Employer of Record in Vietnam: 2026 Cost and Compliance Guide

Vietnam has business centres in Hanoi, Ho Chi Minh City and Da Nang, and its employment law is national: one Labour Code, one social insurance system and a minimum wage set by region.

An Employer of Record (EOR) can employ your team under Vietnamese law, registering them for social, health and unemployment insurance and running payroll, without you forming a Vietnamese company.

Two Vietnam-specific rules shape an EOR arrangement. Labour outsourcing (cho thuê lại lao động), where a worker employed by one business works under another's direction, needs a licence, is limited to a list of jobs and to 12 months per worker. And foreign employees need a work permit valid for up to two years. This guide covers costs, rules, providers and when to set up your own entity. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record in Vietnam employs staff for foreign companies. It signs the Vietnamese labour contract, registers the employee with Vietnam Social Security for social, health and unemployment insurance, withholds personal income tax, pays the trade union fee, and handles leave and termination under the Labour Code.

The Labour Code defines labour outsourcing as a worker signing a labour contract with an outsourcing enterprise and then working under the direction of another employer while staying employed by the first (art. 52(1)). It's a conditional business line: only licensed enterprises that have lodged a deposit may do it, only for jobs on the Government's list, and for no more than 12 months per worker (arts. 52(2), 53(1) and 54).

An EOR hire who works under your direction can fit that definition. Ask each provider how its Vietnamese structure complies: whether it holds a labour outsourcing licence and the 12-month limit applies, or how else it employs, and take local advice before building a large team.

New to EORs? Our guide to what an Employer of Record is answers the 30 most common questions, from who the legal employer is to what happens if a provider fails.

Under the Labour Code, outsourcing a worker to another business is lawful only through an enterprise with a labour outsourcing licence, which must also lodge a deposit, and only for the jobs on a list set by the Government (arts. 52(2) and 54).

The maximum outsourcing period for a worker is 12 months (art. 53(1)). The business using the worker may do so only to meet a sudden, temporary rise in demand, to replace workers on maternity leave, recovering from an occupational accident or disease or on civic duties, or because it needs highly qualified staff (art. 53(2)). It may not use outsourced workers to replace strikers or workers dismissed for restructuring or economic reasons (art. 53(3)).

Outsourced workers must be paid no less than the user's own employees with the same qualifications doing the same work or work of equal value (arts. 56(4) and 58(3)), and the user may not discriminate against them in working conditions (art. 57(2)).

Questions to ask a provider

Vietnamese employment cost has three layers: gross salary, employer contributions (social insurance, health insurance, unemployment insurance and the trade union fee) and the EOR fee.

For a Vietnamese employee the employer pays 23.5% of salary. All of it except unemployment insurance is capped at VND 50.6 million a month, so the percentage falls above that salary.

Annual cost at example salaries

What these figures include and exclude

• Social insurance, the accident fund, health insurance and the trade union fee are all calculated on the social insurance salary base: the monthly salary plus allowances and other regular payments agreed in the contract, capped at 20 times the reference level (VND 50.6 million a month from 1 July 2026, VND 46.8 million before).
• Foreign employees are covered by compulsory social insurance on a labour contract of at least 12 months, unless they are an intra-company transferee or already at retirement age when the contract is signed. They are outside unemployment insurance, so the employer pays them an extra 1% of salary with their pay instead (Labour Code art. 168(3)).
• Where an employee isn't covered by compulsory social, health or unemployment insurance at all, the employer must pay them the equivalent of its own contributions with their salary (Labour Code art. 168(3)).
• Overtime is paid at at least 150% on normal days, 200% on weekly rest days and 300% on public holidays, and night work (10pm to 6am) carries at least 30% extra. These premiums are not included above.
• Employee contributions (8% social insurance, 1.5% health insurance and 1% unemployment insurance) and personal income tax are deducted from pay and are not employer costs.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in Vietnam.

Vietnamese employment is governed by the Labour Code No. 45/2019/QH14, with social insurance under the 2024 Social Insurance Law and unemployment insurance under the 2025 Employment Law.

Labour outsourcing (EOR relevance)

Outsourcing a worker to work under another business's direction is allowed only through a licensed enterprise that has lodged a deposit, for jobs on the Government's list, for at most 12 months per worker, and at pay no lower than the user's comparable employees.[12]

Labour Code arts. 52 to 58. A user may not take outsourced workers from an enterprise without a licence (art. 53(4)).

