Cost to Hire an Employee in Vietnam (2026)

• Gross salary.
• Employer costs of about 23.5% at a ₫360,000,000 salary: ₫84,600,000 a year, of which the largest is social insurance: retirement and survivorship fund.
• An EOR fee, if you hire without your own entity. The providers in our Vietnam guide publish starting prices of US$199–699 per employee per month; see how to choose an EOR in Vietnam for the shortlist.

Mandatory employer costs at a ₫360,000,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Employer contributions: 23.5% for a Vietnamese employee: social insurance 17.5%, health insurance 3%, unemployment insurance 1%, trade union fee 2%, mostly capped at VND 50.6 million a month
• Social insurance salary cap: VND 50,600,000 / month (20 × the VND 2,530,000 reference level, from 1 Jul 2026)
• Minimum wage (Region I): VND 5,310,000 / month from 1 Jan 2026 (Regions II–IV lower)
• Annual leave: 12 working days, plus 1 day per 5 years' service
• Public holidays: 12 paid days from 2026, including 5 for Lunar New Year (Tết)
• Normal working hours: Up to 8 hours a day and 48 a week

• Tết bonus (optional) (8.333% of gross): Not required by law; shown at one month's salary if you choose to pay one.
• Private health cover (optional) (₫15,000,000 / year): Optional private medical cover; an estimate.
• 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.

Without your own entity in Vietnam, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Vietnamese entity. See the comparison in our Vietnam guide and EOR vs local entity.