee’s salary. Social insurance, health insurance, and control union fee are calculated based on a maximum monthly salary of VND 36,000,000.
- Social Insurance: 17%
- Health Insurance: 3%
- Accident Insurance: 0.5%
- Control Union Fee: 2%
- Unemployment Insurance: 1%
Overtime Compensation & Maximum Hours
Standard working hours are set at 8 hours per day, amounting to a total of 40 hours per week, from Monday to Friday.
Overtime payment is obligatory and applies to hours worked outside the standard work hours. Employees are allowed to work a maximum of 12 hours a day, including both normal and overtime hours. Overtime rates are as follows:
- 150% of the hourly rate on weekdays
- 200% of the hourly rate on weekly days off
- 300% of the hourly rate on public holidays
Maternity Leave
Pregnant employees who have contributed to social security for a minimum of 3 months are eligible for 6 months of paid maternity leave. Within this period, 2 weeks of leave can be taken before the child’s birth. The employee will receive 100% of their average salary, calculated based on social insurance contributions made over the last 6 months. Social Security will be responsible for providing this pay.
Paternity Leave
Employees who have contributed to social security for a minimum of 3 months are entitled to 5 days of paid paternity leave. During this period, the employee will receive 100% of their salary, and Social Security will be responsible for providing this pay.
Parental Leave
In Vietnam, there is no specific law covering parental leave. However, employees may be entitled to maternity leave and paternity leave as provided by company policies or collective bargaining agreements.
Sick Leave
In Vietnam, sick leave does not have a maximum limit on the number of days an employee can take. The employer provides sick leave with different pay rates based on the length of the leave:
- For the first 4 months, the employee receives 100% of their base salary.
- From 4 to 8 months, the employee receives 75% of their base salary.
- From 8 to 12 months, the employee receives 50% of their base salary.
- From 12 to 13 months, the employee receives 25% of their base salary.
Employee Termination Procedures
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
It is important to note that Vietnam does not allow at-will terminations for employers beyond the probation period. Terminations must be justified with valid reasons, and compliant terminations can occur through various means, including:
- Voluntary resignation by the employee
- Mutual agreement between the parties
- Contract expiration
Unilateral termination by the employer can be based on the following grounds:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
Notice Requirement
The notice period in Vietnam varies depending on the type of contract:
- For indefinite contracts, the minimum notice period is 45 days.
- For fixed-term contracts lasting between 12 to 36 months, the minimum notice period is 30 days.
- For fixed-term contracts under 12 months, the minimum notice period is 3 working days.
Employers are required to adhere to these notice periods when terminating an employee’s contract to ensure compliance with Vietnamese labor regulations.
Severance for Employees
In Vietnam, employees with over one year of service who are terminated are generally entitled to receive severance pay, except under the following circumstances:
- Termination due to acts of theft, embezzlement, disclosure of technological and business secrets, or other severe misconduct causing significant losses to the company’s property and interests.
- Termination of an employee who has been transferred to another job as a disciplinary measure, and then commits the same breach of labor discipline while the disciplinary measure is still in effect.
Severance pay is typically calculated at half a month of salary per year of service. There are no specific legal limits on the amount of severance that can be paid, ensuring that employees receive appropriate compensation upon termination according to their length of service.
Paid Time Off
Vietnamese employees, whether full-time or part-time, receive 12 days of paid time off (PTO) annually, accruing at a rate of 1 day per month. An extra day of annual leave is added for every five years of continuous service, promoting work-life balance and rewarding long-term commitment.
Public Holidays
Vietnam celebrates 6 national holidays (11 days total) and some regional holidays based on the location of the employee. National public holidays include:
- New Year’s Day: 1 day
- Lunar New Year: 5 days
- Hung King’s Festival: 1 day
- Reunification Day: 1 day
- Labor Day: 1 day
- Independence Day: 2 days
Employment Contract Details
Contracts can be written in English. They must be in writing and signed by both parties.
A contract should include the following details:
- Name
- Start date
- Length of the employment
- Job description
- Termination conditions
Probation Period
Probation periods are obligatory in Vietnam, with a minimum duration of 6 days and a maximum of 180 days, depending on the job type. The probation period length varies as follows:
- Managerial Position: 180 days (contracts with this duration may require approval from the legal department)
- Junior College Degree: 60 days
- Skilled Employees: 30 days
- Other Positions: 6 days
These probation periods allow employers to assess the suitability of employees for the designated roles before confirming permanent employment.
Why Use an Employer of Record in Vietnam?
Growing your team in Vietnam without an EOR means tackling bureaucracy head-on. Here are the primary challenges businesses face – and how RecruitGo’s EOR service solves them:
Stay Compliant with Local Laws
Vietnamese labor laws are complex and ever-changing, covering everything from employee contracts to social insurance. It’s easy to slip up if you’re unfamiliar.
An EOR acts as your safety net – ensuring every hire and payroll meets Vietnam’s legal requirements. This spares you from costly fines and legal issues while keeping your business fully compliant from day one.
Avoid Payroll & Tax Complexity
When hiring in Vietnam, companies must handle multiple tax withholdings, social security contributions, and monthly filings – a time-consuming, intricate process.
RecruitGo’s EOR service streamlines all payroll and tax duties for you. Our local payroll experts ensure accurate calculations and on-time payments, freeing you from administrative burden.
Reduce Costs and Setup Delays
Establishing a foreign legal entity in Vietnam involves significant capital, administrative hassle, and months of waiting. By contrast, using an Employer of Record lets you start operations immediately at a fraction of the cost.
