This guide is for general reference only and is not legal advice. Obtain local advice for decisions affecting employment terms or payroll compliance.
Employee benefits in Vietnam combine compulsory insurance, paid leave, public holidays, termination payments, regional minimum wages, and trade-union funding. For a standard Vietnamese private-sector employee, the compulsory insurance package totals 21.5% for the employer and 10.5% for the employee, while statutory annual leave starts at 12 working days after a full year of service.
Competitive employers commonly add private medical coverage, dental riders, learning support, flexible-work options, and a Tết or 13th-month payment. These additions are market norms rather than universal legal entitlements, although contractual or policy promises should be administered consistently.
Mandatory benefits in Vietnam include compulsory insurance, paid annual and public-holiday leave, sickness and parental benefits, statutory termination payments, regional minimum wages, and trade-union funding. The table summarizes the core employer obligations.
Benefit | Entitlement / rate | Legal basis |
|---|---|---|
Compulsory Insurance for Vietnamese Employees | Employer 21.5%; employee 10.5%. Employer components: retirement and survivorship 14%, sickness and maternity 3%, occupational accident and occupational disease 0.5%, health insurance 3%, and unemployment insurance 1%. Employee components: retirement and survivorship 8%, health insurance 1.5%, and unemployment insurance 1%. | Law on Social Insurance, 2024; Law on Health Insurance, 2008; Law on Employment, 2013. |
Compulsory Insurance for Qualifying Foreign Employees | Employer 20.5%; employee 9.5%. Unemployment insurance does not apply. | Law on Social Insurance, 2024; Law on Health Insurance, 2008. |
Paid Annual Leave | 12, 14, or 16 working days after 12 months, depending on role and employee category; pro rated for shorter service, plus 1 day for every five full years with the same employer. | Labor Code, 2019. |
Sickness Benefit | Generally 75% of the compulsory-social-insurance salary base, subject to statutory eligibility and annual limits. | Law on Social Insurance, 2024. |
Maternity Benefit | 6 months for childbirth, with 30 additional days for each child after the first in a multiple birth; paid at 100% of the prescribed average contribution salary. | Law on Social Insurance, 2024. |
Paternity Benefit | 5, 7, 10 plus 3 days per additional child, or 14 working days, depending on birth circumstances. | Law on Social Insurance, 2024. |
Public Holidays | 11 paid public-holiday days annually; work on a public holiday attracts at least 300% of normal wage, excluding holiday pay where separately due. | Labor Code, 2019. |
Severance Allowance | For qualifying employees with at least 12 months of regular service: 0.5 month's average contractual wage per year of qualifying service. | Labor Code, 2019. |
Job-Loss Allowance | For qualifying restructuring, economic, or redundancy dismissals: 1 month's wage per year of service, with a minimum of 2 months' wage. | Labor Code, 2019. |
Trade-Union Funding | Employer contribution of 2% of the payroll base used for compulsory social-insurance contributions. | Trade Union Law, 2024. |
Regional Minimum Wage | Monthly and hourly minimums range from VND 5,310,000 and VND 25,500 in Region I to VND 3,700,000 and VND 17,800 in Region IV. | Decree No. 293/2025/ND-CP. |
Vietnamese employees working under labor contracts of at least one month are generally covered by compulsory insurance. The standard private-sector package is 21.5% employer-funded and 10.5% employee-funded: retirement and survivorship, sickness and maternity, occupational accident and occupational disease, health, and unemployment insurance. The contribution ceiling for social and health insurance is VND 50,600,000 per month. Qualifying foreign employees generally contribute 20.5% employer-side and 9.5% employee-side, without unemployment insurance.
After 12 months with the same employer, employees receive 12 working days of paid annual leave for normal work. The entitlement is 14 working days for employees under 18, employees with disabilities, and specified heavy, hazardous, dangerous, or harsh-condition roles; it is 16 working days for especially demanding categories. Shorter service is pro rated, and one additional working day accrues after every five full years with the same employer. These rules are set by the Labor Code, 2019.
Eligible compulsory-social-insurance participants generally receive a sickness benefit equal to 75% of the applicable contribution salary base. For ordinary work, annual maximum leave is 30 working days with under 15 years of contributions, 40 days with 15 to under 30 years, and 60 days with 30 years or more. For qualifying heavy, hazardous, dangerous, or especially difficult work, the limits are 40, 50, and 70 working days. The Law on Social Insurance, 2024 governs these benefits.
