Vietnamese Dong (VND)
Salary Pay Date
Salaries are paid monthly on the last working day of the month, unless otherwise stipulated in the contract of employment.
Employers have the legal right to establish their own pay scales and salary structures, provided that the minimum wage requirements are met.
The minimum wage in Vietnam is regional and varies dependent on the job role.
Region i: urban Hanoi and Ho Chi Minh City
Region ii: covers rural Hanoi and Ho Chi Minh; urban Can Tho, Da Nang and Hai Phong
Region iii: includes provincial cities and districts of Ban Ninh, Bac Giang, Hai Duong, and Binh Phuc provinces
Region iv: all remaining localities
A 13-month salary bonus is common and is traditionally paid prior to the Lunar New Year or at the end of the calendar year.
There are no legal guidelines for bonus payments; however, they typically range between 1 to 3 months’ salary.
Any additional bonus entitlement should be outlined in the contract of employment.
Social Security System
The Vietnam (Viet Nam) Social Security System (VSS) manages all funds relating to social, health and employment benefits.
Both employers and employees are required to pay monthly contributions to social insurance, health insurance and unemployment insurance.
Basic healthcare insurance is paid through the social security contributions and entitles all employees to basic public healthcare. Employees will be provided with a health insurance card, granting them access to healthcare and treatment.
It is common for employees to provide supplementary private healthcare and life insurance for employees.
Employers are required to pay monthly contributions to Viet Nam Social Security to cover social, health and unemployment insurance.
Social insurance provides cover against sickness, maternity, retirement, occupational diseases, invalidity, and death.
The employer is additionally obliged to withhold the employee’s contribution from their salary and is responsible for the payment of all insurance contributions each month.
The rate of contribution varies dependent on whether the employee is a Vietnamese national (local employee) or a foreign employee residing in Vietnam.
The threshold for Social Security contributions and Health Insurance is 20 times the minimum base salary (VND 29,800,000.00 – January 2022). Unemployment Insurance is capped at 20 times the regional minimum wage.
Please note: Social Insurance contributions are reduced by 0.5% until 30th June 2022, applying the 0% contribution rate to the Labour Accident and Occupational Disease Fund. This contribution should instead be used to support employees affected by COVID-19.