Human Resources.

Managing human resource in Vietnam can be complicated and expensive. Outsourcing human resources allows employers to reduce cost, concentrate on their core business, Avoid penalties and Enhanced Security. Whether your company is small, medium or large, Warren B can be tailored to your business needs.

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How can we assist you.

Processing payroll in Vietnam demands specific time investment, knowledge of local regulations and labor laws. As payroll calculation will affect your tax and social security reports, it is highly necessary to understand all regulations related to tax and manpower in Vietnam.

With Warren B, we offer professional experts to provide payroll consulting as well as commit that your payroll data are processed in accordance with the latest regulations in Vietnam.

Our services:

  • Labour contract preparation
  • Payroll calculation and processing
  • Monthly pay slips and reporting
  • Labour law consultancy
  • Personal income tax declaration and assessment
  • Invoice issuance and tax payment
  • Medical and Social Insurance Registration
  • Make social insurance contributions

Essential Information.

Traditionally, local staff is paid their wage on a monthly basis on Vietnamese Dong (VND). Foreign companies need to be aware of minimum wages and overtime in Vietnam:

  • The Vietnamese Government has stipulated a minimum wage, ranging from $134 USD to $193 USD depending on the region that the company is based. Employees passed vocational training courses (i.e., company training courses) typically have wage rates that are at least seven percent higher than those mentioned above.

Vietnam Minimum Wage 2021

Region

Monthly Minimum Wage

I

$192.2 (VND 4,420,000)
II

$170.4 (VND 3,920,000)

III

$149,1 (VND 3,430,000)
IV

$133,5 (VND 3,070,000)

Region I covers urban Hanoi and Ho Chi Minh City
Region II covers rural Hanoi and Ho Chi Minh City as well as urban Can Tho, Da Nang and Hai Phong
Region III includes provincial cities and districts of Bac Ninh, Bac Giang, Hai Duong and Binh Phuc provinces
Region IV covers the remain localities

  • Employees working extra hours are also paid for those extra hours based on their current hourly wages, as below

Vietnam Overtime Compensation

Type of OvertimeRate of Compensation
Weekday, day time150%
Weekend, day time200%
Public holiday, paid leave days300%
Weekday, night time30% extra, above rates below

Bonuses provide to employees based on company earnings and performance. There are various
kinds of bonuses that a company paid throughout the year. For example, a 13th month’s salary is usually given by both local and foreign companies in Vietnam to employees that have worked with the company for at least one year.

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Three types of employee insurances available in Vietnam are:

  • Health insurance (HI)
  • Social insurance (SI)
  • Unemployment insurance (UI)

From January 1, 2018, foreigner employees are eligible for one of the three insurances, which are health insurance and social insurance. The unemployment insurance benefit is excluded for foreigner worker. Therefore, foreigner’s employment taxes are much lower than the domestic employee’s.

The change of social insurance brings foreigners the same benefits as local employees, including maternity leave, sick leave, death,…

Since 2020, employees are required to contribute 8% and employers contribute 17.5% for the social insurance. The deduction is based on the employee’s gross salary.

Besides, a one-off pension payment will be paid by foreign workers when they leave Vietnam.

Eligibility

The social insurance contribution will apply to foreign employees if they meet the following criteria:

  • Foreign employees who have obtained work permits, practicing certificates, or practicing licenses issued in Vietnam.
  • Foreign employees who have indefinite-term employment contracts – or employment contracts with Vietnamese employers which are valid for at least one year.

Under the below circumstances, foreign employees will not be granted the social insurance (SI) scheme even when they meet the above criteria:

Foreign employees who are working under intra-company transfer, or who have reached retirement age under the Labor Code.

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  • Local Employees

Payroll taxes in Vietnam for local employees are detailed as follows:

Personal Income Tax: 5-35% (employee)

Trade Union Fee: 2% (employee)

Social Security Contributions

  • Social Insurance: 8% (employee); 17.5% (employer)
  • Health Insurance: 1.5% (employee); 3% (employer)
  • Unemployment Insurance: 1% (each from both employee and employer)
  • Foreign Employees

From 2018, payroll taxes for foreign employees in Vietnam are:

Personal Income Tax: 5-35% (resident); 20% (non-resident)

Trade Union Fee: 2% (employee)

Social Security Contributions

  • Social Insurance: 0% (employee); 3.5% (employer)
  • Health Insurance: 1.5% (employee); 3% (employer)
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Personal Income Tax rates in Vietnam range from 5-35% for all taxpayers (both domestic and international), as following table:

Vietnam’s Individual Income Tax Rates

Tax RateMonthly Taxable Income (VND)

Monthly Taxable Income (USD)

5%

< 5,000,000< 218
10%5,000,001 – 10,000,000

218 – 456

15%

10,000,001 – 18,000,000456 – 837
20%18,000,001 – 32,000,000

837 – 1504

25%

32,000,001 – 52,000,0001504 – 2456

30%

52,000,001 – 80,000,0002456 – 3790
35%> 80,000,001

>3790

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