Professional Payroll Services in Vietnam for Local and International Companies
Our Vietnam payroll service provides comprehensive payroll processing, tax compliance, and social insurance management for businesses operating in Vietnam. With over 15 years of experience managing payroll for 500+ companies, we ensure accurate, compliant, and timely payroll processing that meets all Vietnamese labor law requirements.
Key Elements of Payroll Compliance in Vietnam
Mandatory Contributions
Both employers and employees are required to contribute to Vietnam’s compulsory insurance schemes, which fund pensions, healthcare, and unemployment support.
| Contribution Type | Employer Rate | Employee Rate |
| Social Insurance (SI) | 17.5% | 8% |
| Health Insurance (HI) | 3% | 1.5% |
| Unemployment Insurance (UI) | 1% | 1% |
Overtime and Bonuses
Employers working beyond regular hours must be compensated at higher rates for their time.
Overtime Pay
Weekdays: 150% of the standard hourly wage.
Weekends: 200% of the standard hourly wage.
Public Holidays
300% of the standard hourly wage.
Night Work (10 PM to 6 AM)
An additional 30% premium on top of their normal hourly rate or overtime rate.
Tet Bonus
While not legally mandatory, companies often offer a 13th-month salary or Tet bonus, especially around Lunar New Year. The bonus is typically equal to one month’s salary.
Income Tax Withholding
Employers in Vietnam are responsible for acting as a withholding agent for Personal Income Tax (PIT). This is. an important part of tax reporting in Vietnam, which includes:
- Registering employees and dependents with the General Department of Taxation.
- Withholding PIT from employee salaries based on Vietnam’s progressive tax rates, which are set at 5% to 35% for residents, and a flat rate of 20% for non-residents.
- Applying deductions to PIT, which includes personal allowance, dependent allowance, and mandatory insurance contributions.
- Remitting PIT and filing returns on time.
Payroll Cycle and Compliance Requirements
Payroll Frequency and Salary Payments
Payroll in Vietnam is usually processed monthly, with a fixed payday agreed upon in the labor contract. Employers must ensure salaries are paid on time and in full by the last working day of the month to avoid penalties or disputes.
Tax and Contribution Deadlines
Withheld PIT and mandatory contributions must be remitted to the authorities monthly or quarterly, depending on the company’s filing status. Our tax and accounting service will make sure you never miss a deadline.
Annual Finalization
Employers must submit a year-end PIT finalization report, ensuring all employee income and deductions are accurately reported.
Recordkeeping and Reporting
Accurate payroll records, payslips, and statutory filings must be maintained and kept for at least 10 years to remain compliant with audits and inspections.
Steps to Register Employees for Payroll Management with Emerhub
From setup to compliance, here’s how we can streamline your entire payroll process:
1
Employee Onboarding and Setup
During the initial consultation, we will start by understanding your business needs and current payroll setup. As you provide us with your employee’s documentation and salary information, we will set them up in our system.
2
Statutory and Government Registrations
Our team will handle any mandatory registrations with the local government for your employees, which includes social and health insurance with the local labor department.
3
Monthly Payroll Processing
We will process your payroll monthly, accurately calculating salaries, benefits, overtime, and employment taxes on time.
4
Tax Filings and Compliance Reporting
When it comes to taxes, our accountants will assist you with your quarterly personal income tax filings, annual PIT settlements, and employee payslips, providing expert advice as needed.
Emerhub’s Core Payroll Services
In line with our payroll service, here’s what our core services entail:
Monthly Payroll Administration
Salary calculation with overtime, bonuses, social security contributions, income tax withholding, and reporting.
Statutory Compliance and Filings
Monthly and quarterly tax filings, tax and labor regulation updates.
Hiring and Termination Support
Onboarding documentation, final pay calculations, severance, clearance letter support, and post-termination filing.
Industries We Serve
We’ve developed specialized expertise across key sectors in Vietnam
Manufacturing & Industrial
Complex shift patterns and overtime calculations.
Technology & Software
Stock options and international employee management.
BPO and Back Offices
Employee payroll, taxes, and compliance.
Education & Training
Contract teacher payments and seasonal variations.
Healthcare & Pharmaceuticals
Professional allowances and compliance.
Financial Services
Bonus structures and commission calculations.
FAQs on Payroll in Vietnam
Salaries must be paid in Vietnamese Dong (VND), even if the employment contract specifies a foreign currency. The exchange rate applied is the rate announced by the State Bank of Vietnam on the payment date.
Yes, when hiring foreign employees, these individuals must hold a valid work permit, visa, and employment contract. Employers must also register them for social insurance (if eligible) and withhold income tax.
Payslips typically include your employee’s gross salary, allowances, overtime pay, deductions, and the net salary paid.
Yes, employers may issue digital or electronic payslips, provided they are secure and accessible to employees.
Probation salary must be at least 85% of the agreed contractual salary. Probation periods vary by job level but generally last 6 to 60 days.
No, freelancers or contractors are not treated as employees, so they are not included in your standard payroll. However, payments to contractors may still require tax withholding depending on their residency status.
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Streamline Payroll and Stay Compliant with Emerhub
Get in touch for a consultation and learn how we can manage your statutory registrations, monthly salary processing, and tax reporting on your behalf.
Email Us
vietnam@emerhub.com
Call Us
+84 911 413 595
Visit Us
1bis Phạm Ngọc Thạch, Bến Nghé, Quận 1, Hồ Chí Minh, Vietnam