---
title: "Vietnam Employer Cost Breakdown 2026 | Social Insurance"
description: "Vietnam employer cost 2026: 21.5% social contribution, 12 days paid leave, 26 weeks maternity. What a hire in Vietnam really costs, line by line."
canonical: https://www.teamed.global/country-hiring-guides/vietnam/cost-breakdown
---

Vietnam · Cost breakdown child

Served by Teamed vetted partner-entity network in Vietnam

# What does it really cost to *hire an employee in Vietnam* in 2026?

Vietnam requires employers to pay 21.5% in social, health, and unemployment contributions on every dong of salary up to the contribution cap. Add 12 days of paid annual leave plus 11 public holidays, and 26 weeks of fully paid maternity cover, and the true cost lands materially above the salary figure for every hire.

Last reviewed 13 June 2026 · Vietnam guide

![A busy street in Ho Chi Minh City at dawn, with modern office towers visible above a tree-lined boulevard and motorbikes beginning their morning commute.](/images/country-guides/vietnam-cost-breakdown.webp)

Illustration · Ho Chi Minh City, Vietnam

Answer.cite this

Hiring in Vietnam costs more than the gross salary. The biggest mandatory line is social insurance. The employer pays 21.5% of gross salary in combined social, health, and unemployment contributions each month.

The 21.5% rate applies up to a contribution cap. The cap changes twice in 2026: it is 20 times the base salary until 30 June 2026, and rises on 1 July 2026 when the base salary increases to VND 2.53 million. Salaries above the cap are not subject to contributions on the excess.

Every employee gets 12 days days of paid annual leave plus 11 public holidays each year. Maternity leave is 26 weeks at full pay. These are non-negotiable from day one of the contract.

![A Vietnamese payslip printed on white paper, resting on a wooden desk alongside a pen and a small abacus.](/images/country-guides/vietnam-cost-breakdown-polaroid-1.webp)

Every mandatory line

## The headline: what a Vietnam hire actually costs

Start with the gross monthly salary. Add 21.5% social contributions on all salary up to the contribution cap. Leave and maternity provisions add further cost on top.

The table below shows illustrative totals at a VND 30,000,000 monthly salary (VND 360,000,000 per year). These are computed from verified rates and labelled illustrative. They are not statutory figures.

The components below are based on the statutory rates in the Vietnam compliance cache and an illustrative gross salary of VND 30,000,000 per month (VND 360,000,000 per year). This is a mid-market professional salary in Vietnam for 2026. All totals marked "illustrative" are computed from the rates shown and will vary with the actual salary, the applicable contribution cap at the time of hire, and any additional benefits provided.

| Line | Illustrative annual cost on VND 360,000,000 salary | Source |
| --- | --- | --- |
| Gross salary | VND 360,000,000 | Contract |
| Employer social contributions at 21.5% of monthly gross (salary below contribution cap) | VND 77,400,000 (illustrative) | [PwC: Vietnam social insurance rates](https://taxsummaries.pwc.com/vietnam/individual/other-taxes) |
| Annual leave: 12 days per year, built into the gross salary cost | Included in salary | Labour Code 2019, Article 113 |
| Public holidays: 11 per year, paid at normal rate | Included in salary | Labour Code 2019, Article 112 |
| Maternity leave provision (26 weeks at full pay for eligible employees) | Event-driven; provision per headcount | Labour Code 2019, Article 139; Social Insurance Law 2014 |
| **Total illustrative employer cost** | **VND 437,400,000 (illustrative)** | **Approx. 121% of gross (illustrative)** |

These figures are illustrative. The social contribution line is computed as 21.5% applied to the full monthly gross of VND 30,000,000 (below the contribution cap at this salary level). Salaries above the cap attract contributions only on the capped portion. The maternity line is an event-driven cost, not a fixed monthly line.

Add Teamed from $599 per employee per month and the total rises further. Use the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to run your own salary figures.

1. Fix the gross salary and region Confirm the agreed gross monthly salary and the Vietnam region where the employee will work. The regional minimum wage and the contribution cap both depend on location.
2. Add employer social contributions Apply the employer social contribution rate to the monthly gross salary up to the applicable contribution cap. Check whether the July 2026 base salary increase has taken effect, as it raises the cap.
3. Check the probation salary rules During probation you may pay at least 85% of the agreed salary, but the probation rate must still clear the regional minimum wage. Set the full contract salary to apply from the day probation ends.
4. Provision for maternity and parental leave For eligible employees the Social Insurance Fund covers maternity and paternity leave, but only when the qualifying contribution period is met. Plan for the employer to fund directly if an employee has not yet reached that qualifying threshold.
5. Model the total cost with PIT withholding Calculate the monthly PIT provisional withholding based on taxable income after the personal deduction and employee social contributions. File the withholding by the deadline each month.

