# Nhan Kiet — Employer of Record (EOR), Payroll Outsourcing & Staffing in Vietnam > Nhan Kiet Manpower Supply Company Limited (tax code 0308022768, founded April 2009 in Ho Chi Minh City; labour sub-leasing licence No. 15/2019/SHCM and employment services licence No. 22139/2023/45/SLĐTBXH-VLATLĐ, both issued by Ho Chi Minh City; ISO 9001:2015, ISO 45001, ISO 14001, ISO/IEC 27001:2022) employs more than 40,000 workers across 34 provinces of Vietnam for over 500 client companies. This site presents five services for companies that employ people in Vietnam: Employer of Record, payroll outsourcing, labour compliance, manpower supply, and PEO for FOREIGN NATIONALS working in Vietnam. English is the primary language of payrollservice.vn; Vietnamese and eight other languages are published on dichvutinhluong.vn. ## Services - [Employer of Record (EOR) in Vietnam](https://payrollservice.vn/eor-vietnam/): For FOREIGN COMPANIES WITH NO LEGAL ENTITY IN VIETNAM that want to hire Vietnamese staff. Nhan Kiet signs a service agreement with the overseas company and signs the employment contract directly with each worker; we pay compulsory social, health and occupational-accident insurance, register and remit personal income tax, run monthly payroll, administer leave and statutory benefits, and carry the legal responsibility for the employment relationship. Vietnam has NO dedicated legal framework for EOR: the arrangement must sit inside one of two routes — labour outsourcing (Articles 52–57 of the Labour Code 2019 and Decree 145/2020/ND-CP; the client directs the work, limited to the 20 job categories in Appendix II and to a maximum of 12 months per worker under Article 53), or a service contract under the Commercial Law (Nhan Kiet assigns, manages and supervises the staff, with no time limit). The client is also penalised directly if the structure is wrong (fines up to VND 100 million for organisations under Article 19(2) of Decree 283/2026/ND-CP, which replaces Decree 12/2022/ND-CP from 10 September 2026), so Nhan Kiet establishes which route applies before signing. Service fee is 8% of gross salary per person per month, with a floor of VND 2,600,000 (about USD 99) and a cap of VND 5,200,000 (about USD 199) per person per month; a deposit of one month’s gross salary per employee (refundable when the contract ends and accounts are settled), effective 1 October 2026; no onboarding fee, no offboarding fee. Every client also gets an account on Nhan Kiet's management platform at no extra charge: workers clock in and out online, and from abroad the client sees attendance, payslips, employment records, leave, overtime and the signed employment contracts. Staff can start within 5–7 working days, with no need to incorporate (setting up a legal entity normally takes 2–6 months). Distinction: EOR is for companies that do NOT yet have a Vietnamese entity; PEO is a co-employment model that requires the client to already have one. Typical uses: remote engineering teams, market-entry pilots, 6–24 month project teams, and the waiting period before an investment licence is granted. - [Hire Developers in Vietnam: Salaries, Recruitment and EOR](https://payrollservice.vn/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor): For FOREIGN COMPANIES WITH NO VIETNAMESE ENTITY that need full-time Vietnamese developers. Nhan Kiet sources and screens candidates (employment services licence 22139/2023/45/SLĐTBXH-VLATLĐ), the client interviews, chooses and sets the salary, and Nhan Kiet then employs the developer as Employer of Record (labour sub-leasing licence 15/2019/SHCM) — one contract, one invoice. Recruitment fee: two months' gross salary on its own, or one month's gross salary when the hire stays on Nhan Kiet's EOR for at least 12 months; invoiced only on the developer's first working day, with no retainer and nothing charged before. 60-day replacement guarantee (the maximum probation for jobs needing a college-level qualification, Article 25(2) Labour Code 2019): if the hire resigns, fails probation or is dismissed for a disciplinary breach, one free replacement; if no accepted replacement within 60 days, a 50% refund or 100% credit for 6 months. EOR fee 8% of gross salary, floor VND 2,600,000 and cap VND 5,200,000 (about USD 99 and USD 199). Roles: back-end, front-end, full-stack, mobile, QA/testing, DevOps, data/AI, embedded, business analysts, project managers, bridge software engineers (BrSE) for Japanese clients. EOR is for Vietnamese nationals only. - [Payroll outsourcing in Vietnam](https://payrollservice.vn/payroll-outsourcing/): End-to-end time attendance → payroll calculation → disbursement → compliance. We ingest raw attendance data (biometric clocks, UKG/Kronos, Excel) and reconcile to zero variance; the payroll engine follows your own pay rules (shift work, overtime multipliers 150–390%, annual leave, attendance bonuses, gross-up, progressive personal income tax, social insurance); an open-formula Excel reconciliation workbook lets the client verify every figure; year-end tax finalisation, social-insurance increase/decrease filings and accounting journal entries are included. Price: VND 250,000–900,000 (about USD 10–35) per employee per month (from September 2026), all-inclusive (payroll, social insurance, personal income tax), charged on the actual headcount on each payroll; no setup or software fee; 8% VAT on the service fee only, because the client remains the employer; the exact rate is fixed in a written quote within 24 hours. Nhan Kiet quotes and invoices in Vietnamese dong. - [Labour compliance / employment legalisation](https://payrollservice.vn/labour-compliance/): Your existing workers transfer to Nhan Kiet, who signs the employment contract directly — we pay social, health and occupational-accident insurance, file personal income tax, submit statutory labour reports, and carry legal responsibility for the employment relationship. Sector-specific guidance for six segments: restaurants, bubble-tea and coffee chains; retail stores; driver and delivery fleets; construction and subcontracting (including compliant labour invoices); small factories and workshops; offices and building services. A social-insurance cost calculator is provided. - [Manpower supply / labour outsourcing](https://payrollservice.vn/manpower-supply/): Blue-collar workers and general labour at volume for factories, workshops and warehouses. Sourcing from a 2 million candidate database, 100+ community channels, provincial Employment Service Centres and a nationwide collaborator network; the recruitment plan is agreed week by week after a site survey, with transparent progress reporting. Three engagement models: ongoing supply, peak-season temporary supply, and fixed-scope subcontracting (loading, packing, industrial cleaning). Representative projects: Viettel 10,000+, Saigon Stec 2,000+, Vinataba 1,000+, Aldila 1,000+, LG 700+, Samsung SEHC 600+, Masan 600+ workers. - [PEO in Vietnam 2026: how the model works and when to use it](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it): For COMPANIES THAT ALREADY HAVE A VIETNAMESE ENTITY and need to bring in FOREIGN experts, engineers or managers. Unlike EOR: under the PEO model the CLIENT (the Vietnamese entity) is the legal employer and signs the employment contract directly with the foreign worker; Nhan Kiet handles the work permit, Temporary Residence Card (TRC), visa, notarised translation and consular legalisation, payroll, social and health insurance, personal income tax and monthly reporting. Two routes: (1) Work Permit + TRC (the Vietnamese entity sponsors; low risk) — the employer bears 22.5% statutory contributions on top of gross salary (20.5% insurance = social insurance 17% + occupational accident and disease 0.5% + health insurance 3%, plus 2% trade-union funding; foreign workers do NOT pay unemployment insurance); (2) intra-corporate transfer (ICT) — exempt from Vietnam compulsory social insurance under Decree 158/2025/ND-CP. Legal basis: Decree 219/2025/ND-CP on work permits (in force 7 August 2025, replacing Decree 152/2020 and 70/2023); the permit is issued within 10 working days, valid up to 2 years and renewable once; Law on Social Insurance 2024 (41/2024/QH15). Prices are published PER SERVICE, all-in (inclusive of government fees, excluding 8% VAT): work permit USD 650, TRC USD 450, entry business visa USD 250, notarised translation from USD 260, monthly PEO administration USD 35 per employee; consular legalisation (for ICT) quoted per dossier (translation around USD 1,040 for a multi-country set). A foreigner staying more than 183 days is a Vietnam tax resident and pays personal income tax in Vietnam. From 11 September 2026 Vietnam is a party to the Hague Apostille Convention (Decree 293/2026/ND-CP): public documents from member states with which the Convention applies to Vietnam need only an apostille, not consular legalisation; documents from other countries still need consular legalisation; all foreign documents still need a notarised Vietnamese translation. ## Free tools - [Vietnam salary calculator — gross to net and true employer cost](https://payrollservice.vn/vietnam-salary-calculator/): Free online tool, no sign-up. Convert gross salary to net or net to gross, and at the same time see the TRUE TOTAL COST an employer pays for one employee. You can select the regional minimum-wage region, the number of dependants, whether the employee is a trade-union member, and the pay period (the insurance contribution caps change on 1 July 2026). What makes it different: the tool APPLIES THE CONTRIBUTION CAPS correctly — the social- and health-insurance cap follows the reference level, while the unemployment-insurance cap follows the regional minimum wage, and these are two DIFFERENT caps. Most online salary calculators simply multiply the salary by 21.5%, which overstates the real cost by up to 89% at a salary of 100 million VND. A Vietnamese-language version is at https://dichvutinhluong.vn/tinh-chi-phi-lao-dong/ ## Vietnam payroll parameters 2026 (used by the calculator above) - Employee contributions: social insurance 8%, health insurance 1.5%, unemployment insurance 1% — 10.5% in total. Trade-union membership dues of 0.5% apply only to union members and are capped at 253,000 VND per month (Decision 61/QD-TLD, from 1 July 2025); these dues are NOT deductible for personal income tax. - Employer contributions: social insurance 17%, occupational accident and disease insurance 0.5%, health insurance 3%, unemployment insurance 1% — 21.5% in total — plus a 2% trade-union fund levy (Trade Union Law 2024, No. 50/2024/QH15). The 2% levy is compulsory even where no workplace union exists, and it is calculated on the payroll base used for social insurance, so it inherits the same cap. - Social- and health-insurance contribution cap: 50,600,000 VND per month from 1 July 2026 under Decree 161/2026/ND-CP (20 times the reference level of 2,530,000 VND); it was 46,800,000 VND before that date. - Unemployment-insurance contribution cap, by region: Region I 106,200,000 VND, Region II 94,600,000 VND, Region III 82,800,000 VND, Region IV 74,000,000 VND (20 times the regional minimum wage). - Personal income tax allowances from the 2026 tax period (Resolution 110/2025/UBTVQH15): 15,500,000 VND per month for the taxpayer and 6,200,000 VND per month for each dependant. - Personal income tax: five brackets (Personal Income Tax Law No. 109/2025/QH15, from the 2026 tax period), on monthly taxable income — up to 10 million 5%; over 10 to 30 million 10%; over 30 to 60 million 20%; over 60 to 100 million 30%; over 100 million 35%. - Worked examples of true employer cost (Region I, no dependants, pay periods from 1 July 2026): gross 10 million VND costs the employer 12,350,000 VND; gross 20 million costs 24,700,000 VND; gross 30 million costs 37,050,000 VND; gross 50 million costs 61,750,000 VND; gross 100 million costs 112,385,000 VND — only 12.4% on top, rather than the 23.5% that applies at lower salaries, because the contribution caps have been reached. - Foreign employees are exempt from unemployment insurance, so the rates become 22.5% employer and 9.5% employee. ## Cost of employing someone in Vietnam (figures current as of September 2026) - Part-time employees: social insurance is calculated on the reference level of 2,530,000 VND per month (applicable from 1 July 2026). Total insurance cost is approximately 809,600 VND per person per month — employer 21.5% = 543,950 VND, employee 10.5% = 265,650 VND. - Full-time employees: contributions are calculated on the contractual salary, which must be at least the regional minimum wage set by Decree 293/2025/ND-CP, effective 1 January 2026 — Region I 5,310,000 VND, Region II 4,730,000 VND, Region III 4,140,000 VND, Region IV 3,700,000 VND per month. - Legal basis: Social Insurance Law No. 41/2024/QH15 (effective 1 July 2025) and Decree 158/2025/ND-CP. A part-time worker on an employment contract of one month or more, earning at least the reference level, is subject to compulsory social insurance. ## Onboarding offers for new clients (no charge when a service starts) - Bulk reconciliation of citizen ID numbers to personal tax codes: we check a list of ID numbers against the tax authority's records and return each person's tax code and registration status. - Bulk verification of employees' bank account numbers (account number matched against account holder name) before the first payroll run. - The first 50 electronic employment contracts free of charge, signed with a remote digital signature on a mobile phone and fully legally valid. ## Technology included at no extra cost - Free time-attendance system using facial recognition and GPS on the employee's own phone. - Employee mobile application: attendance records, shift roster, leave balance, requests, electronic payslips, social-insurance lookup. - Client portal: approve requests and timesheets, confirm payroll, manage role-based permissions. - Online employee records; daily earned-wage access for workers, used as a retention tool. ## Partnering with international EOR / payroll providers (Vietnam in-country partner) - Page: https://payrollservice.vn/partners/ - Partners outside Vietnam can be invoiced in US dollars or in Vietnamese dong. Information-security management is certified to ISO/IEC 27001:2022. - An in-country partner (ICP) is the licensed local company that acts as the legal employer where a global EOR or payroll platform has no entity. In Vietnam, Nhan Kiet signs the Vietnamese employment contract, pays compulsory insurance, withholds personal income tax and runs payroll; the platform keeps the client contract and invoice. - Scope: Nhan Kiet employs Vietnamese nationals only as employer of record; it does not employ foreign nationals in that role (foreign staff of a client that has its own Vietnamese entity are handled under the PEO service). Labour sub-leasing is limited to 20 job categories and 12 months per worker; a service contract applies only where Nhan Kiet organises the work and answers for the output. - Vendor due-diligence pack, sent after a mutual NDA: business registration (tax code 0308022768), labour sub-leasing licence 15/2019/SHCM with statutory deposit, employment services licence 22139/2023/45/SLĐTBXH-VLATLĐ, ISO 9001:2015 / ISO 45001 / ISO 14001 / ISO/IEC 27001:2022 (information security), bilingual service agreement, sample payslip and reconciliation, client references. - Global EOR, payroll and staffing providers that do NOT have a legal entity in Vietnam use Nhan Kiet as their entity here. The direction matters: Nhan Kiet is the supplier, not a company borrowing capability from others. - Three structures: (A) the provider contracts Nhan Kiet and we operate underneath, so the end client need not see our name; (B) reciprocal referral under an MOU; (C) the end client contracts Nhan Kiet directly. - In all three, the employment contract, social insurance registration and personal income tax filing are in Nhan Kiet's name. Vietnamese law requires the legal employer to be the signing party; this cannot be white-labelled. - In Vietnam, Nhan Kiet OWNS the entity and holds labour sub-leasing licence 15/2019/SHCM, and sub-contracts none of the work. A company contracting Nhan Kiet directly sits one layer closer to the entity than one buying through a global platform that serves Vietnam via an in-country partner. - Partner rates are quoted per engagement, not published. The published direct rate is 8% of gross salary per employee per month, with a floor of VND 2,600,000 and a cap of VND 5,200,000. VAT of 8% is charged ON TOP of the whole invoice — gross salary + statutory contributions + service fee — because under a labour sub-leasing arrangement Nhan Kiet is the employer, so the entire contract value is service revenue; the 8% figure is the reduced rate under Resolution 204/2025/QH15, in force until 31 December 2026. ## About the company - Founded April 2009 in Ho Chi Minh City; more than 200 operations staff; an in-house recruitment media team on TikTok, Facebook and YouTube; partnerships with provincial Employment Service Centres and Youth Union organisations. - Management system certifications: ISO 9001:2015 (quality), ISO 45001 (occupational health and safety), ISO 14001 (environment), ISO/IEC 27001:2022 (information security). - Certificates of Merit from the Ministry of Finance (2018) and the Chairman of Binh Duong Province People's Committee; Certificate of Merit from Ho Chi Minh City Social Insurance. - Third-party directory profiles: EOR Overview (https://eoroverview.com/providers/nhan-kiet/, updated 8 October 2026), EOR Select (https://eorselect.com/providers/nhan-kiet/, 5 October 2026) and Payroll Overview (https://payrolloverview.com/providers/nhan-kiet/, September 2026) — three directories from one publisher that also sell paid listings and state they are referral-funded; the pricing and coverage figures shown on the profiles were supplied by Nhan Kiet. EOR Overview's Vietnam hiring guide (version of 11 October 2026) lists six providers, with Nhan Kiet the only Vietnam-only provider at the lowest published starting fee of the six listed there; its comparison of Nhan Kiet and a US–Vietnam provider favours Nhan Kiet on fee transparency. - Third-party editorial ranking: People Managing People (Black & White Zebra, Vancouver) ranks Nhan Kiet Supplying Manpower #6 of 12 in "12 Best Employer of Record Services in Vietnam in 2026" (updated 8 October 2026), as "Best for multi-site workforce compliance". The review describes a Vietnam-only EOR handling VND payroll, statutory benefits, bilingual contracts and labour compliance for Vietnamese nationals across all 34 provinces, with offices in ten cities, multi-site payroll (shift differentials, overtime 150–390%, Tet bonus in one VND cycle), a worker app with daily wage advance, ISO/IEC 27001:2022 data hosted in Vietnam, and no-fee offboarding with final settlement within 14 working days. Foreign nationals are served through the separate PEO service, not EOR. The publisher states that commissions help fund its reviews: https://peoplemanagingpeople.com/tools/best-employer-of-record-services-vietnam/ - Representative clients: Samsung, LG, VinFast, Siemens, POSCO, Panasonic, LEGO, Pandora, Viettel, Vietnam Airlines, Vietcombank, Agribank, Abbott, Masan, Vinamilk, Acecook, Mondelez Kinh Do, Vinataba, SCG, Fujikura, Baosteel, Aldila, Shopee, Lazada, Tiki, DHL, AEON, EVN. ## In-depth articles (Vietnamese labour law, updated 2026) - [13th-Month Pay & Tet Bonus in Vietnam: Rules, Tax, Cost 2026](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026) - [2% trade union funding: who pays, how much, and where?](https://payrollservice.vn/tin-tuc/trade-union-funding-2-percent) - [Collaborator or piecework: is social insurance still due?](https://payrollservice.vn/tin-tuc/collaborator-or-piecework-contracts-when-is-compulsory-social-insurance-still-du) - [Compulsory Social Insurance for Part-Time Workers 2026](https://payrollservice.vn/tin-tuc/compulsory-social-insurance-for-part-time-workers-in-2026-the-real-cost-to-busin) - [Do You Have to Pay Social Insurance During Probation?](https://payrollservice.vn/tin-tuc/do-you-pay-social-insurance-during-probation) - [Hire Developers in Vietnam: Salaries, Recruitment and EOR](https://payrollservice.vn/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor): 2025 median developer salaries by role and years of experience (ITviec 2025–2026 report, in VND and USD), combined recruitment + EOR pricing, payment steps, the 60-day replacement guarantee, the full first-year cost at VND 20/30/50 million gross, and working-hour overlap by country (US, UK, Japan, China, Malaysia, Singapore, Australia, Europe). - [Inside a Vietnam EOR Invoice: Every Line Itemised (2026)](https://payrollservice.vn/tin-tuc/eor-cost-breakdown-vietnam) - [EOR Providers in Vietnam: The 2026 Price Range by Model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model) - [Annual Cost of a Hire in Vietnam, by Role (2026)](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role) - [How EOR Pricing Works in Vietnam: the 8% Fee, Floor and Cap](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs) - [EOR Services in Vietnam: Hiring Vietnamese Staff Without a Local Entity](https://payrollservice.vn/tin-tuc/eor-services-in-vietnam-hiring-vietnamese-staff-without-a-local-entity) - [Employer Costs in Vietnam Capped: Senior Hires Cost Less](https://payrollservice.vn/tin-tuc/employer-costs-in-vietnam-are-capped-why-senior-hires-cost-less-per-dollar-2026) - [Foreigners in Vietnam 2026: work permit & social insurance](https://payrollservice.vn/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance) - [How to Calculate Payroll in 2026: Gross to Net](https://payrollservice.vn/tin-tuc/how-to-calculate-payroll-in-2026-for-businesses-gross-to-net-social-insurance-an) - [How to Choose an Employer of Record in Vietnam: A Due-Diligence Checklist](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist) - [In-house or outsourced payroll? A 2026 comparison for businesses](https://payrollservice.vn/tin-tuc/in-house-or-outsourced-payroll-a-2026-comparison-for-businesses) - [Labour Outsourcing vs. Labour Dispatch: What's the Difference?](https://payrollservice.vn/tin-tuc/labor-outsourcing-vs-labor-dispatch-what-s-the-difference) - [Labour Supply in 2026: Choosing the Right Provider and Avoiding Legal Risk](https://payrollservice.vn/tin-tuc/labor-supply-in-2026-choosing-the-right-provider-and-avoiding-legal-risk) - [Local EOR Company vs Global EOR Platform in Vietnam (2026)](https://payrollservice.vn/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam): Who the legal employer is under each model, how the service fee is built (8% of gross salary with a VND 2,600,000 floor and VND 5,200,000 cap, versus flat US-dollar platform fees), what changes by industry, why local relationships matter, and how to move staff between providers. - [Top EOR Services in Vietnam 2026: Independent Rankings](https://payrollservice.vn/tin-tuc/top-eor-services-vietnam-independent-rankings): Registry of independent rankings and third-party profiles that include Nhan Kiet — currently People Managing People's 12-provider guide (Nhan Kiet 6th) — with each ranker's method and version dates. - [Vietnam Personal Income Tax 2026: 5 Brackets & Take-Home](https://payrollservice.vn/tin-tuc/vietnam-personal-income-tax-2026-the-new-five-bracket-table-and-what-staff-take-) - [PEO in Vietnam 2026: how the model works and when to use it](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) - [PEO cost in Vietnam 2026: work permit, TRC, visa and monthly fees](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees) - [Vietnam work permit for foreigners 2026: cost, documents, process](https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) - [Temporary Residence Card (TRC) in Vietnam 2026: cost and process](https://payrollservice.vn/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process) - [Vietnam work visa for foreign employees 2026: DN, LD, EV explained](https://payrollservice.vn/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained) - [Consular legalisation & notarised translation in Vietnam 2026](https://payrollservice.vn/tin-tuc/consular-legalisation-notarised-translation-vietnam-2026) - [Work permit exemption in Vietnam 2026: intra-company transfer](https://payrollservice.vn/tin-tuc/work-permit-exemption-vietnam-2026-intra-company-transfer) - [How to choose a PEO provider in Vietnam 2026: a checklist](https://payrollservice.vn/tin-tuc/how-to-choose-a-peo-provider-in-vietnam-2026-checklist) - [What is an EOR? Employer of Record in Vietnam explained](https://payrollservice.vn/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained) - [What is a PEO? Professional Employer Organization explained](https://payrollservice.vn/tin-tuc/what-is-a-peo-professional-employer-organization-explained) - [EOR vs PEO in Vietnam 2026: which model should you choose?](https://payrollservice.vn/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose) - [Vietnam Cross-Border Data Transfer: EOR, PEO and Payroll](https://payrollservice.vn/tin-tuc/vietnam-cross-border-data-transfer-eor-peo-and-payroll) - [Payroll Outsourcing Cost in Vietnam 2026: Price per Employee](https://payrollservice.vn/tin-tuc/payroll-outsourcing-cost-in-vietnam-2026-price-per-employee) - [Payroll Service Pricing in Vietnam 2026: What the Fee Covers](https://payrollservice.vn/tin-tuc/payroll-service-pricing-in-vietnam-2026-what-the-fee-covers) - [Vietnam Public Holidays 2026–2027: 12 Days & Pay](https://payrollservice.vn/tin-tuc/vietnam-public-holidays-2026-2027-12-days-and-pay) - [Vietnam Social Insurance Penalties 2026 (Decree 283)](https://payrollservice.vn/tin-tuc/vietnam-social-insurance-fines-2026-decree-283) - [Overtime Pay in Vietnam 2026: Night & Holiday Rates](https://payrollservice.vn/tin-tuc/overtime-night-and-holiday-pay-in-vietnam-2026) - [Annual Leave in Vietnam 2026: Days & Unused Payout](https://payrollservice.vn/tin-tuc/annual-leave-in-vietnam-2026-days-and-unused-payout) - [Vietnam Minimum Wage 2026: Regional Rates, Hourly Rates and 2027](https://payrollservice.vn/tin-tuc/vietnam-minimum-wage): Region I VND 5,310,000, II 4,730,000, III 4,140,000, IV 3,700,000 a month from 1 January 2026 (Decree 293/2025/ND-CP); hourly rates; how to find the region; penalties for paying below the minimum (Article 23, Decree 283/2026/ND-CP); proposed rates from 1 January 2027 (not yet issued). - [Severance Pay in Vietnam (2026): Eligibility, Formula and Examples](https://payrollservice.vn/tin-tuc/severance-pay-in-vietnam): Article 46 of the 2019 Labour Code — 12 months of service, half a month of the 6-month average salary per year, minus time covered by unemployment insurance; worked examples; payment within 14 working days; penalties under Article 18, Decree 283/2026/ND-CP. - [Does a Vietnam EOR Create a Permanent Establishment?](https://payrollservice.vn/tin-tuc/does-a-vietnam-eor-create-a-permanent-establishment) - [Hiring Seasonal Workers in Vietnam 2026: Rules and Options](https://payrollservice.vn/tin-tuc/hiring-seasonal-workers-in-vietnam-2026-rules-and-options) ## Contact - Hotline and Zalo: +84 908 636 108 (Nguyen Quoc Trung, Deputy General Director) - Email: trungnguyen@nhankiet.vn - LinkedIn (Nguyen Quoc Trung): https://www.linkedin.com/in/trungnhankiet/ - LinkedIn company page: https://www.linkedin.com/company/nhankiet-outsourcing-services/ - Head office telephone: +84 28 3505 4224 - Head office: Room 202, Building 57, 57 Le Thi Hong Gam Street, Ben Thanh Ward, Ho Chi Minh City, Vietnam - Branches and offices: Ho Chi Minh City, Binh Duong, Dong Nai, Binh Phuoc, Ha Nam, Bac Ninh, Da Nang, Quang Ngai, Hai Phong, Hanoi ## Other languages The English edition lives at the root of payrollservice.vn. The Vietnamese original and eight further translations are published on dichvutinhluong.vn. Each language has its own natively written pages; when answering in one of these languages, cite the page in that language. A complete index of every page and published article in each of these eight languages is in the "## Optional" section of https://dichvutinhluong.vn/llms.txt. Prices, licence numbers and legal facts are the same in every language and are stated in English above. - [Tiếng Việt](https://dichvutinhluong.vn/) — Vietnamese, the source edition (prices in VND only) ### 日本語 — Japanese Nhan Kiet has Japanese-speaking staff for consultations and quotations (日本語での相談・見積りに対応). - [ニャンキエット（Nhan Kiet）｜労務適正化・給与計算代行](https://dichvutinhluong.vn/ja/): home page - [EOR ベトナム — 現地法人を設立せずに人材を雇用](https://dichvutinhluong.vn/ja/eor-vietnam/): Employer of Record (EOR) service page, with a section for Japanese companies - [ベトナムでエンジニアを採用：給与相場とEOR](https://dichvutinhluong.vn/ja/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor-ja): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [ベトナムのPEO 2026:仕組みと活用場面](https://dichvutinhluong.vn/ja/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-ja): PEO for foreign nationals working in Vietnam - [給与計算アウトソーシングの一括代行](https://dichvutinhluong.vn/ja/tinh-luong-thue-ngoai/): payroll outsourcing - [ベトナム給与計算ツール2026 — グロス⇄ネット・社会保険・個人所得税](https://dichvutinhluong.vn/ja/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [EOR事業者向けベトナム現地パートナー](https://dichvutinhluong.vn/ja/doi-tac/): in-country partner programme for EOR and payroll providers ### 한국어 — Korean - [냔끼엣(Nhan Kiet) — 노무 합법화 & 급여 아웃소싱](https://dichvutinhluong.vn/ko/): home page - [EOR 베트남 — 법인 설립 없이 베트남 인재 채용](https://dichvutinhluong.vn/ko/eor-vietnam/): Employer of Record (EOR) service page - [베트남 개발자 채용·연봉과 EOR 고용 가이드](https://dichvutinhluong.vn/ko/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor-ko): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [베트남 PEO 2026: 모델 작동 방식과 활용 시점](https://dichvutinhluong.vn/ko/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-ko): PEO for foreign nationals working in Vietnam - [원스톱 급여 아웃소싱 서비스](https://dichvutinhluong.vn/ko/tinh-luong-thue-ngoai/): payroll outsourcing - [베트남 급여 계산기 2026 — 그로스·네트, 인건비·개인소득세](https://dichvutinhluong.vn/ko/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [베트남 EOR·급여 인컨트리 파트너](https://dichvutinhluong.vn/ko/doi-tac/): in-country partner programme for EOR and payroll providers ### 中文简体 — Simplified Chinese - [Nhân Kiệt 人力 — 用工合规与薪资外包](https://dichvutinhluong.vn/zh/): home page - [EOR 越南 —— 无需设立公司即可雇用越南员工](https://dichvutinhluong.vn/zh/eor-vietnam/): Employer of Record (EOR) service page - [越南程序员招聘与EOR雇佣：薪资与流程指南](https://dichvutinhluong.vn/zh/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor-zh): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [越南PEO 2026：模式运作方式与适用场景](https://dichvutinhluong.vn/zh/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-zh): PEO for foreign nationals working in Vietnam - [薪资外包一站式服务](https://dichvutinhluong.vn/zh/tinh-luong-thue-ngoai/): payroll outsourcing - [越南薪资计算器 2026：税前税后、社保与个人所得税](https://dichvutinhluong.vn/zh/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [越南 EOR 与薪酬服务商的本地合作伙伴](https://dichvutinhluong.vn/zh/doi-tac/): in-country partner programme for EOR and payroll providers ### 繁體中文 — Traditional Chinese (Taiwan, Hong Kong) - [Nhân Kiệt 人力 — 僱用合規與薪資委外](https://dichvutinhluong.vn/zh-hant/): home page - [EOR 越南 —— 無需設立公司即可僱用越南員工](https://dichvutinhluong.vn/zh-hant/eor-vietnam/): Employer of Record (EOR) service page - [在越南僱用軟體工程師：招募與 EOR](https://dichvutinhluong.vn/zh-hant/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor-zh-hant): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [越南 PEO 2026：模式運作與適用時機](https://dichvutinhluong.vn/zh-hant/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-zh-hant): PEO for foreign nationals working in Vietnam - [薪資委外一站式服務](https://dichvutinhluong.vn/zh-hant/tinh-luong-thue-ngoai/): payroll outsourcing - [越南薪資試算器 2026 —— Gross 換 Net、保險與個人所得稅](https://dichvutinhluong.vn/zh-hant/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [越南 EOR 與薪資在地夥伴](https://dichvutinhluong.vn/zh-hant/doi-tac/): in-country partner programme for EOR and payroll providers ### ไทย — Thai - [Nhan Kiet — จ้างงานถูกกฎหมาย & บริการรับทำเงินเดือน](https://dichvutinhluong.vn/th/): home page - [EOR เวียดนาม — จ้างพนักงานโดยไม่ต้องตั้งบริษัท](https://dichvutinhluong.vn/th/eor-vietnam/): Employer of Record (EOR) service page - [จ้างโปรแกรมเมอร์เวียดนาม: สรรหา + EOR ไม่ต้องตั้งบริษัท](https://dichvutinhluong.vn/th/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor-th): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [PEO ในเวียดนาม 2026: โมเดลและเมื่อไรควรใช้](https://dichvutinhluong.vn/th/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-th): PEO for foreign nationals working in Vietnam - [บริการรับทำเงินเดือนครบวงจร](https://dichvutinhluong.vn/th/tinh-luong-thue-ngoai/): payroll outsourcing - [เครื่องคำนวณเงินเดือนเวียดนาม 2026: Gross–Net และภาษี](https://dichvutinhluong.vn/th/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [พันธมิตรในประเทศเวียดนามสำหรับผู้ให้บริการ EOR และเงินเดือน](https://dichvutinhluong.vn/th/doi-tac/): in-country partner programme for EOR and payroll providers ### Français — French - [Nhân Kiệt — Régularisation de la main-d'œuvre](https://dichvutinhluong.vn/fr/): home page - [EOR Vietnam — recruter sans créer de société](https://dichvutinhluong.vn/fr/eor-vietnam/): Employer