Vietnamese labor law requires a written employment contract for all employees. The contract must outline specific terms such as job title, salary, working hours, benefits, and leave entitlements. Contracts can be either fixed-term or indefinite, and both must be mutually agreed upon by the employer and employee before the employee starts work. Contracts should also be bilingual (in Vietnamese and the employee’s native language, if necessary) to ensure clear communication.
Employer of Record (EOR) Vietnam
Expand your team in Vietnam without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.
- Transparent & Compliant
- World-Class Expertise
- Cost-Efficient
Start Hiring in Vietnam
Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
Hire in Vietnam with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Vietnam is handled efficiently and in full compliance with local regulations.
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
We draft bilingual contracts compliant with Vietnam's labor law.
Global Reach, Local Expertise
Hire not just in Vietnam, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.
Jump to
in Vietnam
Vietnam’s labor laws and administrative processes can be complex. Choosing an EOR in Vietnam ensures compliance with local regulations, manages payroll, and simplifies HR tasks, enabling businesses to scale without establishing a local entity.
Written contracts are mandatory for all employment relationships exceeding three months. For foreign workers, a written contract is always required, regardless of duration.
Salary should be stated clearly, specifying the gross amount, payment intervals (e.g., monthly), and any additional benefits or bonuses. If bonuses or allowances (such as transportation or meal allowances) are provided, they should be explicitly mentioned in the contract to avoid misunderstandings.
Special clauses may include provisions on probation periods (which cannot exceed 60 days), confidentiality, non-compete agreements, and post-termination clauses. These clauses must be fair and reasonable to ensure compliance with the labor code.
in Vietnam
1. What are the key steps in employee onboarding in Vietnam?
Employees must submit documents like a signed employment contract, work permits (for foreigners), and social insurance registration. Additionally, employees must provide their tax code for payroll processing and open a local bank account for salary payments.
2. When should employees complete pre-hire medical checks in Vietnam?
Pre-hire medical checks are not mandatory for most employees. However, specific industries such as construction or heavy manufacturing may require medical checks to ensure employees are fit for the job. Employers should ensure compliance with local regulations for health and safety.
3. What documents are required for onboarding in Vietnam?
Required documents include the employment contract, valid identification (ID or passport), tax code certificate, social insurance number, and, for foreign employees, a valid work permit and visa.
4. Why businesses in Vietnam need EOR services?
5. How does EOR in Vietnam different from other countries?
in Vietnam
Remote employees in Vietnam must still receive the same benefits as on-site employees, including social security, health, and unemployment insurance. Payroll can be processed via direct bank transfer, with tax and social security deductions managed through the employer.
The current minimum wage in Vietnam varies by region. As of 2024, the monthly minimum wage is set as follows:
- Region 1 (urban areas like Hanoi and Ho Chi Minh City): 4.96 million VND (~203.42 USD)
- Region 2 (rural areas of Hanoi, Ho Chi Minh City, and major urban centers like Da Nang and Hai Phong): 4.41 million VND (~179.90 USD)
- Region 3 (provincial cities and districts such as Bac Ninh and Bac Giang): 3.86 million VND (~156.61 USD)
- Region 4 (remaining areas of the country): 3.45 million VND (~140.15 USD)
in Vietnam
1. What are the income tax rates in Vietnam?
Vietnam operates a progressive income tax system. The tax rate ranges from 5% to 35%, depending on income levels. The highest rate applies to individuals earning over 80 million VND per month.
2. How does the tax system apply to non-residents in Vietnam?
Non-residents are taxed at a flat rate of 20% on income earned in Vietnam. However, the taxation system may vary depending on the employee’s country of origin and international tax agreements.
3. When should tax returns be submitted in Vietnam?
Tax returns for individuals must be submitted annually by the 31st of March for the previous year’s earnings. Employers are responsible for withholding and paying income taxes on behalf of their employees on a monthly basis.
4. What social security contributions are required in Vietnam?
Both employers and employees contribute to the Vietnamese Social Security Fund. Employees contribute 8% of their salary, and employers contribute 17.5%. This covers health insurance, pensions, and unemployment insurance.
in Vietnam
Employees in Vietnam are entitled to a minimum of 12 days of paid annual leave, based on a full year of service. Employees who have worked for 5 years or more are entitled to 14 days of paid leave. Additional leave may be provided based on collective agreements.
Employees can begin using their leave after completing their probation period and as agreed upon in their contract. Employers must approve leave requests in advance to ensure business operations are not affected.
Female employees are entitled to 6 months of maternity leave, with full pay covered by the social insurance system. Male employees are entitled to 5 days of paternity leave for the birth of a child.
Vietnam has 11 public holidays, and employees are entitled to these holidays with full pay. If employees are required to work on a public holiday, they are entitled to extra pay (usually double the regular salary).
in Vietnam
1. What benefits are mandatory in Vietnam?
Mandatory benefits include social security (health, pension, unemployment), paid annual leave, paid sick leave, and maternity leave. Employers are also required to contribute to the employee’s health insurance and social security premiums.
2. How is the home office allowance structured in Vietnam?
Although not mandatory, many employers offer a home office allowance to help remote employees cover their work-related expenses, such as internet and utilities. These allowances should be detailed in the employment contract.
3. When should meal allowances be provided in Vietnam?
Meal allowances are not legally required but may be provided by employers in specific industries, particularly those where employees work long hours or in remote locations. The allowance is typically provided in addition to the regular salary.
4. What additional benefits are common in Vietnam?
Common additional benefits include private health insurance, transportation allowances, and wellness programs. These benefits help improve employee satisfaction and retention.
FAQs
1. What is EOR in Vietnam?
An Employer of Record in Vietnam allows businesses to hire employees without a local entity. The EOR handles payroll, taxes, benefits, and compliance with Vietnamese labor laws, ensuring smooth workforce management.
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in Vietnam?
Using Globaine’s EOR eliminates costs related to entity registration, office setup, and compliance management. Companies save significantly on administrative expenses and reduce the financial risks of non-compliance.
3. How does Globaine guarantee fast onboarding within 12 hours, and what processes are in place to maintain this speed?
Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.
4. Can Globaine handle complex employment scenarios in Vietnam, such as drafting bilingual contracts and managing terminations?
Yes, Globaine specializes in drafting bilingual contracts aligned with Vietnamese labor laws and managing complex terminations, including severance calculations and legal compliance.
6. How does Employer of Record work in Vietnam?
An Employer of Record in Vietnam ensures compliance with labor laws, manages payroll and benefits, and acts as the legal employer for businesses. This enables companies to hire employees quickly without establishing a legal entity.
