Hiring Guide
Vietnam
Capital: Hanoi
Currency: Vietnamese Dong (VDN)
GDP growth rate: 2.6% annual change (2021)
Fiscal year: January 1 to December 31
Languages: Vietnamese, English
The Vietnamese labor code requires that a written contract be signed by both employer and employee—in two languages (the employee's native language and Vietnamese)—before the agreement is considered lawful. Contracts here can be of three types: indefinite-term, fixed-term (12 to 36 months), or seasonal (less than 12 months).
Employment law is largely derived from the Labour Code — combined with other decrees, collective guidelines, and company rules. Vietnamese companies who send workers overseas are also subject to The Law on Sending Vietnamese Laborers to Work Overseas.
Work Contract
Second Talent recruiter will draft an employment contract based on the terms specified in Article 21. of the Labour Code.
Employer & employee details, including the name, address, and registration number of the employer, as well as the name, sex, date of birth, and address of the employee.
Payroll
In Vietnam, the statutory minimum wage is set per zone as designated by the government.
Minimum wage
Zone 1
Urban Hanoi and Ho Chi Minh City
4,680,000 VND
Zone 2
Rural Hanoi and Ho Chi Minh City plus Da Nang
4,160,000 VND
Zone 3
Provincial cities and districts of Bac Ninh, Bac Giang, Hai Duong, Phu Tho, Binh Phuc and other provinces not listed in Zones 1 and 2 above
3,250,000 VND
Zone 4
all remaining localities
3,250,000 VND
Overtime rate
On weekdays
150%
On weekends / rest days
200%
On public holidays
300%
13-months bonus
While a 13th-month bonus is not legally required, it has become customary for employers to offer them. Employers may also provide bonuses based on earnings or performance—or both.
Tax
Employer Payroll Contributions
150%
Labor, Accident, and Occupational Disease Fund
14.0%
Retirement & Death Gratuity Fund
3.00%
Sickness & Maternity Fund
3.00%
Health Insurance
3.00%
Unemployment Insurance
21.50%
Total Employment Cost
Employee Payroll Contributions
8.00%
Social Insurance
1.50%
Health Insurance
1.00%
Unemployment Insurance
10.50%
Total Employee Cost
Working hours
A typical work day in Vietnam should not exceed 8 hours a day or 48 hours a week.
-
For employees working ≥ 6 hours
-
Regular shift: Minimum 30 minutes
-
Night shift: Minimum 45 minutes
-
-
12 hours between shifts
-
24 consecutive hours per week
-
or 4 days off per month.
Holidays and Breaks
Public Holiday
-
Gregorian Calendar New Year Holiday: 1 day
-
Lunar New Year Holidays: 5 days;
-
Victory Day: 1 day
-
International labour Day:1 day
-
National Day: 2 days
-
Hung Kings Commemoration Day: 1 day
Annual Holiday
Paid leave in Vietnam is set by law as a minimum of 12 days of paid leave per year. This increases with seniority; every five years completed results in one extra day's pay.
Sick Leave
Employees must provide a medical certificate within 48 hours of the first day of sickness.
Government-supported sick leave is available from 30 to 60 days each year depending on the level of illness.
​
The social insurance fund pays 75 percent of your salary rate during sick leave, based on the salary you were paid in the month prior.
Termination
Notice period
Notice periods within Vietnam typically last 30 to 45 days but vary based on the type of contract.
-
3 working days for the seasonal contract
-
30 days for a fix-term labor contract
-
45 days for an indefinite labor contract
Severance Pay
The employer is responsible for paying severance allowance to employees who work regularly for at least twelve months. Each year of work will be worth half a month's salary. This applies to termination based on clauses 1-4, 6, 7, 9, and 10 of Article 34 of the Labour Code.