Childbirth leave is 6 months, with 30 days added for each child from the second child onward in a multiple birth. Prenatal leave cannot exceed 2 months. Eligible employees receive 100% of their average monthly compulsory-social-insurance salary over the six months before leave, paid by the insurance fund. A qualifying birth or adoption also carries a one-time benefit equal to twice the reference salary per child. The Law on Social Insurance, 2024 also covers adoption, surrogacy, miscarriage, abortion, and stillbirth circumstances.
A qualifying male employee receives 5 working days for a normal birth, 7 working days for a cesarean birth or a child born before 32 weeks, and 10 working days for twins plus 3 additional days per extra child. Twins delivered by cesarean section qualify for 14 working days. Leave must be used within 60 days of birth. The compulsory social-insurance fund pays 100% of the applicable insured salary on the statutory daily basis under the Law on Social Insurance, 2024.
Vietnam provides 11 paid public-holiday days: New Year's Day, five Lunar New Year days, Hung Kings Commemoration Day, Victory Day, International Labor Day, and two National Day days. Foreign employees also receive one traditional national day and one national New Year holiday from their home country. Work performed on a public holiday is paid at no less than 300% of normal wage, excluding separately payable holiday wages for day-paid employees. These entitlements are established by the Labor Code, 2019.
Different termination triggers produce different payments. A qualifying normal termination after at least 12 months of regular service can require severance of 0.5 month's average contractual wage per qualifying year, excluding unemployment-insurance-covered service. Restructuring, technology, economic, or specified business-change dismissals can require job-loss allowance of 1 month's wage per year, with a 2-month minimum. Unlawful employer termination requires reinstatement and back pay plus at least 2 months' contractual wage. Pension-eligible employees do not receive statutory severance. The Labor Code, 2019 governs these formulas.
Employers that employ people subject to compulsory social insurance must pay trade-union funding of 2% of the payroll fund used as the compulsory-social-insurance contribution base. The obligation applies whether or not a grassroots trade union has been established. It is an employer-only statutory cost and has no separate monetary ceiling apart from the applicable insurance payroll base. The contribution is governed by the Trade Union Law, 2024, published through the Government legal portal.
Normal working time is capped at 8 hours per day and 48 hours per week. This is distinct from the overtime-inclusive limit: normal and overtime hours together cannot exceed 12 hours in one day. Overtime is generally limited to 40 hours per month and 200 hours per year, rising to 300 hours annually for specified sectors, occupations, and circumstances. Employees working overtime receive at least 150% on ordinary days, 200% on weekly rest days, and 300% on public holidays; night-work supplements also apply. Regional minimum wages are VND 5,310,000 monthly or VND 25,500 hourly in Region I, VND 4,730,000 or VND 22,700 in Region II, VND 4,140,000 or VND 20,000 in Region III, and VND 3,700,000 or VND 17,800 in Region IV under Decree No. 293/2025/ND-CP.
The following benefits are typical market practices in Vietnam, not statutory entitlements. Employers can use them to differentiate their total rewards package while documenting eligibility and administration rules clearly.
Private medical insurance is a typical professional-market benefit, especially among larger employers. Vietnam-only professional plans commonly cost VND 8,000,000-VND 25,000,000 per employee per year, with higher costs for international, maternity, or family coverage. Dental is often an optional rider rather than stand-alone coverage; indicative incremental premiums are VND 2,100,000-VND 3,780,000 per employee per year, with typical annual limits of VND 5,000,000-VND 10,000,000.
Wellness support and learning budgets are common retention tools rather than legal requirements. Typical wellness or mental-health support may range from VND 1,000,000-VND 5,000,000 per employee per year for an employee assistance program, counseling, screenings, or group activities. Structured learning, certifications, tuition support, and professional upskilling commonly receive VND 4,000,000-VND 20,000,000 per employee per year. Employers should align reimbursement rules with payroll and tax treatment.
Flexible schedules, occasional remote work, and hybrid arrangements are differentiating practices for eligible office-based roles. They are not a statutory employee right in Vietnam. A written policy typically addresses eligibility, attendance and time recording, overtime approval, equipment, information security, data handling, expense treatment, incident reporting, and health-and-safety responsibilities. General working-time, occupational-safety, contract, and internal-rule obligations continue to apply when employees work remotely.
A 13th-month salary or Tết bonus is customary and often expected in the professional market, but it is not universally required by law. A typical design is 1 month of gross salary per year, usually paid before Tết and prorated for incomplete service. Separate performance bonuses may typically add 1-3 months of base salary depending on results. If promised in a contract, offer, collective agreement, or policy, the terms should be applied consistently.