Employment contracts

A labour contract is either indefinite or fixed-term for up to 36 months. A fixed-term contract can be renewed with a new fixed-term contract only once; if the employee keeps working after that, the contract must be indefinite.[12]

Labour Code art. 20. If the parties don't sign a new contract within 30 days of expiry while the employee keeps working, the contract becomes indefinite. Contracts with foreign employees can't run longer than their work permit and may be renewed as fixed-term more than once (arts. 20(2)(c) and 151(2)).

Probation

Probation is allowed once per job: up to 180 days for enterprise managers, 60 days for jobs needing a college degree or higher, 30 days for jobs needing an intermediate qualification, and 6 working days for other work. Pay during probation must be at least 85% of the job's salary.[12]

Labour Code arts. 24 to 26. There's no probation on contracts shorter than one month.

Notice periods

An employer terminating on a permitted ground must give at least 45 days' notice on an indefinite contract, 30 days on a fixed-term contract of 12 to 36 months, and 3 working days on a contract under 12 months. An employee resigning gives the same notice.[12]

Labour Code arts. 35(1) and 36(2). An employer may terminate unilaterally only on the grounds in art. 36(1), such as regularly failing to complete work under the employer's assessment rules, long illness, or restructuring forced by a disaster or an authority, and may not do so while the employee is on sick leave, annual leave or maternity leave, or is pregnant or raising a child under 12 months (art. 37).

Severance pay

When a contract ends on expiry, by agreement or by either side's lawful notice, among other grounds, an employee with at least 12 months' regular work gets a severance allowance of half a month's salary per year worked from the employer. Time covered by unemployment insurance doesn't count, so for an employee insured throughout, severance mainly applies to foreign employees, who are outside unemployment insurance.[12]

Labour Code art. 46. Where a job is lost through restructuring or economic reasons, a job-loss allowance of one month's salary per year applies instead, at least two months' salary (art. 47). Both use the average salary of the last 6 months. Severance isn't due when the employee qualifies for a pension or is dismissed for 5 or more consecutive working days' unexcused absence.

Working time

Normal hours may not exceed 8 a day and 48 a week (10 a day on a weekly schedule). Overtime needs the employee's consent and is limited to 40 hours a month and 200 a year (300 in some sectors).[12]

Labour Code arts. 105 and 107. Overtime is paid at at least 150% on normal days, 200% on weekly rest days and 300% on public holidays (art. 98).

Annual leave

12 working days a year on full pay after 12 months with the same employer (14 or 16 for minors, disabled employees and arduous or hazardous jobs), pro rata for shorter service, plus one day for every 5 years with the employer. Untaken leave is paid out when employment ends.[12]

Labour Code arts. 113 and 114.

Public holidays

11 paid holidays under the Labour Code (New Year's Day, 5 days for Tết, Hung Kings' Day, 30 April, 1 May and 2 days for National Day), plus Vietnam Culture Day on 24 November from 2026, so 12 days in all. Foreign employees also get their own country's traditional new year and national day.[12]

Labour Code art. 112. The National Assembly's resolution on developing Vietnamese culture, in force from 1 July 2026, makes 24 November a day off on full pay.

Maternity and paternity leave

6 months' maternity leave, or 7 months for a second child born from 1 July 2026, with no more than 2 months before the birth. Male employees in compulsory social insurance get 5 working days when their wife gives birth (7 for a caesarean or a birth before 32 weeks), or 10 working days for a second child. Social insurance pays a benefit of 100% of the average insured salary.[1]

Labour Code art. 139, as amended by the Population Law No. 113/2025/QH15; Social Insurance Law arts. 53 and 59. The employer doesn't pay salary during leave on social insurance benefits unless agreed (Labour Code art. 168(2)).

Foreign employees

A foreign employee needs a work permit unless exempt. It is valid for up to 2 years and can be extended once for up to 2 more. Employers may only hire foreigners as managers, executives, experts or technical workers where Vietnamese workers can't yet meet the need.[15]

Labour Code arts. 151, 152 and 155. Under Decree 219/2025, in force from 7 August 2025, the provincial People's Committee issues work permits, and the employer's explanation of its need for foreign workers is part of the same application, decided within 10 working days of a complete file.

How Vietnam compares

• EOR pricing in Vietnam and other countries: Lowest published provider fee, employer costs and the monthly total.
• Employer social security: how Vietnam compares: Every mandatory employer contribution, with rates and ceilings.
• Severance pay: how Vietnam compares: What the law requires an employer to pay when employment ends.
• Notice periods: how Vietnam compares: Minimum employer notice, and how it grows with service.
• Minimum wage: how Vietnam compares: Official rates, annual equivalents and a US-dollar comparison.
• Annual leave: how Vietnam compares: Statutory minimum leave and public holidays, country by country.
• Employer pension contributions by country: Rates, earnings ceilings and scheduled increases.
• EOR labour hire rules by country: Where an EOR falls under staff-leasing licences or time limits.

