As a standard, the employer in Vietnam must pay for four types of state insurance for employees as below:
In total, the total percentage for the above is usually 23.5% with a cap number at $330/person/month. However, due to the Covid situation, the Government has reduced the rate to 22% until July 2022.
Here is an example of the total cost of hiring an employee that receives a typical salary in Ho Chi Minh City:
|Social insurance 17.50%||3,150,000|
|Health insurance 3%||540,000|
|Unemployment insurance 1%||180,000|
|Labor union fee 2%||360,000|
|Total cost for the employer||22,230,000|
An employer of record service fee is 10% of the total employment cost.
Further reading on employment taxes in Vietnam:
Emerhub's employer of record service allows you to hire anyone in Vietnam with minimum bureaucracy. Your employees will be formally on our payroll while working entirely for your company.
No need to set up a local company in Vietnam. You manage your employee, we take care of taxes, local HR matters, etc.