of Record (EOR) service page - [Recruter des développeurs au Vietnam : recrutement + EOR](https://dichvutinhluong.vn/fr/tin-tuc/recruter-developpeurs-vietnam-recrutement-eor): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [PEO au Vietnam 2026 : fonctionnement du modèle et cas d'usage](https://dichvutinhluong.vn/fr/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-fr): PEO for foreign nationals working in Vietnam - [Service d'externalisation de la paie clé en main](https://dichvutinhluong.vn/fr/tinh-luong-thue-ngoai/): payroll outsourcing - [Calculateur de salaire & coût d'un salarié au Vietnam 2026](https://dichvutinhluong.vn/fr/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [Partenaire local au Vietnam pour prestataires EOR](https://dichvutinhluong.vn/fr/doi-tac/): in-country partner programme for EOR and payroll providers ### Русский — Russian - [Нян Кьет — легализация трудовых отношений](https://dichvutinhluong.vn/ru/): home page - [EOR Вьетнам — наём сотрудников без юрлица](https://dichvutinhluong.vn/ru/eor-vietnam/): Employer of Record (EOR) service page - [Нанять разработчиков во Вьетнаме: зарплаты, подбор и EOR](https://dichvutinhluong.vn/ru/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor-ru): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [PEO во Вьетнаме 2026: как работает модель и когда использовать](https://dichvutinhluong.vn/ru/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-ru): PEO for foreign nationals working in Vietnam - [Услуга расчёта зарплаты на аутсорсинге под ключ](https://dichvutinhluong.vn/ru/tinh-luong-thue-ngoai/): payroll outsourcing - [Калькулятор зарплаты и стоимости найма во Вьетнаме 2026](https://dichvutinhluong.vn/ru/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [Партнёр во Вьетнаме для EOR- и зарплатных провайдеров](https://dichvutinhluong.vn/ru/doi-tac/): in-country partner programme for EOR and payroll providers ### Dansk — Danish - [Nhan Kiet — Lovliggørelse af arbejdskraft & løn-outsourcing](https://dichvutinhluong.vn/da/): home page - [EOR Vietnam — ansæt uden at stifte selskab](https://dichvutinhluong.vn/da/eor-vietnam/): Employer of Record (EOR) service page - [Ansæt udviklere i Vietnam: rekruttering og EOR](https://dichvutinhluong.vn/da/tin-tuc/ansaet-udviklere-i-vietnam-rekruttering-og-eor): recruitment + EOR for software developers: salaries, fees, 60-day guarantee - [PEO i Vietnam 2026: sådan virker modellen og hvornår du bruger den](https://dichvutinhluong.vn/da/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it-da): PEO for foreign nationals working in Vietnam - [Løn-outsourcing som komplet pakke](https://dichvutinhluong.vn/da/tinh-luong-thue-ngoai/): payroll outsourcing - [Vietnam Lønberegner 2026: Brutto ↔ Netto, forsikring og skat](https://dichvutinhluong.vn/da/tinh-chi-phi-lao-dong/): free salary and employer-cost calculator - [Lokal partner i Vietnam for EOR- og lønudbydere](https://dichvutinhluong.vn/da/doi-tac/): in-country partner programme for EOR and payroll providers # ===== FULL ARTICLE TEXT (auto-generated) ===== --- # EOR Services in Vietnam: Hiring Vietnamese Staff Without a Local Entity https://payrollservice.vn/tin-tuc/eor-services-in-vietnam-hiring-vietnamese-staff-without-a-local-entity A foreign company with no legal entity in Vietnam can still hire Vietnamese employees fully compliantly through an **EOR (Employer of Record)**. The Vietnamese EOR provider signs the employment contract **directly** with the employee, pays social insurance contributions, files and remits personal income tax, runs monthly payroll, administers leave and statutory benefits, and carries the legal liability for the employment relationship. The foreign company signs a single service agreement with the EOR provider, while keeping full control over the work itself and day-to-day professional management. The biggest difference is speed: with an EOR, an employee can start in **5–7 working days**, whereas setting up your own entity in Vietnam typically takes **2–6 months**. ## When does a foreign company need an EOR? The need usually shows up in a handful of familiar scenarios: - The parent company wants to hire a small team of Vietnamese staff for market development or regional technical support, but isn't ready to commit capital and overhead to a legal entity. - The business wants to **test the market** before making a long-term investment — hire first, incorporate later if the results justify it. - Incorporation is already planned, but people need to be **working during the licensing wait**. - The project has a fixed end date, too short to justify standing up a local structure. ## Which of the three options is right for you? The three options are setting up your own entity in Vietnam, engaging a freelancer under an individual service contract, and hiring through a licensed employer of record (EOR); they differ in setup time, cost and the compliance burden you carry. ### Setting up your own entity in Vietnam **Timeline:** typically 2–6 months — from the investment registration certificate, enterprise registration, company seal, bank account opening, tax registration and social insurance employer registration, through to running the first payroll. **Best when:** the company is confident about a long-term commitment, headcount will be substantial, and a Vietnamese legal entity is needed to sign commercial contracts and issue invoices locally. **Worth considering:** once the entity exists, the business must run all the HR back office itself — payroll, social insurance, tax finalisation, periodic labour reporting — even with only a few employees. Many companies at this stage keep the entity but [outsource payroll and tax](https://payrollservice.vn/payroll-outsourcing/) rather than hiring a dedicated C&B specialist. ### Engaging a freelancer under an individual service contract **Timeline:** the fastest option, essentially immediate. **Risk:** legally, this is the least safe route. When an individual works full time, on fixed hours, under the company's direction and supervision, and is paid a regular monthly amount, the arrangement is in substance an **employment relationship** — regardless of whether the paperwork calls it a "service contract" or a "collaboration agreement". Such a relationship can be reclassified according to its true nature, triggering retroactive social insurance liabilities, under-withheld personal income tax, and entitlements covering annual leave, allowances and termination. For a foreign company with no local entity, the exposure is even greater: there is no legal person in Vietnam to answer for a dispute when one arises. ### EOR — hiring through a licensed employer of record **Timeline:** 5–7 working days from the moment the candidate and terms are confirmed. **How it works:** the foreign company signs a service agreement with the EOR provider. The EOR provider signs the employment contract directly with the Vietnamese employee, becomes the legal employer of record, and handles everything: social insurance, health insurance and unemployment insurance contributions, personal income tax filing and payment, monthly payroll, and tracking of annual leave and statutory entitlements. **The line to remember:** the EOR owns the **employment relationship**; the client keeps **professional management**. The employee still reports on their work, receives KPIs and works day to day with the foreign company's team. ## How does an EOR differ from a PEO? These two terms are often used interchangeably, and the confusion leads companies to pick the wrong service from the very start: - **EOR (Employer of Record)** is for businesses that **have no legal entity** in Vietnam. The EOR provider is the sole employer on the contract. The client needs no enterprise registration, no Vietnamese tax code and no social insurance employer number. - **PEO (Professional Employer Organisation)** is a **co-employment** model and **requires the client to already have a Vietnamese entity**. The business remains the employer, while the PEO provider shares part of the HR operational burden. Put simply: if you don't yet have a company in Vietnam, ask about EOR; if you already do, what you need may be PEO, [labour supply services](https://payrollservice.vn/manpower-supply/) or [labour compliance services](https://payrollservice.vn/labour-compliance/), depending on the situation. ## Which compliance costs do companies overlook? When head office asks "what does one person in Vietnam cost", the figure on the offer letter is only part of the answer. Several statutory benchmarks belong in the budget: - **Regional minimum wage** under Decree 293/2025/ND-CP, effective 1 January 2026: Region I 5,310,000 VND · Region II 4,730,000 VND · Region III 4,140,000 VND · Region IV 3,700,000 VND per month. The place of work determines which region applies. - **Compulsory social insurance** under the Law on Social Insurance No. 41/2024/QH15 (effective 1 July 2025) and Decree 158/2025/ND-CP. For part-time staff, the contribution obligation arises only when **both** conditions are met: an employment contract of **one month or longer**, and a monthly salary **at or above the reference level**. At the reference level of 2,530,000 VND per month, the employer share of 21.5% equals 543,950 VND and the employee share of 10.5% equals 265,650 VND — a total of 809,600 VND per person per month. - **Overtime**: premium rates range from 150% to 390% depending on the type of day and shift, and should be budgeted for roles that involve shift work. - **Personal income tax**: withheld and remitted monthly, with an annual finalisation. A properly run EOR provider consolidates all of these into a single cost sheet, so the parent company can see the true total cost per employee before signing. ## Why choose Nhan Kiet? Nhan Kiet Human Resources Supply Co., Ltd (tax code 0308022768) was established in April 2009 and is now in its 17th year in the Vietnamese HR sector. It holds Labour Outsourcing Licence No. 15/2019/SHCM and operates management systems certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. To date, Nhan Kiet has served more than 500 clients and manages over 40,000 workers across 34 provinces and cities, with more than 200 operations staff and a candidate database of around 2 million profiles. For EOR clients, that means employee records, payroll and insurance obligations run on established operating processes, rather than being built from scratch for each new contract. Full details of the scope of work, fee structure and a sample service agreement are available on our [EOR Vietnam services](https://payrollservice.vn/eor-vietnam/) page. ## Contact If your parent company is weighing up incorporation against hiring through an EOR, send us three things to start: the role you need to fill, the place of work and the target salary. We will come back with a complete cost sheet you can take to head office. - **Nguyen Quoc Trung** — Deputy General Director · 0908 636 108 · trungnguyen@nhankiet.vn - Nhan Kiet Human Resources Supply Co., Ltd · Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City · Tel 028 3505 4224 **See also:** [EOR services in Vietnam](/eor-vietnam/) · [EOR vs PEO in Vietnam 2026: which model should you choose?](/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose) · [PEO in Vietnam 2026: how the model works and when to use it](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) --- # Collaborator or piecework: is social insurance still due? https://payrollservice.vn/tin-tuc/collaborator-or-piecework-contracts-when-is-compulsory-social-insurance-still-du Many companies sign "collaborator" or "piecework" contracts believing this removes any social insurance obligation. That is not quite true. Since 1 July 2025, when the Law on Social Insurance No. 41/2024/QH15 took effect, whether a person falls under compulsory social insurance is determined by the substance of the working relationship — not by the label on the contract. **Updated 12 October 2026:** added what a piecework contract is, a comparison with an employment contract (insurance, tax, termination) and a direct answer on whether piecework contracts require social insurance. ## Is the contract's name still a shield? The Law on Social Insurance No. 41/2024/QH15 and Decree No. 158/2025/NĐ-CP determine who is subject to compulsory social insurance based on the actual content of the arrangement. If an arrangement — whether called a "collaborator", "piecework" or "service" contract — in fact involves paid work performed under the management, direction and supervision of the hiring party, then it is an employment relationship. Two conditions must be met **together** for the compulsory social insurance obligation to arise: a contract term of **one full month or more** **and** a monthly wage **at or above the reference level**. Only when one of the two is missing does the arrangement fall outside compulsory coverage. This is a point many businesses do not fully grasp, which leads to incorrect application. ## What are the three signs of an employment relationship? In practice, an employment relationship shows three signs: - **Subject to management and direction:** the worker must follow the company's assignments, internal rules, working hours and processes — unlike an independent contractor who controls how the work is done. - **Regular, stable pay:** payment is tied to working time (per month, per shift) rather than to the outcome of an independent, self-contained job. - **Ongoing, repetitive work:** the tasks are part of the company's routine operations, not a project with a clear start and end. When all three signs are present, calling the contract a "collaborator" agreement does not change its substance, and the social insurance authority has grounds to reclassify the relationship as employment. ## When is piecework genuinely piecework? Not every piecework contract gets reclassified. Legitimate piecework typically has these features: the contractor controls the method, timing and means of performance; is paid for the result of a specific, self-contained job with a clear start and end; and is not subject to day-to-day direction like an employee. Typical examples include hiring an individual to design a brand identity, translate a document, or repair a specific part of a project. Conversely, if the "contractor" in reality works at a fixed place within the company, on set hours and under daily assignment, then even if the contract says "piecework", the substance remains an employment relationship. The dividing line lies in the degree of autonomy and independence of the work, not in the title of the document. ## How much does social insurance cost if coverage applies? For part-time staff who fall under coverage, compulsory social insurance is calculated on the reference level of 2,530,000 VND per month. Specifically: - The employer pays 21.5% = **543,950 VND per person per month** - The employee pays 10.5% = **265,650 VND per person per month** - Total **809,600 VND per person per month** This is a transparent, fixed figure that is easy to budget. Compared with the cost and risk of a later arrears collection, paying correctly from the outset is usually the safer option for a business. ## What's the risk of getting the substance wrong? When the social insurance authority reclassifies a "collaborator" as an actual employee, the company may have to pay back social insurance for the period it should have contributed, plus late-payment interest, and may face administrative penalties. Beyond the financial cost, this triggers file reviews, bookkeeping adjustments and strain on the relationship with workers. The risk rises when a company maintains a large body of "collaborators" doing routine work over a long period — this is the group most likely to be cross-checked and reclassified. ## What are the three lawful ways to formalize? Rather than looking for a different label for an employment relationship, a business should choose a compliance path that fits its real needs. **1. Convert to an employment contract and pay full social insurance.** Suitable when the work is ongoing and the worker is a long-term fit. This is the most transparent approach and fully removes reclassification risk. **2. Use a labour supply service.** When demand is seasonal or fluctuates, a business can partner with a provider holding a labour sub-leasing licence. The provider acts as the employer of the workers, taking on the contract and social insurance responsibility. Learn more about the [labour supply service](https://payrollservice.vn/manpower-supply/). **3. Outsource payroll and compliance to a specialist.** When a business wants to manage its own staff but needs payroll, social insurance filing and personal income tax handled lawfully, it can use an [outsourced payroll service](https://payrollservice.vn/payroll-outsourcing/) to standardize the whole process. For a foreign company with no legal entity in Vietnam that needs to hire and pay Vietnamese staff lawfully, the [EOR — Employer of Record](https://payrollservice.vn/eor-vietnam/) model lets workers be contracted and covered by social insurance in full, without setting up a company. ## What is a piecework contract in Vietnam? A piecework contract (hợp đồng khoán việc, also called a job-contracting agreement) is an agreement under which the contractor organises a specific job independently, takes responsibility for how it is done and hands over the result in return for a fee; legally it is a service contract under Article 513 of the 2015 Civil Code, not an employment contract. The party commissioning the work only accepts the result — it does not manage working hours, assign daily tasks or pay a time-based salary. The legal dividing line is Article 13(1) of the 2019 Labour Code: where the parties use a different name but the content involves paid work, a salary and management, direction and supervision by one party, the agreement is still treated as an employment contract. So the same document titled "piecework contract" can be a genuine service contract, or a disguised employment contract. ## How does a piecework contract differ from an employment contract? A piecework contract buys the result of a job, while an employment contract buys the employee's working time under the employer's management; that difference drives differences in the governing law, insurance, tax and how the contract ends. | Criterion | Piecework contract | Employment contract | |---|---|---| | Governing law | 2015 Civil Code (service contract, Article 513) | 2019 Labour Code | | Subject | The result of a specific job | Paid work performed as assigned | | Management and hours | The contractor decides methods, timing and tools | Internal rules, working hours and the employer's direction | | Payment | By result, after acceptance | Salary by time or by output, not below the regional minimum wage | | Compulsory social insurance | Not covered if it is genuinely piecework | Covered when the contract runs for a full month or more | | Personal income tax | 10% withheld on payments of 5,000,000 VND or more each time to a resident individual | Contract of 3 months or more: withheld on the 5-bracket progressive schedule; under 3 months: 10% on payments of 5,000,000 VND or more each time | | Termination | By agreement and the Civil Code | Under the Labour Code: notice and severance allowance | The 10% withholding rate and the 5,000,000 VND per-payment threshold apply from 1 July 2026 under Article 50(2) of Decree 253/2026/ND-CP, replacing the previous threshold of 2,000,000 VND per payment. An individual whose only income is this and whose estimated income for the year is below the taxable level can sign a commitment so that tax is not withheld for the time being. **See also:** [Severance Pay in Vietnam (2026): Eligibility, Formula and Examples](https://payrollservice.vn/tin-tuc/severance-pay-in-vietnam) ## Do piecework contracts require social insurance in Vietnam? A genuine piecework contract — where the contractor works independently, takes responsibility and only hands over a result — is not subject to compulsory social insurance; but if in practice the contractor works as assigned, keeps set hours and receives a fixed monthly or per-shift payment, it is an employment contract and the business must pay compulsory social insurance as for any employee, including back contributions for the period already worked. A quick self-check: if the business's day-to-day work is disrupted without this person, the person clocks in or works shifts, and receives a fixed amount every month, it is almost certainly an employment relationship. Once covered, the employer pays 21.5% and the employee 10.5% of the salary used as the contribution base, as in the cost example above. ## Nhan Kiet as your partner Nhan Kiet Manpower Supply Co., Ltd (Tax code 0308022768) has operated since April 2009, now in its 17th year in human resources and labour compliance. Nhan Kiet holds labour sub-leasing licence No. 15/2019/SHCM along with ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022 certifications, and currently serves more than 500 clients across 34 provinces and cities with more than 200 operations staff. If your business uses collaborators, piecework or seasonal labour and wants a review to [formalize your workforce](https://payrollservice.vn/labour-compliance/) lawfully, the Nhan Kiet team can help assess the substance of each type of relationship and propose a suitable course of action. Contact: **Nguyen Quoc Trung — Deputy General Director**, phone 0908 636 108, email trungnguyen@nhankiet.vn. Office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City — phone 028 3505 4224. **See also:** [labour compliance](/labour-compliance/) · [Compulsory Social Insurance for Part-Time Workers in 2026: The Real Cost to Businesses and 3 Ways to Handle It](/tin-tuc/compulsory-social-insurance-for-part-time-workers-in-2026-the-real-cost-to-busin) · [Employer Costs in Vietnam Are Capped: Why Senior Hires Cost Less Per Dollar (2026)](/tin-tuc/employer-costs-in-vietnam-are-capped-why-senior-hires-cost-less-per-dollar-2026) --- # In-house or outsourced payroll? A 2026 comparison for businesses https://payrollservice.vn/tin-tuc/in-house-or-outsourced-payroll-a-2026-comparison-for-businesses Your company should **outsource payroll** when its workforce is large, fluctuates seasonally, or when you want to reduce the risk of miscalculating social insurance and personal income tax. Conversely, a business with **few, stable employees** and an accountant who keeps up with the rules can handle payroll in-house perfectly well. There is no single right answer for everyone — the choice depends on your size, how much your headcount changes, and your appetite for risk. Here is a detailed comparison across five criteria to help you decide. ## In-house payroll: when does it fit? Doing payroll in-house means your accounting or HR team directly collects attendance data, calculates pay, deducts insurance and tax, and produces the payment sheet every month. This approach fits when: - The number of employees is small and changes little from month to month. - The pay structure is simple, with few allowances, shifts, and overtime. - The company already has a skilled payroll accountant who stays current with new regulations. - You want payroll data to stay entirely internal, never shared outside. **Strengths:** full control, no outsourcing fee, data kept under your direct supervision. **Weaknesses:** dependence on a few individuals. When the person in charge resigns, takes leave, or falls ill, the whole payroll process can stall. The risk of error is also higher if the accountant cannot keep pace with constantly changing law. ## Outsourced payroll: when does it make sense? Outsourcing [payroll services](https://payrollservice.vn/payroll-outsourcing/) means the company hands the calculation and preparation of the payroll to a specialised provider. You still set your pay policy; the provider handles operations, reconciliation, and compliance. This approach makes sense when: - The workforce is large, with many pay groups, multiple shifts, and frequent overtime. - Headcount fluctuates sharply by season — constant hiring and downsizing. - You want to reduce insurance and tax errors and separate payroll data from the internal team for better confidentiality. - The accounting department wants to focus on strategic finance rather than processing payroll every month. **Strengths:** a specialised process, a backup when needed, regulatory updates handled on your behalf, and reduced dependence on any single individual. **Weaknesses:** you must choose a reputable provider with a clear confidentiality commitment, and you have to standardize input data (attendance, contracts, allowances) for handover. ## Which five criteria should you compare? The five criteria worth comparing are cost, accuracy and compliance, data security, time and staffing, and scalability; each is examined below. ### 1. Cost Doing it yourself has no outsourcing fee but still carries hidden costs: the payroll accountant's salary, reconciliation time, and the cost of correcting and paying in errors. Outsourcing has a clear service fee, but it is usually fixed and easy to budget; the more employees you have, the lower the cost per head. ### 2. Accuracy and compliance This is the biggest difference. Payroll ties directly to social insurance and personal income tax — two areas whose rules change constantly. A specialised provider tracks these changes daily, whereas an in-house accountant juggling many duties can easily miss them. ### 3. Data security Payroll data is sensitive. When done in-house, leaks often come from inside (employees learning each other's pay). When outsourced, data is separated from the internal team and bound by a confidentiality agreement; what matters is choosing a provider with a serious security process. ### 4. Time and staffing Calculating pay manually for hundreds of people each month takes a lot of time and tends to bottleneck at the pay-closing period. Outsourcing frees up internal resources to focus on higher-value work. ### 5. Scalability When a company grows fast or opens branches across many provinces, the in-house model easily becomes overloaded. An outsourced service has ready-made processes to scale with headcount without hiring more accountants. ## Why is payroll more complex in 2026? Several legal changes in 2026 make payroll require closer attention: - **New regional minimum wages** under Decree 293/2025/ND-CP, effective from 01/01/2026: Region I is VND 5,310,000, Region II is VND 4,730,000, Region III is VND 4,140,000, and Region IV is VND 3,700,000 per month. These levels directly affect the insurance contribution floor and the way pay is calculated for many groups of workers. - **Social Insurance Law No. 41/2024/QH15**, effective from 01/7/2025, together with **Decree 158/2025/ND-CP** guiding its implementation, change many points on who contributes and how much. One notable change concerns part-time workers: an employee on a contract of **one month or more** who also has a **monthly wage of at least the reference level of VND 2,530,000** falls under compulsory social insurance. Both conditions must be met together. For this group, the employer's contribution is 21.5%, equal to VND 543,950, and the employee's is 10.5%, equal to VND 265,650 — a total of VND 809,600 per person per month. If payroll overlooks this group, the company faces back-collection and penalties. Correctly [formalizing labour](https://payrollservice.vn/labour-compliance/) and calculating insurance for special groups (part-time, seasonal, collaborators) is the part most prone to error when done in-house. If your company uses many seasonal workers, a [labour supply](https://payrollservice.vn/manpower-supply/) service bundled with payroll can streamline both tasks at once. ## How Nhan Kiet supports payroll Nhan Kiet Human Resources Supply Co., Ltd (tax code 0308022768) has operated since April 2009 — now in its 17th year. Nhan Kiet serves more than 500 clients with over 40,000 workers across 34 provinces, supported by more than 200 operations staff. The company holds Labour Sub-leasing Licence No. 15/2019/SHCM and the ISO 9001:2015, ISO 45001, ISO 14001, and ISO/IEC 27001:2022 certifications. With outsourced payroll, Nhan Kiet handles attendance reconciliation, pay calculation, insurance and tax deductions in line with current regulations, prepares the payment sheet, and safeguards payroll data. The company retains full authority over policy; the specialised team handles operations. If your business is weighing in-house versus outsourced payroll, or needs advice for your specific situation, please get in touch: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — Email: **trungnguyen@nhankiet.vn** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City — Tel: 028 3505 4224 Learn more about our [payroll outsourcing](https://payrollservice.vn/payroll-outsourcing/) service, or the [EOR in Vietnam](https://payrollservice.vn/eor-vietnam/) solution if you need to hire workers before you have a legal entity. **See also:** [payroll outsourcing in Vietnam](https://payrollservice.vn/payroll-outsourcing/) · [EOR Services in Vietnam: Hiring Vietnamese Staff Without a Local Entity](/tin-tuc/eor-services-in-vietnam-hiring-vietnamese-staff-without-a-local-entity) · [How to choose a PEO provider in Vietnam 2026: a checklist](/tin-tuc/how-to-choose-a-peo-provider-in-vietnam-2026-checklist) --- # Labour Outsourcing vs. Labour Dispatch: What's the Difference? https://payrollservice.vn/tin-tuc/labor-outsourcing-vs-labor-dispatch-what-s-the-difference ## Quick answer First, a naming point worth clearing up. **"Manpower supply" is a familiar market term, not a distinct legal form in its own right.