Total employer cost is driven by salary, compulsory insurance bases and ceilings, trade-union funding, and the market benefits an employer chooses to offer. Private coverage, bonuses, and learning budgets should be modeled separately from mandatory payroll on-costs.
cost_line | typicalemployercost | notes |
|---|---|---|
Baseline Payroll On-Cost for a Vietnamese Employee | 21.5% of relevant insurance salary, plus 2% trade-union funding where applicable | Statutory baseline cost; insurance ceilings can limit the absolute amount. |
Baseline Payroll On-Cost for an Eligible Foreign Employee | 20.5% of relevant insurance salary, plus 2% trade-union funding where applicable | Statutory baseline cost; unemployment insurance is generally excluded. |
Private Medical Insurance | VND 8,000,000-VND 25,000,000 per employee per year | Indicative market range; premiums vary by age, group size, coverage, limits, and claims experience. |
Dental Rider or Top-Up | VND 2,100,000-VND 3,780,000 per employee per year | Indicative market range; plan design and annual limits affect premiums. |
Wellness or Mental-Health Support | VND 1,000,000-VND 5,000,000 per employee per year | Indicative planning range for employee assistance, counseling, screening, or wellness activities. |
Learning and Development | VND 4,000,000-VND 20,000,000 per employee per year | Typical range for training, certifications, tuition support, and professional upskilling. |
13th-Month or Tết Bonus Accrual | 1 month of gross salary per year | Typical market-norm accrual where offered; it is not a universal statutory entitlement. |
Social Activities and Team Building | Approximately VND 1,530,000 per employee per year | Indicative budget for employer-sponsored group activities. |
For a Vietnamese employee earning VND 35,000,000 gross monthly, annual base salary is VND 420,000,000. Adding 21.5% employer insurance, 2% trade-union funding, a one-month 13th-month accrual, and typical private medical coverage produces an estimated annual package of approximately VND 561,700,000-VND 578,700,000. This illustration excludes allowances, equipment, recruitment, taxes, immigration, and performance bonuses. Model your full package in our cost calculator.
1. Mislabeling Promised Bonuses as Discretionary
A Tết or 13th-month payment may begin as a market practice, but terms in a contract, offer, collective agreement, or policy can make administration binding. Define eligibility, proration, payment timing, leaver treatment, and any discretion consistently.
2. Using the Wrong Insurance Salary Base
Do not assume every fixed allowance falls outside the compulsory-insurance base. Contractual salary, qualifying allowances, and certain additional payments can affect contributions. Apply compliant VND conversion where pay is denominated in foreign currency.
3. Leaving Remote Work Unstructured
Hybrid work is not governed by a dedicated work-from-home statute. Employers should document approvals, timekeeping, overtime authorization, equipment, security, confidentiality, incident reporting, and workplace-safety responsibilities before implementing remote arrangements.
4. Administering Family Coverage Informally
Family medical coverage needs clear eligibility, waiting periods, employee contributions, enrollment windows, insurer exclusions, and leaver treatment. Clear payroll collection and communication processes reduce disputed deductions, inequity, and missed enrollment.
Atlas HXM helps employers administer statutory and supplemental benefits in Vietnam through compliant payroll coordination, employee enrollment, and clear local documentation. Explore our global employee benefits administration support for multi-country teams.
For hiring and employing workers locally, Atlas HXM can support Vietnam employment administration through its Vietnam employer of record service.
21.5% is the standard employer contribution for a Vietnamese private-sector employee, covering retirement and survivorship, sickness and maternity, occupational accident and occupational disease, health, and unemployment insurance.
3% of the applicable contribution salary is the employer health-insurance rate. Employees contribute 1.5% toward health insurance under the standard Vietnamese employee package.
Yes, employers pay 1% and covered Vietnamese employees pay 1% for unemployment insurance. Qualifying foreign employees are generally excluded from this insurance.
12 working days is the standard annual-leave entitlement after 12 months of service. Eligible employees in specified categories receive 14 or 16 working days instead, with an extra day after each five full years of service.
No. A typical market practice is 1 month of gross salary per year, commonly paid before Tết, but it becomes important to honor when incorporated into contractual or policy terms.
About our data. Statutory rates and entitlements are compiled from primary official sources, including the Ministry of Justice legal database, Vietnam Social Security, and the Labor Code No. 45/2019/QH14, and maintained in Atlas HXM's country compliance reference.
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