Vietnam has a population of more than 96 million people, with key industries including electronics, food processing, and construction. There are many opportunities for expansion in Vietnam, but companies must be prepared for labor and payroll regulations to ensure compliance.

Payroll and Labor Considerations in Vietnam:

• Employment contracts must be in writing, except for contracts under 1 month in length. Contracts must include job description, term, wages, working hours and holidays
• The maximum work week is 48 hours, so any hours above the threshold will be considered overtime
• Minimum wages vary by region and range from VND 4650 per month
• Overtime is 150% of normal wages for regular working days, 200% on a weekly day of rest or public holiday
• Employees who have worked at the same company for over 12 months are entitled to a severance payment of half a month’s salary for each year worked
• Vietnamese are taxed on their worldwide income at rates ranging from 5-35%

HR and Statutory Requirements

• Employees are entitled to fully paid annual leave after 12 months of service. Employees receive from 12-16 days depending on the type of work
• Annual leave increases by 1 day for every 5 years with the same employer
• Sick leave with proof from a doctor ranges from 30-180 days, depending on how many contributions they have made to the social insurance fund
• Females can receive 6 months of paid maternity leave if they have paid into the social insurance for 6 months within the 12 months before childbirth
• New fathers can receive between 5 and 14 days of paternity leave, depending on how many contributions have been made to the social insurance plan
• The general retirement age is 60 years for men and 55 years for women with at least 20 years of insurance coverage

Holidays in Vietnam

• January 1 – International New Year’s Day
• January 3 – International New Year’s Day observed
• January 31 – Vietnamese New Year’s Eve
• February 1 – Vietnamese New Year
• February 2 – Tet holiday
• February 3 – Tet holiday
• February 4 – Tet holiday
• February 5 – Tet holiday
• April 10 – Hung Kings Festival
• April 30 – Liberation Day / Reunification Day
• May 1 – International Labor Day
• May 2 – Liberation Day / Reunification Day observed
• May 3 – International Labor Day observed
• September 2 – Independence Day

If you need to simplify payroll in Vietnam, or if you’re just getting started, Blue Marble can help. Our cloud-based payroll platform with customized reporting gives you real-time access to payroll across all countries and currencies. With a dedicated US-based service team and direct access to in-country experts, we are here to help when questions come up. Stay ahead of new payroll regulations and ensure compliance in Vietnam. Click here to learn more