** When a business talks about "hiring a manpower supply provider," under **Clause 1, Article 11 of the Bộ luật Lao động 2019**, recruitment runs through one of two lawful channels: a **labour sub-leasing enterprise** or an **employment service organisation** (job placement). Nhân Kiệt holds both licences, each issued by Ho Chi Minh City — [labour sub-leasing](https://payrollservice.vn/manpower-supply/) under No. 15/2019/SHCM and employment services under No. 22139/2023/45/SLĐTBXH-VLATLĐ — and **its focus is labour sub-leasing**. So the real question is not "how does manpower supply differ from labour sub-leasing," but rather **how labour sub-leasing differs from service outsourcing (contract work)** — the two models most often mixed up, and signing the wrong one has a cost either way. **Service outsourcing (contract work)** is where a provider takes on a defined scope of work as a complete package and, for its own employees, handles recruitment, management, payroll, and insurance; the client company pays a contract fee for the service and **does not directly supervise** the workers. **Labour dispatch (labour sub-leasing)** is where workers employed by a licensed enterprise are sent to work for, and come **under the direct supervision of**, another company for a fixed period, while their employment relationship remains with the dispatching enterprise. The core distinction comes down to two questions: **who directs the day-to-day work** and **who bears the legal obligations toward the workers**. Many businesses confuse these two concepts when looking for a provider, which leads to signing the wrong type of contract and taking on unnecessary legal risk. This article helps you tell them apart so you can choose the right model under the right law. ## What is service outsourcing (contract work)? Under the service outsourcing model, a business hands a volume of work or a stage of its operations to a provider to carry out: packing, loading and unloading, industrial cleaning, manufacturing a component, running a support line, and so on. The workers performing that work are **the provider's employees**. The provider is responsible for: - Recruiting, signing employment contracts, and staffing the assignment. - Managing, supervising, scheduling shifts, and directing the day-to-day work. - Paying wages, contributing mandatory social insurance, and administering employee benefits. The client company simply pays a **service fee** under the contract and signs off on the results of the work. In principle, the business does not directly manage each individual worker but works with the provider through the provider's own point of coordination. The advantage of this approach is that the business keeps its own headcount lean, transfers the bulk of its labour and insurance obligations to a professional provider, and concentrates its resources on its core activities. ## What is labour dispatch? Labour dispatch is a **licensed** activity: under Article 54 of the 2019 Labour Code, only an enterprise granted a **labour dispatch licence** and holding the required deposit may carry it out. The workers are recruited and put under contract by the dispatching enterprise, but are assigned to work under, and come **under the direct supervision of**, the hiring party (the user company). The employment relationship — that is, the party that pays wages, contributes insurance, and bears responsibility for the contract — still rests with the dispatching enterprise. Key features of labour dispatch: - It applies only to work that falls within the **list prescribed by law** and for a **limited period**. - The enterprise carrying it out must hold a licence and meet the conditions set by regulation. - The hiring party may directly direct and assign work to the workers as if they were its own staff. Nhân Kiệt holds **labour dispatch licence No. 15/2019/SHCM**, and is therefore able to deliver both models in full compliance with the law, depending on a business's actual needs. ## Four differences to remember - **Who directs the work:** Service outsourcing — the provider directs. Labour dispatch — the hiring party (your business) directs the work directly. - **Nature of the contract:** Service outsourcing is a **service contract** (you buy the result of the work). Labour dispatch is a **labour dispatch contract** (you buy time and labour performed under your direction). - **Legal conditions:** Service outsourcing does not require a labour dispatch licence. Labour dispatch mandatorily requires a licence and a deposit under Article 54 of the 2019 Labour Code, applies only to certain types of work, and is limited in duration. - **Obligations toward workers:** In both models, the workers remain under the employment relationship managed by the provider / dispatching enterprise — that party is responsible for paying wages and contributing mandatory social insurance under the **Social Insurance Law No. 41/2024/QH15** (effective 01/7/2025) and **Decree 158/2025/NĐ-CP**. One thing they have in common: whichever model you choose, personnel costs must be calculated correctly against the regional minimum wage currently in force under **Decree 293/2025/NĐ-CP** (effective 01/01/2026): Region I 5.310.000 VND, Region II 4.730.000 VND, Region III 4.140.000 VND, Region IV 3.700.000 VND per month. This is the floor for signing contracts and calculating insurance contributions. ## Which model should a business choose? Neither model is absolutely "better" — the choice depends on whether you want to **buy the result of the work** or **buy manpower to direct yourself**. - If you want to hand over an entire stage of your operations and would rather not worry about managing each person, **service outsourcing (contract work)** is the better fit. You sign off on results, and the provider handles the rest. - If you need people working **under the direct supervision** of your in-house managers, integrated into your own production process, then **labour dispatch** is the legally correct path — provided the work falls within the permitted list and the provider holds a licence. - If a foreign company **does not yet have a legal entity in Vietnam** but still wants to hire and lawfully pay Vietnamese staff, consider the [EOR — Employer of Record](https://payrollservice.vn/eor-vietnam/) service, a distinct alternative to both of the models above. Whichever path you choose, [calculating wages and contributions](https://payrollservice.vn/payroll-outsourcing/) lawfully and transparently is the decisive factor in avoiding disputes and back-charges down the line. ## Why choose Nhân Kiệt? Nhân Kiệt Manpower Supply Co., Ltd. (Tax ID 0308022768) has operated since April 2009 and is now in its 17th year in labour supply and management. Nhân Kiệt holds labour dispatch licence No. 15/2019/SHCM and a management system certified to ISO 9001:2015, ISO 45001, ISO 14001, and ISO/IEC 27001:2022. To date, Nhân Kiệt serves more than 40,000 workers and over 500 clients across 34 provinces and cities, with more than 200 operations staff. Among the supply projects it has delivered are Viettel with more than 10,000 workers, Saigon Stec more than 2,000, Vinataba and Aldila with more than 1,000 each, LG more than 700, and Samsung SEHC and Masan with more than 600 workers each. Other notable clients include Samsung, Panasonic, POSCO, Siemens, LEGO, Pandora, Vietnam Airlines, Vietcombank, Abbott, Vinamilk, DHL, AEON, Shopee, and Lazada. This experience allows Nhân Kiệt to advise each business on which model to choose to stay compliant and fit its operating model, rather than forcing a single template onto every case. ## Contact us for advice If you are weighing service outsourcing against labour dispatch, let the Nhân Kiệt team review your needs together with you and propose a legally compliant solution for your business. - **Nguyễn Quốc Trung** — Deputy General Director - Phone: **0908 636 108** · Email: **trungnguyen@nhankiet.vn** - Office: Room 202, Building 57, 57 Lê Thị Hồng Gấm, Bến Thành Ward, Ho Chi Minh City · Tel 028 3505 4224 Explore related services: [manpower supply](https://payrollservice.vn/manpower-supply/), [labour and insurance formalization](https://payrollservice.vn/labour-compliance/), [outsourced payroll](https://payrollservice.vn/payroll-outsourcing/), and [EOR in Vietnam](https://payrollservice.vn/eor-vietnam/). **See also:** [manpower supply](/manpower-supply/) · [Vietnam work visa for foreign employees 2026: DN, LD, EV explained](/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained) · [PEO in Vietnam 2026: how the model works and when to use it](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) --- # Employer Costs in Vietnam Capped: Senior Hires Cost Less https://payrollservice.vn/tin-tuc/employer-costs-in-vietnam-are-capped-why-senior-hires-cost-less-per-dollar-2026 Employing a Vietnamese worker in 2026 costs the gross salary plus 21.5% in mandatory employer contributions — 23.5% with the 2% trade union fee. But social- and health-insurance contributions stop at a cap of VND 50,600,000/month (from 1 July 2026, Decree 161/2026/NĐ-CP), so the employer add-on falls toward about 12.4% at a VND 100 million salary. This matters for budgeting. The percentage add-on you pay is not fixed — it shrinks as salary rises, because the base on which contributions are calculated is capped. A senior or remote hire therefore costs less per dollar of salary than a junior one. ## What are the three cost layers of a Vietnamese hire? The true monthly cost of employing one person in Vietnam has three parts: - Gross salary — the figure written on the employment contract, before any deduction. - Employer statutory contributions — 21.5% of the contribution base (social insurance 17%, occupational accident and disease insurance 0.5% per Decree 58/2020/NĐ-CP, health insurance 3%, unemployment insurance 1%), plus the 2% trade union fee under the Trade Union Law 2024 (No. 50/2024/QH15). That brings the total employer add-on to 23.5%. - A service fee, only if you use an outsourced provider such as an Employer of Record or payroll service. The first two layers are what the law requires of any employer. The third is optional and depends on how you structure the hire. If you employ directly through your own Vietnamese entity, you pay layers one and two. Our [Employer of Record page](https://payrollservice.vn/eor-vietnam/) sets out the service-fee layer in full for companies with no entity in Vietnam. ## What does the employer pay versus the employee? The employer and the employee both contribute to compulsory insurance, on the same salary base but at different rates. - The employer contributes 21.5% (social insurance 17%, occupational accident and disease insurance 0.5%, health insurance 3%, unemployment insurance 1%), plus the compulsory 2% trade union fee — a total add-on of 23.5% on top of gross salary. - The employee contributes 10.5%, deducted from gross salary (social insurance 8%, health insurance 1.5%, unemployment insurance 1%). The 2% trade union fee is a payment the employer makes to the trade union fund. It is compulsory even where no grassroots union exists at the workplace, under the Trade Union Law 2024 (No. 50/2024/QH15). Because it is calculated on the same salary base as social insurance, it inherits the same cap. Union membership dues of 0.5% are separate: they are paid only by employees who are union members, capped at VND 253,000/month (Decision 61/QĐ-TLĐ, from 1 July 2025), and are not deductible for personal income tax. ## What is the social- and health-insurance cap? The contribution base for social insurance (BHXH) and health insurance (BHYT) is capped at VND 50,600,000 per month from 1 July 2026, under Decree 161/2026/NĐ-CP. This equals 20 times the reference level of VND 2,530,000. Before that date the cap was VND 46,800,000. Above the cap, social- and health-insurance contributions stop rising. If a worker earns VND 100 million, both employer and employee still contribute BHXH and BHYT only on the first VND 50,600,000. The 2% trade union fee follows the same base, so it stops rising at the same point. This is why the employer's percentage add-on falls as salary climbs: a growing share of the salary sits above the cap and attracts no further contribution. ## Does unemployment insurance use the same cap? No — unemployment insurance (BHTN) has a different cap, set by region rather than by the reference level. It equals 20 times the applicable regional minimum wage (Decree 293/2025/NĐ-CP sets the minimum wages, effective 1 January 2026). - Region I: VND 106,200,000/month - Region II: VND 94,600,000/month - Region III: VND 82,800,000/month - Region IV: VND 74,000,000/month Applying a single cap to all three funds produces an inaccurate figure; because the BHTN cap is higher than the BHXH and BHYT cap, unemployment insurance keeps rising after the other two funds have stopped, up to the regional limit. A precise cost figure has to apply both caps separately. ## Why does 23.5% become 12.4% at VND 100 million? Here is the effect across salary levels, for Region I, no dependants, a pay period from 1 July 2026. Each figure is the total monthly cost to the employer (gross salary plus statutory contributions and the union fee): - Gross VND 10,000,000 → total VND 12,350,000 (add-on 23.5%) - Gross VND 20,000,000 → total VND 24,700,000 (add-on 23.5%) - Gross VND 30,000,000 → total VND 37,050,000 (add-on 23.5%) - Gross VND 50,000,000 → total VND 61,750,000 (add-on 23.5%) - Gross VND 100,000,000 → total VND 112,385,000 (add-on 12.4%) Up to VND 50 million, the full salary is below the BHXH and BHYT cap, so the employer pays the full 23.5% on all of it. At VND 100 million, roughly half the salary sits above the cap, so BHXH, BHYT and the union fee stop growing while only unemployment insurance continues. The blended add-on lands at 12.4%. A calculator that simply multiplies salary by 21.5% would overstate the real cost at this level. To run your own figures at any salary, region and number of dependants, use our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/). ## What does this mean when budgeting a senior or remote hire? For a senior professional or a remote engineer earning well above the cap, the marginal cost of each additional dong of salary is lower than headline rates suggest, because the largest contributions are already at their ceiling. Budgeting a senior hire at a flat 23.5% over-provisions; budgeting a junior hire at 12.4% under-provisions. The correct add-on sits somewhere between the two and depends on where the salary falls relative to each cap. Bonuses are a separate line: a 13th-month salary or Tết bonus carries none of these contributions, as our guide to [13th-month pay and Tet bonus in Vietnam](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026) explains. One exception is worth stating plainly: foreign employees do not contribute to unemployment insurance, so their employer add-on is 22.5% rather than 23.5% (the 1% unemployment-insurance employer share does not apply). This is a compliance point, not a saving to engineer. The caps are set by law and apply to every compliant employer equally; the goal is to budget the real number, not to reduce an obligation. ## Q&A ### Do I have to pay the 2% trade union fee if there is no union at my workplace? Yes. The 2% trade union fee is compulsory for the employer under the Trade Union Law 2024 (No. 50/2024/QH15), whether or not a grassroots union has been established. It is calculated on the same salary base as social insurance and therefore stops at the VND 50,600,000/month cap. The separate 0.5% membership dues apply only to employees who are union members. ### Is the employer add-on always 23.5%? No. 23.5% is the rate while the whole salary is below the social- and health-insurance cap of VND 50,600,000/month. Above the cap, contributions to BHXH, BHYT and the union fund stop rising, so the effective add-on falls — to about 12.4% at a gross salary of VND 100 million in Region I. For foreign employees, who are exempt from unemployment insurance, the add-on is 22.5%. ### Are part-time workers covered by compulsory social insurance? A part-time worker falls under compulsory social insurance from 1 July 2025 when both conditions are met: a labour contract of one full month or more, and a monthly salary at or above the reference level (Social Insurance Law No. 41/2024/QH15, effective 1 July 2025, and Decree 158/2025/NĐ-CP). At the reference level of VND 2,530,000, the insurance cost is VND 809,600 per person per month — employer VND 543,950 (21.5%) and employee VND 265,650 (10.5%); adding the 2% union fee of VND 50,600 makes the employer part VND 594,550 and the total VND 860,200. ### Where can I see the full contribution rates and the service-fee schedule? The [payroll outsourcing page](https://payrollservice.vn/payroll-outsourcing/) covers monthly payroll, tax and insurance filings. The [Employer of Record page](https://payrollservice.vn/eor-vietnam/) sets out the arrangement and the service fee for companies without a Vietnamese entity, and the [labour compliance page](https://payrollservice.vn/labour-compliance/) covers transferring existing workers onto compliant contracts. To calculate a specific figure, use the [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/). **See also:** [EOR services in Vietnam](/eor-vietnam/) · [PEO in Vietnam 2026: how the model works and when to use it](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) · [Inside a Vietnam EOR Invoice: Every Line Itemised (2026)](/tin-tuc/eor-cost-breakdown-vietnam) --- # Vietnam Personal Income Tax 2026: 5 Brackets & Take-Home https://payrollservice.vn/tin-tuc/vietnam-personal-income-tax-2026-the-new-five-bracket-table-and-what-staff-take- From the 2026 tax period Vietnam's personal income tax runs on a new five-bracket table: 5% up to VND 10 million of monthly taxable income, 10% on 10–30 million, 20% on 30–60 million, 30% on 60–100 million and 35% above 100 million (Law on Personal Income Tax No. 109/2025/QH15). Deductions also rose to VND 15,500,000 a month for the taxpayer and VND 6,200,000 per dependant (Resolution 110/2025/UBTVQH15). For a foreign company employing people in Vietnam, this changes what your staff take home and how much tax you withhold each month. The sections below give the table, the deductions, the order of calculation, a worked example, and the employer's withholding and finalisation duties. **Updated 12 October 2026:** added the salary at which tax starts, a quick formula for the 5-bracket tax, and how tax works with income from two employers. ## What is the five-bracket table for the 2026 tax period? The five-bracket table is the progressive scale applied to an employee's **monthly taxable income** under the Personal Income Tax Law No. 109/2025/QH15, effective from the 2026 tax period. It replaces the previous scale, and it is progressive — each rate applies only to the slice of income that falls inside its band, not to the whole amount. - Up to VND 10,000,000: **5%** - Over 10,000,000 to 30,000,000: **10%** - Over 30,000,000 to 60,000,000: **20%** - Over 60,000,000 to 100,000,000: **30%** - Over 100,000,000: **35%** "Monthly taxable income" here is the figure that remains *after* compulsory insurance and personal deductions have been subtracted — not gross salary. That distinction is where most manual calculations go wrong, so the order of steps below matters. ## What are the new personal deductions? The personal (family-circumstance) deductions are the fixed amounts subtracted from income before the tax table is applied, set by Resolution 110/2025/UBTVQH15 for the 2026 tax period: - **VND 15,500,000 per month** for the taxpayer - **VND 6,200,000 per month** for each registered dependant A dependant must be registered with the tax authority before the deduction can be claimed. A resident employee with one registered dependant therefore deducts VND 15,500,000 + VND 6,200,000 = VND 21,700,000 a month before tax is calculated, on top of the compulsory insurance already removed. These higher figures lift the point at which tax begins and reduce the tax due at every salary level. ## What is the order of calculation, from gross to tax? Personal income tax is not a flat percentage of gross pay. It is the last step in a sequence, and each step feeds the next: - **Start from gross salary** — the total stated in the labour contract. - **Subtract the employee's compulsory insurance of 10.5%** (social insurance 8% + health insurance 1.5% + unemployment insurance 1%), calculated on the salary that serves as the contribution base and subject to the statutory caps. - **Subtract the personal deductions** — VND 15,500,000 for the taxpayer plus VND 6,200,000 for each registered dependant. - **The result is taxable income.** Apply the five progressive brackets to it to get the monthly tax. Because deductions and insurance come out first, an employee only starts paying tax once income clears the combined shield of insurance plus the VND 15,500,000 personal deduction. Rather than quote a single threshold, the worked example below shows exactly where the line falls for one salary. You can test any figure of your own in the free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/), which applies the caps and the 2026 brackets automatically. ## How does a gross offer become take-home pay? A worked example Take a resident employee in Region I, gross salary **VND 30,000,000 a month, no dependants**, for a pay period from 1 July 2026. - **Gross:** VND 30,000,000. - **Compulsory insurance (employee 10.5%):** the contribution base is VND 30,000,000, below the social- and health-insurance cap of VND 50,600,000 (Decree 161/2026/NĐ-CP), so 10.5% = **VND 3,150,000**. - **Income after insurance:** 30,000,000 − 3,150,000 = VND 26,850,000. - **Personal deduction:** VND 15,500,000 for the taxpayer, no dependants. - **Taxable income:** 26,850,000 − 15,500,000 = **VND 11,350,000**. - **Tax, applied progressively:** 5% on the first VND 10,000,000 = 500,000; 10% on the remaining VND 1,350,000 = 135,000; **total tax = VND 635,000**. - **Take-home pay:** 30,000,000 − 3,150,000 − 635,000 = **VND 26,215,000**. For the same person, the employer's true total cost is **VND 37,050,000** a month — gross plus the statutory add-on (Region I, no dependants, from 1 July 2026). The take-home the employee sees and the total the employer pays are two different numbers, and both matter when you make an offer. ## What is tax-free, and what is not? A few items sit outside taxable income, and one common item that is not deductible often causes confusion. - **Meal allowance:** from 1 July 2026 a cash meal allowance is tax-free up to **VND 1,200,000 per month** under Decree 253/2026/ND-CP; anything above it is taxable, and meals the employer provides in kind are not taxed. The full list of tax-free allowances and benefits is in our guide to [13th-month pay, Tet bonus and benefits in Vietnam](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026). - **Trade-union membership dues** (0.5% of the insurance base, capped at VND 253,000 a month, Decision 61/QĐ-TLĐ from 1 July 2025): these are paid only by union members and are **NOT deductible** for personal income tax. They reduce the cash the employee receives but do not reduce taxable income. Do not confuse the union **dues** with the union **fee**. The 2% trade-union fee (Trade Union Law 2024, No. 50/2024/QH15) is an **employer cost**, mandatory even where no grassroots union exists, calculated on the same salary base as social insurance. It never touches the employee's payslip and has no bearing on their personal income tax. ## What must the employer do — monthly withholding and annual finalisation? The employer is the withholding agent. Each month, you deduct the calculated personal income tax from the employee's pay and remit it to the tax authority, alongside the compulsory insurance contributions. The employee receives the net figure; you hold and pass on the tax. After the calendar year closes, the employer runs an **annual finalisation** for resident employees who authorise it — reconciling the tax withheld across the year against the tax actually due on total annual income and registered deductions, so that any over- or under-withholding is settled. Employees with income from more than one source, or who do not authorise the employer, finalise their own tax directly. For a foreign company without a Vietnamese entity, both duties — monthly withholding and year-end finalisation — must still be carried out by an in-country employer. This is one of the functions an [Employer of Record](https://payrollservice.vn/eor-vietnam/) or a [payroll outsourcing](https://payrollservice.vn/payroll-outsourcing/) arrangement performs: Nhan Kiet signs the employment contract, withholds and remits the tax each month, and files the annual finalisation. ## At what salary do you start paying personal income tax in Vietnam in 2026? In 2026, a resident employee with no dependants starts paying personal income tax once gross salary exceeds about VND 17.32 million a month; with 1 dependant the threshold is about VND 24.25 million, and with 2 dependants about VND 31.17 million. These thresholds assume the whole gross salary is the base for the 10.5% insurance contribution and that there is no tax-exempt income: - No dependants: VND 15,500,000 ÷ (1 − 10.5%) ≈ **VND 17,318,000**. - 1 dependant: VND 21,700,000 ÷ (1 − 10.5%) ≈ **VND 24,246,000**. - 2 dependants: VND 27,900,000 ÷ (1 − 10.5%) ≈ **VND 31,173,000**. These thresholds apply only to employment contracts of 3 months or more, where tax is withheld on the progressive schedule. For people with no contract or an employment contract of less than 3 months, the payer withholds 10% on payments of VND 5,000,000 or more each time (Article 50(2) of Decree 253/2026/ND-CP); someone whose only income is this and whose estimated income for the year is below the taxable level can sign a commitment so that tax is not withheld for the time being. ## What is the quick formula for Vietnam's 5-bracket personal income tax? Monthly personal income tax can be calculated quickly with a shortcut formula: multiply taxable income by the rate of the bracket it falls in, then subtract that bracket's fixed amount. The result matches the bracket-by-bracket progressive calculation exactly. | Taxable income per month | Shortcut formula | |---|---| | Up to VND 10,000,000 | 5% × taxable income | | Over VND 10,000,000 to 30,000,000 | 10% × taxable income − VND 500,000 | | Over VND 30,000,000 to 60,000,000 | 20% × taxable income − VND 3,500,000 | | Over VND 60,000,000 to 100,000,000 | 30% × taxable income − VND 9,500,000 | | Over VND 100,000,000 | 35% × taxable income − VND 14,500,000 | Example: taxable income of VND 11,350,000 falls in bracket 2, so tax = 10% × 11,350,000 − 500,000 = **VND 635,000**, exactly the result of the bracket-by-bracket worked example above. Remember that taxable income is the figure after compulsory insurance and personal deductions, not the gross salary. ## How is personal income tax calculated with income from two or more employers? Someone paid a salary by two or more employers can claim the personal deductions at only one registered payer; each payer withholds tax according to its own type of contract, and after the year ends the employee adds up all income and files the annual finalisation personally, paying any shortfall or claiming a refund of any overpayment: - A payer with an employment contract of 3 months or more withholds on the 5-bracket progressive schedule, even where the employee has contracts with several employers (Article 50(1) of Decree 253/2026/ND-CP). - A payer with no contract or an employment contract of less than 3 months withholds 10% on payments of VND 5,000,000 or more each time (Article 50(2) of Decree 253/2026/ND-CP). - The VND 15,500,000 personal deduction and the VND 6,200,000 deduction for each dependant are registered with one payer only. Because progressive tax is calculated on total income for the year, a person with two salaries often owes more at finalisation: each payer withholds only on its own share, so the combined income can fall into a higher bracket. ## Q&A **Does the new table mean my staff pay more or less tax?** It is charged on taxable income only, not gross. Under the 2026 table the rate is 10% on income over VND 10–30 million and 20% over VND 30–60 million, and the personal deduction is VND 15,500,000 a month plus VND 6,200,000 per registered dependant (Resolution 110/2025/UBTVQH15). The worked example above shows the exact tax for a VND 30,000,000 salary. **Is personal income tax charged on gross salary?** No. It is charged on taxable income — gross minus the employee's 10.5% compulsory insurance minus the personal deductions. Only that remaining amount enters the five-bracket table. **Are trade-union dues deductible from my taxable income?** No. Membership dues of 0.5% (capped at VND 253,000 a month, Decision 61/QĐ-TLĐ) are paid only by union members and are not deductible for personal income tax. **Is the meal allowance taxable?** From 1 July 2026 a cash meal allowance is tax-free up to VND 1,200,000 a month under Decree 253/2026/ND-CP. Anything above that ceiling is added to taxable income; meals provided in kind are not taxed. **How do I get an exact figure for a specific salary?** Use the free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/), which applies the 2026 brackets, the new deductions and the insurance caps, and shows both the employee's take-home pay and the employer's true total cost. For a quote on a named headcount and salary, call +84 908 636 108 (Nguyen Quoc Trung, Deputy General Director) or email trungnguyen@nhankiet.vn. **See also:** [labour compliance](/labour-compliance/) · [How to Calculate Payroll in 2026 for Businesses: Gross to Net, Social Insurance, and Personal Income Tax](/tin-tuc/how-to-calculate-payroll-in-2026-for-businesses-gross-to-net-social-insurance-an) · [What is a PEO? Professional Employer Organization explained](/tin-tuc/what-is-a-peo-professional-employer-organization-explained) --- # How to Choose an Employer of Record in Vietnam: A Due-Diligence Checklist https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist Choosing an Employer of Record in Vietnam is a due-diligence decision, not just a price comparison — because under Vietnamese law the client is also penalised directly, facing administrative penalties plus back-payment of wages and insurance under Decree 283/2026/NĐ-CP (in force 10 September 2026, replacing Decree 12/2022/NĐ-CP) if the arrangement is mis-structured — so the checklist below turns the choice into seven questions to ask before you sign. The checklist below turns that decision into seven concrete questions. Every point is framed as a question you should put to any provider you are evaluating. Where it helps, we state how Nhan Kiet answers, with facts you can verify independently — a licence number, a founding year, ISO certificates, a list of branches. ## Why does the provider you choose become your own legal risk? Vietnam has no dedicated legal framework for "Employer of Record" — the term is an international label, not a category in Vietnamese law, and no "EOR licence" exists. An EOR arrangement must therefore sit inside one of two recognised legal routes. If it is placed in the wrong one, the exposure is not the provider's alone. The client is **also penalised directly** for a disguised labour-leasing arrangement: both sides can face administrative penalties under **Decree 283/2026/NĐ-CP** (in force 10 September 2026, replacing Decree 12/2022/NĐ-CP), on top of back-payment of wages and insurance. Because the risk is shared, choosing the right structure at the outset protects your own director, HR lead and legal counsel — not only the supplier. That is why due diligence on the provider is due diligence on your own compliance. ## Question 1 — Does the provider hold its own Vietnamese entity and labour-leasing licence? Ask for the legal entity that will actually sign the employment contract, its tax code, and — if any part of the work is directed by you day to day — its labour-leasing licence number. A provider that cannot name its own entity and licence may be sub-contracting the employment relationship to a third party you never vetted. Some global EOR platforms have no Vietnamese entity of their own and employ through an in-country partner — Nhan Kiet also works as an [in-country partner in Vietnam for EOR and payroll providers](https://payrollservice.vn/partners/) — so ask for that partner entity's name and licence as well. Nhan Kiet answers with verifiable facts: the contracting entity is **Nhan Kiet Manpower Supply Company Limited, tax code 0308022768**, founded **April 2009** (now in its 17th year), holding **labour-leasing licence No. 15/2019/SHCM** (first issued as No. 029/LĐTBXH in 2015). It is certified to **ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022**. These are numbers you can check against public records rather than take on trust. Read more on the [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/) service page. ## Question 2 — Which of the two legal frameworks will your contract sit in, and will they tell you before signing? An EOR arrangement in Vietnam must sit in one of two frameworks, and the difference is which party directs the work day to day: - **Labour dispatch / leasing** — Articles 52–57 of the Labour Code 2019 and Decree 145/2020/NĐ-CP. The client directs the work directly. It is limited to the 20 job categories in Appendix II, capped at a **maximum of 12 months per worker (Article 53)**, and requires a labour-leasing licence. - **A service contract under the Commercial Law** — the provider assigns, manages and supervises the staff and is responsible for the result. There is no job-list limit and no duration limit, but the client does not direct individual workers. The right question is whether the provider will determine and tell you which route applies **before** you sign — not after a dispute. Nhan Kiet operates both routes and establishes which one fits your case up front, because, as Question 1 shows, the client is penalised directly if the structure is wrong. ## Question 3 — Is the service fee itemised and capped? Any deposit, onboarding, offboarding or FX charges? Ask for the fee in writing, broken out from payroll, and ask specifically about every possible add-on — deposits, onboarding fees, offboarding fees, entity-maintenance charges and foreign-exchange spreads — and whether each is included or billed separately. A single "all-in" number can hide these. Nhan Kiet's service fee is **8% of gross salary per person per month**, with a floor of **VND 2,600,000** (about USD 99) and a cap of **VND 5,200,000** (about USD 199) per person per month, so one person's fee never exceeds the cap however high the salary. There is a **deposit of one month's gross salary per employee (refundable when the contract ends and accounts are settled), effective 1 October 2026**, and **no onboarding fee, no offboarding fee, no entity-setup or maintenance fee, and no FX fee**. Staff can start in **5–7 working days**, against the **2–6 months** it usually takes to set up your own entity. You can model total employer cost yourself with the free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/). Beyond those items, 8% VAT applies to the **whole invoice** — gross salary, statutory contributions and the service fee combined — because under a labour sub-leasing arrangement Nhan Kiet is the employer, so the entire contract value is service revenue. The 8% figure is the reduced rate under Resolution 204/2025/QH15, in force until 31 December 2026. ## Question 4 — Will you receive a VAT invoice and a transparent breakdown of what was paid on your behalf? Ask whether you get a proper VAT invoice for the service fee, and whether payroll, insurance and tax paid on your behalf come with a line-by-line statement. Without documentation, you cannot reconcile what left your account against what reached your staff and the authorities. Each month, Nhan Kiet issues **one VAT invoice covering the whole amount** — gross salary, statutory contributions and the service fee, because under a labour sub-leasing arrangement Nhan Kiet is the employer — with a statement showing gross salary, each insurance component, personal income tax and the fee separately. The payroll float you transfer ahead of each cycle is your employees' wage money, not a retained deposit (the one-month refundable deposit is a separate item) — it flows straight to wages and statutory contributions. The statutory employer add-on is **21.5%** insurance (BHXH 17%, occupational accident and disease