# Hire in Vietnam

Source: https://overseashire.com/hire/vietnam · verified 2026-10-05 · confidence medium

Rapidly growing software outsourcing and engineering talent in Hanoi, Ho Chi Minh City and Da Nang, with competitive costs. Strong in mobile, backend and QA, with growing English proficiency.

## Employer cost
Employer on-costs 21.5–23.5% of gross salary. Employer social insurance 17.5% (14% retirement/death + 3% sickness/maternity + 0.5% occupational accident) + health insurance 3% + unemployment insurance 1% = 21.5%, plus a 2% trade union fee (calculated on the social insurance salary fund) = 23.5%. Contributions are calculated on the insured salary, capped at 20x the base salary level (VND 46.8 million/month in 2026); unemployment insurance is capped at 20x the regional minimum wage. Excludes the customary 13th-month salary and any private benefits. Rechecked 5 Oct 2026: arithmetic 17.5 + 3 + 1 = 21.5%, + 2% union fee = 23.5%. The insured-salary base (VND 2,340,000 since 1 Jul 2024, cap 20x = VND 46.8 million) and regional minimum wages confirmed by Vietnam Briefing; the 17.5/3/1/2 rates were not re-fetched from the legal text.

| Contribution | Rate | Notes |
|---|---|---|
| Social insurance (SI) | 17.5% | 14% retirement and death, 3% sickness and maternity, 0.5% occupational accident/disease. |
| Health insurance (HI) | 3% | Capped at 20x base salary. |
| Unemployment insurance (UI) | 1% | Capped at 20x regional minimum wage. |
| Trade union fee | 2% of social insurance salary fund | Payable by employers even where no union is established. |

Mandatory benefits: 12 days annual leave; 11 public holidays; 13th-month salary is customary and often contractual but not statutory; Maternity leave 6 months; Social insurance, health and unemployment insurance; Overtime pay

## Rules
- Payroll: monthly
- Probation: Up to 180 days for enterprise managers; 60 days for roles requiring college level or above; 30 days for intermediate-level roles; 6 working days for other jobs. Probation salary must be at least 85% of the job's salary.
- Notice and severance: Indefinite-term contracts: employee must give 45 days' notice (employer must also give 45 days where lawful ground exists); fixed-term 12-36 months: 30 days; fixed-term under 12 months: 3 working days. Employment allowance (trop cap thoi viec): 0.5 month's average salary per year worked. Job-loss allowance for redundancy: 1 month per year, minimum 2 months.
- Termination: Employer unilateral termination is only allowed on listed grounds (repeated failure to complete work, illness, force majeure, etc.) and requires notice; wrongful termination means reinstatement, back pay and compensation. Disciplinary dismissal requires union consultation and a formal disciplinary process.
- Working time: 8 hours/day, 48 hours/week (many firms use 40-44). Overtime max 50% of normal hours/day, 40 hours/month and 200 hours/year (300 in certain sectors). Overtime pay 150% weekday, 200% weekly rest day, 300% on holidays (excluding holiday pay).
- Paid leave: 12 working days of annual leave for normal conditions (more for heavy/hazardous work and for each 5 years of service), plus 11 public holidays.
- Minimum wage: From 1 January 2026 (Decree 293/2025/ND-CP): Region I VND 5,310,000/month; Region II VND 4,730,000; Region III VND 4,140,000; Region IV VND 3,700,000 (a 7.2% increase).

## Contractors
Independent contractors are common, but a worker who works under employer direction and receives wages is deemed an employee under the 2019 Labour Code. Misclassification can lead to administrative fines and back-payment of social insurance. Risk is moderate.

## EOR
A foreign firm needs a Vietnamese entity (FIE licence with an Investment Registration Certificate) to employ staff directly. EOR lets you hire without it. Providers often claim hiring takes days to a few weeks.
Onboarding: EOR Days to ~2 weeks (provider claims; specific figure unverified); own entity About 2-4+ months (estimate, not verified).

## FAQ
**What does an employer pay in social insurance in Vietnam?** 17.5% social insurance, 3% health insurance and 1% unemployment insurance, plus a 2% trade union fee: 23.5% in total, within caps.

**How much annual leave is statutory?** 12 working days per year plus 11 public holidays.

**How long is probation?** Up to 60 days for college-level roles, 30 days for intermediate-level roles and 6 days for other roles.

**What notice must be given?** 45 days for indefinite contracts, 30 days for 12-36 month fixed-term contracts and 3 working days for shorter fixed-term contracts.

Unverified: Employer rates 17.5% SI / 3% HI / 1% UI / 2% union fee not re-fetched from the Social Insurance, Health Insurance or Employment laws (Vietnam Briefing says SI rates unchanged from 2025); Leave (12 days), severance and job-loss allowance formulas, overtime from the 2019 Labour Code as generally known; probation and 45-day notice confirmed via secondary legal summaries; Own-entity setup time and EOR onboarding time; Union fee 2% base definition; Effect of the 2024 Social Insurance Law (in force 1 Jul 2025) on contribution details not reviewed

Sources:
- https://www.secondtalent.com/resources/vietnam-payroll-benefits-tax/
- https://remotepass.com/country/vietnam/taxes
- https://www.cake.me/resources/recruitment/vietnam-minimum-wage-2026
- https://netviet.com.vn/?p=18799
- https://ayp-group.com/hiring-guides-v2/vietnam
- https://www.vietnam-briefing.com/news/vietnams-new-minimum-wage-january-1-2026.html/
- https://www.aseanbriefing.com/vietnam-news/vietnams-new-minimum-wage-january-1-2026

Not legal or tax advice.