These EOR providers publish a page about employing in Vietnam. Prices are their own published starting rates in USD; we haven't checked whether any of them charges more in Vietnam.

Also ask how the provider's model fits Vietnam's labour outsourcing rules, whether it can sponsor work permits for foreign hires, and how it handles a Tết bonus in payroll.

Compare providers for Vietnam

• RemoFirst vs RemotePassIn Vietnam: US$199 vs US$349 a month (published starting prices).
• Oyster vs RemoFirstIn Vietnam: US$699 vs US$199 a month (published starting prices).
• Playroll vs Atlas HXMIn Vietnam: US$399 vs US$599 a month (published starting prices).
• Oyster vs RemotePassIn Vietnam: US$699 vs US$349 a month (published starting prices).

For Vietnam-specific selection criteria and a shortlist, see best EOR providers in Vietnam. For each provider's products and pricing model, see the provider directory.

Setting up your own presence usually means a limited liability company or joint-stock company owned by the foreign investor. Under the Investment Law No. 143/2025/QH15, in force from 1 March 2026, a foreign investor may form the company before applying for an investment registration certificate, but must meet the market-access conditions for foreign investors when forming it (art. 19(2)).

Running costs include accounting and tax filings, payroll, social insurance registration and the trade union fee. Foreign employees of your own entity still need work permits, which the entity applies for.

What a team costs through an EOR

Annual cost of a team of mid-level professionals on ₫360,000,000 each, with statutory employer costs from our cost model and an EOR fee of ₫15,549,441 per employee per month (a common published starting price of US$599). Providers may price differently for larger teams, so ask for a quote. US-dollar amounts use the US Treasury rate of 25959 VND per US$1 (30 September 2026).

The salaries and employer costs are the same whoever employs the team. The difference is the EOR fees: ₫932,966,460 a year for 5 employees, ₫4,664,832,300 a year for 25 employees and ₫9,329,664,600 a year for 50 employees. A Vietnamese entity becomes cheaper once running it, including payroll, costs less than that.

Work out your own break-even with the EOR vs entity calculator, or see the step-by-step method in EOR vs local entity: a break-even framework.

1. 1

   Define the role, salary and regionDay 0

   Agree a monthly salary, where the employee will work (which sets the regional minimum wage), any Tết bonus, and leave above the statutory minimum.

2. 2

   Compare itemised quotes1–3 days

   Request Vietnam quotes covering the fee, deposit, contributions, trade union fee, work permit support for foreign hires, and offboarding. Use the estimator to sanity-check totals.

3. 3

   Check the employment model

   Ask how the provider employs in Vietnam and how its model fits the labour outsourcing rules, including the 12-month limit.

4. 4

   Contract and onboardingDepends on the provider and permits

   The EOR issues a Vietnamese labour contract, indefinite or fixed-term up to 36 months, with any probation within the legal limits. Foreign hires need a work permit before they start.

5. 5

   Ongoing administrationMonthly

   Monthly payroll, social insurance and trade union payments by the end of the following month, and personal income tax withholding.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   Law on Social Insurance No. 41/2024/QH15

   Official Gazette (Công báo), Government of Vietnam

   Art. 2 (who is covered, including foreign employees on contracts of 12 months or more), art. 31 (salary base, capped at 20 times the reference level), art. 34 (employer rates of 3% and 14%), arts. 53 and 59 (maternity and paternity leave benefits).

2. 2
   Chế độ BHXH cho người lao động nước ngoài tại Việt Nam

   Vietnam Social Security (Bảo hiểm xã hội Việt Nam)

   Social insurance for foreign workers from 1 July 2025: employer 17% (3% and 14%), employee 8%, and the exemptions.

3. 3
   Decree 58/2020/NĐ-CP on contributions to the occupational accident and disease fund, consolidated text 05/VBHN-BNV

   Government of Vietnam (Ministry of Home Affairs)

   Art. 4: normal rate of 0.5% of the social insurance salary base, 0.3% for qualifying high-risk businesses, as amended by Decree 158/2025.

4. 4
   Decree 188/2025/NĐ-CP on health insurance contributions

   Government of Vietnam (Xây dựng chính sách, pháp luật)

   4.5% of the monthly social insurance salary base for employees, two thirds paid by the employer and one third by the employee.

