# Hiring in Vietnam: employment costs, payroll and compliance

> Machine-readable page from EOR Overview (https://eoroverview.com/), an independent research platform for Employer of Record services.
> Canonical page: https://eoroverview.com/hiring-guides/vietnam/
> Methodology: how providers are researched, scored and compared is documented at https://eoroverview.com/methodology/.
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> Statutory data last updated: 2026-03-09. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Asia |
| Currency | VND (Vietnamese Đồng) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | ₫4,960,000 | 2024 |
| Statutory work week | 48 hours/week | 2019 |
| Payroll cycle | monthly | 2026 |
| 13th-month salary | customary | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 21.5% | 2024 |
| Employee social security | 10.5% | 2024 |
| Corporate tax rate | 20% | 2026 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 6.4 weeks | 2021 |
| Severance pay | 24.6 weeks | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Paid annual leave | 12 days | 2026 |
| Public holidays | 11 days | 2026 |
| Maternity leave | 26 weeks | 2026 |
| Paternity leave | 0.7 weeks | 2026 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Retirement age | 62 | 2026 |
| Unemployment rate | 1.5% | 2025 |
| GDP per capita | $4,717 | 2024 |
| Union density | 49.6% | 2018 |
| Collective bargaining coverage | 24.5% | 2018 |

## Overview

The most common mistake foreign employers make in Vietnam is underestimating how much sits on top of the base salary. An Employer of Record (EOR) handles local payroll, contracts, and statutory contributions so you can hire without setting up a Vietnamese legal entity, but the cost structure still applies to you either way. Employer social security alone runs at 23.5% of gross, which is a meaningful addition to any compensation package you are budgeting.

Vietnam has a labour force of over 57 million people and an unemployment rate of around 1.5%, so competition for skilled workers is real. The statutory work week is 48 hours, annual leave starts at 12 days, and maternity leave runs 26 weeks, one of the longer entitlements in Southeast Asia. The 13th-month salary is customary here, meaning candidates will expect it even if it is not written into law, so factor it into your offer from day one.

## Cost context

The employer cost in Vietnam is driven by four statutory contributions stacked on top of gross salary: social insurance at 17.5%, health insurance at 3%, unemployment insurance at 1%, and a trade union fee at 2%, bringing the total employer social security burden to 23.5% of gross. Employees also contribute 10.5% from their side, so the combined payroll tax load is substantial and worth spelling out clearly in any internal budget model.

## Things to watch

A few specifics about Vietnam's employment rules are easy to miss until they show up as a surprise cost or a compliance gap.

- Employer contributions add up fast. The 23.5% employer social security rate breaks into social insurance (17.5%), health insurance (3%), unemployment insurance (1%), and a trade union fee (2%). Budget for this on top of every gross salary figure you are comparing.

- The 13th-month salary is customary. It is not codified as a strict legal mandate, but it is a firm market expectation. Skipping it or treating it as optional will hurt your ability to attract and keep people.

- Severance can stretch to 24.6 weeks. Depending on tenure and circumstances, severance obligations are significant. Model this into your total cost of employment before you commit to a hire, especially for senior or long-tenure roles.

- Notice periods are around 4.3 weeks. That is not unusually long by global standards, but it is worth confirming in the employment contract so there is no ambiguity when either side wants to end the arrangement.

Providers ranked for Vietnam: https://eoroverview.com/best/vietnam/