Payroll in Vietnam — Compliant, Accurate and On Time

We take over the recurring payroll work end to end, so your local team can focus on operations instead of compliance paperwork.

• Monthly payroll calculation, including gross-to-net and net-to-gross scenarios
• Individual payslips distributed to employees in English and Vietnamese
• Payroll journal and cost breakdown posted into your accounting records
• Bank payment files for salaries, insurance and tax transfers
• Employee onboarding and offboarding, including final settlements
• Annual leave, overtime, bonus and 13th-month salary tracking

Mandatory insurance is the largest payroll cost after salary. Contributions are split between employer and employee and are calculated on the contractual salary, subject to statutory caps.

• Employer contribution: approximately 21.5% of insurable salary (social, health, unemployment and occupational accident funds)
• Employee contribution: approximately 10.5% of insurable salary, withheld from gross pay
• Social and health insurance are capped at 20 times the base salary; unemployment insurance at 20 times the regional minimum wage
• Foreign employees on local contracts are generally covered by social and health insurance, but not unemployment insurance
• Monthly declarations and headcount changes must be filed with the local social insurance office

Rates and caps are reviewed periodically by the authorities. We apply the current figures each month and flag changes before they affect your costs.

Employers act as withholding agents for personal income tax (PIT) and remit it on behalf of employees.

• Residents are taxed on worldwide employment income at progressive rates from 5% to 35%
• Non-residents are taxed at a flat 20% on Vietnam-sourced employment income
• Standard personal and dependant deductions are applied once dependants are registered
• PIT is withheld monthly and declared monthly or quarterly depending on your filing status
• Annual PIT finalisation is prepared for each employee after year end
• Expat packages, allowances and benefits in kind are reviewed for taxability

Payroll compliance starts with correct documentation. Missing registrations are one of the most common findings during labour and insurance inspections.

• Written labour contracts in Vietnamese, with bilingual versions where needed
• Employer registration with the social insurance authority and tax office
• Internal labour regulations and salary scale filings where required
• Work permits, temporary residence cards and visa coordination for foreign staff
• Dependant registration files supporting PIT deductions

Our standard monthly and annual rhythm for a Vietnamese payroll:

• By the 20th: variable data cut-off (overtime, bonuses, joiners and leavers)
• By the 25th: payroll calculation, review and approval by your team
• Month end: salary payment, payslip distribution and insurance contributions
• By the 20th of the following month: PIT declaration for monthly filers
• By the 30th of the month after each quarter: PIT declaration for quarterly filers
• By 31 March: annual PIT finalisation for employees

• Registering employees on a minimum salary while paying a higher amount in practice
• Treating allowances and benefits in kind as tax-free without documentation
• Missing insurance registration for staff hired mid-month
• Paying foreign staff from head office without declaring Vietnam-sourced income
• Keeping payroll records only in a spreadsheet, with no audit trail
• Forgetting the annual PIT finalisation for employees who left during the year

Tell us your headcount, salary structure and whether you employ foreign staff. We will come back with a fixed monthly payroll quote from our local partner network.