Vietnam’s social insurance (SHUI) adds 21.5% to every salary you pay — before you touch health or unemployment insurance. That 17% employer-side social insurance contribution catches most companies off guard when building their cost model. Add health (3%) and unemployment (1%) and you’re at 21.5% in mandatory employer contributions alone. Budget this before you make an offer, not after.
Vietnam Employment at a Glance
| Detail | Value |
|---|---|
| Currency | Vietnamese Dong (VND) |
| Official Language | Vietnamese |
| Labour Regulator | Ministry of Labour, Invalids and Social Affairs (MOLISA) |
| Working Week | 48 hours maximum |
| Probation Period | 6–60 days depending on role |
| Standard Annual Leave | 12 days minimum |
SHUI Contributions
Vietnam’s mandatory social insurance system — Social insurance, Health insurance, and Unemployment insurance:
| Contribution | Employer | Employee |
|---|---|---|
| Social Insurance | 17.5% | 8% |
| Health Insurance | 3% | 1.5% |
| Unemployment Insurance | 1% | 1% |
| Total | 21.5% | 10.5% |
Contributions are calculated on the employee’s monthly salary, capped at 20× the base salary (approximately VND 36 million/month for social and health insurance).
Employment Contracts
All employment contracts must be in writing. Two types apply:
- Definite-term contracts — fixed period up to 36 months; appropriate for project-based hires
- Indefinite-term contracts — required after two successive definite-term contracts; no further fixed terms permitted
Contracts must be in Vietnamese. Foreign nationals may have bilingual contracts (Vietnamese + the employee’s language), but Vietnamese controls in any dispute.
Termination Rules
Vietnam’s Labour Code requires lawful grounds for termination and a formal procedure. Acceptable grounds include redundancy due to restructuring, repeated failure to meet documented performance standards, or specific disciplinary causes under the Labour Code. Severance pay applies to employees with 12+ months of service: half a month’s salary per year of service (funded through the SHUI social insurance system for post-2009 tenures). For pre-2009 tenure, the employer pays directly.
Attempting to dismiss an employee without following the statutory procedure — written notice, hearing, documentation — results in reinstatement orders and full back-pay.
Using an EOR in Vietnam
Not all EOR providers cover Vietnam. Those with in-country entities include:
- Deel — covers Vietnam through an owned in-country entity
- Multiplier — strongest operational depth in Vietnam due to ASEAN focus and Singapore HQ
- Remote — covers Vietnam
- Oyster — covers Vietnam
For Vietnam specifically, Multiplier has the most established local operations given its ASEAN specialisation.
Key Considerations
Foreign worker permits: Foreign nationals require a work permit issued by MOLISA before commencing work. Work permits are valid for up to 2 years and renewable. Confirm your EOR manages applications, renewals, and the underlying business licence requirements that permit applications depend on.
Regional minimum wages: Vietnam’s minimum wages are set by the National Wage Council across four zones (Zone 1 being urban centres like Hanoi and Ho Chi Minh City). Your EOR must apply the correct zone rate for each employee’s work location. Using the wrong zone underpays employees and violates MOLISA regulations.
Labour disputes: Vietnam’s dispute resolution process runs through conciliation, then Labour Arbitration Councils, then courts. EOR providers with in-country legal teams handle disputes — a provider without local counsel is a liability in a contentious exit.
