Easily manage employment in Vietnam

Payroll services in Vietnam

Vietnam has a rapidly growing economy with key industries in manufacturing, technology, and services. Employers in Vietnam must comply with national labor laws, tax regulations, and social security contributions to ensure proper payroll management. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Vietnam

Employers in Vietnam must adhere to national payroll regulations concerning wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: As of 2024, Vietnam’s regional minimum wages range from VND 3,250,000 to VND 4,680,000 per month, depending on location.
• Payroll frequency: Salaries are typically paid monthly.
• Standard working hours: The normal workweek in Vietnam is 48 hours, usually spread over six days.
• Overtime: Employees are entitled to overtime pay at 150% of the regular wage for extra hours, 200% for work on weekends, and 300% for work on public holidays.

Taxation and social security contributions

• Personal income tax: Vietnam has a progressive income tax system, with rates ranging from 5% to 35%, depending on income levels.
• Employer contributions:
• Social Insurance (SI): 17% of the gross salary.
• Health Insurance (HI): 3% of the gross salary.
• Unemployment Insurance (UI): 1% of the gross salary.
• Employee contributions:
• Social Insurance (SI): 8% of the gross salary.
• Health Insurance (HI): 1.5% of the gross salary.
• Unemployment Insurance (UI): 1% of the gross salary.
• Corporate tax: The corporate income tax rate in Vietnam is 20%, with higher rates for specific industries.
• Tax reporting: Employers must file payroll taxes and social security contributions with the General Department of Taxation (GDT) and the Vietnam Social Security (VSS) regularly.

Payroll compliance in Vietnam

• Employment contracts: Contracts must be provided in writing, specifying salary, working hours, and benefits.
• Payroll deductions: Employers must ensure accurate deductions for income tax, social security, and unemployment insurance.
• Vacation entitlement: Employees are entitled to 12 days of paid leave per year, plus public holidays.
• Employers must stay updated on changes to Vietnam’s labor laws, tax rates, and contribution requirements to avoid penalties.

Run payroll in Vietnam with Remote

Managing payroll in Vietnam requires careful attention to tax laws, employment regulations, and social security contributions. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.