HR Software for Vietnam
Leave Policy
Maternity Leave
Pregnant employees who have paid into social security for at least 3 months are entitled to 6 months of paid leave. 2 weeks of vacation can be taken before the birth of the child. The employee receives 100% of the average salary based on social security contributions for the last 6 months. Social security is responsible for this salary.
You can use the leave module in IceHrm to manage maternity leave in Vietnam.
Paternity Leave
Employees who have made social security contributions for at least 3 months are entitled to 5 days of paid paternity leave. The employee receives 100% of his salary during this period and social security is responsible for this remuneration.
Parental Leave
Parental leave is not regulated by law in Vietnam. However, employees may be entitled to maternity and paternity leave.
Sick Leave
Employees are entitled to up to 30 days of paid sick leave. The employee receives 75% of his salary from social security during his vacation. Leave can be extended depending on the employee, but an extension will be decided on a case-by-case basis.
Pay & Tax
Minimum Wage Requirements
The monthly minimum wage in Vietnam depends on the region where the worker lives:
- Zone 1: 4,680,000 VND
- Zone 2: 4,160,000 VND
- Zone 3: 3,640,000 VND
- Zone 4: 3,250,000 VND
Individual Income Tax
Individual income tax ranges from 5% to 35%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: the household status and the number of children.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to VDN 60,000,000 | 5% |
| Up to VDN – 120,000,000 | 10% |
| Up to VDN 216,000,000 | 15% |
| Up to VDN 384,000,000 | 20% |
| Up to VDN 624,000,000 | 25% |
| Up to VDN 960,000,000 | 30% |
| Over VDN 960,000,000 | 35% |
Payroll Cost
The employer’s share is 23.5% of the employee’s salary. VND 36,000,000 is the maximum monthly amount for calculating social security, health insurance and union contribution.
The maximum monthly salary for calculating the unemployment insurance contribution is 20 times the monthly minimum wage in the region where the employee resides (up to VND 93,600,000).
- Social Security – 17%
- Health insurance – 3%
- Accident insurance – 0.5%
- Union contribution – 2%
- Unemployment insurance – 1%
These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. Standard working hours are Monday to Friday.
Pay for overtime is mandatory. Hours outside of standard working hours are considered overtime. Employees are not allowed to work more than 12 hours per day, including normal working hours and overtime. Employees receive compensation for overtime:
- 150% of the hourly rate on weekdays
- 200% of the hourly rate on free weekdays
- 300% of the hourly rate on public holidays
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Layoffs in Vietnam can be complex. Outside the probationary period, the employer in Vietnam cannot terminate at will, and the termination must be for a valid reason.
Proper terminations include:
- Voluntary by the employee
- By mutual agreement
- Unilaterally by the employer due to:
- Probationary period
- Objective reasons
- Disciplinary dismissal
- Performance due to unsuitability for the position
- When the contract expires
Notice Period
The minimum notice period is 3 days and increases depending on the type of contract.
- 45 days if the contract is permanent
- 30 days for a fixed-term contract with a term of 12 to 36 months
- 3 working days for a fixed-term contract with a term of less than 12 months
Severance for Employees
In Vietnam, all employees who have worked for more than one year and are laid off are entitled to severance pay, unless they are fired due to:
- Theft, embezzlement, disclosure of technical and commercial secrets or other acts that cause serious damage to the property and interests of the company.
- The employee was transferred to another workplace as a disciplinary measure and then commits the same violation of labor discipline again while the disciplinary measure is still in force.
The severance payment amounts to half a month’s salary per year of service. There is no law that limits the amount of severance pay.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 12 workdays of paid time off (PTO) per year. PTO is credited monthly at 1 day per month. Annual leave increases by 1 day for every five years of service.
Public Holidays
Vietnam has 6 national holidays (11 days in total) and some regional holidays depending on the employee’s location. National holidays include:
- New Year’s Day: 1 day
- Lunar New Year: 5 days (in 2024, this runs from February 8-14 and includes two additional days off due to weekend)
- Hung King’s Festival: 1 day
- Reunification Day: 1 day
- Labour Day: 1 day
- Independence Day: 2 days
Onboarding
Onboarding
Onboarding takes 3 business days
Additional Info
Employment Contract Details
Contracts can be written in English. They must be in writing and signed by both parties.
A contract must contain:
- Surname
- Start date
- Length of employment
- Job Description
- Termination conditions
Probation Period
The probationary period is mandatory. The minimum probationary period is 6 days and the maximum probationary period is 180 days. The probationary period varies depending on the type of position.
| Job Type | Probation Period Length (days) |
|---|---|
| Managerial Position* | 180 |
| Junior College Degree | 60 |
| Skilled Employees | 30 |
| Other | 6 |
*The Legal Department must typically approve contracts 180 days before the end of the probationary period before the agreement is concluded with the employee.