## Social contributions: the biggest mandatory employer line

The employer pays 21.5% of gross salary in combined social, health, and unemployment insurance contributions each month. This splits into: social insurance 17.5%, health insurance 3%, and unemployment insurance 1%.

The contributions apply up to a monthly cap. From 1 July 2026, the cap rises when Vietnam's base salary increases to VND 2.53 million per month under Decree 161/2026/ND-CP. Salaries above the cap do not attract contributions on the excess.

Vietnam's social contribution system runs as three separate schemes managed under the Social Insurance Law 2014 and the Labour Code 2019. The employer's 21.5% total rate covers all three. The employee contributes a further 10.5% from their own pay.

PwC · Vietnam social insurance employer and employee rates 2026

The total employer social contribution rate is **21.5%**: social insurance 17.5%, health insurance 3%, unemployment insurance 1%. The total employee rate is **10.5%**: social insurance 8%, health insurance 1.5%, unemployment insurance 1%.

Source: [PwC Worldwide Tax Summaries: Vietnam social insurance](https://taxsummaries.pwc.com/vietnam/individual/other-taxes)

### The contribution cap and the July 2026 change

Contributions are calculated on monthly salary up to a cap set at 20 times Vietnam's base salary. Until 30 June 2026, the cap is 20 times VND 2,340,000, giving a monthly contribution ceiling of VND 46,800,000. From 1 July 2026, the base salary rises to VND 2,530,000, raising the cap to VND 50,600,000 per month. The 21.5% employer rate is not changing: only the cap moves. Employees earning above the cap pay contributions only on the capped portion, and the employer's matching contributions follow the same ceiling.

### Contribution breakdown by scheme

The social insurance component (17.5% employer) funds retirement, sickness, maternity, and occupational accident benefits. The health insurance component (3% employer) funds the national health insurance scheme and entitles the employee to coverage at designated health facilities. The unemployment insurance component (1% employer) funds the unemployment benefit scheme administered by the Department of Employment. Each scheme has its own benefit rules and qualifying conditions. The employer registers employees with all three schemes at onboarding and remits the combined contribution monthly to the social insurance authority.

### What the employee pays

The employee contributes 10.5% of their salary (up to the cap), deducted at source. This reduces take-home pay. A hire at VND 30,000,000 per month will see VND 3,150,000 deducted monthly for employee contributions (illustrative, at 10.5% of VND 30,000,000). Budget the employee contribution separately from the employer line when modelling total cost of employment.

## Leave, public holidays, and maternity: the costs beyond social contributions

Every employee in Vietnam is entitled to 12 days days of paid annual leave per year plus 11 statutory public holidays. These are included in the gross salary cost.

Maternity leave is 26 weeks at 100% of average monthly salary for eligible employees. The Social Insurance Fund covers this cost for employees who have made sufficient contributions.

Leave costs in Vietnam come in two categories. Annual leave and public holidays are built into the gross salary: the employee is paid their normal wage during both. Maternity leave is funded by the Social Insurance Fund, provided the employee has contributed for at least six months in the twelve months before the leave. For employees who do not yet meet that qualifying period, the employer pays directly.

### Annual leave: 12 days working days per year

The minimum under [Article 113 of the Labour Code 2019](https://nhankiet.vn/vi/r2579/The-Labor-Code-2019--Effective-Jan-01-2021.html) is 12 days working days for employees in standard conditions. Employees in heavy, hazardous, or dangerous work get a higher entitlement. Employees with five or more years of service with the same employer earn one additional day of leave per five years. Budget the leave days as part of the productive working year: out of roughly 250 working days per year, the employee takes 12 days as paid absence.

### Public holidays: 11 days per year

Vietnam has 11 statutory public holidays per year including Tet (Lunar New Year, the longest holiday at five days), National Day, Liberation Day, Labour Day, Hung Kings' Commemoration Day, and New Year's Day. When a public holiday falls on a weekend, the following weekday is substituted. Employees required to work on a public holiday must be paid at the overtime rate for holiday work.

