Employment in Viet Nam is governed by the Labour Code 2019 (No. 45/2019/QH14) and its implementing decrees, with social, health and unemployment insurance under separate laws. Here is what employers need to know about leave, pay, tax and ending employment.
Annual and personal leave are paid by the employer. Sickness, maternity and paternity benefits are paid by the social insurance fund to employees who contribute to it.
Working days on full pay after 12 months' service, pro-rata before then. 14 or 16 days for young workers, people with disabilities and hazardous jobs, plus 1 day for every 5 years of service.
Of which no more than 2 months before the birth, plus 1 month for each additional baby in a multiple birth. Paid through social insurance.
Both are paid by social insurance rather than the employer. The number of days depends on the contribution record, working conditions and the type of birth.
Set up each Vietnamese leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata annual leave and seniority days. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Viet Nam sets four regional minimum wages, depending on where the employer operates. New rates took effect on 1 January 2026, an increase of 7.2%.
| Region | Per month | Per hour |
|---|---|---|
| Region I | VND 5,310,000 | VND 25,500 |
| Region II | VND 4,730,000 | VND 22,700 |
| Region III | VND 4,140,000 | VND 20,000 |
| Region IV | VND 3,700,000 | VND 17,800 |
Monthly-paid employees are paid once a month or twice a month; hourly, daily and weekly-paid employees at least every 15 days. There is no statutory 13th month salary, though a Tet bonus is customary and may be agreed in the contract or company rules.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so the 150%, 200% and 300% rates reflect what was actually worked and you can track the monthly and yearly caps. Time & attendance →
A new Personal Income Tax Law takes full effect on 1 July 2026, but its salary provisions apply from 1 January 2026, replacing the old 7-band scale with 5 bands. Employers withhold PIT monthly.
| Monthly taxable income | Annual taxable income | Rate |
|---|---|---|
| Up to VND 10 million | Up to VND 120 million | 5% |
| VND 10 – 30 million | VND 120 – 360 million | 10% |
| VND 30 – 60 million | VND 360 – 720 million | 20% |
| VND 60 – 100 million | VND 720 million – 1.2 billion | 30% |
| Over VND 100 million | Over VND 1.2 billion | 35% |
Social and health insurance apply to Vietnamese employees on contracts of at least 1 month, and to foreign employees with a work permit on a contract of at least 1 year (health insurance from 1 month). Unemployment insurance applies to Vietnamese employees only.
| Scheme | Employer | Employee |
|---|---|---|
| Social insurance (including accident insurance) | 17.5% | 8% |
| Health insurance | 3% | 1% |
| Unemployment insurance | 1% | 1% |
| Total | 21.5% | 10.5% |
Employers also pay a trade union fee based on the payroll, whether or not a union has been set up, and should budget for severance or job-loss allowances for periods not covered by unemployment insurance.
Build Vietnamese pay the way you already structure it, with your own salary components, deductions and formula columns, such as social insurance columns. Want to know how well IceHrm handles payroll calculations for Viet Nam? Contact us or see Payroll →
An employer can only end a contract unilaterally on grounds set out in the Labour Code, such as repeated failure to perform, long-term illness, force majeure, restructuring, or unexplained absence of 5 or more consecutive days. Dismissal as a disciplinary measure follows a separate procedure.
| Contract type | Notice |
|---|---|
| Indefinite-term contract | 45 days |
| Fixed-term, 12 to 36 months | 30 days |
| Fixed-term, under 12 months | 3 working days |
| Reason | Allowance |
|---|---|
| Most terminations, including contract expiry and mutual agreement (severance allowance) | Half a month's wage per year |
| Restructuring, technology change or economic reasons (job-loss allowance) | 1 month's wage per year, at least 2 months |
All amounts owed must be settled within 14 working days of the contract ending (up to 30 days in some situations, such as restructuring).
The Labour Code gives 11 paid public holidays. The Prime Minister confirms the exact Lunar New Year and National Day dates each year, and holidays falling on a weekly rest day are given as a substitute day off.
Foreign employees also get 1 day off for their own country's traditional New Year and 1 day for its national day.
Leave groups give each office its own holiday calendar, so you can load the Tet dates once they are announced and teams in Viet Nam and abroad each get the right days off. Holiday calendars →
Labour contracts must be in writing (or electronic), except short contracts of under 1 month. A contract is either indefinite-term or fixed-term for up to 36 months.
| Job | Maximum probation |
|---|---|
| Enterprise managers | 180 days |
| Roles needing a college degree or higher | 60 days |
| Roles needing intermediate qualifications, technical workers | 30 days |
| Other jobs | 6 working days |
Only two fixed-term contracts can be signed in a row. If the employee keeps working after the second one ends, the parties must sign an indefinite-term contract. Foreign employees generally need a work permit.
Send labour contracts for e-signing, store work permits and insurance documents on the employee's record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Viet Nam, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Viet Nam? Talk to us.
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