insurance 0.5%, BHYT 3%, BHTN 1%) plus the **2% trade-union fee** (Trade Union Law 2024, No. 50/2024/QH15), which is compulsory even where no grassroots union exists. ## Question 5 — Who runs operations day to day, and where are they located? Ask where the people administering your payroll actually sit, in which time zone, and in what language they support your workers. An EOR that is only a contracting shell — with operations outsourced elsewhere — struggles when a worker has a pay query or an insurance filing goes wrong. Nhan Kiet runs operations in Vietnam with **more than 200 operations staff** and offices in **Ho Chi Minh City, Binh Duong, Dong Nai, Binh Phuoc, Ha Nam, Bac Ninh, Da Nang, Quang Ngai, Hai Phong and Hanoi** — ten locations across the country. It employs **more than 40,000 workers across 34 provinces and cities** for **over 500 client companies**, and supports workers in Vietnamese so your own HR team is not the first line for local questions. Monthly reporting is provided in English for headquarters. This is the [manpower and operations](https://payrollservice.vn/manpower-supply/) backbone behind the EOR service. ## Question 6 — What technology do the staff and the client actually get? Ask what software the worker and the client each receive, and whether it costs extra. Attendance, payslips and approvals that live only in spreadsheets create reconciliation risk and slow disputes. Nhan Kiet includes, at no extra charge: **face-recognition and GPS attendance**; the **HRNK worker app** (attendance, shift calendar, leave book, requests, electronic payslips, and social-insurance lookup); a **client management portal** for approving requests and timesheets and confirming payroll; **online worker records**; and **daily wage advance** for workers. New clients also receive bulk ID-card-to-tax-code reconciliation, bulk bank-account verification, and the **first 50 electronic labour contracts free**. Ask a shortlisted provider to demonstrate the worker app and the client portal live, rather than describing them — a working demo is the quickest way to separate a real platform from a slide deck. ## Question 7 — Can you verify the provider's track record? Ask for facts you can check, not adjectives. A founding year, a licence number, ISO certificates, a branch list and named reference clients can all be verified; "leading provider" cannot. Nhan Kiet's verifiable record includes operation **in its 17th year since April 2009**, labour-leasing licence **No. 15/2019/SHCM**, and certification to **ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022**. Companies including **Samsung, LG, VinFast, Siemens, POSCO, Panasonic, LEGO, Pandora, Viettel, Vietnam Airlines, Vietcombank, Abbott, Masan, Vinamilk, Acecook, Mondelez, DHL, AEON, Shopee, Lazada and Tiki** have engaged Nhan Kiet's services. Many foreign clients visit the head office to see the operations team, legal records and systems in person before handing over their Vietnam payroll — which is itself a reasonable due-diligence step to ask of any provider. ## Which employer of record should I use to hire in Vietnam? Use an employer of record that signs the employment contract through its own licensed Vietnamese entity, tells you in writing before you sign which of the two legal routes your contract sits in, and quotes an itemised fee with a cap; then choose between a global EOR platform and a local Vietnamese provider according to how many countries you hire in and how many people you need in Vietnam. The table below matches common situations to the type of provider that usually fits. It applies to any provider you are evaluating, including Nhan Kiet. | Your situation | What usually fits | What to check first | |---|---|---| | You hire one or two people in each of many countries and want one contract and one dashboard worldwide | A global EOR platform | Whether it employs in Vietnam through its own Vietnamese entity or through a local partner, and that entity's licence | | Vietnam is your main market, or you need a team of about 1–50 people there | A local Vietnamese EOR provider with its own licence and operations team | The fee floor and cap, the deposit terms, and who answers your workers' questions | | You need to recruit the people as well as employ them, including volume hiring | A local provider with its own recruitment network | How many workers it already employs in your province and job type | | You plan a factory or more than 100 people long term | Your own Vietnamese entity, often with an EOR to cover the 2–6 months it takes to set one up | Whether the provider will transfer the staff to your entity when it is ready | | You already have a Vietnamese entity | Not an EOR: payroll outsourcing, or a PEO if you are bringing in foreign experts | Whether the provider handles work permits and temporary residence cards | | You want to hire a foreign national, not a Vietnamese citizen | A Vietnamese entity that sponsors the work permit and temporary residence card | Who sponsors the work permit; Nhan Kiet's EOR covers Vietnamese staff only | ### Where Nhan Kiet fits, and where it does not Nhan Kiet is a fit when: - your company has no legal entity in Vietnam and wants to employ Vietnamese staff; - you need from one person to roughly 50 people, or a larger workforce that also has to be recruited; - you want staff to start in 5–7 working days, at a fee of 8% of gross salary with a floor of VND 2,600,000 and a cap of VND 5,200,000 per person per month. Nhan Kiet is not the right choice when: - you want one contract covering several countries, because Nhan Kiet employs only in Vietnam; - you want to hire a foreign national through an EOR, because Nhan Kiet's EOR covers Vietnamese staff only; if you already have a Vietnamese entity, a PEO is the route; - you plan to employ more than 100 people long term, where your own entity is usually the better economics; Nhan Kiet can advise and hand over when you reach that stage. Global platforms and local providers publish very different prices: [EOR Providers in Vietnam: The 2026 Price Range by Model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model) compares the published numbers. If you already have an entity, see [Payroll outsourcing in Vietnam](https://payrollservice.vn/payroll-outsourcing/) or [PEO in Vietnam 2026: how the model works and when to use it](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it). ## What is the best EOR for hiring employees in Vietnam? There is no single best EOR for every company hiring in Vietnam; the best one for you is the provider that answers all seven questions in this checklist in writing, with facts you can verify, at a total monthly cost you can calculate before you sign. Use this scorecard when you compare two or three shortlisted providers side by side: | Check | A strong answer | A red flag | |---|---|---| | 1. Legal employer | Names its Vietnamese entity, tax code and, where needed, its labour sub-leasing licence number | "Our partner handles that", with no partner named | | 2. Legal route | States in writing whether your contract is labour sub-leasing or a service contract, before you sign | No answer until a dispute arises | | 3. Fee | A percentage or flat fee in writing, with a floor and a cap, and every add-on listed | One "all-in" number with no breakdown | | 4. Invoice | A VAT invoice plus a line-by-line statement of salary, each insurance component and tax | Totals you cannot reconcile | | 5. Operations | A named team in Vietnam that supports workers in Vietnamese | A contracting shell with operations elsewhere | | 6. Technology | A live demo of the worker app and the client portal | Slides instead of a demo | | 7. Track record | Founding year, licence, ISO certificates and reference clients you can check | Adjectives such as "leading provider" | A one-week comparison that works in practice: - Day 1: send the same role, gross salary and start date to every shortlisted provider and ask for a written quote. - Days 2–3: rebuild each quote as a 12-month total: gross salary, statutory employer contributions (21.5% insurance plus the 2% trade-union fee, within the contribution caps), service fee, 8% VAT on the whole invoice, the deposit and any one-off charges. - Days 4–5: check each entity, tax code and licence against public records, and ask for the live demo. - Days 6–7: ask each provider which legal route your contract would sit in, and get the answer in writing. Nhan Kiet's own answers to the seven questions are set out above with numbers you can check; we would rather be compared on those than described as the best. ## How does an employer of record work in Vietnam, from quote to first payday? An employer of record in Vietnam becomes the legal employer of the person you choose: it signs a Vietnamese employment contract with them, enrols them in social insurance, registers and withholds their personal income tax, pays them every month and files the statutory reports, while you decide who to hire, what to pay and what work they do, and pay the provider one monthly invoice. With Nhan Kiet, the sequence is: | Step | What happens | Timing | |---|---|---| | 1. Quote and legal route | You send the role, salary and start date; Nhan Kiet confirms which of the two legal routes fits and sends a written quote | Within 24 hours | | 2. Service agreement | Both sides agree the scope, salary, benefits and fee; the agreement is signed remotely, in English or bilingually; a refundable deposit of one month's gross salary per employee applies from 1 October 2026 | Before the start date | | 3. Employment contract | Nhan Kiet signs a Vietnamese-law employment contract with the employee, registers the personal tax code, enrols social insurance and sets up the payroll bank account | Before the start date | | 4. First working day | The employee works to your priorities and in your tools; under labour sub-leasing they report to your manager (20 job categories, up to 12 months per person); otherwise Nhan Kiet manages them under a service contract and answers for the result | 5–7 working days | | 5. Every month | Attendance is recorded in the worker app; Nhan Kiet calculates payroll; you confirm it in the client portal and transfer the payroll amount; Nhan Kiet pays salaries by bank transfer, remits insurance and tax, and sends one invoice with a line-by-line statement | Each pay period | | 6. Year end | Personal income tax finalisation for each employee; annual leave, sick leave and maternity benefits handled under Vietnamese law | Each tax year | | 7. Ending the engagement | Nhan Kiet terminates each employment contract on a lawful ground with statutory notice and settlement, closes the social insurance book and finalises tax; the deposit is refunded once accounts are settled | At the end | What stays with you: who to hire, what to pay, what work to assign and how performance is reviewed. What moves to the EOR: the employment contract, social insurance, personal income tax, statutory reporting and legal responsibility for the employment relationship in Vietnam. For the concept itself, read [What is an EOR? Employer of Record in Vietnam explained](https://payrollservice.vn/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained); for the full service, see [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/). ## Questions foreign employers ask ### Is an EOR arrangement in Vietnam legal? Yes, when the contract is placed in one of the two recognised frameworks. Vietnam has no dedicated EOR law, so the arrangement must sit inside either labour dispatch/leasing (Articles 52–57 of the Labour Code 2019 and Decree 145/2020/NĐ-CP, which requires a labour-leasing licence) or a service contract under the Commercial Law. Placing it correctly is what keeps it lawful — and what avoids the direct penalties under Decree 283/2026/NĐ-CP. ### Does the client really share the legal risk? Yes. For a disguised labour-leasing arrangement, liability falls on both parties: administrative penalties under **Decree 283/2026/NĐ-CP** (in force 10 September 2026, replacing Decree 12/2022/NĐ-CP), plus back-payment of wages and insurance. This is precisely why the structuring question in Question 2 matters before you sign, not after. --- To discuss which framework fits your roles and receive a written quote, contact Nguyen Quoc Trung, Deputy General Director, on +84 908 636 108 or trungnguyen@nhankiet.vn (office +84 28 3505 4224). **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Inside a Vietnam EOR Invoice: Every Line Itemised (2026)](/tin-tuc/eor-cost-breakdown-vietnam) · [13th-Month Pay & Tet Bonus in Vietnam: Rules, Tax, Cost 2026](/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026) · [Local EOR Company vs Global EOR Platform in Vietnam (2026)](/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam) · [Top EOR Services in Vietnam 2026: Independent Rankings](/tin-tuc/top-eor-services-vietnam-independent-rankings) **Updated 3 October 2026:** added a guide to which EOR fits which situation, a side-by-side scorecard for comparing providers, and the step-by-step EOR process from quote to first payday. --- # Compulsory Social Insurance for Part-Time Workers 2026 https://payrollservice.vn/tin-tuc/compulsory-social-insurance-for-part-time-workers-in-2026-the-real-cost-to-busin Part-time workers have been subject to compulsory social insurance since 01/07/2025 — not 2026 — once two conditions are met: an employment contract of at least 01 month and a monthly wage at or above the reference level (Law on Social Insurance No. 41/2024/QH15, Decree 158/2025/NĐ-CP). From 01/07/2026, the value of the reference level rises to 2,530,000 VND and the contribution cap rises to 50,600,000 VND. At the reference level, the insurance cost for one part-time worker is **809,600 VND per month** — the business bears 543,950 VND (21.5%) and the worker bears 265,650 VND (10.5%); adding the 2% trade union funding (50,600 VND), the employer's share becomes **594,550 VND** and the total obligation is **860,200 VND**. Any business that has not contributed for the period from 01/07/2025 to now is accumulating exposure to back-collection. ## From what date must part-time workers pay compulsory social insurance? The compulsory social insurance obligation for part-time (non-full-time) workers arose **on 01/07/2025**, the date Law on Social Insurance No. 41/2024/QH15 took effect. The 01/07/2026 date is often mistaken for the deadline to begin contributing — in fact it is only the date on which the **value** of the reference level and the contribution cap change. Three instruments to keep in mind: - **Law on Social Insurance No. 41/2024/QH15**, effective 01/07/2025: replaces the "base salary" with a **reference level** and extends the group of mandatory participants to non-full-time workers. - **Decree 158/2025/NĐ-CP** implementing the law: a part-time worker with an employment contract of at least 01 month and a monthly wage equal to or above the reference level falls within scope — regardless of how many days they work. - **Decree 293/2025/NĐ-CP** on regional minimum wages from 01/01/2026: Region I 5,310,000; Region II 4,730,000; Region III 4,140,000; Region IV 3,700,000 VND per month — the benchmark when converting hourly or shift pay into a monthly wage. The point many businesses miss: the rule is based on the **monthly wage stated in the contract**, not on whether the person works 4 hours or 8 hours a day. A sales assistant working 5 sessions a week, earning 4.5 million VND per month on a 6-month contract, is already within scope for full contributions. ## At what wage must a part-time worker pay social insurance? The threshold sits at the reference level. The figure of 2,530,000 VND per month (applicable from 01/07/2026; before that the reference level corresponded to a contribution cap of 46,800,000 VND) is not just a wage level — it plays three roles at once: - **The threshold that defines who is covered**: a monthly wage at or above this level brings the worker within compulsory social insurance. - **The contribution floor**: for part-time workers within scope, this is the lowest wage used as the basis for contributions — and the figure used throughout the examples below. - **The contribution cap**: the maximum wage used as the basis for contributions is 20 times the reference level, i.e. **50,600,000 VND per month** from 01/07/2026 (Decree 161/2026/NĐ-CP). Wage above the cap attracts no further contributions. **Both conditions** must be met to fall within scope: an employment contract of at least 01 month **and** a monthly wage at or above the reference level — miss either one and it is not compulsory. ## How much does it cost to pay social insurance for one part-time worker each month? At the reference level of 2,530,000 VND, the **insurance** cost for one person is 809,600 VND per month, broken down as follows. **Employer's share — 21.5% = 543,950 VND:** - Social insurance (retirement, survivorship, sickness, maternity, occupational accident and disease) 17.5%: **442,750 VND** - Health insurance 3%: **75,900 VND** - Unemployment insurance 1%: **25,300 VND** **Worker's share — 10.5% = 265,650 VND:** - Social insurance 8%: **202,400 VND** - Health insurance 1.5%: **37,950 VND** - Unemployment insurance 1%: **25,300 VND** This is the **insurance** cost, not yet the full obligation. On top of the three funds above, the business also pays **trade union funding of 2%** (Law on Trade Union 2024 số 50/2024/QH15) — mandatory even where **no** grassroots trade union exists, calculated on the same wage fund used as the basis for social insurance and therefore subject to the same cap. At the reference level, the trade union funding is **50,600 VND**, raising the employer's share to **594,550 VND** and the total obligation for one person to **860,200 VND per month**. ### Example: a coffee chain with 10 part-time staff An F&B outlet uses 10 part-timers, each on a 3-month contract at 4.2 million VND per month. This group was previously kept off the insurance books; it now falls within scope. Calculated at the reference level: - Employer's insurance share: 543,950 × 10 = **5,439,500 VND per month**, equivalent to **65,274,000 VND per year**. - Amount deducted from workers' wages: 265,650 × 10 = **2,656,500 VND per month**. - Total cash flow remitted to the social insurance agency: **8,096,000 VND per month**, i.e. **97,152,000 VND per year**. Adding the 2% trade union funding (50,600 VND per person per month), the employer's share is higher still. For a chain of 5 outlets of the same size, the insurance cash flow alone approaches **486 million VND per year** — large enough to belong in the financial plan rather than being treated as a "deal with it later" item. Businesses can use the [labour cost calculator](https://payrollservice.vn/vietnam-salary-calculator/) to convert Gross–Net and estimate the insurance contributions for their own headcount. ## Part-time situations that often cause disputes **Contracts under 01 month.** Not within scope for compulsory social insurance. But if a business signs one 25–29-day contract after another for the same person in the same role, an inspecting authority has every basis to find a continuous employment relationship and impose back-collection. **Collaborators and piecework.** The label on a contract does not settle its nature: if the person works fixed shifts, is subject to management and direction, and uses the company's tools, that is an employment relationship — whether it is called "collaboration" or "piecework." Piecework is only lawful when it is assigned by specific work output and the contractor organises the work themselves. This is the group most exposed to back-collection — so review each contract against the indicators of an employment relationship below. **Seasonal work.** A factory at a 3–4-month peak must still contribute for every worker on a contract of at least 01 month who meets the wage threshold. This cost must be built into pricing from the quotation stage. **One person working part-time in several places.** The worker pays social insurance and unemployment insurance only at the place of their first contract. For occupational-accident and occupational-disease insurance, however, **each employer must contribute** for the portion of their own contract. ## How are employment contracts told apart from service contracts during an inspection? During an inspection, the authorities look at substance, not the title on the document. The indicators typically used to conclude that an employment relationship exists: - A work schedule, shifts, and mandatory attendance hours set by the business - A direct manager who assigns, supervises, and evaluates work - Periodic pay by month or by working hour, not by delivered output - The worker uses the company's uniform, ID badge, tools, and premises - Disciplinary sanctions apply for breaching internal rules Once three or more indicators are present, calling the document a "service contract" has almost no protective value left. ## What are the consequences of not paying social insurance for part-time workers? Under Law on Social Insurance No. 41/2024/QH15, late payment and evasion require **paying the full outstanding amount plus 0.03% per day** on the amount and the number of days late or evaded. Because the obligation arose on 01/07/2025, this charge is calculated retroactively for the entire unpaid period. On administrative penalties, **from 10/09/2026, Decree 283/2026/NĐ-CP applies**, replacing Decree 12/2022/NĐ-CP. Under it, **evasion** of compulsory social insurance is fined **18–20% of the total amount evaded**, up to 75 million VND for an individual and 150 million VND for an organisation; **late payment** is fined **12–15%** of the total amount paid late, within the same ceiling. These fines are separate from the obligation to pay the outstanding amount in full and the 0.03%-per-day charge above. Evasion with signs of fraud or organisation may also draw criminal liability. The knock-on effects are often costlier than the fine itself: the wage cost of workers without valid records is easily disallowed when finalizing corporate income tax, and a personal income tax schedule that diverges from social insurance data triggers a second round of review from the tax authority. ## Three ways for businesses to handle part-time social insurance costs **Option 1 — Put your own house in order.** Review every contract, move eligible workers onto employment contracts, and register the headcount increase with the social insurance agency. This gives the most control, but requires C&B staff with the right expertise and materially increases the monthly workload: increase/decrease filings, book closing, labour reporting, sickness and maternity. **Option 2 — Restructure the staffing model.** Consolidate shifts to reduce headcount, and move part of the work to a full-service, output-based arrangement. This can lower cost, but it must be done in substance — merely renaming the contract while operations stay the same leaves the back-collection risk fully intact. **Option 3 — Move to a licensed provider that signs the employment contracts.** The worker signs a contract with a licensed provider, which pays social insurance, files taxes, and bears legal responsibility for the employment relationship. Costs are transparent per head and deployment is fast, but the partner must meet the legal requirements. ## What is labour formalization? **Labour formalization** is a model in which a group of workers currently working at your business moves onto employment contracts with a licensed provider; that provider pays social insurance, health insurance, and unemployment insurance, withholds and files personal income tax, prepares labour-use reports, and bears responsibility before the authorities — while your business continues to direct the day-to-day work as before. The model fits businesses with many part-time or seasonal workers, high staff turnover, or a thin in-house HR function. The conditions for full compliance: the provider must hold a valid labour sub-leasing licence, the employment contract must be genuine and set at the actual wage paid, and all social insurance obligations must be paid in full on that wage. See details at [labour formalization service](https://payrollservice.vn/labour-compliance/). Nhân Kiệt operates under labour sub-leasing licence number 15/2019/SHCM, holds ISO 9001:2015 and ISO/IEC 27001:2022, and currently manages more than 40,000 workers across 34 provinces for over 500 clients. If a business only needs the calculation and filing handled, the [outsourced payroll service](https://payrollservice.vn/payroll-outsourcing/) is a lighter option: keep the existing employment contracts and hand over only the payroll, social insurance, and personal income tax. And when new headcount is needed for a peak period, the [labour supply service](https://payrollservice.vn/manpower-supply/) handles both recruitment and the legal paperwork from the outset. ## What should businesses do before the reference level rises on 01/07/2026? A 12-point checklist - List everyone currently working, including those not on the official payroll - Flag those on an employment contract of at least 01 month - Compare each person's monthly wage against the reference level (2,530,000 VND from 01/07/2026) - Review the period from 01/07/2025 to now to see whether eligible workers have been contributed for, so you can proactively address anything at risk of back-collection - Check whether under-01-month contracts have been signed back to back for the same person - Review collaborator and piecework contracts against the indicators of an employment relationship - Compare the monthly-converted wage against the regional minimum wage for the location - Identify those already contributing elsewhere to handle the occupational-accident and occupational-disease portion correctly - Reconcile the social insurance list against the personal income tax withholding schedule and find the differences - Check whether overtime exceeds the caps of 40 hours/month, 200 hours/year (300 hours for specific sectors) - Recompute the staffing budget for the next 12 months, including the 2% trade union funding - Update costs and quotations if labour cost is a pricing component, and settle the approach for each group ## Frequently asked questions ### Does a part-time employee working 4 hours a day have to pay compulsory social insurance? Yes, if the person has an employment contract of at least 01 month and a monthly wage at or above the reference level (2,530,000 VND from 01/07/2026). Law on Social Insurance No. 41/2024/QH15 and Decree 158/2025/NĐ-CP are based on the monthly wage stated in the contract, not on the number of hours worked each day. The insurance cost at the reference level is 809,600 VND per month; adding the 2% trade union funding, the total obligation is 860,200 VND. ### Do seasonal contracts under 01 month in 2026 require social insurance? An employment contract with a term under 01 month is not within scope for compulsory social insurance. However, if a business repeatedly signs short contracts for the same person in the same job, an inspecting authority may find a continuous employment relationship and issue a back-collection decision, together with the 0.03%-per-day charge on the amount paid late. ### Does a household business hiring part-time workers have to pay social insurance? Yes. A household business that hires labour under employment contracts is also an employer, and therefore bears the same compulsory social insurance obligation as a company: when a part-time worker has a contract of at least 01 month and a monthly wage at or above the reference level, the household must register and contribute in full. The conditions defining who is covered and the contribution rates apply identically under Law on Social Insurance No. 41/2024/QH15 and Decree 158/2025/NĐ-CP. ### If one person works part-time at two companies, where is social insurance paid and who is responsible? The worker pays compulsory social insurance and unemployment insurance under the first employment contract signed. For occupational-accident and occupational-disease insurance, however, each employer must contribute for the portion of its own contract. Businesses should require the worker to declare their social insurance status elsewhere at the point of signing, to avoid duplication or omission. ### How much is a company fined for not paying social insurance for part-time staff? The business is required to pay the full amount paid late or evaded, plus 0.03% per day on that amount under Law on Social Insurance No. 41/2024/QH15. In addition, from 10/09/2026, evasion is fined 18–20% of the total amount evaded (up to 75 million VND for an individual, 150 million VND for an organisation) under Decree 283/2026/NĐ-CP. Where evasion shows signs of fraud, criminal liability may also be considered. ## Need your worker list reviewed? Nhân Kiệt can review your current list of part-time and seasonal workers, identify which groups fall within scope (the obligation applies from 01/07/2025), pinpoint what is at risk of back-collection, and estimate the specific additional cost under each option. Contact **0908 636 108** (Nguyễn Quốc Trung — Deputy General Director) or **trungnguyen@nhankiet.vn** to schedule a discussion. **See also:** [labour compliance](/labour-compliance/) · [Foreigners working in Vietnam 2026: what work permit and social insurance do you need?](/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance) · [How to Calculate Payroll in 2026 for Businesses: Gross to Net, Social Insurance, and Personal Income Tax](/tin-tuc/how-to-calculate-payroll-in-2026-for-businesses-gross-to-net-social-insurance-an) --- # How to Calculate Payroll in 2026: Gross to Net https://payrollservice.vn/tin-tuc/how-to-calculate-payroll-in-2026-for-businesses-gross-to-net-social-insurance-an Calculating payroll in 2026 for a business follows a fixed chain: take the gross wage and allowances, determine the basis for insurance contributions, deduct the worker's 10.5% insurance share, deduct family-circumstance relief, apply the 5-bracket progressive personal income tax schedule, and arrive at the net wage. What makes 2026 different lies in four source figures: the new regional minimum wage under **Decree 293/2025/NĐ-CP** effective 01/01/2026 (Region I is 5,310,000 VND per month), the social insurance reference level of **2,530,000 VND per month** effective 01/07/2026, the personal income tax schedule trimmed to **5 brackets** under Law on Personal Income Tax No. 109/2025/QH15, and family-circumstance relief raised to 15.5 million VND. Get any one of these four wrong and the entire payroll, social insurance return, and tax finalisation drift with it. **Updated 12 October 2026:** added what gross and net salary mean, a take-home table for common gross salaries, how to convert net to gross, and whether to agree salary as gross or net. ## What changes in payroll calculation in 2026? The gross-to-net method for 2026 keeps the same formula framework, but five changes affect specific lines on the payroll directly: - **The regional minimum wage rises from 01/01/2026** under Decree 293/2025/NĐ-CP. This affects the lowest wage, the overtime hourly rate, and the unemployment-insurance contribution cap (20 times the regional minimum wage). - **The reference level of 2,530,000 VND per month from 01/07/2026** takes over the role of the base salary in the social insurance formula. The cap for social and health insurance contributions is 20 times the reference level, i.e. **50,600,000 VND per month** under Decree 161/2026/NĐ-CP. - **The personal income tax schedule is cut from 7 brackets to 5** under Law on Personal Income Tax No. 109/2025/QH15, applicable from the 2026 tax period, together with the new family-circumstance relief under Resolution 110/2025/UBTVQH15. - **Law on Social Insurance No. 41/2024/QH15 (effective 01/07/2025) and Decree 158/2025/NĐ-CP** extend the mandatory scope to non-full-time workers who meet the conditions. - **Data is cross-checked**: the wage cost on the financial statements, the social insurance return, and the total income on electronic withholding vouchers are matched by the tax authority. A misclassified allowance is no longer just a "bookkeeping slip" but a back-collection risk. ## What is the 2026 regional minimum wage and from what date does it apply? The regional minimum wage is the monthly wage floor below which a business may not pay a worker doing simple work under normal conditions, having worked the standard number of hours. The rates from 01/01/2026 under Decree 293/2025/NĐ-CP: - **Region I: 5,310,000 VND per month** - **Region II: 4,730,000 VND per month** - **Region III: 4,140,000 VND per month** - **Region IV: 3,700,000 VND per month** Alongside the monthly figure there is an hourly minimum, converted from the monthly rate, used for workers paid by the hour such as part-timers, seasonal staff, and on-site collaborators. A business must also review its internal salary scale, because a higher grade 1 pulls up every grade above it if the scale is built on coefficients. **See also:** [Vietnam Minimum Wage 2026: Regional Rates, Hourly Rates and 2027](https://payrollservice.vn/tin-tuc/vietnam-minimum-wage) ## Which