Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
VND d (Vietnamese Dong)
Employer contributions
~21.5% employer (social 17.5% + health 3% + unemployment 1%)
Minimum wage
VND 4,960,000/month (Region 1 - Hanoi/HCM 2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Hanoi
Timezone
ICT (GMT+7)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~VND 24,300,000 total
/month
For a gross salary of
VND 20,000,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~21.5% employer (social 17.5% + health 3% + unemployment 1%)
Mandatory extras
Tet Bonus (Thuong Tet)
Monthly admin
Monthly payroll - VSI by last day - PIT withholding - annual finalization March
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~VND 24,300,000 total
Example gross salary
VND 20,000,000 gross/month
~VND 12,725,000 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~VND 4,300,000 employer SS
Employer contributions on that salary
Employer contributions
~21.5% employer (social 17.5% + health 3% + unemployment 1%)
Employee contributions
~10.5% employee SS + personal income tax (PIT)
Total cost above gross
~21.5% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~VND 10,000,000
Per month
Ho Chi Minh City
VND 15,000,000 - 50,000,000
~50%
Hanoi
VND 13,000,000 - 45,000,000
~40%
Monthly gross. National average salary per year:
~VND 120,000,000
Minimum wage
VND 4,960,000/month (Region 1 - Hanoi/HCM 2026)
Paid:
Monthly
Extra pay
Tet Bonus (Thuong Tet)
Discretionary; typically 1-3 months; culturally expected
January (before Lunar New Year)
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
5% up to VND 60M / 10% / 15% / 20% / 25% / 30% / 35%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by last day of month
Social security payments
March 31 (annual PIT finalization)
Income tax
By January 31
Employee tax certificate
Bien Lai Khau Tru Thue TNCN
March 31
Annual return
Quyet Toan Thue Thu Nhap Ca Nhan
Late payment penalties
Late VSI: 0.03%/day; late PIT: 0.03%/day; late finalization: VND 2-5 million fine
Who collects what
General Department of Taxation (GDT)
Personal income tax
Vietnam Social Insurance (VSI)
Social, health and unemployment insurance
Ministry of Labour, Invalids and Social Affairs (MOLISA)
Labor law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Nghi Phep Nam
12 days/year (minimum)
Public holidays
~11 public holidays
Sick leave
Om Dau
80% of social insurance contribution salary from VSI (after 6 contribution days waiting)
Maternity leave
26 weeks (for 1 child); 38 weeks (for twins+)
100% of contribution salary from VSI
The contracts you can use, and what ending an employment relationship costs.
Permanent
Hop Dong Lao Dong Khong Xac Dinh Thoi Han (Permanent)
Fixed term
Hop Dong Lao Dong Xac Dinh Thoi Han (Fixed Term)
Independent contractor
Hop Dong Dich Vu / Cong Tac Vien
Collective agreements
Thoa Uoc Lao Dong Tap The
Ending employment
Tro Cap Thoi Viec / Tro Cap Mat Viec
How it is calculated
0.5 month per year of service (from VSI after 12+ months)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Social Insurance Contribution Salary Manipulation
Risk Level: HIGH
Vietnam's social insurance is calculated on a contractual salary that many employers keep artificially low (at the minimum wage) while paying the rest as 'allowances.' VSI Circular 59/2015 and 2024 amendments require all regular allowances to be included in the contribution salary. Inspections impose retroactive contributions for the full period.
Fixed-Term Contract (HDLD XDTHan) Renewal Limits
Risk Level: HIGH
Vietnamese Labour Code allows only one renewal of a fixed-term contract. After two fixed-term contracts (or after the second contract expires), the employment automatically becomes indefinite term. Issuing a third fixed-term contract is void by law. MOLISA inspectors frequently find this violation in FDI companies.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
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$49
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FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.