What do you need to know to hire in Vietnam?
Vietnam sets employer social contributions at 21.5%, annual leave at 12 days, and a 45-day notice requirement on indefinite contracts. The minimum wage rose 7.2% on 1 January 2026. Each guide below takes one layer.
· Vietnam guide
How does Teamed handle Vietnamese hiring for you?
Teamed becomes your legal employer of record in Vietnam for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, contracts, and the full Vietnamese employment law stack run on one platform.
Real HR and legal experts manage every Vietnamese hire, from the first offer letter to the final settlement under Labour Code Article 48. An actual person, not a chatbot or a pooled queue, handles your Vietnamese team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
A Vietnamese contractor who converts to payroll keeps their record, and that same employee can graduate from EOR to your own Vietnamese entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Vietnamese hire, until it isn't.
- Vietnam has four regional minimum wage zones. The rate that applies depends on where the employee works, not where the company is registered. Hanoi and Ho Chi Minh City sit in Region 1 at VND 5,310,000/month from 1 January 2026. The cost breakdown guide maps each region.
- Social insurance is capped, not uncapped. Employer and employee contributions apply only up to a contribution ceiling that changed in mid-2026 when the base salary rose. Most EOR guides publish the full-year rate without flagging that the ceiling moved on 1 July 2026. The tax and payroll guide covers both halves of the year.
- Vietnam has no general redundancy cap. Unlike most comparable markets, there is no statutory ceiling on total severance or job-loss allowance. The formula accrues per year of service with no upper limit. A long-tenure dismissal can be material. The termination guide shows the worked numbers.
Hiring in Vietnam adds 21.5% in employer social contributions on top of gross salary. Those contributions cover retirement, health, and unemployment insurance.
Vietnam pays payroll monthly. PIT withholding is due by the 20th of the following month. Annual leave is 12 days a year, separate from 11 public holidays.
Teamed runs Vietnamese payroll, contracts, and compliance through an EOR entity holding the required Vietnamese registrations.
This page is the map. Each guide below is the detail.
Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk.
How much does it cost to hire an employee in Vietnam in 2026?
A Vietnamese hire costs roughly 121 to 122 percent of gross salary once employer social contributions are added.
Employer social insurance, health insurance, and unemployment insurance combine to 21.5% on the insurable salary, capped at a contribution ceiling.
Employer contributions break down into retirement social insurance (17.5%), health insurance (3%), and unemployment insurance (1%), totalling 21.5%. Contributions apply only up to the contribution ceiling, not on the full salary. The ceiling itself changed on 1 July 2026 when the statutory base salary rose. There is no mandatory 13th-month salary under the Labour Code, though some industries offer it by practice.
Teamed's Vietnam price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice.
The full breakdown, with worked examples at current rates and the mid-year ceiling change, is in the cost guide.
Do you need a Vietnamese entity to hire employees in Vietnam?
No. An Employer of Record runs Vietnamese payroll and contracts from day one.
Your own Vietnamese entity becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary.
Setting up a foreign-invested enterprise (FIE) in Vietnam requires investment registration and business registration with provincial authorities. Setup typically takes eight to twelve weeks once documents are in order. An Employer of Record is faster and cheaper at low headcount. Teamed runs Vietnamese payroll, contracts, and social insurance filings from day one.
The crossover point depends on Vietnamese salary levels, your accounting costs, and local director requirements. For most tech roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers for Vietnam.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Vietnamese entity on one platform under Teamed's Graduation Model, with tenure preserved.
What changed in Vietnamese employment law in 2026?
The regional minimum wage rose 7.2% on 1 January 2026, under Decree No. 293/2025/ND-CP.
The statutory base salary rises again on 1 July 2026 under Decree 161/2026/ND-CP, which shifts the social insurance contribution ceiling mid-year.
From 1 January 2026, the Region 1 minimum wage (Hanoi, Ho Chi Minh City, Hai Phong, Da Nang) rose to VND 5,310,000/month, a 7.2% increase under Decree 293/2025/ND-CP. From 1 July 2026, the base salary used to calculate the social insurance ceiling rose to VND 2.53 million per month under Decree 161/2026/ND-CP, shifting the contribution cap. Employers need to update payroll models for both dates. The personal income tax schedule also moved to a new five-bracket structure effective 1 January 2026. The hiring guide covers the day-one documentation requirements in full.
What benefits must you provide Vietnamese employees in 2026?
The statutory floor is 12 days of paid annual leave, 26 weeks of maternity leave at 100% of the contribution base, and 5 days of paternity leave.
Sick pay is funded through social insurance at 75% of the contribution base. The number of sick days covered scales with the employee's social insurance history.
Annual leave is 12 days for standard conditions under Labour Code Article 113. Leave and public holidays are counted separately. There are 11 statutory public holidays a year. Maternity leave runs for 26 weeks at 100% of the average monthly salary from the social insurance fund. Paternity leave is 5 days for natural births, also funded through the social insurance system.