regional minimum wage applies to a multi-site business? The applicable region is determined by **where the worker actually works**, not by where the business is registered. A head office in Region II with a workshop in Region I means workers at the workshop are paid at the Region I rate. Three situations that often go wrong: - A business with branches, warehouses or points of sale in several regions applies one regional minimum wage across its payroll software, even though Region I, II, III and IV each have their own floor. - A locality that has just had its administrative units rearranged, changing the regional list, while the payroll has not been updated. - Outsourced, seconded, or client-site workers — the region follows the actual place of work, not the employer on paper. ## What is the social insurance reference level of 2,530,000 VND, and how does it differ from the base salary? The reference level is the figure that replaces the role of the "base salary" throughout the social insurance formula from Law on Social Insurance No. 41/2024/QH15. From 01/07/2026, the reference level is **2,530,000 VND per month**. The core difference: the base salary was previously tied to the public sector, whereas the reference level is an independent measure used across the board to define who is covered and to set contribution limits for every worker. The figure of 2,530,000 VND plays three roles at once: - **The threshold that defines who is covered**: a monthly wage at or above this level brings the non-full-time group within compulsory social insurance. - **The contribution floor**: this is the lowest wage used as the basis for contributions for workers within scope. - **The contribution cap**: the maximum wage used as the basis for social and health insurance is 20 times the reference level, i.e. **50,600,000 VND per month** from 01/07/2026. Wage above the cap attracts no further contributions. ## How to calculate gross to net in 2026 in 8 steps Gross-to-net calculation is the process of moving from total pre-deduction income (gross) to what the worker actually receives (net), after deducting insurance and personal income tax. The sequence for one month of pay: **Step 1** — Finalise attendance, overtime, and paid leave from the timekeeping data. **Step 2** — Calculate pay by time or by output. **Step 3** — Add supplementary amounts and allowances, classifying each by nature right away. **Step 4** — Determine the basis for insurance contributions. **Step 5** — Deduct the worker's 10.5% share (social insurance 8%, health insurance 1.5%, unemployment insurance 1%). **Step 6** — Compute taxable income, deducting family-circumstance relief and exempt amounts. **Step 7** — Apply the 5-bracket progressive schedule and withhold personal income tax. **Step 8** — Arrive at the net wage, and record the employer's cost at the same time: 21.5% insurance plus 2% trade union funding, i.e. **23.5%** on the wage fund used as the basis for contributions. Example: a Region I worker with 1 dependent — base salary 26,000,000, responsibility allowance 2,000,000, shift meal 730,000, and fuel support 500,000 VND (gross 29,230,000 VND). - Basis for insurance = 26,000,000 + 2,000,000 = **28,000,000 VND** (the meal and fuel are excluded). - The worker pays 10.5% = **2,940,000 VND**. The employer pays 21.5% = **6,020,000 VND**, plus 2% trade union funding = **560,000 VND**. - Taxable income = 26,000,000 + 2,000,000 + 500,000 = **28,500,000 VND** (the 730,000 shift meal falls within the tax-exempt limit). - Deducting insurance of 2,940,000 and family-circumstance relief of 21,700,000 (15,500,000 for oneself + 6,200,000 for one dependent) → assessable income of **3,860,000 VND**, which falls in bracket 1 at a 5% rate → tax of **193,000 VND**. - Net wage = 29,230,000 − 2,940,000 − 193,000 = **26,097,000 VND**. The total employer cost for this position is **35,810,000 VND** (gross 29,230,000 + 6,020,000 insurance + 560,000 trade union funding). To check any single position quickly without rebuilding a spreadsheet, a business can use the [labour cost calculator and Gross ↔ Net converter](https://payrollservice.vn/vietnam-salary-calculator/) to cross-check the manual result. ## What is the total employer cost for one worker? The total cost of one worker does not stop at the gross wage; it equals the gross wage plus the insurance and trade union funding the employer bears (23.5% on the wage fund used as the basis for contributions, up to the cap). Calculated for a Region I worker with no dependents, for the period from 01/07/2026: - Gross 10 million → total cost **12,350,000 VND** - Gross 20 million → total cost **24,700,000 VND** - Gross 30 million → total cost **37,050,000 VND** - Gross 50 million → total cost **61,750,000 VND** - Gross 100 million → total cost **112,385,000 VND** (only about 12.4% is added, because contributions have hit the cap, instead of 23.5%) This figure is the basis for staffing budgets and quotations. When you need each component broken out by wage level and region, the [labour cost calculator](https://payrollservice.vn/vietnam-salary-calculator/) produces a detailed table on the spot. ## Does a business without a grassroots trade union still pay the 2%? Yes. Trade union funding is an amount equal to **2% of the wage fund used as the basis for social insurance**, paid by the employer, mandatory for every business including those that **have not established a grassroots trade union**, under Law on Trade Union 2024 số 50/2024/QH15. Because it is calculated on the same wage fund used as the basis for social insurance, it shares the same cap of 50,600,000 VND per month. Two amounts that are easily confused must be kept apart: - **Trade union funding of 2%**: paid by the employer, mandatory, booked as a business cost, and not deducted from the worker's wage. - **Union membership dues of 0.5%**: paid by union members, up to 253,000 VND per month under Quyết định 61/QĐ-TLĐ (from 01/07/2025), and **not deductible for personal income tax purposes**. This is why the total employer cost for one worker is 23.5% rather than the 21.5% that many spreadsheets leave out. ## What is the 2026 social insurance contribution rate as a percentage? The total wage-based deduction from both sides is **32% of the wage used as the basis for contributions**, split as: - **Worker pays 10.5%**: social insurance 8% + health insurance 1.5% + unemployment insurance 1%. - **Employer pays 21.5%**: social insurance 17% + occupational-accident and occupational-disease insurance 0.5% (under Decree 58/2020/NĐ-CP) + health insurance 3% + unemployment insurance 1%. The employer also pays a further 2% in trade union funding, bringing the employer's total cost to 23.5%. The cap for social and health insurance contributions is 50,600,000 VND per month. The unemployment-insurance cap, however, is set at 20 times the regional minimum wage and differs by region: - Region I: **106,200,000 VND per month** - Region II: **94,600,000 VND per month** - Region III: **82,800,000 VND per month** - Region IV: **74,000,000 VND per month** ## Are lunch, fuel, and phone allowances subject to social insurance and tax? Not every item of income enters the basis for social insurance or is taxable. Classify by nature: - **Both subject to social insurance and to personal income tax**: pay by job or title, position, responsibility, seniority, and hazardous-work allowances, attraction allowances, and supplementary amounts with a specific determinable value paid regularly each period. - **Not subject to social insurance but still taxable**: shift meals above the tax-exempt limit, monthly commuting/fuel support of a wage nature, housing, childcare support, business-result bonuses, and supplementary amounts whose value cannot be determined in advance. - **Neither subject to social insurance nor taxable**: cash mid-shift meal allowances within the 1,200,000 VND per month limit (from 01/07/2026, under Decree 253/2026/NĐ-CP) or meals the employer provides in kind, per-diem and phone allowances within the internal financial rules, overtime and night-shift pay at the statutory rates (any portion paid above those rates remains taxable), and workwear within the norm. The basis for social insurance classification lies in Law on Social Insurance No. 41/2024/QH15 and the guidance on wages used as the basis for contributions; the tax basis lies in Personal Income Tax Law No. 109/2025/QH15 and Decree No. 253/2026/ND-CP (applying from the 2026 tax year). A business with many allowances but no written wage policy is almost certain to be on weak ground when it has to explain itself. ## How are overtime, night shifts, and holidays paid? Under the Labour Code 2019: overtime on an ordinary day is at least **150%**, on a weekly rest day at least **200%**, and on public holidays and paid leave days at least **300%** of the ordinary hourly rate (not counting the fully paid holiday wage already received). Night work adds a further **30%**; overtime worked at night adds a further **20%** of the daytime hourly rate for that work. Combined, the overtime multiplier ranges from **150% to 390%**. Overtime caps: no more than **40 hours/month and 200 hours/year**, with certain specific sectors allowed up to **300 hours/year**, subject to notifying the local labour authority. A business with a peak season should solve the problem by adding headcount rather than pushing hours past the cap — this is where the [labour supply service](https://payrollservice.vn/manpower-supply/) is legally safer than a fine for breaching working-time rules. ## The 5-bracket 2026 personal income tax schedule: from 7 brackets down to 5 From the 2026 tax period, personal income tax on wages and salaries applies a **5-bracket partial progressive schedule** under Law on Personal Income Tax No. 109/2025/QH15, replacing the previous 7-bracket schedule. The rates by monthly assessable income: - Bracket 1 — up to 10 million VND: **5%** - Bracket 2 — over 10 to 30 million VND: **10%** - Bracket 3 — over 30 to 60 million VND: **20%** - Bracket 4 — over 60 to 100 million VND: **30%** - Bracket 5 — over 100 million VND: **35%** Assessable income equals taxable income less compulsory insurance and family-circumstance relief. From the 2026 tax period, family-circumstance relief is **15.5 million VND per month for oneself** and **6.2 million VND per month for each dependent** under Resolution 110/2025/UBTVQH15. Three points to note: - A dependent qualifies for relief only once registered and holding a tax code; the supporting documents must be completed before the finalisation deadline, or the provisionally applied amount will be disallowed. - The personal income tax withholding voucher is now an electronic voucher under Decree 123/2020/NĐ-CP (amended by Decree 70/2025/NĐ-CP). A business must store and be able to look these up, because this is the very data the tax authority reconciles against the worker's return. - The 0.5% union membership dues are not among the amounts deductible when computing assessable income. ## Reconciling payroll to zero discrepancy: a 5-step process 1. **Lock the source data**: the approved timesheet, wage decisions, and the list of increases and decreases during the month. Every figure afterward must trace back to one of these three sources. 2. **Reconcile the payroll against the social insurance return**: compare the total headcount, the total insured wage fund, and the increase/decrease list. Typical discrepancies come from those who started after the 15th and those on unpaid leave of 14 days or more in the month. 3. **Reconcile the payroll against the accounting books**: total wage cost and wage-based deductions must match the recorded figures, including amounts paid on behalf and advance recoveries. 4. **Reconcile total annual income against form 05/QTT-TNCN and appendix 05-1/BK-QTT-TNCN**: the sum of the 12 monthly payrolls must equal the total taxable income figure on the return, person by person, not just in total. 5. **Draw up a discrepancy record**: every discrepant line must have a cause, an adjusting document, and a responsible person. Without this step, the same discrepancy reappears in the same place next month. ## Do it in-house or hand it to a specialist unit? The real cost of doing payroll in-house has four parts: dedicated C&B staff, software and maintenance, reconciliation time each period, and the risk cost of back-collection or administrative penalties. Below around 50 workers, a part-time accountant can usually cope. From around 100–150 workers up, or where there are multiple wage regions, multiple shifts, and staff turnover above 10% per month, the hidden cost of doing it in-house typically exceeds the outsourcing fee. Nhân Kiệt delivers the [outsourced payroll service](https://payrollservice.vn/payroll-outsourcing/) on a zero-discrepancy reconciliation principle: each period is handed over with an open-formula Excel reconciliation book so the business can check every line itself. For part-time and seasonal workers, or those already working without a proper contract, the [labour formalization service](https://payrollservice.vn/labour-compliance/) moves them onto lawful contracts, with social insurance and taxes handled centrally. An example to picture the cost: 10 part-time workers within scope for compulsory social insurance, on the reference level of 2,530,000 VND, generate **8,096,000 VND** in insurance each month, of which the business bears 5,439,500 VND. Adding the 2% trade union funding (50,600 VND per person), the employer's share per person is 594,550 VND and the full cost is 860,200 VND per person per month. ## What are gross salary and net salary in Vietnam? Gross salary is the total pay written in the employment contract before compulsory insurance and personal income tax are deducted; net salary is what the employee actually receives after the 10.5% employee insurance share (social insurance 8%, health insurance 1.5%, unemployment insurance 1%) and personal income tax are taken off. The gap between the two is the insurance and tax that the employer withholds, declares and pays on the employee's behalf every month. Gross salary is not the employer's total cost either. On top of the salary used as the contribution base, the employer pays a further 21.5% in insurance and the 2% trade union fee, so the real cost of a position is always higher than the gross salary. ## What is the take-home pay on a gross salary of 10, 20 or 30 million VND in 2026? In 2026, a resident employee with no dependants who pays insurance on the full gross salary takes home 8,950,000 VND on a gross salary of 10,000,000 VND, 17,780,000 VND on 20,000,000 VND and 26,215,000 VND on 30,000,000 VND a month. The table below uses the 5-bracket tax schedule and the personal deduction of 15,500,000 VND, plus 6,200,000 VND for each dependant: | Gross salary/month (VND) | Insurance 10.5% | PIT (no dependants) | Take-home (no dependants) | Take-home (1 dependant) | |---|---|---|---|---| | 10,000,000 | 1,050,000 | 0 | 8,950,000 | 8,950,000 | | 15,000,000 | 1,575,000 | 0 | 13,425,000 | 13,425,000 | | 20,000,000 | 2,100,000 | 120,000 | 17,780,000 | 17,900,000 | | 25,000,000 | 2,625,000 | 343,750 | 22,031,250 | 22,341,250 | | 30,000,000 | 3,150,000 | 635,000 | 26,215,000 | 26,592,500 | | 40,000,000 | 4,200,000 | 1,530,000 | 34,270,000 | 34,890,000 | | 50,000,000 | 5,250,000 | 2,425,000 | 42,325,000 | 42,945,000 | The table assumes the salary used as the insurance contribution base equals the gross salary and stays below the 50,600,000 VND cap that applies from 1 July 2026. If part of the pay is an allowance outside the contribution base, or a tax-exempt item such as the meal allowance, the take-home figure will differ. For an exact figure per person, use the free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/). ## How do you convert a net salary to gross? Converting net to gross means working backwards: finding the gross salary that, after the 10.5% insurance and progressive personal income tax, leaves exactly the agreed net amount. Because the tax is progressive, there is no single multiplier that works for every salary. In 2026, for an employee with no dependants, a take-home of 15,000,000 VND needs a gross salary of about 16,760,000 VND, a take-home of 20,000,000 VND needs about 22,611,000 VND, and a take-home of 30,000,000 VND needs about 34,699,000 VND. Done by hand, you guess a gross figure, run it through the 8 steps above and adjust until the result matches. The Nhan Kiet salary calculator has a net-to-gross direction built in, so no trial and error is needed. ## Should salary be agreed as gross or net? Salary should be written as gross in the employment contract, because gross is the figure the law uses to calculate insurance and tax and it is transparent to both sides; net pay changes with the number of dependants, the insurance contribution base and each year's tax schedule. When a contract states net pay, the employer absorbs every change in tax and insurance: in 2026, for example, the tax schedule dropped to 5 brackets and the personal deduction rose, and unless the contract says who keeps the tax saving, a dispute is easy. In practice, many employers quote net figures during recruitment but fix the gross salary in the contract, together with a conversion table at the date of signing. This keeps things clear for the employee without pushing the risk of policy changes onto the employer. ## Frequently asked questions ### How much does family-circumstance relief rise to in 2026, and from when? From the 2026 tax period, family-circumstance relief is 15.5 million VND per month for the taxpayer and 6.2 million VND per month for each dependent, under Resolution 110/2025/UBTVQH15. A dependent must be registered and hold a tax code, and the supporting documents must be completed before the finalisation deadline for the provisionally applied relief to stand. This rate applies for the whole 2026 tax period and is used with the new 5-bracket progressive schedule. ### When must part-time workers pay compulsory social insurance? Part-time workers fall within scope for compulsory social insurance from 01/07/2025 once **both conditions** are met: an employment contract of at least 01 month, and a monthly wage at or above the reference level, under Law on Social Insurance No. 41/2024/QH15 and Decree 158/2025/NĐ-CP. The rule is based on the monthly wage stated in the contract, not on whether the person works 4 hours or 8 hours a day. Miss either condition and the worker is not yet within scope. ### Why does the total income on the tax finalisation system differ from the company payroll? The common causes are timing differences in recognition (December wages paid in January of the following year fall into that later payment period), workers with income elsewhere not yet declared, or the business misclassifying taxable and exempt amounts. The fix is to trace each person by tax code across the 12 payrolls and appendix 05-1/BK-QTT-TNCN, find the exact discrepant line, then file a supplementary return with supporting documents. If you are preparing your first 2026 payroll and want someone to review your allowance classification, wage-region configuration, and reconciliation process before you close it, call **0908 636 108** (Nguyễn Quốc Trung — Deputy General Director) directly or send a sample payroll to **trungnguyen@nhankiet.vn**. Nhân Kiệt will read it and point out the hidden discrepancies before you have to explain them to the authorities. **See also:** [payroll outsourcing in Vietnam](https://payrollservice.vn/payroll-outsourcing/) · [2% trade union funding: which businesses must pay, how much, and where to remit it?](/tin-tuc/trade-union-funding-2-percent) · [Compulsory Social Insurance for Part-Time Workers in 2026: The Real Cost to Businesses and 3 Ways to Handle It](/tin-tuc/compulsory-social-insurance-for-part-time-workers-in-2026-the-real-cost-to-busin) --- # Labour Supply in 2026: Choosing the Right Provider and Avoiding Legal Risk https://payrollservice.vn/tin-tuc/labor-supply-in-2026-choosing-the-right-provider-and-avoiding-legal-risk Labour supply and labour sub-leasing differ on one core point: who stands as the employer to sign the employment contract and pay social insurance. **Labour sub-leasing** requires a licence and a deposit under Article 54 of the 2019 Labour Code (the deposit is 2 billion VND), and applies only to the 20 jobs in Appendix II of Decree 145/2020/NĐ-CP. **Labour supply** is not confined to that list. Choose the wrong model and it is the hirer — not just the provider — who is penalized. When a business is short of workers, there are three lawful ways to add labour from outside: labour supply, labour sub-leasing, and piecework contracting (outsourcing). The three models differ on three questions: who signs the employment contract, who directs the day-to-day work, and who bears legal responsibility. Understanding the three correctly avoids falling into "disguised labour sub-leasing" — the most common legal trap when hiring people through a third party. ## Why do higher pay and more overtime still fail to fill the ranks? Labour shortages in industrial parks are mostly a supply–demand mismatch rather than simply a matter of money. Orders bunch up by quarter, a factory needs several hundred more people within 2–3 weeks and then scales back after the peak — while formal recruitment takes months and cannot be cut quickly when orders cool. Overtime also has a hard ceiling. The Labour Code 2019 limits overtime to no more than **40 hours/month and 200 hours/year**, with certain specific sectors (textiles, footwear, electronics, seafood processing, and the like) allowed up to **300 hours/year**. A line that has hit the overtime cap cannot lawfully be pushed for more output no matter how much it pays. That is why the flexible-labour model through a third party has become a structural choice, not a stopgap. ## How do labour supply and labour sub-leasing differ? The section below summarizes the differences at the level needed to choose a model; a full concept-by-concept comparison of labour supply versus labour sub-leasing is a larger topic in its own right. **Labour supply** is where a service provider finds, screens, and places workers for a business that needs them. **Labour sub-leasing** is where a worker who has signed a contract with a licensed enterprise is assigned to work under the direction of another business for a fixed term. The core distinction is who plays the role of the employer. - **Labour supply (pure form)**: the provider finds and screens candidates; your business signs the employment contract directly, pays the wages, and pays social insurance itself. You have full authority to direct, and bear full responsibility toward the worker. - **Labour sub-leasing**: the worker signs the employment contract with the sub-leasing enterprise; that enterprise pays the wages and social insurance; the worker works under the direction of the hirer. The sub-leasing enterprise must hold a licence and lodge a deposit under Article 54 of the 2019 Labour Code. From 1 July 2026, the Investment Law No. 143/2025/QH15 no longer lists this activity among conditional business lines, but the Labour Code has not been amended to match. - **Piecework contracting (outsourcing)**: you buy the result of a work item (for example, cleaning a workshop, or packing by output); the contractor organises and directs its own staff. You do not give orders directly to each worker. In practice, most services for production workers are delivered under the licensed model, in which **the service provider is the one that signs the employment contract and pays social insurance**. This is also how Nhân Kiệt's [labour supply service](https://payrollservice.vn/manpower-supply/) operates: Nhân Kiệt signs the employment contract directly with each worker and pays social insurance directly as the employer; the business only takes people onto shift and confirms the hours worked. For positions within the labour sub-leasing list specifically, Nhân Kiệt operates under labour sub-leasing licence number 15/2019/SHCM. The "pure supply" model — where the client signs the contracts and pays the insurance itself — is simply another variant on the market, suited to businesses that want to stand as the employer themselves. A fourth direction is increasingly chosen when a business already has its team but wants to standardize the paperwork: the [labour formalization service](https://payrollservice.vn/labour-compliance/) — workers move onto contracts with the service provider, which pays social insurance, files taxes, and handles labour reporting. ## What conditions, licence, and deposit does labour sub-leasing require? Under the Labour Code 2019 and Decree 145/2020/NĐ-CP, a business wishing to sub-lease labour must meet all of the following at once: - **A deposit of 2 billion VND** at a Vietnamese commercial bank or a foreign bank branch. - **A labour sub-leasing licence** issued by the provincial People's Committee where the head office is located; valid for up to **60 months**, renewable multiple times, each renewal for no more than 60 months. - **The legal representative** must be a manager of the business, with no criminal record, and with at least **36 months** of experience working directly in the field or managing labour sub-leasing or labour supply within the 5 years immediately before the licence application. So, when vetting a provider, the first thing to do is inspect the original, still-valid licence — not just rely on an introduction. Nhân Kiệt operates under labour sub-leasing licence number 15/2019/SHCM and maintains a management system to ISO 9001:2015, ISO 45001, ISO 14001, and ISO/IEC 27001:2022. ## Which jobs are permitted for labour sub-leasing under Decree 145/2020? Appendix II of Decree 145/2020/NĐ-CP lists **20 jobs** permitted for sub-leasing. Common categories include: interpretation and translation; secretarial and administrative assistance; reception; tour guiding; sales support; programming of production-machine systems; operation, inspection, and repair of construction machinery and production electrical systems; building and factory cleaning; security and guarding; driving; telephone customer care; along with certain maritime, oil-and-gas, and aviation occupations. Two points businesses often miss: - A job **not on this list may not be sub-leased**, even by mutual agreement. Many direct production-worker positions are not on the list — for those, the correct model is labour supply or labour formalization, not sub-leasing. - The list is a prerequisite: if the job you need is not in Appendix II, drop the sub-leasing option at the outset to avoid legal risk later. ## What is the maximum term of labour sub-leasing, and can it be renewed? The Labour Code 2019 sets a maximum sub-leasing term of **12 months per worker**. After 12 months, the hirer may not continue using that person under a sub-leasing arrangement — even by renaming the position — and may not renew for the same person at the same hirer. If staff are still needed after 12 months, the business can hire that worker directly, or switch to a labour supply or labour formalization model in line with the rules. ## What obligations must the hirer guarantee? The Labour Code 2019 requires the hirer to notify and instruct on the labour rules, ensure occupational safety and hygiene, and **not discriminate on working conditions** between sub-leased workers and its own. The wage of a sub-leased worker may not be lower than that of a worker of the same qualification doing the same work or work of equal value at your business. At the same time, the hirer **may not**: - Use sub-leased labour to replace workers who are on strike or in the middle of resolving a labour dispute. - Replace workers dismissed due to structural or technological change, economic reasons, or a split or merger. - Use sub-leased labour without a **specific agreement on liability for compensation for occupational accidents and occupational diseases** with the sub-leasing enterprise. ## If labour is hired from an unlicensed unit, is the hirer penalized too? Yes. This is a point many businesses misunderstand: penalties target not just the provider but the **hirer** as well. The three most serious categories of hirer conduct are: using sub-leased labour for work **outside the list** in Appendix II; using sub-leased labour from an **unlicensed unit**; and using sub-leased labour **without an agreement on occupational-accident and occupational-disease liability**, or to replace workers on strike. Lighter breaches — failing to instruct on the labour rules, failing to ensure occupational safety and hygiene, discrimination — are also fined. The framework of administrative penalties in the labour field is set by the Government and is amended or replaced over time; businesses must check the penalty levels and conduct against the instrument in force at the time of application. A sub-leasing enterprise that breaches the rules (sub-leasing beyond 12 months, paying below the required wage, operating without a licence, and so on) also faces the additional sanction of licence revocation. Note: the monetary figures in the decree are the levels for individuals; the penalty for an organisation is determined under separate rules — check the correct clause for each act. ## How do outsourcing (piecework) and labour sub-leasing differ? **Piecework contracting (outsourcing)** is buying the result of a work item: you pay by output or by completed item, while the contractor recruits, organises, and directs its own team. In **labour sub-leasing**, you are not buying a result but buying labour by time, and you direct each person directly. The line lies in the right to direct the day-to-day work. ### Signs of disguised labour sub-leasing If a contract is labeled "piecework" but in practice you still assign shifts, keep time, allocate positions, and discipline each worker, that relationship is treated as **disguised labour sub-leasing**. Once found to be disguised, the business loses the right to invoke the piecework contract and is dealt with under the sub-leasing framework — including the requirements on the licence, the job list, and the 12-month term. The safe course is to choose the right model name from the outset and let the right to direct match the type of contract. ## What does a labour supply unit price include? A labour supply unit price typically includes the worker's net wage, the compulsory insurance the employer pays, trade union funding, the cost of recruitment, training, and health checks, and a management fee. The most-underestimated part is the insurance and trade union funding. On the employer's side, beyond the **21.5%** compulsory insurance (social insurance 17% + occupational accident and disease 0.5% + health insurance 3% + unemployment insurance 1%), there is also **trade union funding of 2%** under Law on Trade Union 2024 (số 50/2024/QH15) — mandatory even where no grassroots trade union exists. The worker pays **10.5%** (social insurance 8% + health insurance 1.5% + unemployment insurance 1%). To picture it in real figures, here is the total cost of one Region I worker with no dependents, for the period from 01/07/2026 (insurance and trade union funding included): - Gross wage 10,000,000 VND → total employer cost **12,350,000 VND**. - Gross wage 20,000,000 VND → **24,700,000 VND**. - Gross wage 30,000,000 VND → **37,050,000 VND**. - Gross wage 50,000,000 VND → **61,750,000 VND**. - Gross wage 100,000,000 VND → **112,385,000 VND** (only 12.4% is added, because the cap has been reached, instead of 23.5%). The cap for social and health insurance contributions is **50,600,000 VND per month** from 01/07/2026 (Decree 161/2026/NĐ-CP), so at very high gross wages the employer's added share tapers off proportionally. You can run the numbers for each wage level yourself and convert Gross ↔ Net with the [labour cost calculator](https://payrollservice.vn/vietnam-salary-calculator/). ### Do part-time workers generate insurance? Yes, and this is the item most often forgotten in a quotation. The compulsory social insurance obligation for part-time workers took effect **on 01/07/2025** (Law on Social Insurance No. 41/2024/QH15, Decree 158/2025/NĐ-CP), applying once **both conditions** are met: an employment contract of at least **01 month** **and** a monthly wage at or above the **reference level**. The reference level is **2,530,000 VND per month** from 01/07/2026. At the reference level, the insurance cost is **809,600 VND per person per month** (employer 543,950 VND = 21.5%, worker 265,650 VND = 10.5%). Adding the 2% trade union funding (50,600 VND), the employer's share is 594,550 VND and the total is **860,200 VND per person per month**. If this item is not in the initial quotation, it comes back as an added cost a few months later. ## A checklist for vetting a provider before signing - The original or certified copy of the **labour sub-leasing licence**, valid on the exact date of signing. - Confirmation of the **2-billion-VND deposit** at a bank. - Whether the work you need is on the **list of 20 jobs** in Appendix II of Decree 145/2020/NĐ-CP — if not, switch to the labour supply model. - Documents proving the provider is **currently paying social insurance** for the very group of workers to be assigned (the most recent social insurance payment notice). - Management-system certificates (ISO 9001, ISO 45001) and occupational-safety procedures. - **Geographic coverage**: whether it has an office/team in the province where the factory is located, or dispatches people from afar. - The process for handling staffing fluctuations when workers are absent unexpectedly. - How attendance is kept, hours reconciled, and payroll made transparent. - Health-check and safety-training records for the occupation before entering the workshop. - References from clients in the same industry and of the same production-shift scale. ## Clauses the contract should include Beyond the mandatory content, the contract should spell out: the mechanism for adding/replacing people; a mechanism for reconciling hours and pay on a fixed cycle (an open-formula reconciliation book is recommended, so both sides can check); whose responsibility social insurance is; the agreement on compensation for occupational accidents and occupational diseases; and how to handle a worker's sudden departure. For businesses that want to separate the calculation entirely from operations, the [outsourced payroll service](https://payrollservice.vn/payroll-outsourcing/) keeps the reconciliation at zero discrepancy. ## Frequently asked questions **What is labour supply?