Employer of Record in Vietnam

Hiring in Vietnam: employment guide

Employee agreements

Labor contracts in Vietnam must be in writing and signed before the first day of work. They need to outline terms like job duties, salary, working hours, and benefits—and must comply with the Labor Code of Vietnam.

Hiring in Vietnam requires navigating mandatory social contributions, detailed labor contracts, and strict offboarding rules—making local expertise essential. Pebl’s Employer of Record (EOR) solution simplifies the process by ensuring compliance and creating contracts that meet local requirements while supporting your company’s goals.

Probationary periods

Vietnam allows different probation lengths based on role type:

• Up to six days for seasonal or short-term jobs
• Up to 30 days for roles requiring vocational training
• Up to 60 days for technical or managerial positions

The amount of probation pay must be at least 85% of the full salary.

Average working hours

A standard workweek in Vietnam is 48 hours, or 8 hours per day. Overtime is limited to 200 hours per year (or 300 hours in specific sectors). Overtime pay ranges from 150% to 300% of the regular rate, depending on timing, according to Vietnam Briefing.

How an EOR helps you hire in Vietnam

Pebl simplifies hiring by acting as the legal employer in Vietnam. Our EOR solution includes:

• Drafting and executing compliant employment contracts
• Managing onboarding and offboarding processes
• Ensuring full compliance with Vietnamese employment law
• Real-time support through our Global Work Platform

Payroll in Vietnam

Payroll cycles

Employees are typically paid monthly. Employers must issue payslips and pay salaries by the end of each month, unless otherwise agreed in the labor contract.

Bonus payments

Bonuses are not legally required, but they are common. Tet bonuses—given during Lunar New Year—often equal one month’s salary. Many companies also offer performance and holiday bonuses to remain competitive.

How an EOR streamlines payroll in Vietnam

Pebl ensures accurate, timely, and compliant payroll for your supported employees. Our EOR team handles:

• Salary and tax calculations
• Payslip generation
• Social insurance and tax contributions
• Local currency disbursements

With Pebl’s global payroll services, companies gain centralized visibility into global pay.

Taxes in Vietnam

Tax due dates

Employers must withhold personal income tax (PIT) monthly and file quarterly returns. Final tax filings are due by March 31 of the year following the tax year.

Tax thresholds

Vietnam applies a progressive personal income tax system ranging from 5% to 35%. Those earning under VND11 million per month are exempt. Deductions also apply for dependents, per the General Department of Taxation.

Health insurance

Employers contribute 3% of gross salary to Vietnam’s public health insurance system. Employees gain access to public clinics and hospitals.

Pensions

Employers must contribute 14% to Vietnam’s social security fund for retirement; employees contribute 8%.

How an EOR helps with tax and compliance

Pebl stays current on Vietnamese labor and tax laws so companies don’t have to. We manage:

• Monthly tax withholding
• Employer and employee contributions
• Filing and reporting requirements

Leave entitlements in Vietnam

Annual leave

Employees receive 12 days of paid annual leave after one year of service. Those in senior or hazardous roles may receive more.

Parental leave

Women are entitled to six months of paid maternity leave. Fathers get 5-14 days of paid paternity leave based on the birth type.

Sick leave

Sick leave benefits depend on insurance contribution history. Most employees are eligible for up to 30 days of paid sick leave annually.

National holidays

Vietnam celebrates 11 public holidays. Tết (Lunar New Year) is the longest, often lasting up to nine days. If holidays fall on weekends, workers receive substitute days off. See the complete list via ASEAN Briefing.

How an EOR helps manage leave and PTO

Pebl tracks, calculates, and administers leave benefits, so a company’s teams in Vietnam comply with local leave laws, without creating extra admin work for HR teams.

Employee benefits in Vietnam

Statutory benefits

All employees receive health, unemployment, and pension benefits through social insurance.

Supplemental benefits

To attract top talent, many employers offer:

• Private health insurance
• Meal and transport stipends
• Performance-based bonuses

These benefits help companies compete for skilled talent, according to Vietnam Briefing.

How an EOR simplifies benefits administration

With Pebl’s Global Benefits solution, companies can:

• Source competitive insurance plans
• Provide custom stipends and perks
• Administer and manage benefits at scale

We help employers deliver consistent, localized benefits in Vietnam and beyond.

Termination and offboarding in Vietnam

Notice periods

• 30 days for fixed-term contracts
• 45 days for open-ended contracts
• 3 days during probationary periods

Severance pay

Employees terminated without cause or due to restructuring are entitled to severance pay equal to half a month’s salary for each year of service.

How an EOR ensures compliant offboarding

Pebl handles every step of the offboarding process in Vietnam, including:

• Notice and documentation
• Severance calculations
• Final salary disbursement
• Compliance with legal requirements