Our EOR model saves you the expense of incorporation, ongoing accounting, and HR overhead. You get full-time employees in Vietnam without the full-time infrastructure costs – a lean approach to expansion that protects your bottom line
International Hiring Made Easy
Recruitgo is Your All-in-One EOR Partner in Vietnam
Not all EOR providers are created equal. What makes RecruitGo stand out is our unique, full-service approach that goes beyond standard Employer of Record offerings in Vietnam. We combine local human expertise with a powerful tech platform to give you an unparalleled expansion experience. Here’s how we delivers value that others can’t:
In-House Local Experts
We don’t outsource services to third parties – RecruitGo’s own team in Vietnam handles it all.
Our HR and legal specialists on the ground have deep knowledge of Vietnam’s labor laws, tax codes, and business culture, ensuring your operations remain fully compliant and culturally fluent
Full-Service from Talent Sourcing to Payroll
Every HR function – recruitment, onboarding, payroll, benefits, compliance, even office space – is handled under one roof.
You won’t need multiple vendors or headaches managing different services; RecruitGo takes care of it all seamlessly.
Fast, Cost-Effective Setup
With RecruitGo, you can start operations in Vietnam in a matter of days, not months. Our efficient processes and ready infrastructure mean we onboard your employees in as fast as 3 days on average.
Speed doesn’t come at a premium either: our pricing is transparent and competitive
Testimonials
Trusted by Startups and Global Leaders Alike.
Hamzah Jasim Alomairi
Bridges LLC. (United Arab Emirates)
I would recommend RecruitGo on my behalf due to the excellent job you have done in managing Bridges llc account for RecruitGo. You are certainly welcome Emma! Great service overall!
Mia Vujosevic
Native Teams
Our collaboration with RecruitGo has been truly remarkable. Over the course of our engagement, RecruitGo has consistently demonstrated a high level of professionalism, efficiency, and commitment to our shared goals. One notable strength of RecruitGo lies in their responsive and dedicated team. Throughout our partnership, we have received prompt and clear communication, allowing for effective collaboration.
Vipinkumar Ramakrishnan
Skuad
Really a great partner to work with. Sharp on timelines quick responses, I’m very much happy with the Philippines team – America, Jilian, Gabe – for the continuous support.
Francois Myburgh
Centaur
As always, we love working with RecruitGo!
David Catindoy
SLEEQ
RecruitGo team is such a pleasure to work with. They understand what we need as a business and provided us recommendations that are tailored to our needs. I really appreciate the effort that the team has put in to go above and beyond to nurture the relationship and meet certain demands of our business. I highly recommend RecruitGo and it’s really nice to have a partner that you can rely on.
Process of Hiring in Vietnam with RecruitGo
As your EOR partner in Vietnam, RecruitGo simplifies hiring and managing your team. Our process is simple:
01
Consultation
First, we discuss your needs. Do you already have a candidate to hire, or do you want us to find one? What roles and skills are you looking for? We’ll advise on salaries, job market insights, and outline a hiring plan tailored to you.
02
Onboarding
Once you’ve chosen a candidate, we move fast to hire them under RecruitGo’s local entity. Every legal detail – registration, tax enrollment, social insurance – is taken care of. You can rest easy knowing all paperwork is 100% compliant with Vietnam’s labor regulations.
03
HR and Payroll
As your EOR partner, RecruitGo becomes the legal employer for your employees. As such, we will handle HR matters, employee benefits, and payroll administration. We also remain the point of contact for any HR issues for you and your employee so you can be the leader without the back-office hassle.
04
Ongoing Compliance & Support
Our experts continuously monitors labor law updates, tax changes, or new regulations that could affect your staff and ensure immediate compliance adjustments. Additionally, if you plan to grow further, we can scale our services with you.
Throughout this process, you maintain full control over the employee’s work and schedule – they report to you just like any team member. We simply takes care of all the administrative and legal employment responsibilities in Vietnam, acting as the local employer.
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Employer of Record Vietnam FAQs
An Employer of Record (EOR) in Vietnam enables foreign businesses to legally hire and manage local Vietnamese talent without the need to set up their own local entity. We become the official employer, handling payroll, taxes, compliance, and HR, so you can focus entirely on growing your team and business.
When you partner with us, we legally employ your Vietnamese staff through our local entity. You control their daily tasks and responsibilities, while we manage everything from payroll processing and employee benefits to compliance with Vietnam’s employment laws and regulations.
Our Vietnam EOR service covers employee onboarding, local payroll administration, taxation, mandatory benefits administration (such as social insurance, health insurance, and unemployment contributions), HR management, and comprehensive local compliance support. We also offer optional recruitment assistance and remote office setup.
Typically, we onboard new employees in Vietnam within 3 working days. This rapid turnaround includes employment contract preparation, compliance verification, payroll setup, and registration with local authorities. Our experienced local team ensures swift, smooth, and fully compliant hiring processes so your employees can start working without delay.
No, that’s the key advantage of our Employer of Record solution—you don’t need your own Vietnamese entity. We handle employment compliance, payroll, and administration, allowing you to operate seamlessly and legally in Vietnam without additional overhead.
Yes, RecruitGo offers a complete recruitment service to help you source, screen, and hire qualified Vietnamese talent according to your requirements. Our local recruitment specialists understand the market and can quickly match you with skilled candidates.
Our Vietnam EOR service is ideal for startups and small businesses hiring their first international employees, as well as larger corporations looking to scale operations in Vietnam quickly and compliantly without the complexities of setting up a new local company.
Getting started is easy—simply contact us and discuss your hiring needs. We’ll handle all aspects of employment, from onboarding and payroll to compliance, so you can rapidly and confidently expand your business presence in Vietnam.
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