** Labour supply is where a service provider finds, screens, and places workers for a business that needs them. Depending on the model, the party that signs the employment contract and pays social insurance may be the using business (pure supply) or the provider holding a labour sub-leasing licence. **Does a business hiring sub-leased labour have to pay social insurance for those workers?** No. In a labour sub-leasing relationship, the sub-leasing enterprise is the employer, signs the contract, and pays social insurance, health insurance, and unemployment insurance. The hirer pays the service fee under the contract but must still ensure occupational safety and hygiene and not discriminate against sub-leased workers. **If labour is hired from a company without a sub-leasing licence, is the hirer penalized?** Yes. The hirer is penalized for using sub-leased labour from a business without a labour sub-leasing licence. That is why a business must check the original and the validity of the licence before signing, not rely only on the partner's introduction. **What is the maximum term of labour sub-leasing?** A maximum of 12 months per worker, with no renewal for the same person at the same hirer (Labour Code 2019). After 12 months, that worker can be hired directly, or the arrangement switched to a labour supply or labour formalization model. **When should labour supply be used instead of sub-leasing?** When the work is not among the 20 jobs in Appendix II of Decree 145/2020/NĐ-CP (most direct production workers), or when the need runs beyond 12 months. In those cases, labour supply or labour formalization is the fitting and lawful model. If your business needs to add workers for the peak season and wants to review whether the model in use is lawful, call 0908 636 108 (Nguyễn Quốc Trung — Deputy General Director) or email trungnguyen@nhankiet.vn. With more than 40,000 workers operating across 34 provinces and labour sub-leasing licence number 15/2019/SHCM, Nhân Kiệt will match your job positions against the Decree 145/2020/NĐ-CP list and recommend the fitting contract model before any discussion of unit price. **See also:** [manpower supply](/manpower-supply/) · [How to Choose an Employer of Record in Vietnam: A Due-Diligence Checklist](/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist) · [2% trade union funding: which businesses must pay, how much, and where to remit it?](/tin-tuc/trade-union-funding-2-percent) --- # Do You Have to Pay Social Insurance During Probation? https://payrollservice.vn/tin-tuc/do-you-pay-social-insurance-during-probation "Do you have to pay social insurance during probation?" is the question most often searched whenever a business is about to take on a new hire. The short answer: **it depends on where the probation period sits** — inside a labour contract, or in a separate probation contract. This is not a matter of discretion; it has been clearly set out in law since mid-2025. This article is written for directors and HR managers: it explains each case decisively, with the legal basis, the figures that apply in 2026, and how to get it right from the start. ## Do you have to pay social insurance during probation? Here is the answer straight away, so you do not have to read around it: - **If you sign a separate probation contract**: the employee is **not** subject to compulsory social insurance during the probation period. - **If the probation period is written as a clause in a labour contract of 01 month or more**: the business **must** pay social insurance for the **entire** probation period, counted from the day the contract begins. The most decisive basis for 2026 is **Clause 5, Article 3 of Decree 158/2025/ND-CP (Nghị định 158/2025/NĐ-CP)** (in force from 01/07/2025): "Employees working under a probation contract as provided by labour law are not subject to compulsory social insurance." This is the first time the principle has been expressly written into law; before 01/07/2025 it was only inferred indirectly from the fact that a probation contract is not a labour contract. Read together with **Article 2 of the Social Insurance Law 2024 (Luật Bảo hiểm xã hội 2024 — Luật số 41/2024/QH15)**: those subject to compulsory social insurance include people working under an indefinite-term labour contract or a fixed-term labour contract of 01 month or more. A probation contract does not fall into this group. But if the employee signs a labour contract of 01 month or more that **contains a probation clause inside it**, the contribution obligation applies to the entire term of the contract, including the probation days. ## Why do some probation cases require contributions and others not? The crux lies in **Article 24 of the Labour Code 2019 (Bộ luật Lao động 2019)**. The law lets the two parties agree the probation terms in **one of two ways** — written directly into the labour contract, or as a separate probation contract — and that choice decides the insurance obligation. 1. **Write the probation terms directly into the labour contract**, or 2. **Enter into a separate probation contract.** It is this choice that decides the insurance obligation, not the word "probation" itself. Probation inside a labour contract (of 01 month or more) means insurance is paid; a separate probation contract means it is not. The same person, the same job, only a different way of signing the paperwork — and the insurance consequence is already different. One mandatory note: **Clause 3, Article 24** provides that **probation does not apply** to employees who enter into a labour contract with a term of **under 01 month**. In other words, for work that is too short, no probation may be set. ## How is insurance handled with a separate probation contract? Throughout the term of a separate probation contract, the employee is not within the scope of compulsory social insurance, so the business incurs no contribution to the fund for this period. When probation is passed, **Article 27 of the Labour Code 2019** requires the business to enter into a labour contract; from the moment the labour contract takes effect, the insurance obligation begins. There is one point with **no unified guidance yet**, which needs to be said plainly to avoid a wrong assertion: **Clause 3, Article 168 of the Labour Code 2019** provides that, for employees who are not within the scope of compulsory social insurance, health insurance and unemployment insurance, the employer must pay **an additional amount at the same time as each pay period**, equivalent to the amount the business would contribute for the employee. The question is: does a person who **signs only a separate probation contract** receive this additional payment or not? This is a matter **still under debate, not yet settled**. One line of opinion holds that this provision applies to every employee not within the contribution scope, and so includes those on probation. The other holds that a separate probation contract is not a labour contract relationship in the true sense, so it is not certain to fall within the scope of Article 168. Because there is no unified guiding document yet, businesses should agree the point clearly in the probation contract and consult the local labour authority rather than assuming one reading by default. ## If probation sits inside the labour contract, how much do you pay? When probation is a clause in a labour contract of 01 month or more, the contribution rates apply to the **entire probation period** as follows (figures applicable in 2026): - **The business pays 21.5%** of the wage used as the contribution basis: social insurance 17% + occupational accident and disease insurance 0.5% + health insurance 3% + unemployment insurance 1%. - **The employee pays 10.5%**: social insurance 8% + health insurance 1.5% + unemployment insurance 1% (deducted from wages). - **Foreign employees**: the business 22.5% (comprising 20.5% insurance and 2% trade union funding) / the employee 9.5% — foreign employees do not pay unemployment insurance. The wage used as the contribution basis has a **floor** — the regional minimum wage (Region I 5,310,000 VND/month from 01/01/2026) — and a **ceiling** of 50,600,000 VND/month (equal to 20 times the reference level of 2,530,000 VND/month applying from 01/07/2026 under Decree 161/2026/ND-CP (Nghị định 161/2026/NĐ-CP)). If the probation wage is below the floor or above the ceiling, the business uses the exact floor/ceiling mark to calculate. ## A worked example: Minh An Company hires a QC staff member on a 60-day probation To see the difference clearly, take a hypothetical case. **Minh An Food Company Limited** (contributing in Region I) hires a quality control staff member with a college qualification, on a 60-day probation. The wage for the job is 12,000,000 VND/month, and the agreed probation wage at 85% is 10,200,000 VND/month. **Option 1 — Sign a separate 60-day probation contract:** - During the 60 days of probation, the employee is not within the scope of compulsory social insurance. - The business pays a wage of 10,200,000 VND/month. - The additional payment under Clause 3, Article 168 (equivalent to the amount the business would contribute): as noted above, there is **no unified guidance yet** for the separate probation contract case — it needs to be agreed clearly in the contract. **Option 2 — Sign a 12-month labour contract with a 60-day probation clause:** - Insurance must be paid from the very first day, covering both months of probation. - Assume the wage used as the contribution basis during probation is 10,200,000 VND/month (above the Region I floor of 5,310,000 VND/month and below the ceiling of 50,600,000 VND/month). - The business pays: 21.5% × 10,200,000 = **2,193,000 VND/month**. - The employee pays: 10.5% × 10,200,000 = **1,071,000 VND/month** (deducted from wages). - The employee's net take-home: 10,200,000 − 1,071,000 = **9,129,000 VND/month**. - Total paid into the fund for the two months of probation: (2,193,000 + 1,071,000) × 2 = **6,528,000 VND**. This figure lets the HR team budget from the moment the contract is drafted, rather than discovering the difference after signing. ## How long can probation last, and what is the minimum probation wage? The two limits below are mandatory rules, independent of the two parties' will. **Maximum probation period (Article 25 of the Labour Code 2019)** — probation is allowed only **once** for **one** job: | Type of work | Maximum probation period | |---|---| | Enterprise managers (under the Enterprise Law and the Law on Management and Use of State Capital) | 180 days | | Requires professional or technical qualifications of college level or above | 60 days | | Requires intermediate-level qualifications, technical workers, or professional staff | 30 days | | Other work | 06 working days | **Minimum probation wage (Article 26 of the Labour Code 2019)**: at least **85% of the wage for the job** taken on, and at the same time **not lower than the regional minimum wage**. The regional minimum wage from 01/01/2026 (Decree 293/2025/ND-CP (Nghị định 293/2025/NĐ-CP)): Region I 5,310,000 VND/month · Region II 4,730,000 VND/month · Region III 4,140,000 VND/month · Region IV 3,700,000 VND/month. ## What are the legal risks of extending probation beyond the limit? This is the part to face squarely. When a business extends, or repeats, probation beyond the period the law allows in order to avoid paying insurance, the relationship between the two parties is in fact already an employment relationship, even though the paperwork still says probation. When a labour inspector or the social insurance agency re-determines that relationship to be a labour contract, the consequence applies under **Article 43 and Article 44 of Decree 283/2026/ND-CP** (Nghị định 283/2026/NĐ-CP, which replaces Decree 12/2022/ND-CP from 10 September 2026) on late payment and evasion of compulsory social insurance: the business is dealt with for late payment or evasion of payment, required to **pay the full arrears** of the shortfall and additionally pay **an amount equal to 0.03%/day calculated on the amount of late or evaded payment and the number of days late or evaded** (Article 40 and Article 41 of the Social Insurance Law 2024). In other words, the "unpaid" amount does not disappear but comes back in full, plus the day-based payment and the fine. In cash-flow terms, doing it right from the start is always tidier than dealing with the aftermath. ## Penalties for getting probation and insurance rules wrong Two groups of sanctions must be distinguished. Important note: the levels below are stated for an **individual**; an **organisation (business) is fined double** under Clause 1, Article 7 of Decree 283/2026/ND-CP — the decree replacing Decree 12/2022/ND-CP from 10 September 2026. **Group 1 — Breaches of the probation rules (Article 16 of Decree 283/2026/ND-CP):** - **500,000 – 1,000,000 VND** (individual) for requiring probation of a person on a labour contract of under 01 month, or for not notifying the probation result. Organisation: 1,000,000 – 2,000,000 VND. - **2,000,000 – 5,000,000 VND** (individual) for: probation **more than once** for one job; probation **beyond the period** prescribed; paying a probation wage **lower than 85%**; failing to enter into a labour contract when probation is passed (in the case of a separate probation contract). **Organisation: 4,000,000 – 10,000,000 VND.** Together with the remedial measure of paying the employee the full wage shortfall. **Group 2 — Breaches of compulsory social insurance contribution (Article 43 and Article 44 of Decree 283/2026/ND-CP):** - **Late payment** (Article 43, Clause 3): a fine of **12% – 15%** of the total amount paid late, capped at **75,000,000 VND** for an individual. - **Failing to register, or registering fewer people than required**, within 60 days (Article 43, Clause 2): a fine set by the number of workers in violation, from **5,000,000 – 10,000,000 VND** for fewer than 10 workers up to **60,000,000 – 75,000,000 VND** for 1,000 workers or more. - **Evasion of payment** (Article 44): registering a contribution salary lower than the legal minimum, or still not paying in full 60 days after being formally prompted — a fine of **18% – 20%** of the total evaded, capped at **75,000,000 VND**. Where the conduct is a failure to register, or registering fewer people, beyond 60 days, the fine goes by headcount, from **6,000,000 – 12,000,000 VND** to **70,000,000 – 75,000,000 VND**. - Together with the requirement to pay the full arrears and pay into the social insurance fund an amount equal to **0.03%/day** calculated on the amount and the number of days of late or evaded payment (Article 43, Clause 4 and Article 44, Clause 3 of Decree 283/2026/ND-CP; Article 40 and Article 41 of the Social Insurance Law 2024). ## How should a business handle this correctly and cleanly? Instead of worrying case by case, the HR team can choose the contract structure deliberately from the outset and then follow the sequence below. 1. **Choose the contract structure deliberately.** Decide from the outset whether to write probation into the labour contract or to sign a separate probation contract, because this choice also decides the insurance obligation. Set it out clearly in the recruitment process so every position is handled consistently. 2. **Set the probation period within the correct limit.** Match the job against the 180 / 60 / 30 / 06 days table and remember the principle of only one probation per job. 3. **Ensure the probation wage ≥ 85% of the job wage and not below the regional minimum wage.** 4. **Notify the probation result on time** and sign the labour contract as soon as it is passed (Article 27), so the insurance obligation begins at the right moment. 5. **Budget for the insurance contribution from day one if probation sits inside the labour contract**, putting the 21.5% employer share into the payroll from the very first probation month. 6. **For businesses with many seasonal positions or high staff turnover**, consider using an outsourced payroll service or a compliant labour-use model so that contract and insurance compliance is standardised and manual errors are reduced. ## Frequently asked questions ### 1. Do you have to pay social insurance for a 01-month probation? It depends on the type of contract. If it is a separate probation contract, no contribution is due. If it is a labour contract of 01 month or more with a probation clause, contributions are due from the first day, including the probation month. ### 2. If one party ends the arrangement during probation, is notice or compensation required? No. Under Article 27 of the Labour Code 2019, during probation each party has the right to cancel the probation contract or the labour contract already entered into without notice and without compensation. ### 3. Can the probation wage be lower than the regional minimum wage? No. The probation wage must reach at least 85% of the wage for the job and at the same time be not lower than the regional minimum wage (Region I 5,310,000 VND/month from 01/01/2026). Paying below 85% can draw a fine of 4,000,000 – 10,000,000 VND for a business. ### 4. If probation is written into the labour contract, from which day is insurance paid? From the day the labour contract takes effect, that is, from the first day of work. The whole probation period falls within the contract term, so the contribution obligation arises throughout. ### 5. Do foreign employees on probation pay social insurance? The same principle as for Vietnamese workers. A separate probation contract means no contribution; probation inside a qualifying labour contract means contributions are due, at the rate of 22.5% for the business (comprising 20.5% insurance and 2% trade union funding) / 9.5% for the employee (foreign employees do not pay unemployment insurance). --- Choosing the right probation contract structure from the recruitment stage lets a business both comply with the law and budget its staffing costs accurately. If you want to standardise the entire contract and insurance process, look at the [labour compliance](/labour-compliance/) service and the [labour cost calculator](/vietnam-salary-calculator/) tool to get concrete figures for each position. --- # Foreigners in Vietnam 2026: work permit & social insurance https://payrollservice.vn/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance FDI enterprises bringing foreign experts, executives or engineers to Vietnam in 2026 must get two things right in parallel: the **work permit** and **compulsory social insurance**. Both have just changed their legal basis. This article is for directors and HR managers: who is required to hold a permit, who is exempt, the paperwork and timelines, which types of insurance foreign workers pay (and why the rate differs from Vietnamese workers), the fines for working without a permit, and how to handle the case where the overseas parent company does not yet have a legal entity in Vietnam. ## In 2026, which decree governs foreigners working in Vietnam? The governing document currently in force is **Decree 219/2025/NĐ-CP** (Decree 219/2025/NĐ-CP), effective from **7 August 2025** and still in force in 2026. This decree has 5 chapters and 36 articles, and **fully replaces** Decree 152/2020/NĐ-CP and Decree 70/2023/NĐ-CP — the two older documents ceased to be effective on 7 August 2025. This is the first point HR needs to note: any old document, internal procedure or guidance note that still cites Decree 152/2020 or 70/2023 as the current basis has been wrong since 7 August 2025. Forms and foreign-worker recruitment checklists should be reviewed against the new document. Four major changes in Decree 219/2025: - **Merged procedures.** Previously you had to prepare a separate "report explaining the need to use foreign workers" before applying for the work permit — now this is integrated into a single permit application file. - **Transfer of licensing authority** to the provincial People's Committee where the worker is expected to work. - **Shorter timeline.** The permit is issued within **10 working days** from the date a complete and valid file is received; if it is not issued, the authority must reply in writing stating the reason within **03 working days**. - **Additional exemptions** for people working in finance, science, technology, innovation, national digital transformation and other priority fields. The foundation is still Bộ luật Lao động 2019 (the 2019 Labour Code). Article 151 sets the conditions for foreign workers (at least 18 years old, with full civil-act capacity, appropriate expertise and experience, good health, not currently serving a sentence, and holding a work permit unless exempt). Article 152 limits this: enterprises may only recruit foreign workers into **managerial, executive, expert and technical worker** positions that Vietnamese workers cannot yet fill. ## Who must apply for a work permit and who is exempt? The principle: a foreign worker working in Vietnam **must hold a work permit**, except for cases exempt under Article 154 of Labour Code 2019 and the guidance in Decree 219/2025. Groups not subject to work permit issuance include: - Owners or capital-contributing members of an LLC with a capital contribution value of **VND 3 billion or more**. - Chairpersons or members of the Board of Directors of a joint-stock company with a capital contribution value of **VND 3 billion or more**. - Heads of representative offices/projects or persons chiefly responsible for the activities of an international organisation or foreign non-governmental organisation. - Entering Vietnam for **under 03 months** to offer services for sale. - Entering Vietnam for **under 03 months** to handle incidents or complex technical situations. - Foreign lawyers who have been granted a practising licence in Vietnam. - Intra-corporate transfers within the 11 service sectors under Vietnam's WTO commitments. - Performing international agreements; pupils and students on internships; family members of staff of foreign representative missions. - People working in the newly added priority fields (finance, science, technology, innovation, digital transformation) under Decree 219/2025. One important warning to avoid wasted money: **exemption does not mean there is nothing to do.** Most exempt cases still require a **written confirmation of exemption from the work permit requirement**; the file must be submitted **at least 10 days before, and within 60 days of**, the date the worker is expected to start work. Without this confirmation, the worker is still treated as not holding a permit. For the newly added priority fields (finance, science, technology, digital transformation), the specific list and criteria are confirmed by a ministry or the provincial People's Committee. This part **does not yet have consistent detailed guidance** nationwide, so enterprises should check with the local labour authority first rather than assuming their people are automatically exempt. ## What documents does a work permit application need, and how long does it take? Under Decree 219/2025, the process is more streamlined than before: the "report explaining the need to use foreign workers" step now sits within the permit application file, and is no longer a separate procedure. The file is submitted at the **provincial People's Committee where the worker is expected to work**. On documents, the enterprise must prove the worker meets the conditions in Article 151 of Labour Code 2019: documents proving professional/technical qualifications and experience suitable for the position, a health certificate, a judicial record (not currently serving a sentence), together with the employer's file. Documents issued abroad need consular legalisation — or, from 11 September 2026, only an apostille if the issuing country applies the Apostille Convention with Vietnam — plus notarised translation; this is the most time-consuming step and should be planned for in advance. On timing: the authority issues the permit within **10 working days** from the date a complete and valid file is received. If it is not issued, it must reply in writing stating the reason within **03 working days**. This figure of 10 days only counts from when the file is already valid, and does not include the time to prepare and legalise foreign documents. On the permit's term (Article 155 of Labour Code 2019): a maximum of **02 years**; on expiry it may only be **renewed once**, with a renewal term of at most **02 years** as well. The specific term is determined by the intended labour contract or the term of the foreign secondment, but not exceeding 2 years. HR should set a reminder before the expiry date: if the permit expires while the worker keeps working, this is treated as working without a permit. ## What types of insurance do foreigners pay in Vietnam? The current basis is **Law on Social Insurance 2024 (Luật số 41/2024/QH15)** (the 2024 Law on Social Insurance) and **Decree 158/2025/NĐ-CP** (replacing Decree 143/2018/NĐ-CP), both effective from 1 July 2025. A foreign worker is subject to **compulsory social insurance** when working under a fixed-term labour contract of **12 months or more** with an employer in Vietnam and holding a **valid work permit or practising certificate**. Two excluded cases: persons on **intra-corporate transfer** and persons who have **reached retirement age**. Foreign workers take part in the following schemes: sickness, maternity, occupational accident and disease, retirement and survivorship. They **do not take part in unemployment insurance**, because Luật Việc làm 2025 (Luật số 74/2025/QH15) (the 2025 Employment Law) provides that those who pay unemployment insurance are **Vietnamese citizens**. It is precisely because unemployment insurance is absent that **the contribution rate for foreign workers differs from that for Vietnamese workers**. Contribution rates in 2026 (no unemployment insurance): - **Foreign workers pay 9.5%** = 8% social insurance + 1.5% health insurance. (Vietnamese workers pay 10.5% because of an additional 1% unemployment insurance.) - **The enterprise pays the insurance portion of 20.5%** = 17% social insurance + 0.5% occupational accident and disease insurance + 3% health insurance. (For Vietnamese workers it is 21.5% because of an additional 1% unemployment insurance.) - Adding **2% trade union funding** on the payroll fund, the enterprise's total non-wage cost for foreign workers is **22.5%** (for Vietnamese workers it is 23.5%). On the contribution cap: the salary used as the basis for social and health insurance is capped at **20 times the reference level**. From 1 July 2026, the reference level is **VND 2,530,000/month** (Decree 161/2026/NĐ-CP), so the contribution cap is **VND 50,600,000/month**. Salaries higher than this still only pay insurance on a base of VND 50.6 million. ## How much does insurance for one foreign expert cost per month? **Example: an FDI electronics factory in Binh Duong hires a South Korean chief engineer**, salary VND 70 million/month, a 24-month labour contract, with a work permit already in place. This person is subject to compulsory social insurance. Because the VND 70 million salary is above the cap, the contribution base is capped at **VND 50,600,000**. Calculated on this base: - **The worker (the South Korean engineer) pays 9.5%** = 50,600,000 × 9.5% = **VND 4,807,000/month**. - **The enterprise pays the insurance portion of 20.5%** = 50,600,000 × 20.5% = **VND 10,373,000/month**. - Adding **2% trade union funding** = VND 1,012,000, the factory's total non-wage cost is 50,600,000 × 22.5% = **VND 11,385,000/month**. The comparison shows the difference lies exactly in unemployment insurance: if, at the same salary, this were a Vietnamese engineer, the worker would pay 10.5% = VND 5,313,000 (VND 506,000 more, which is precisely the 1% unemployment insurance), and the enterprise would also pay that same additional 1%. In other words, using foreign workers is not "more expensive" in terms of insurance — the contribution is slightly lower because unemployment insurance is dropped, and in return the worker is not entitled to unemployment benefits in Vietnam. Note: if the actual salary is lower than or equal to VND 50.6 million, the contribution is on that salary itself, not on the cap. ## How much is the fine for using foreign workers without a permit? The sanction is in **Article 13, Clause 5 of Decree 283/2026/NĐ-CP** — the decree replacing Decree 12/2022/NĐ-CP from **10 September 2026**. An employer using foreign workers **without a work permit**, **without a written confirmation of exemption from the permit requirement**, or on a **work permit that has expired**, is fined by the number of workers in violation. Fines applied to **organisations (enterprises)**: - A violation involving **01–10 people**: from **VND 60,000,000 to 90,000,000**. - A violation involving **11–20 people**: from **VND 90,000,000 to 120,000,000**. - A violation involving **21 or more people**: from **VND 120,000,000 to 150,000,000**. The level applied to individuals is half of the above figures (VND 30–45 / 45–60 / 60–75 million). The foreign worker themselves, working without a permit or confirmation, is fined **VND 15,000,000 to 25,000,000** and is subject to the additional penalty of **expulsion**. Two points easily overlooked: first, the fine is counted **per person**, so just a few experts missing paperwork adds up very fast; second, **missing the written confirmation of exemption is also treated as being without a permit** — an enterprise assuming its people are exempt and therefore doing nothing still gets fined. ## How do you hire people when the overseas parent has no legal entity in Vietnam yet? This is a very common situation with FDI clients: the parent group wants to send people over to survey, run a project or trial the market, but **has not yet set up a company, branch or representative office in Vietnam**. The legal obstacle lies in Article 2 of Decree 219/2025: only entities **with a presence in Vietnam** may act as the user and sponsor of a work permit application — including enterprises, agencies/organisations, contractors, diplomatic missions, international organisations, individuals permitted to do business, together with representative offices/branches of foreign traders and the operating offices of investors under a BCC (Business Cooperation Contract). A **foreign legal entity with no presence in Vietnam is not on this list**, and so cannot directly sponsor a work permit. The "intra-corporate transfer" category does not rescue this situation either, because it only applies where the foreign enterprise **has already established a commercial presence in Vietnam** and the worker has been continuously employed for **at least 12 months** before being seconded. With no presence, it is not considered an intra-corporate transfer. Three lawful ways forward: - **(a) Establish a commercial presence** — set up an FDI-invested company, branch or representative office in Vietnam, then have this entity sponsor the work permit. Suitable when the group has decided on long-term investment. - **(b) Use a Vietnamese legal entity as the official employer** — the labour formalisation/EOR model: the Vietnamese entity signs the labour contract, applies for the work permit in its own name, and pays social insurance for the foreigner. Suitable when people need to come over quickly and there is no wish or time yet to set up a separate entity. - **(c) Where the party is a contractor that has won a bid in Vietnam**, follow the procedure for contractors, with the participation of the investor or the bid-inviting party. ## Where should an enterprise start? A practical sequence to get it right from the outset, rather than firefighting during an inspection: 1. **Classify the worker.