RecruitGo enables you to hire employees in Vietnam without the complexities of setting up a local entity. Focus on your business expansion while we handle legalities and ensure smooth HR processes.
Navigate the tabs below for in-depth insights to hiring in Vietnam. From minimum wage to tax implications, leave policies, and termination laws, we've got you covered. Simplify the complexities and make informed decisions with RecruitGo.
The monthly minimum wage in Vietnam varies depending on the region where the employee resides:
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 (IDR) and the Tax Rate (%)
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.
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:
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.
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.
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.
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:
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
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.
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.
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.
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
Our streamlined onboarding process is completed within 3 to 5 business days.
To ensure a smooth start, employees are required to submit all necessary documents before their designated start date. Mandatory document submission is not allowed after the start date, while optional documents can be submitted later.
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 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.
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Simplify your operations, expand into new markets, and achieve your growth goals with ease. Embrace the future of work and unlock success with RecruitGo as your trusted partner.
RecruitGo acts as your Employer of Record in Vietnam, eliminating the need for you to set up and manage an overseas legal entity. We take care of all legal employment responsibilities, ensuring compliance with local regulations and seamless HR processes, allowing you to concentrate on business growth.
At RecruitGo, we take the stress out of payroll management, ensuring your employees receive their salaries on time and in compliance with local regulations. Our expert team delivers fast and accurate processing, calculating salaries, overtime, benefits, and employment taxes with precision.
Experience dedicated support of our compliance experts who can assist you with everything around smooth employment. From employment contracts to taxes and benefits, everything’s covered under RecruitGo
In a nutshell, we hire, pay, and manage employees on your behalf. The process is as simple:
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Comprehensive Solutions:
Leverage our expertise to design a tailored benefits program that meets the needs of your international workforce and complies with local laws and regulations.
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With a focus on employee well-being, our solutions foster a culture of appreciation and support, boosting morale, and enhancing retention rates.
Simplified Administration:
Our expert service streamlines the benefits administration process, making it easy for you to manage your global benefits strategy efficiently.
We help you find a diverse range of talent from the Vietnam to cater to your specific hiring needs. Whether you require software developers, hospitality staff, app developers, CSRs, digital marketers, or civil engineers, let us assist you in building a strong and capable team.
We specialize in providing top-notch software developers for various industries in Vietnam. We have a proven track record of success in finding the right candidate for our clients and have been providing software development services for over a decade.
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Need an app that stands out? Our experienced app developers have the expertise to bring your ideas to life. From concept to deployment, we create innovative and user-friendly applications that drive engagement and success.
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Maximize your online presence and drive results with our expert digital marketers. From strategy development to campaign execution, we have the knowledge and skills to help you reach your target audience effectively.
Our team of experts is dedicated to finding the right candidate for your organization and ensuring that your infrastructure needs are met. We have a proven track record of success in finding the right civil engineer for our clients and have a wide network of experienced and qualified civil engineers.
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