5. 5
   Law on Employment No. 74/2025/QH15 (full text)

   Government of Vietnam (Xây dựng chính sách, pháp luật)

   Arts. 31, 33 and 34: who is in unemployment insurance, rates of up to 1% and a salary cap of 20 times the regional minimum wage; in force from 1 January 2026.

6. 6
   Quy định mới về mức đóng và hưởng bảo hiểm thất nghiệp (Decree 374/2025/NĐ-CP)

   Báo Điện tử Chính phủ (Government of Vietnam)

   Employee 1% of monthly salary and employer 1% of the monthly salary fund, from 1 January 2026.

7. 7
   Lao động nước ngoài được trả thêm 1% tiền lương thay bảo hiểm thất nghiệp

   Báo Điện tử Chính phủ (answer from the Ministry of Home Affairs)

   Foreign workers are outside unemployment insurance; employers pay them an extra amount equal to the 1% contribution with their salary (Labour Code art. 168(3)).

8. 8
   Law on Trade Unions No. 50/2024/QH15 (full text)

   Government of Vietnam (Xây dựng chính sách, pháp luật)

   Art. 29(1)(b): the employer's trade union fee of 2% of the salary fund used for compulsory social insurance; in force from 1 July 2025.

9. 9
   Chính thức: Tăng lương cơ sở lên 2.530.000 đồng/tháng từ 01/7/2026 (Decree 161/2026/NĐ-CP)

   Báo Điện tử Chính phủ (Government of Vietnam)

   Base salary, used as the social insurance reference level, of VND 2,530,000 a month from 1 July 2026.

10. 10
    Decree 293/2025/NĐ-CP on minimum wages for employees under labour contracts

    Government of Vietnam (Xây dựng chính sách, pháp luật)

    Regional monthly minimum wages from 1 January 2026: VND 5,310,000, 4,730,000, 4,140,000 and 3,700,000, applied by where the employer operates.

11. 11
    Dự thảo Nghị định quy định mức lương tối thiểu (draft for 2027)

    Government of Vietnam (Xây dựng chính sách, pháp luật)

    Draft proposing VND 5,700,000 for Region I, 5,080,000, 4,450,000 and 4,040,000 for the others; under appraisal by the Ministry of Justice.

12. 12
    Labour Code No. 45/2019/QH14, consolidated text

    Official Gazette (Công báo) No. 131, 28 February 2026

    Arts. 20, 24–26 (contracts, probation), 35–37 (termination and notice), 46–47 (severance and job-loss allowances), 52–58 (labour outsourcing), 98, 104–107 (pay, bonuses, hours), 112–114 (holidays, leave), 139 (maternity), 151–155 (foreign workers), 168 (insurance).

13. 13
    Ngày Văn hóa Việt Nam – 24/11, người lao động được nghỉ, hưởng nguyên lương

    Government of Vietnam (Xây dựng chính sách, pháp luật)

    National Assembly resolution on developing Vietnamese culture: 24 November each year is a day off on full pay, in force from 1 July 2026.

14. 14
    Thời gian nghỉ và mức trợ cấp thai sản khi sinh con thứ hai (Population Law No. 113/2025/QH15)

    Báo Điện tử Chính phủ (Government of Vietnam)

    7 months' maternity leave for a second child born from 1 July 2026 (Population Law art. 14(1)(a), amending Labour Code art. 139).

15. 15
    Quy định mới về cấp giấy phép cho lao động nước ngoài tại Việt Nam (Decree 219/2025/NĐ-CP)

    Báo Điện tử Chính phủ (Government of Vietnam)

    From 7 August 2025, provincial People's Committees issue work permits, with the employer's demand explanation folded into a single application decided within 10 working days.

16. 16
    Investment Law No. 143/2025/QH15

    Government of Vietnam

    Art. 19(2): a foreign investor may form a company before the investment registration certificate procedure, subject to market-access conditions; in force from 1 March 2026 (art. 51).

Vietnam's employer contributions are a flat 23.5% for a Vietnamese employee up to VND 50.6 million a month, with no statutory 13th-month salary. At Vietnamese salaries the EOR fee is often the biggest add-on, so the spread of published prices, from US$199 to US$699, matters.

The rule to raise with every provider is labour outsourcing: ask how its model fits the licence, job-list and 12-month rules before you build a long-term team on it. For foreign hires, confirm work permit support first.

For a growing team, compare against your own entity with our EOR vs local entity guide, and see the Philippines and Malaysia for other Southeast Asian markets.