** Determine whether the person is required to hold a work permit or is exempt. If exempt, you still must obtain the written confirmation of exemption, submitting the file at least 10 days before (and within 60 days of) the expected start date. 2. **Identify the entity that signs.** Do you already have a legal entity in Vietnam to act as the employer? If not, choose option (a), (b) or (c) above straight away before bringing people over. 3. **Prepare the merged file** (needs report + permit application file), submitted at the provincial People's Committee where work is expected. Allow 10 working days for processing, plus time for consular legalisation or an apostille and notarised translation of foreign documents. 4. **Register for insurance at the right time.** As soon as the work permit and a labour contract of 12 months or more are in place, register for compulsory social insurance: worker 9.5%, enterprise 20.5% for the insurance portion, no unemployment insurance, and remember the VND 50.6 million cap. 5. **Track the permit's expiry.** Set a renewal reminder before expiry (renewable only once, up to 2 years). Continuing to work after expiry is a violation. Following this chain means the work permit and insurance line up in timing, avoiding a gap that leaves the worker unprotected and exposes the enterprise to fines. ## Frequently asked questions ### Does a foreigner on a labour contract of under 12 months have to pay compulsory social insurance? No. The condition for compulsory social insurance is a fixed-term labour contract of **12 months or more** with an employer in Vietnam, together with a valid work permit or practising certificate. A contract shorter than 12 months is not subject to this. Note that the work permit condition must still be met independently of the insurance question. ### What is the maximum term of a work permit, and how many times can it be renewed? A maximum of **02 years**, and it may only be **renewed once**, with a renewal term of at most 02 years as well. After that renewal, continuing to use the worker usually requires applying for a new permit. Each permit's specific term is determined by the intended labour contract or the term of the foreign secondment, but does not exceed 2 years. ### How much capital must a foreigner contribute to be exempt from a work permit? **VND 3 billion or more.** Owners or capital-contributing members of an LLC, and Chairpersons or members of the Board of Directors of a joint-stock company, with a capital contribution value of VND 3 billion or more, are exempt from the work permit. Although exempt, they must still obtain the written confirmation of exemption, submitting the file at least 10 days before (and within 60 days of) the expected start date. ### Does an exempt person have to complete any procedures? Yes. Most exempt cases must still obtain a **written confirmation of exemption from the work permit requirement**; the file must be submitted at least 10 days before, and within 60 days of, the date the worker is expected to work. Without this confirmation, the worker is still treated, and the enterprise still fined, as in the case of not holding a permit. ### From 2026, where do you submit a work permit application? At the **provincial People's Committee where the worker is expected to work**. Decree 219/2025 has transferred licensing authority to the provincial level and merged the needs-report step into the single file, so the enterprise submits only once instead of splitting it into two procedures as before. --- Bringing foreign workers into Vietnam lawfully is a matter of coordinating the work permit, the contract and insurance — getting one step wrong creates the risk of fines and a gap in entitlements. If the parent company does not yet have a legal entity in Vietnam, or the HR team wants a single point of contact to stand as the named employer and handle the entire file, you may consider Nhân Kiệt's [labour formalisation](/labour-compliance/) service and [EOR in Vietnam](/eor-vietnam/) model to choose the direction that fits the enterprise's plans. --- # 2% trade union funding: who pays, how much, and where? https://payrollservice.vn/tin-tuc/trade-union-funding-2-percent Trade union funding is one of those statutory obligations that many businesses still mistake for something you "only pay once you have a union". The reality is the opposite: this obligation is tied to whether the business employs workers who fall within compulsory social insurance (BHXH), not to whether a trade union organisation has been set up. From 1 July 2025, when Luật Công đoàn số 50/2024/QH15 (Trade Union Law No. 50/2024/QH15) took effect and replaced Law on Trade Union 2012, the way these provisions are cited and several rules on trade union finances have changed. The article below is for directors and HR managers who need a clear answer: who has to pay, on which salary fund, when, where, how it differs from membership dues, and what the penalty is for getting it wrong. ## What is the 2% trade union funding and which businesses must pay it? Trade union funding is an amount paid by the employer, equal to **2% of the salary fund used as the basis for compulsory social insurance (BHXH) contributions for employees**. This is a statutory obligation applying to every agency, organisation, unit, business, cooperative and union of cooperatives that employs workers falling within compulsory social insurance. The legal basis is **Article 29, Clause 1, Point b of Law on Trade Union No. 50/2024/QH15**, in effect from 1 July 2025. The key point: this 2% obligation **makes no distinction** between businesses that have or have not established a grassroots union, and **does not depend** on whether employees are union members. Because Law on Trade Union 2024 has replaced Law on Trade Union No. 12/2012/QH13, from 2026 onwards, when dealing with the authorities, businesses should cite Luật 50/2024/QH15. Citing Law on Trade Union 2012 means citing a document that is no longer in force. As for the guidance implementing the trade union finance provisions, the document currently in force is **Decree 105/2026/NĐ-CP** (Decree 105/2026/NĐ-CP) (issued 31 March 2026, effective 16 May 2026), which provides guidance on Law on Trade Union 2024. This decree replaces the earlier guidance (Decree 191/2013/NĐ-CP under the 2012 Law); however, the exact repeal clauses should be checked directly against the original text of Decree 105/2026 to be certain. ## Does a business without a grassroots union still have to pay? Yes. This is the most commonly misunderstood point. The obligation to pay the 2% trade union funding arises as soon as the business has employees within the scope of compulsory social insurance, **even when the business does not yet have a single union member and has not established a grassroots union**. The reason lies in the nature of this contribution: trade union funding is a financial source for caring for and representing workers in general, so the law ties it to the employment of workers, not to whether the business has managed to organise an internal union. A newly established business that has not yet recruited any members must still pay the full 2% each month under Article 29 of Luật 50/2024/QH15. This also means a business cannot use the excuse that "the company does not have a union yet" to avoid paying. If it has not paid because of a misunderstanding, the outstanding amount will accumulate and may become grounds for a penalty, as set out below. ## Which salary fund is the 2% calculated on, and is there a ceiling? The 2% is calculated on the business's **salary fund used as the basis for compulsory social insurance contributions**, that is, the total monthly salary used to calculate social insurance contributions for all employees within the participating scope, not the entire actual payroll cost. Trade union funding **has no ceiling of its own**. However, because it is calculated on the social insurance salary fund, and each person's social-insurance salary base is capped at **a maximum of 20 times the reference level**, there is indirectly a limit at the individual level. According to the payroll sector's standard figures for 2026 (reference level 2,530,000 VND/month, social insurance contribution ceiling 50,600,000 VND/month, applicable from 1 July 2026), however high an employee's social-insurance salary may be, the trade union funding calculated for that person is capped in line with the ceiling of 50,600,000 VND/month. It follows that the maximum trade union funding for a single employee is about **2% × 50,600,000 = 1,012,000 VND/month** (a figure derived from the social insurance ceiling). For high earners above the ceiling, the excess adds nothing to the trade union funding. ## Example: how much trade union funding does a mechanical-engineering business with 45 employees pay? Suppose a mechanical-engineering business in Ho Chi Minh City has 45 employees within the scope of compulsory social insurance. The business's total salary fund used as the basis for social insurance contributions is **200,000,000 VND/month**. The trade union funding payable: - Per month: 2% × 200,000,000 = **4,000,000 VND/month**. - Per year: 4,000,000 × 12 = **48,000,000 VND/year**. Now suppose that among those 45 people there is a production manager with a nominal social-insurance salary of 60,000,000 VND/month. Because the social-insurance salary base is capped at the ceiling of 50,600,000 VND/month (from 1 July 2026), the trade union funding calculated for this person alone is at most 2% × 50,600,000 = **1,012,000 VND/month**, rather than being calculated on the 60 million. The 4,000,000 VND/month figure above is the amount the business pays, and it is recorded as a deductible expense when determining income subject to corporate income tax (provided it is paid correctly and supported by valid documents). This is a financial obligation that can be budgeted for in advance and built into the annual personnel-cost plan. ## How does trade union funding differ from trade union membership dues? These are two entirely different amounts that are very often lumped together: trade union funding is paid by the employer on the salary fund, while membership dues are paid by union members themselves and arise only where a grassroots union exists. **Trade union funding** - Who pays: the employer (the business/unit). - Rate: 2% of the salary fund used as the basis for compulsory social insurance contributions. - Nature: a mandatory obligation under Article 29 of Law on Trade Union 2024, recorded as a business expense. - Arises even when the business has no union members at all. **Trade union membership dues** - Who pays: the employees themselves who **are union members**, deducted from their salary. - Arises only when an employee has voluntarily joined the union. - Governed by the rules of the Vietnam General Confederation of Labour. In short: trade union funding is the business's money, membership dues are the members' money. The business must still pay the 2% funding even if no members have joined. On the **2026 membership dues rate**, one unsettled point should be noted: the reference sources currently contradict one another (some cite a rate of 1% of salary under a decision of the General Confederation, others cite 0.5%), and the specific cash ceiling on membership dues also depends on the shift from the "base salary level" to the "reference level". Since a single authoritative original text has not yet been cross-checked, businesses **should not assert a fixed figure for membership dues on their own**, but should confirm with the immediate superior trade union. This has no bearing on the business's 2% funding obligation, as these are two independent amounts. ## When is trade union funding paid, and where is it remitted? On **timing and method**: under Decree 105/2026/NĐ-CP, a business pays trade union funding **once a month, at the same time as compulsory social insurance contributions** for its employees. The deadline is the **last day of the following month**. Some units in the agricultural sector may be allowed to pay quarterly. One threshold to remember: where funding is not paid, or not paid in full, and more than **60 days pass from the due date**, it is treated as failure to pay trade union funding, and this is precisely the basis on which the authorities draw up a record and impose a penalty. On **where to remit**: for a business that already has a grassroots union, the collection and distribution of funding follow the union organisation's tiered arrangements. For a **business without a grassroots union**, Decree 105/2026/NĐ-CP assigns collection to the Vietnam General Confederation of Labour on a tiered basis, usually through the immediate superior trade union or the district-level Labour Federation managing the area. However, **the specific address and collection account number are not stated consistently** in the guidance available; a business should contact the local Labour Federation where its head office is located to be given the correct remittance account. This is a step worth taking early, especially for new businesses or those that have not paid to date. ## Can a business in difficulty be exempted from, or have reduced or suspended, its contributions? Yes, and this is a notable new feature of Law on Trade Union 2024 compared with the old law. Under **Article 30 of Law on Trade Union No. 50/2024/QH15**, a business or unit facing difficulties may be considered for **exemption, reduction or suspension** of trade union funding in cases such as dissolution, bankruptcy, or difficulty for economic reasons or force majeure. The **suspension period is no longer than 12 months**. This means that when a business is genuinely in difficulty, the right course is not to quietly stop paying and wait to be caught, but to proactively file a request for exemption, reduction or suspension under Article 30. Following the correct procedure gives the business a legal basis rather than falling into the category of late payment and being penalised. Businesses in this situation should work with the immediate superior trade union for guidance on the paperwork and the specific conditions. ## What is the penalty for not paying, or paying late? The penalty is set out in **Article 42 of Decree 283/2026/NĐ-CP** (the decree replacing Decree 12/2022/NĐ-CP from **10 September 2026**), calculated as a **percentage of the total amount payable** at the time the record is drawn up. Note that the levels stated in the decree apply to **individuals**; under Article 7, Clause 1 of that decree, the penalty for **an organisation is twice that for an individual**. Since a business is an organisation, the figures to use are the doubled ones. **Late payment; failing to withhold and pay; or, more than 60 days after the payment deadline, still paying too little or covering too few of the people required:** - The business is fined **24% to under 30%** of the total amount payable, **up to 150,000,000 VND** (twice the individual level of 12% to under 15%, up to 75 million). **Failing to pay trade union funding for the entire body of employees who fall within the scope:** - The business is fined **36% to 40%** of the total amount payable, **up to 150,000,000 VND** (twice the individual level of 18% to 20%, up to 75 million). Besides the fine, the business must also carry out a **remedial measure**: within **30 days at the latest from the date of the penalty decision**, it must pay the union organisation the outstanding funding **plus interest**, calculated at the highest demand-deposit interest rate published by the state-owned commercial banks at the time of the penalty. In other words, the unpaid amount is not written off; it must still be paid in full together with interest. Set side by side, it becomes clear: for a business with a large salary fund, the back-payment plus interest plus the percentage-based fine is usually far higher than paying in full and on time from the outset. ## What should a business do to pay correctly and in full? HR and accounting can keep this clean with the process below, starting by identifying the correct social-insurance salary fund on which the 2% is calculated. 1. **Identify the correct basis salary fund.** Trade union funding is calculated on the compulsory social insurance salary fund, not the total actual payroll. Review the list of people within the social insurance scope so the headcount is neither understated nor overstated. 2. **Register with the immediate superior trade union.** Even without a grassroots union, contact the district-level Labour Federation where your head office is located to find out the account and how to remit. 3. **Pay monthly, in the same cycle as social insurance.** Fold trade union funding into the same monthly social insurance process so nothing is missed; remember the deadline is the last day of the following month, and the 60-day threshold. 4. **Keep full remittance records.** These are the basis for recording deductible expenses and for demonstrating compliance when the authorities inspect. 5. **If the business is in difficulty, file the paperwork under Article 30** to request exemption, reduction or suspension rather than stopping payment on your own. 6. **Consider handing payroll and the associated contributions to a specialist provider** if your in-house team is thin, to avoid missing a payment cycle and to reduce the risk of miscalculating the basis salary fund. ## What is the maximum trade union funding per employee? Trade union funding has no separate cap, but it is capped indirectly by the social insurance salary ceiling: the salary used for contributions is at most twenty times the reference level — **VND 50,600,000 per month** from 1 July 2026 — so the 2% comes to at most about **VND 1,012,000 per employee per month**. Salary above the ceiling attracts no trade union funding. ## When is trade union funding due? Trade union funding is paid **once a month, at the same time as compulsory social insurance contributions**. Paying later than the insurance deadline already falls into the penalty group described above, even if the business settles the amount in full afterwards. ## Frequently asked questions ### Does a business without a grassroots union have to pay the 2% trade union funding? Yes. The obligation to pay 2% arises when the business has employees within the scope of compulsory social insurance, regardless of whether a grassroots union has been established or any members exist. This is provided for in Article 29, Clause 1, Point b of Law on Trade Union 2024. ### Is the 2% trade union funding calculated on actual pay or on the social insurance salary? On the salary fund used as the basis for compulsory social insurance contributions, not the entire actual pay. So when reviewing, a business should take each person's correct social insurance salary, and note that each person has a social insurance ceiling of 50,600,000 VND/month (from 1 July 2026). ### Do employees have to have their salary deducted to pay trade union funding? No. The 2% trade union funding is the business's contribution and is not deducted from employees' salaries. What an employee may have to pay is the trade union membership dues, but only if they are already a member; the 2026 dues rate is currently cited differently across sources, so it should be confirmed with the superior trade union. ### How many days late does trade union funding have to be before it counts as non-payment? More than 60 days from the due date without paying, or without paying in full, is treated as failure to pay trade union funding. The deadline for each month is the last day of the following month, under Decree 105/2026/NĐ-CP. ### In labour sub-leasing, which party pays the trade union funding? Trade union funding is the responsibility of the employer that signs the labour contract and pays compulsory social insurance for the employee. In a labour sub-leasing relationship, whichever business the employee falls under for social insurance is the one at which the 2% trade union funding is calculated and paid, based on that business's social insurance salary fund. Businesses should set this responsibility out clearly in the service contract. --- The 2% trade union funding is an amount that can be budgeted for in advance and built into the annual personnel-cost plan, as long as the business identifies the correct basis salary fund and pays steadily each month. If your HR team is unsure about the salary fund used as the basis for social insurance contributions, or wants to re-check the business's full set of contribution obligations, you can see how we break this down in our [outsourced payroll service](/payroll-outsourcing/) and [labour cost calculator](/vietnam-salary-calculator/) tool, to get complete figures before setting the budget. --- # How EOR Pricing Works in Vietnam: the 8% Fee, Floor and Cap https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs **EOR pricing in Vietnam has two layers, and only one of them is the provider's price.** The first layer is the provider's service fee. The second is the statutory cost of employing the person, which is fixed by Vietnamese law and identical whichever provider you choose. Most published EOR pricing comparisons quote only the first layer, which is why a quote of "USD 199 per employee per month" and a quote of "8% of gross" can look like different products when they are not. Nhan Kiet's EOR pricing is **8% of gross salary per person per month, with a floor of VND 2,600,000 (about USD 99) and a cap of VND 5,200,000 (about USD 199)**. There is a deposit of one month's gross salary per employee (refundable when the contract ends and accounts are settled), effective 1 October 2026, and no onboarding fee, no offboarding fee, no entity set-up or maintenance cost, and no currency conversion fee. On top of that sit the statutory employer contributions — **23.5% of the contribution base** for a Vietnamese national, **22.5%** for a foreign national — and 8% VAT on the whole invoice. This article takes every one of those lines apart, with worked figures at five salary levels, so you can build the number yourself instead of asking for a quote and hoping. All figures are current as of September 2026 and apply to pay periods from 1 July 2026, when the contribution caps changed. ## How is EOR pricing structured in Vietnam? Three pricing models are used in this market, and the difference between them matters far more at some salary levels than others. - **Flat fee per employee per month.** The provider charges the same amount whether the employee earns 10 million or 100 million VND. Common among global platforms, usually quoted in US dollars, typically somewhere between USD 199 and USD 699 depending on the provider and the scope bundled in. Predictable, and expensive for junior roles. - **Percentage of gross salary.** The fee moves with the salary. Cheap for junior roles, and without a ceiling it becomes punishing for senior ones — a 10% fee on a 100 million VND salary is 10 million VND a month for administering one person, which is not ten times the work of administering someone on 10 million. - **Percentage with a floor and a cap.** The fee is a percentage, but never falls below a stated minimum and never rises above a stated maximum. This is the model Nhan Kiet uses. The floor covers the fixed administrative cost that exists for every headcount regardless of pay; the cap stops the percentage running away on senior salaries. When you compare EOR pricing across providers, the first question is not "how much" but "which of these three, and where do the boundaries sit". A flat USD 199 and an 8% fee with a VND 5,200,000 cap converge at the top of the salary range and diverge sharply at the bottom. ## What exactly is Nhan Kiet's EOR pricing? Nhan Kiet's EOR pricing is 8% of gross salary per employee per month, with a floor of VND 2,600,000 (about USD 99), a cap of VND 5,200,000 (about USD 199) and a refundable one-month deposit: - **Service fee: 8% of gross salary, per person, per month.** - **Floor: VND 2,600,000 per person per month** (about USD 99). Below this the fee does not go, however low the salary. - **Cap: VND 5,200,000 per person per month** (about USD 199). Above this the fee does not go, however high the salary. - **One-month refundable deposit.** Some providers hold a deposit equal to one or two months of payroll; Nhan Kiet holds one month's gross salary per employee, refundable when the contract ends and accounts are settled, effective 1 October 2026. - **No onboarding fee and no offboarding fee.** - **No entity set-up or maintenance cost**, because the entity already exists. - **No currency conversion fee.** - **No separate software charge.** Every client gets an account on Nhan Kiet's management platform at no extra cost. - Prices are quoted in Vietnamese dong. The US dollar figures are an indicative conversion, rounded to whole dollars. - Foreign nationals and work permits are quoted separately, for reasons set out further down. The 8% is calculated on the **whole gross salary**, with no exclusion for the portion above the social insurance cap. This matters when you compare against providers who quote a percentage of a narrower base. ## Which lines are pass-through, and which is the fee? A monthly EOR invoice from Nhan Kiet has **three lines, plus VAT**: - **Gross salary**, exactly as agreed between you and the employee. This is pass-through; the EOR does not mark it up. - **Employer-side statutory contributions.** Compulsory social insurance, health insurance, occupational accident and disease insurance, unemployment insurance, and the trade-union levy. Also pass-through, at the rates the law sets. - **The service fee**, as above. - **VAT at 8%, charged on the total of all three.** VAT charged on the whole invoice rather than on the service fee alone is the single most common misunderstanding in Vietnam EOR pricing. Notice what is **not** on the invoice: the employee's own contributions and personal income tax are withheld from the gross salary, not added to it. They change what the employee takes home, not what you pay. ## How much are the statutory employer contributions? For a **Vietnamese national**, the employer pays **21.5% of the contribution base** in compulsory insurance, plus a **2% trade-union levy** — **23.5% in total**: - Social insurance: **17%** - Occupational accident and disease insurance: **0.5%** - Health insurance: **3%** - Unemployment insurance: **1%** - Trade-union fund levy: **2%**, compulsory under the [Trade Union Law 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=212478&classid=1&typegroupid=3) (No. 50/2024/QH15) even where no workplace union exists For a **foreign national**, unemployment insurance does not apply, so the employer figure is **22.5%**. The employee's own side is **10.5%** for a Vietnamese national (social 8%, health 1.5%, unemployment 1%) and 9.5% for a foreign national. Union membership dues of 0.5% apply only to actual union members and are capped at VND 253,000 a month under Decision 61/QD-TLD. ### Which salary cap applies to which contribution? This is where most EOR pricing estimates go wrong, including several of the online calculators. - **The social- and health-insurance cap is VND 50,600,000 per month** from 1 July 2026 under [Decree 161/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218107&pageid=27160) — twenty times the reference level of VND 2,530,000. It was VND 46,800,000 before that date. The occupational-accident contribution and the 2% union levy share this same base, so they inherit the same cap. - **The unemployment-insurance cap is different**, and it follows the regional minimum wage rather than the reference level: **Region I VND 106,200,000, Region II VND 94,600,000, Region III VND 82,800,000, Region IV VND 74,000,000** per month. Two different caps on two different bases. Any pricing model that multiplies the salary by a flat 21.5% overstates the real cost at senior salaries — by 89% at a gross of 100 million VND, where the true employer insurance cost is VND 11,373,000 rather than VND 21,500,000. If a provider's quote for a senior hire looks high, this is usually why. The contractual salary must in any case be at least the regional minimum wage under [Decree 293/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=215832), effective 1 January 2026: Region I VND 5,310,000, Region II VND 4,730,000, Region III VND 4,140,000, Region IV VND 3,700,000 per month. ## What is the all-in cost at five salary levels? Figures below are for a Vietnamese national in Region I, on pay periods from 1 July 2026, with the 8% VAT included. Every line is arithmetic you can reproduce from the rates above. | Gross salary (VND) | Employer contributions | Service fee | VAT 8% | Total monthly invoice | On top of gross | |---|---|---|---|---|---| | 10,000,000 | 2,350,000 | 2,600,000 (floor) | 1,196,000 | 16,146,000 | 61.5% | | 20,000,000 | 4,700,000 | 2,600,000 (floor) | 2,184,000 | 29,484,000 | 47.4% | | 30,000,000 | 7,050,000 | 2,600,000 (floor) | 3,172,000 | 42,822,000 | 42.7% | | 50,000,000 | 11,750,000 | 4,000,000 (8%) | 5,260,000 | 71,010,000 | 42.0% | | 100,000,000 | 12,385,000 | 5,200,000 (cap) | 9,406,800 | 126,991,800 | 27.0% | At a gross salary of VND 100,000,000, the all-in monthly EOR invoice is VND 126,991,800 — 27.0% on top of gross, against 61.5% at a gross salary of VND 10,000,000. The breakdown of each row follows, and each invoice line is taken apart as a component of the total — its rate, legal basis, cap and share of the bill — in our [EOR cost breakdown for Vietnam](https://payrollservice.vn/tin-tuc/eor-cost-breakdown-vietnam). ### Gross salary VND 10,000,000 - Statutory employer contributions, 23.5%: **VND 2,350,000** - Service fee: 8% would be VND 800,000, so the **floor applies: VND 2,600,000** - Subtotal: VND 14,950,000 - VAT at 8%: VND 1,196,000 - **Total monthly invoice: VND 16,146,000** — about 61.5% on top of gross ### Gross salary VND 20,000,000 - Statutory employer contributions, 23.5%: **VND 4,700,000** - Service fee: 8% would be VND 1,600,000, so the **floor still applies: VND 2,600,000** - Subtotal: VND 27,300,000 - VAT at 8%: VND 2,184,000 - **Total monthly invoice: VND 29,484,000** — about 47.4% on top of gross ### Gross salary VND 30,000,000 - Statutory employer contributions, 23.5%: **VND 7,050,000** - Service fee: 8% would be VND 2,400,000, so the **floor applies: VND 2,600,000** - Subtotal: VND 39,650,000 - VAT at 8%: VND 3,172,000 - **Total monthly invoice: VND 42,822,000** — about 42.7% on top of gross ### Gross salary VND 50,000,000 - Statutory employer contributions, 23.5%: **VND 11,750,000** - Service fee: **8% = VND 4,000,000**, between the floor and the cap - Subtotal: VND 65,750,000 - VAT at 8%: VND 5,260,000 - **Total monthly invoice: VND 71,010,000** — about 42.0% on top of gross ### Gross salary VND 100,000,000 - Statutory employer contributions: **VND 12,385,000**, not VND 23,500,000, because both caps now bite. Social, occupational-accident and health run on the capped base of VND 50,600,000 (20.5% = VND 10,373,000); unemployment insurance runs on the full VND 100,000,000 at 1% (VND 1,000,000), since Region I's separate cap of VND 106,200,000 has not been reached; the union levy runs on the capped base (2% = VND 1,012,000). - Service fee: 8% would be VND 8,000,000, so the **cap applies: VND 5,200,000** - Subtotal: VND 117,585,000 - VAT at 8%: VND 9,406,800 - **Total monthly invoice: VND 126,991,800** — about 27.0% on top of gross ## Why does the all-in rate fall as salary rises? Because both the statutory contributions and the service fee stop growing, while the salary keeps growing. The all-in uplift over gross salary falls across the five salary levels above — **61.5%, 47.4%, 42.7%, 42.0% and 27.0%** as gross rises from 10 to 100 million VND. A senior hire in Vietnam is cheaper per dollar of salary than a junior one, which is the opposite of the intuition most finance teams bring from other markets. Two separate mechanisms produce that curve, and they bite at different points. The service-fee floor is what makes junior roles proportionally expensive; it is a fixed administrative cost spread over a small salary. The statutory caps are what makes senior roles proportionally cheap; they stop the 23.5% at a base of VND 50,600,000. In the middle of the range — roughly the band where a percentage fee has overtaken the floor but the caps have not yet arrived — the all-in rate is close to flat. If you are budgeting a team rather than a person, model each salary band separately. A blended average across a team of five juniors and one senior will mislead you in both directions. ## Is an EOR cheaper than setting up your own entity in Vietnam? For a small team or an uncertain timeline, an EOR usually costs less than a legal entity, because the entity carries fixed costs that exist whether you employ one person or fifty. Setting one up typically takes 2 to 6 months: an investment registration certificate, enterprise registration, a company seal, a bank account, tax registration and social insurance registration, and then a registered business location, bookkeeping, tax filings and payroll administration for as long as it exists, plus closing costs if you leave. An EOR carries none of those fixed costs. The service fee is charged per person, so it grows with headcount, while an entity spreads its fixed costs across more people as the team grows. The balance therefore shifts as headcount rises, and where it tips depends on what your own entity would cost. To find that point for your case, build both totals with the same method set out in the comparison section above: the statutory employer contributions are identical either way, so the real difference is the service fee against the entity's fixed running costs. ## How is VAT applied to EOR pricing in Vietnam? **VAT of 8% applies to the whole invoice — gross salary, statutory contributions and service fee together — not to the service fee alone.