### Maternity leave: 26 weeks fully paid

Female employees are entitled to 26 weeks of maternity leave at 100% of average monthly salary. For the first 5 days days of paternity leave, the employee draws from the Social Insurance Fund rather than from the employer's payroll. Fathers are entitled to 5 days of paid paternity leave for a standard natural birth, also funded by the Social Insurance Fund. Both entitlements require the employee to have contributed to social insurance for at least six months in the twelve months before the event.

### Sick pay

Sick leave pay is funded by the Social Insurance Fund, not directly by the employer, once the employee qualifies. The rate is set as a percentage of the social insurance contribution base. The number of days paid depends on the employee's contribution history: shorter-tenure employees get fewer covered days per year than longer-serving employees. The employer registers the claim with the social insurance authority. For employees not yet qualifying, the employer may need to provide support under the employment contract; confirm the contractual terms at onboarding.

## Minimum wages: four regions, one rule

Vietnam sets minimum wages by region. Region 1 (Hanoi and Ho Chi Minh City) is the highest at VND 5,310,000/month. Region 4 (the least developed rural areas) is the lowest at VND 3,700,000/month.

These figures took effect on 1 January 2026 under Decree No. 293/2025/ND-CP, a 7.2% increase across all regions. No hire may be made below the applicable regional minimum.

The four-region minimum wage structure under [Decree No. 293/2025/ND-CP](https://en.baochinhphu.vn/regional-minimum-wage-to-increase-by-72-from-january-1-2026-111251111092833451.htm) applies to all employers in Vietnam from 1 January 2026. The regions are defined by economic development level, not geography alone. Major cities (Hanoi, Ho Chi Minh City, Hai Phong, Da Nang) are Region 1. Industrial and economic zones around these cities generally fall into Region 2 (Binh Duong, Dong Nai, Can Tho). Moderate development zones are Region 3. Agricultural and least-developed areas are Region 4.

| Region | Monthly minimum wage (from 1 January 2026) | Key areas |
| --- | --- | --- |
| Region 1 | VND 5,310,000/month | Hanoi, Ho Chi Minh City, Hai Phong, Da Nang |
| Region 2 | VND 4,730,000/month | Binh Duong, Dong Nai, Can Tho |
| Region 3 | VND 4,140,000/month | Moderate economic development zones |
| Region 4 | VND 3,700,000/month | Least developed and agricultural areas |

Most professional hires in tech, finance, and professional services will earn well above the applicable regional minimum. The minimum wage floor matters most for manufacturing, logistics, and entry-level positions. Social insurance contributions are calculated on actual salary, not on the minimum wage, so higher salaries mean proportionally higher contributions up to the contribution cap.

### Probation salary

During the probation period (up to 2 months for degree-level roles, up to 6 months for executive roles), employers may pay at least 85% of the agreed full contract salary. The probation rate must still meet the applicable regional minimum wage. At the end of the probation period the full contract salary applies.

## Vietnam personal income tax bands in 2026

Vietnam uses a five-band progressive income tax schedule from 2026 under the amended Personal Income Tax Law. The top rate is 35% on annual income above VND 1.2 billion.

Tax residents receive a personal deduction of VND 186,000,000/year before tax is applied. This reduces the effective rate for most professional salaries.

Understanding the employee's income tax position helps you make competitive and realistic salary offers. The new five-bracket schedule under the amended [Law on Personal Income Tax effective 1 January 2026](https://vietnam.acclime.com/news-insights/vietnams-new-personal-income-tax-law-in-2026-major-updates-and-business-impact/) replaced the previous seven-bracket structure. The top rate of 35% is unchanged.

### Income tax bands (effective 1 January 2026)

| Annual taxable income (VND) | Monthly equivalent (VND) | Tax rate |
| --- | --- | --- |
| Up to VND 120,000,000/year | Up to VND 10,000,000 | 5% |
| VND 120,000,000/year to VND 360,000,000/year | VND 10,000,001 to 30,000,000 | 10% |
| VND 360,000,000/year to VND 720,000,000/year | VND 30,000,001 to 60,000,000 | 20% |
| VND 720,000,000/year to VND 1,200,000,000/year | VND 60,000,001 to 100,000,000 | 30% |
| Above VND 1,200,000,000/year | Above VND 100,000,000 | 35% |

Source: [PwC Vietnam: Taxes on Personal Income 2026](https://taxsummaries.pwc.com/vietnam/individual/taxes-on-personal-income).

### Personal deduction

Every tax-resident employee automatically receives a personal deduction of VND 186,000,000/year (VND 15.5 million per month). This amount is subtracted from gross income before the progressive rates apply. Additional deductions apply for dependants. The employer withholds PIT provisionally on a monthly basis and files by the 20 daysth day of the following month.