Sick pay is paid at 75% of the social insurance contribution base. The number of covered days per year scales with the length of the employee's social insurance contribution history: 30, 40, or 60 days depending on tenure. The benefits guide covers each entitlement and the employer obligations.
What are payroll taxes in Vietnam in 2026?
Employer social contributions total 21.5% on the insurable salary. Employees contribute 10.5%.
Personal income tax starts at 5% and tops out at 35% under the new five-bracket schedule effective 1 January 2026.
Employer social contributions cover three branches: retirement social insurance (17.5%), health insurance (3%), and unemployment insurance (1%), totalling 21.5%. Employee contributions are 10.5%. Both apply only up to the contribution ceiling, which changed on 1 July 2026.
Personal income tax uses a progressive five-bracket schedule effective 1 January 2026. The first band taxes income up to VND 120 million per year at 5%. The second band, VND 120 to 360 million, is taxed at 10%. The top rate of 35% applies above VND 1.2 billion per year. The personal deduction is VND 15.5 million per month. PIT provisional withholding is due by the 20th of the following month. The tax and payroll guide sets out every band and threshold.
How do you terminate an employee in Vietnam?
Terminating an indefinite-term contract requires 45 days written notice under Labour Code Article 36.
Severance accrues at half a month's salary per year of qualifying service, with no statutory cap on total payout.
Notice periods in Vietnam depend on contract type. Indefinite-term contracts require 45 days written notice. Fixed-term contracts of 12 to 36 months require 30 days. Contracts under 12 months require 3 days. Final pay must be settled within 14 days of termination.
Severance (troi cong ty) accrues at 0.5 months of salary per year of qualifying service, for employees with at least 1 year of service. Job-loss allowance (tro cap mat viec lam) for restructuring or economic dismissals accrues at 1 month per year with a 2-month floor. Vietnam has no monetary cap on either payment. Collective workforce reductions require 30 days advance notice to the provincial People's Committee. The termination guide covers each route in full.
What should you know before hiring in Vietnam?
Two things catch US buyers out. The first is the regional minimum wage: it changes by city, not by job.
The second is that probation for degree-level roles lasts up to 2 months with no notice required to exit. After probation, a 45-day notice obligation locks in.
The regional minimum wage zone determines your floor, not the employee's title. Vietnam has four zones. Region 1 covers Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang at VND 5,310,000/month. Region 4 covers agricultural areas at a materially lower rate. Brief US buyers: a single national rate does not exist. The hiring guide maps each zone.
Unfair dismissal protections apply from day one. Vietnam has no qualifying period before wrongful termination claims arise. A termination without proper grounds or procedure can require reinstatement plus back pay. The termination guide and the EOR vs entity guide both cover how Teamed navigates Vietnam's procedural rules.
Frequently asked questions
How much does it cost to hire an employee in Vietnam?
Plan on roughly 121 to 122 percent of gross salary once employer social contributions at 21.5% are added. Contributions cover retirement social insurance (17.5%), health insurance (3%), and unemployment insurance (1%), and apply up to a contribution ceiling. Teamed's Vietnam fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples.
Can a US company hire in Vietnam without an entity?
Yes. An Employer of Record like Teamed runs Vietnamese payroll, contracts, and compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Setting up your own foreign-invested enterprise typically takes eight to twelve weeks.
What is the Vietnam minimum wage in 2026?
Vietnam has four regional minimum wage zones set by Decree No. 293/2025/ND-CP effective 1 January 2026. Region 1, which covers Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang, is VND 5,310,000/month. Region 2 covers Binh Duong, Dong Nai, and Can Tho at a lower rate. Regions 3 and 4 are progressively lower. The rate that applies depends on where the employee works.
What are Vietnamese statutory notice periods?
Notice depends on contract type. Indefinite-term contracts require 45 days written notice from the employer. Fixed-term contracts of 12 to 36 months require 30 days. Contracts under 12 months require 3 days. During probation, either party can end the arrangement without advance notice.
What is statutory severance in Vietnam?
Severance allowance accrues at half a month's salary per year of service for employees who have worked at least 1 year. Job-loss allowance for restructuring or economic dismissals accrues at one month per year, with a minimum of two months. Vietnam has no statutory cap on total severance or job-loss allowance. The termination guide shows worked examples.
What is the minimum annual leave for a Vietnamese employee?
Statutory paid annual leave is 12 days a year under Labour Code Article 113 for standard working conditions. Vietnam counts annual leave and public holidays separately. There are 11 statutory public holidays, including Tet (Lunar New Year). Employers can grant more leave by contract.
Vietnam reads as a cost-competitive market and it is, but the compliance picture is more layered than most EOR guides show. The minimum wage has four regional rates. The social insurance ceiling changes mid-year. Probation exits without notice, then the 45-day obligation snaps into place. These guides exist so the first Vietnam hire does not become a costly lesson in Labour Code procedure.
Vietnam changed its minimum wage on 1 January 2026 and its social insurance ceiling on 1 July 2026. Both affect what you pay.
The Labour Code gives day-one protection against unfair dismissal, with no qualifying period.
Read the right Vietnam guide before the first hire, not after the first Labour Code dispute.