### Employee social contributions reduce taxable income

The employee's 10.5% social contributions are deductible from gross income before PIT is calculated. This lowers the effective income tax rate for most employees. At a salary of VND 30,000,000 per month, the employee's social contributions of VND 3,150,000 are deducted before the PIT brackets apply (illustrative calculation based on 10.5% of VND 30,000,000).

## How Teamed handles Vietnam employment costs for you

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Vietnam for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Social insurance, health insurance, PIT withholding, and the full Vietnam payroll compliance stack run on **one platform**.

**Real HR and legal experts** handle your Vietnam hires from the first offer letter through every monthly social insurance payment, PIT provisional filing, and year-end PIT finalisation. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer contribution **passes through at cost, itemised** on every invoice. You see the social insurance line, the health insurance line, and the unemployment insurance line. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Vietnam contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Vietnam entity without switching systems. EOR is the right structure for a first Vietnam hire, **until it isn't**. Teamed does not lock you in. Start from the Vietnam hiring overview or run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture.

## Frequently asked questions

What is the employer social contribution rate in Vietnam in 2026?

The total employer social contribution rate is 21.5%, comprising social insurance 17.5%, health insurance 3%, and unemployment insurance 1%. Contributions are calculated on gross salary up to a monthly cap set at 20 times the base salary. The cap rises on 1 July 2026 when the base salary increases. The employee contributes a further 10.5% from their own pay.

What is the minimum wage in Vietnam in 2026?

Vietnam uses a four-region minimum wage structure effective from 1 January 2026 under Decree No. 293/2025/ND-CP. Region 1 (Hanoi, Ho Chi Minh City, Hai Phong, Da Nang) is VND 5,310,000/month. Region 2 is VND 4,730,000/month. Region 3 is VND 4,140,000/month. Region 4 is VND 3,700,000/month. These rates represent a 7.2% increase across all regions from the previous year.

How much paid leave must a Vietnam employer provide?

Every employee is entitled to 12 days working days of paid annual leave per year plus 11 statutory public holidays under the Labour Code 2019. Employees in heavy, hazardous, or dangerous conditions get a higher annual leave entitlement. Employees with more than five years of service earn one additional day of leave per five years.

How is maternity leave funded in Vietnam?

Maternity leave is 26 weeks at 100% of average monthly salary. It is funded by the Social Insurance Fund, not directly by the employer, for employees who have contributed to social insurance for at least six months in the twelve months before the leave. Paternity leave is 5 days for a standard natural birth, also funded by the Social Insurance Fund under the same qualifying conditions.

What are the income tax rates in Vietnam in 2026?

Vietnam uses a five-bracket progressive personal income tax schedule from 2026. The lowest band is 5% on annual income up to VND 120,000,000/year. The top rate is 35% on income above VND 1,200,000,000/year. Tax-resident employees receive a personal deduction of VND 186,000,000/year before the progressive rates apply. Employee social contributions are also deductible from taxable income.

Teamed Legal Operations

The social contribution cap change in July 2026 is the figure most Vietnam budgets miss. The base salary increase from VND 2.34 million to VND 2.53 million raises the monthly contribution ceiling by nearly VND 3.8 million. For a team of ten employees, that is a meaningful mid-year cost movement. Build the July transition into your annual budget before the first hire, not after.

A note from Tom Price-Daniel

Vietnam's employer social contribution rate is 21.5% of gross salary, and the contribution cap rises in July 2026 when the base salary increases.  
Add 12 days days of paid leave, 11 public holidays, and 26 weeks of fully paid maternity cover, and the total consistently runs above 120 percent of the agreed salary.  
Know every line before you send the offer.

Tom Price-Daniel · Co-founder, Teamed

## Related Vietnam guides

- Hiring in Vietnam, overviewparent
- [Vietnam tax and payroll](/country-hiring-guides/vietnam/tax-and-payroll)sibling
- [Vietnam termination and severance](/country-hiring-guides/vietnam/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Ministry of Labour, Invalids and Social Affairs and the Vietnam Social Security authority before relying on any specific figure. Worked examples in this guide are illustrative only and computed from statutory rates applied to a hypothetical gross salary. They are not statutory figures. The social insurance contribution cap changes on 1 July 2026 when Vietnam's base salary increases to VND 2.53 million per month under Decree 161/2026/ND-CP. Regional minimum wages increased by 7.2% from 1 January 2026 under Decree No. 293/2025/ND-CP.