** The reason is structural, not a billing choice. Under a labour sub-leasing arrangement, Nhan Kiet is the legal employer of the worker. The salary is therefore Nhan Kiet's own wage cost, and the entire contract value is service revenue. There is no "payment on behalf of the client" to carve out. This is worth a moment's attention, because it is where EOR pricing and payroll-outsourcing pricing genuinely differ. Under [payroll outsourcing](https://payrollservice.vn/payroll-outsourcing/), your own entity remains the employer, the salary is paid on your behalf, and VAT applies only to the service fee. Under EOR it cannot work that way, because there is no entity of yours for the salary to belong to. The practical consequence: at a gross of 20 million VND, VAT on the service fee alone would be VND 208,000. VAT on the whole invoice is VND 2,184,000. A provider who quotes you the first number and invoices the second has not given you a usable budget. The 8% rate itself is a reduced rate under **[Resolution 204/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=214209&classid=1), implemented by [Decree 174/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214310), in force until 31 December 2026**. Unless it is extended again, the rate reverts to 10% from 1 January 2027 — worth building into any budget that runs past this year. ## What is not included in EOR pricing? Pass-through items that are real costs to you, but are not the provider's fee and should not be presented as such: - **The employee's gross salary itself**, obviously, but also anything contractual on top of it: allowances, bonuses, commission. - **The 13th-month salary.** This is customary in Vietnam rather than statutory, and it is normally paid before Tết. It is not required by law, but if your offer follows local practice, budget for it — it is an extra month of gross, but it carries no statutory contributions, because a bonus is outside the social insurance base. Only the service fee effect and 8% VAT apply. The full treatment of bonuses, allowances and paid leave is in our guide to [13th-month pay and Tet bonus in Vietnam](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026). - **Overtime premiums.** Article 98 of the [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) sets 150% of the normal hourly rate for overtime on a working day, 200% on a weekly rest day and 300% on a public holiday or paid leave day, with a further 30% premium for night work. - **Work permits and visas for foreign nationals.** - **Statutory settlement on termination**, covered below. ## Which hidden costs should you ask about? A price is only comparable if the boundaries are comparable. These are the questions that change the number after you have signed: - **Is there a deposit?** One or two months of payroll held as security is common. It is not a cost, but it is working capital you do not have. - **Is there an onboarding or offboarding fee per employee?** Per-head fees on both ends can exceed the monthly fee for short engagements. - **Is there a currency conversion margin?** An FX spread of 2% on a payroll invoice is frequently larger than the difference between two providers' headline fees. - **Is there a separate charge for the platform?** Some providers bundle it, some bill it per seat. - **Does the percentage apply to gross salary or to a narrower base?** A fee "on base salary" excluding allowances is a smaller fee than the same percentage on gross. - **Is there a minimum headcount or a minimum contract term?** - **What happens when you terminate — is there a release fee, a buy-out fee, or a conversion fee if you hire the person into your own entity later?** - **Is VAT quoted on the service fee or on the whole invoice?** See the section above; this one can be several million dong a month per person. ## How do you build a comparable EOR total from a quote? Build the same total for each provider, in the same currency, at the same salary. Concretely: - Take one real salary you expect to pay, not an average. - Add the statutory employer contributions at the rates set out above. These are identical for every provider, because they are set by law. If two quotes differ here, one of them has the caps wrong. - Add the provider's service fee as it applies at that salary — checking whether a floor or a cap changes it. - Add VAT on the correct base. - Add any deposit as a working-capital line, and any onboarding or offboarding fee amortised over the expected engagement length. - Repeat at a second salary, far from the first. This is what exposes floors and caps. A provider who cannot tell you which of the two contribution caps applies to which contribution is not doing the compliance work you are buying. That question is a better due-diligence test than the price itself. There is a fuller version of it in our [due-diligence checklist for choosing an EOR in Vietnam](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist). For the total annual cost of specific roles, from a factory technician to a country manager, see [EOR cost in Vietnam by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role). ## What do you pay when an EOR employment ends in Vietnam? Nhan Kiet charges **no offboarding fee and no termination fee**. What remains are the statutory amounts owed to the employee, passed through at cost: - Pay for untaken annual leave, under Article 113 of the Labour Code 2019. - Full settlement of wages and outstanding amounts within 14 working days, under Article 48. - Severance allowance where it applies, under Article 46. - Closing the employee's social insurance book. For a Vietnamese employee, severance allowance usually comes to nothing, because every year already covered by unemployment insurance — compulsory since 2009 — is deducted from the calculation. For a foreign national the opposite applies: foreign nationals are outside the unemployment insurance scheme, so there is nothing to deduct, and severance of half a month per year of service should be budgeted from the start. Notice periods are set by contract type: at least 45 days for an indefinite-term contract, 30 days for a 12 to 36 month contract, and 3 working days for a contract under 12 months. Those days are paid, and they belong in any exit budget. One more pricing consequence worth knowing: an unlawful termination is expensive. Article 41 of the Labour Code 2019 requires the employer to reinstate the employee, pay wages and contributions for the days they were not allowed to work, and pay at least a further two months' salary. A responsible EOR will refuse to run a termination without a valid ground and correct notice, precisely because it carries that liability as the named employer. ## How is EOR priced for foreign nationals? Foreign nationals are quoted separately, and there are three reasons that is not a way of hiding a surcharge: - **The contribution rate is different.** No unemployment insurance means 22.5% rather than 23.5% on the employer side. - **Severance behaves differently**, as set out above — there is no unemployment-insurance period to deduct. - **The work permit is not an EOR deliverable in the way global platforms imply.** Under [Decree 219/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214840), in force since 7 August 2025, a work permit is granted by the provincial People's Committee to a **named employer** with a head office, branch, representative office or business location in the province where the person will actually work (Article 4), and that same employer files the written justification of need (Article 18). Nhan Kiet runs the procedure end to end, but the permit is issued against the employer named on the contract. Any provider promising to "sponsor" a permit without being that named employer is describing something the decree does not allow. ## Which currency is EOR priced in? Prices are quoted and invoiced in **Vietnamese dong**. The US dollar equivalents on this page are indicative conversions, rounded. Payment in foreign currency by bank transfer is available, and it is lawful here for a specific reason: EOR is supplied to a foreign company that is a non-resident, and Article 4(16)(b) of [Circular 32/2013/TT-NHNN](https://congbao.chinhphu.vn/van-ban/thong-tu-so-32-2013-tt-nhnn-2782/1098.htm), as supplemented by [Circular 03/2019/TT-NHNN](https://congbao.chinhphu.vn/van-ban/thong-tu-so-03-2019-tt-nhnn-28792/26457.htm), provides an exception to the general prohibition in Article 22 of the [Ordinance on Foreign Exchange](https://vanban.chinhphu.vn/default.aspx?pageid=27160&docid=55835). That exception is about who the customer is, not about how the contract is labelled. Quoting in dong and settling in dollars means the exchange-rate movement sits with whoever converts. Ask any provider quoting you a flat dollar figure how the dong amounts behind it are fixed, and when. ## What happens to pricing when you set up your own entity later? Nothing is charged for the move — no conversion fee, no buy-out fee, no release fee. Mechanically, the employment contract with Nhan Kiet ends, normally by mutual agreement under Article 34(3) of the Labour Code 2019, and your new entity signs a fresh contract, with the social insurance transfer timed so nobody has a gap in cover. The only money involved is the statutory settlement any termination triggers, passed through at cost. For foreign nationals, budget for a new work permit in your entity's name as well: a permit does not carry over to a different employer. From that point, the ongoing cost stops being an EOR fee and becomes the cost of running the back office yourself — or of [outsourcing payroll](https://payrollservice.vn/payroll-outsourcing/) while keeping the entity, which is a different and considerably smaller line. ## Does the legal route affect the price? The legal route affects what the price can lawfully cover, which matters more than the headline number. Vietnam has **no dedicated legal framework for EOR**. The arrangement has to sit inside one of two existing routes, and they are not interchangeable: - **Labour sub-leasing**, under Articles 52 to 57 of the Labour Code 2019 and [Decree 145/2020/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=201967). The client directs the work. It requires a licence and a VND 2 billion deposit from the provider, is limited to the 20 job categories in Appendix II, and is capped at **12 months per worker** under Article 53. - **A service contract** under the Commercial Law. The provider assigns, manages and supervises the staff; the client gives professional direction. No time limit, and no job-category list. The client can be **penalised directly if the structure is wrong** — fines up to VND 100 million for organisations under Article 19(2) of [Decree 283/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218871&pageid=27160), which replaced Decree 12/2022/ND-CP from 10 September 2026. A quote that does not establish which route applies before signing is quoting you a price for an arrangement nobody has checked. Nhan Kiet holds labour sub-leasing licence No. 15/2019/SHCM and employment services licence No. 22139/2023/45/SLĐTBXH-VLATLĐ, both issued in Ho Chi Minh City. ## A short checklist before you sign - You have a total, not a fee: gross plus statutory plus service fee plus VAT, at a real salary. - You know whether a floor or a cap changes that fee at your salary levels. - You know which VAT base the provider will invoice on. - You know the deposit, if any, and the onboarding, offboarding and conversion fees, if any. - You know which legal route the engagement sits in, and that the provider holds the licence that route requires. - You have checked the provider against the two contribution caps — it is the fastest way to tell whether the compliance work is real. Nhan Kiet has run payroll and employment in Vietnam since April 2009, employs more than 40,000 workers across 34 provinces for over 500 client companies, and publishes its EOR price rather than quoting on request. Staff can start within **5 to 7 working days**, against the 2 to 6 months a legal entity normally takes. You can model the employer-side figures yourself, at any salary, with our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/) — it applies both contribution caps correctly, which most online calculators do not. The full service description, including the legal routes and thirty questions answered, is on the [EOR Vietnam](https://payrollservice.vn/eor-vietnam/) page. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Inside a Vietnam EOR Invoice: Every Line Itemised (2026)](/tin-tuc/eor-cost-breakdown-vietnam) · [Annual Cost of a Hire in Vietnam, by Role (2026)](/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role) --- # 13th-Month Pay & Tet Bonus in Vietnam: Rules, Tax, Cost 2026 https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026 **A 13th-month salary is not required by Vietnamese law.** Under Article 104 of the [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) (No. 45/2019/QH14), a bonus is whatever the employer decides to award based on business results and each employee's performance. It becomes an obligation only when you commit to it in writing — in the labour contract, a collective bargaining agreement or a published bonus regulation. In practice most employers in Vietnam pay one anyway, usually before Tết (the Lunar New Year, Vietnam's biggest holiday), and candidates expect it. That is the short answer to the line many Employer of Record (EOR) cost summaries repeat, that benefits and bonuses are "legally or culturally required allowances, such as 13th-month pay". For Vietnam the two halves need separating, because they are budgeted differently: what the law requires you cannot negotiate away, what custom expects you can decide, and what you write into a contract turns custom into law. This article sorts every common benefit into those three groups, shows how each is treated for social insurance and personal income tax, and works out what a 13th-month salary actually adds to an EOR invoice at five salary levels. For the base cost of employing someone through an EOR — the service fee, the statutory contributions and VAT — see our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). All figures are current as of September 2026. ## Key facts: 13th-month pay and bonuses in Vietnam (2026) - **A 13th-month salary is not required by Vietnamese law.** It is a bonus under Article 104 of the Labour Code 2019, paid at the employer's discretion, and it becomes binding only when written into the labour contract, a collective bargaining agreement or a published bonus regulation. - **13th-month pay and a Tết bonus are different.** The 13th month is usually a fixed month's pay; a Tết bonus is variable and tied to company and individual results. - **Bonuses carry no social insurance in Vietnam.** A 13th-month salary, Tết bonus or performance bonus is outside the contribution base under the Law on Social Insurance 2024 and Decree 158/2025/ND-CP, so no social, health or unemployment insurance and no 2% trade-union levy apply. - **A bonus is taxable.** It is employment income under Decree 253/2026/ND-CP, withheld in the month it is paid, with no tax-free threshold. - **The average Tết 2026 bonus in Vietnam was VND 8.69 million per worker**, up 13% on 2025, according to the Ministry of Home Affairs. - **The tax-free cash meal allowance is VND 1,200,000 a month from 1 July 2026**, replacing the old VND 730,000 figure. - **Employees in Vietnam get 12 paid public holidays from 1 July 2026**, and foreign employees 14, after 24 November became Vietnamese Culture Day. - **Through Nhan Kiet's EOR, a 13th-month salary adds 5.6% to 7.1% to the year's invoice** at gross salaries from VND 10 million to VND 100 million, because it carries no statutory contributions. ## Is 13th-month pay mandatory in Vietnam? No — a 13th-month salary is not mandatory in Vietnam. No Vietnamese law requires a private employer to pay a 13th-month salary or a Tết bonus. Article 104 of the Labour Code defines a bonus as money, assets or other forms of reward that the employer gives on the basis of production and business results and the degree to which the employee has completed their work. The same article leaves the bonus regulation to the employer, who must publish it at the workplace after consulting the grassroots employee representative organisation, where one exists. Consulting is not the same as agreeing: the decision stays with the employer. The term "13th-month salary" itself does not appear in the Labour Code. It is a market convention, not a legal category. Legally it is a bonus like any other. ## When does a bonus become something you must pay? A bonus becomes enforceable once it is committed in a binding document with a defined amount or a defined way of calculating it. There are three such documents: - **The labour contract.** Article 21 of the Labour Code sets out what a contract contains, including the salary, its allowances and other additional payments. If the contract says the employee receives a 13th-month salary, the employee has a claim to it. - **A collective bargaining agreement**, where one has been signed at the workplace. - **The employer's bonus regulation**, once published under Article 104. A bonus described only as discretionary, with no amount and no formula, creates no entitlement. That is a drafting choice worth making deliberately. If you intend to pay a 13th-month salary every year and want candidates to count on it, write it in. If you want to keep the decision open each year, say that it depends on business results and individual performance, and do not state a fixed amount. ## If an employee leaves before Tết, is the 13th-month salary still owed? It depends on the document that creates the entitlement, because the law creates none. A 13th-month salary is owed on the terms written into the labour contract, the collective bargaining agreement or the bonus regulation under Article 104. Read that document for two things: - **The qualifying condition.** If it says the payment goes only to employees still employed on the payment date, someone who has already left has no claim. If it is expressed as an amount earned across the year, a leaver has a claim to the part earned before leaving. - **Pro-rating.** Where the bonus is pro-rated by time worked, an employee who leaves partway through the year is normally owed the months-worked share, on the same basis used for someone who joined partway through. A discretionary bonus with no stated amount or formula creates no claim either way, whether the employee stays or leaves. The safe practice, and the one we help clients set, is to state in the bonus regulation exactly who qualifies and how a mid-year joiner or leaver is treated, so the answer is settled before anyone asks. ## Can an employer cut a bonus to punish an employee? Two different things are often confused here. - **A committed bonus cannot be docked as a punishment.** Article 127(2) of the Labour Code forbids fines and wage deductions in place of labour discipline. The only disciplinary measures allowed are those in Article 124: a reprimand, deferral of a pay rise for up to six months, removal from a position, or dismissal. If a 13th-month salary is a committed entitlement, taking it away to penalise misconduct is a prohibited deduction. - **A discretionary bonus can reflect performance.** Article 104 defines a bonus by reference to business results and how well the employee completed their work. Where the bonus regulation genuinely ties the amount to individual performance, a lower or zero bonus for poor performance is the regulation working as written, not a fine. The line is whether the reduction is a penalty for a disciplinary breach, which is prohibited, or the ordinary operation of a performance-based bonus, which is allowed. It is another reason to write the bonus regulation around performance criteria rather than a flat guaranteed sum. ## What is the difference between 13th-month pay and a Tết bonus? 13th-month pay and a Tết bonus are often paid together and often confused, but they are different things: a 13th-month salary is normally a fixed amount, while a Tết bonus is variable and depends on company and individual performance. - **13th-month pay** is normally a fixed amount, typically one month's salary, paid at year end or before Tết. - **A Tết bonus** is normally variable. It depends on how the business performed and how the individual performed, and it can be larger or smaller than a month's pay, or nothing. Many employers treat the 13th month as the floor and add a performance element on top. For budgeting, keep them as two separate lines: one you have probably committed to, one you decide each year. ## How is 13th-month pay usually calculated? There is no statutory formula, because there is no statutory 13th-month pay. The common market practice is: - **One month's salary** for an employee who has worked the full calendar year. - **Pro-rated** for anyone who joined during the year: months worked divided by 12, multiplied by the monthly salary. - **A worked example.** An employee who joins on 1 April and works nine months of the calendar year on a salary of VND 20,000,000 receives 9 divided by 12, times VND 20,000,000, which is VND 15,000,000. Whether "salary" means the base salary only or base salary plus fixed allowances is up to you. Define it in the contract or the bonus regulation; the two readings can differ by a meaningful amount for staff with large allowances. ## When is 13th-month pay usually paid in Vietnam? There is no legal deadline: the timing of any bonus is set by the employer's bonus policy, the employment contract or the collective agreement. In practice most companies pay the 13th-month salary in December or January, before the Lunar New Year (Tết), often together with or just before the last payroll of the year. If the timing is written into the contract or the published bonus policy, the employer must pay on that date. ## Do probationary and part-time staff get the bonus? Neither group has a statutory right to a bonus, for the same reason no one does: a bonus is whatever the contract or regulation provides. - **Probationary staff.** A probationer can be included in the bonus regulation, but nothing requires it, and some employers count the 13th month only from the start of the official labour contract. Whatever you decide, write it into the regulation. - **Part-time staff.** Article 32(3) of the Labour Code entitles part-time employees to be paid and to equal treatment in rights and obligations with full-time employees, without discrimination. Where full-time staff receive a 13th-month salary, a part-time employee in a comparable role should receive it too, normally scaled to the hours worked. ## How big are Tết bonuses in Vietnam in 2026? The average Tết bonus in Vietnam for Lunar New Year 2026 was about **VND 8.69 million per worker**, up 13% on 2025, according to the Wage and Social Insurance Department of the Ministry of Home Affairs, based on reports from more than 50,000 enterprises covering over 4.2 million workers — figures the government collects from employers each year. As [reported by the Government newspaper](https://baochinhphu.vn/thuong-tet-nguyen-dan-2026-tang-13-thu-nhap-nguoi-lao-dong-cai-thien-102260204184954001.htm), the averages by type of enterprise were: | Type of enterprise | Average Tết 2026 bonus (VND per worker) | Change on 2025 | |---|---|---| | State-owned enterprises | 9,440,000 | +23% | | Foreign-invested enterprises (FDI) | 9,210,000 | +12% | | Private domestic enterprises | 7,370,000 | +9% | | All enterprises | 8,690,000 | +13% | Ho Chi Minh City runs higher. The city's Department of Home Affairs [reported an average planned Tết 2026 bonus of about VND 12.02 million per person](https://ttbc-hcm.gov.vn/thuong-tet-nguyen-dan-2026-o-tp-hcm-cao-nhat-hon-1-8-ti-dong-nguoi-1020317.html), up 6.8%, from 3,802 enterprises employing more than 694,000 workers, with the highest individual bonus of VND 1.841 billion at a foreign-invested company. These are averages across entire workforces. For a professional hire through an EOR, one month's salary is the more useful planning figure. ## Does 13th-month pay count towards social insurance in Vietnam? No — 13th-month pay does not count towards social insurance in Vietnam. A 13th-month salary, a Tết bonus or a performance bonus carries no compulsory social insurance, health insurance or unemployment insurance contribution — neither the employer's share nor the employee's — and no 2% trade-union levy. The reason is the definition of the contribution base. Article 31(1)(b) of the [Law on Social Insurance 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=211199) (No. 41/2024/QH15, in force since 1 July 2025) sets it as the monthly salary made up of the salary for the job or title, salary allowances, and other additional amounts agreed to be paid regularly and stably in each pay period. Article 7(1) of [Decree 158/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214189) then excludes allowances and additional amounts that depend on or fluctuate with productivity, work process or the quality of the employee's performance. A 13th-month salary or Tết bonus is the textbook example of such a performance-linked amount, so it is excluded from the social insurance base. Article 3(5) of Circular 10/2020/TT-BLDTBXH, which governs what a labour contract contains, also lists bonuses under Article 104 among the benefits recorded as separate items in the contract, outside the salary. This matters for budgeting, and it is a common mistake in cost estimates: **statutory contributions add nothing to a bonus — budget the bonus, not the bonus plus 23.5%.** The employer's statutory contributions are calculated on the regular monthly salary only, and they do not change in the month a bonus is paid. ## How is a bonus taxed for the employee? A bonus is taxable employment income. Article 8(2)(i) of [Decree 253/2026/ND-CP](https://vanban.chinhphu.vn/?classid=1&docid=218684&pageid=27160&typegroupid=4), which guides the [Personal Income Tax Law 2025](https://vanban.chinhphu.vn/?classid=1&docid=216495&pageid=27160&typegroupid=3) (No. 109/2025/QH15), lists monetary and non-monetary bonuses among income from salaries and wages. There is no tax-free threshold for a bonus paid by an employer. Tax is withheld from the bonus in the month it is paid, using the monthly progressive table. A large bonus paid in a single month can push that month's withholding into a higher bracket than the employee's annual income justifies. The annual tax finalisation reconciles the whole year's income against the annual brackets, so the excess is recovered or offset. For the brackets and deductions, see our guide to [Vietnam personal income tax in 2026](https://payrollservice.vn/tin-tuc/vietnam-personal-income-tax-2026-the-new-five-bracket-table-and-what-staff-take-). ### A worked example: tax withheld on a 13th-month salary Take an employee on a gross salary of VND 30,000,000 a month, with no dependants, on a gross contract, paid a 13th-month salary of VND 30,000,000 in the month before Tết. The employee's own insurance of 10.5% is taken on the regular salary only, VND 3,150,000, and the personal deduction is VND 15,500,000. - **A normal month.** Taxable income is VND 30,000,000 minus 3,150,000 minus 15,500,000, which is VND 11,350,000, and the tax withheld is VND 635,000. - **The bonus month.** Salary plus bonus is VND 60,000,000; insurance is still VND 3,150,000, so taxable income is VND 41,350,000 and the tax withheld rises to VND 4,770,000. The bonus accounts for VND 4,135,000 of that month's withholding, about 13.8% of the bonus. - **After the annual finalisation.** Across the year the bonus adds VND 3,000,000 of tax, 10% of the bonus. The VND 1,135,000 over-withheld in the bonus month is refunded or offset at finalisation. The figures use the 2026 five-bracket table and the personal deduction; they show the pattern rather than any one employee's result. Withholding spikes in the month a bonus is paid, then evens out over the year. Two points for a foreign employer: - **On a gross-salary contract, the tax on the bonus is the employee's cost**, deducted from what they receive. It does not add to your invoice. - **On a net-salary contract, where you have promised a take-home figure, the tax becomes your cost**, and on a bonus it is taxed at the employee's marginal rate for that month. If you offer net salaries, budget the bonus grossed up, not at face value. ## Is a 13th-month salary or Tết bonus deductible for corporate income tax? Yes, if it is documented. Under [Decree 320/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=216219), which guides the [Corporate Income Tax Law 2025](https://vanban.chinhphu.vn/?pageid=27160&docid=214607) (No. 67/2025/QH15) and has been in force since 15 December 2025, salaries and bonuses are not deductible unless the entitlement conditions and the level of entitlement are set out in the labour contract, a collective bargaining agreement, the company's financial regulation or its bonus regulation. An undocumented bonus is a cost the employer pays without a tax deduction. This is the drafting decision described above, seen from the tax side: the wording that makes a 13th-month salary deductible also tends to make it an entitlement. If you want the deduction without a fixed promise, write the entitlement conditions and the calculation method, tied to results and performance, rather than a guaranteed amount. Through an EOR, the bonus is paid by Nhan Kiet as the legal employer, under the contract and bonus terms we set up with you, and it reaches you as part of the service invoice. ## What does a 13th-month salary cost through an EOR? With Nhan Kiet, a bonus paid through payroll is added to the employee's gross salary for the month it is paid. The 8% service fee is then calculated on that combined gross. The fee's usual floor of VND 2,600,000 and cap of VND 5,200,000 still apply for that month. There are no contributions on the bonus, as set out above. VAT of 8% applies to the whole invoice, so it applies to the bonus too. The table below assumes a Vietnamese national in Region I (the highest minimum-wage region, which includes the main urban areas of Hanoi and Ho Chi Minh City), a 13th-month salary equal to one month's gross salary, paid together with that month's salary, on pay periods from 1 July 2026. | Gross monthly salary (VND) | 13th-month bonus | Extra service fee | Extra VAT | Extra on that month's invoice | As % of the bonus | Added to the annual invoice | |---|---|---|---|---|---|---| | 10,000,000 | 10,000,000 | 0 | 800,000 | 10,800,000 | 108.0% | +5.6% | | 20,000,000 | 20,000,000 | 600,000 | 1,648,000 | 22,248,000 | 111.2% | +6.3% | | 30,000,000 | 30,000,000 | 2,200,000 | 2,576,000 | 34,776,000 | 115.9% | +6.8% | | 50,000,000 | 50,000,000 | 1,200,000 | 4,096,000 | 55,296,000 | 110.6% | +6.5% | | 100,000,000 | 100,000,000 | 0 | 8,000,000 | 108,000,000 | 108.0% | +7.1% | Through Nhan Kiet's EOR, a 13th-month salary equal to one month's pay adds between 108.0% and 115.9% of the bonus amount to that month's invoice, and between 5.6% and 7.1% to the year's total invoice. That is less than the 8.3% the bonus adds to annual gross salary, because the bonus carries no statutory contributions. The annual figure compares twelve regular monthly invoices with the same twelve plus the bonus. The regular monthly invoices behind it — VND 16,146,000 at a gross of 10 million, VND 29,484,000 at 20 million, VND 42,822,000 at 30 million, VND 71,010,000 at 50 million and VND 126,991,800 at 100 million — are broken down line by line in our [EOR pricing guide](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs), and each line is taken apart as a component of the total — its rate, cap and share — in our [EOR cost breakdown for Vietnam](https://payrollservice.vn/tin-tuc/eor-cost-breakdown-vietnam). ## Why does a bonus sometimes add no service fee at all? A bonus adds no service fee in the month it is paid when the floor or the cap on Nhan Kiet's 8% service fee already absorbs it. The fee is 8% of gross, but never less than VND 2,600,000 and never more than VND 5,200,000 a month. The floor stops applying at a gross of VND 32,500,000; the cap starts at VND 65,000,000. So: - **If salary plus bonus stays below VND 32,500,000**, the fee for that month is still the floor, exactly as in a normal month. The bonus adds no fee. - **If the salary alone is VND 65,000,000 or more**, the fee is already at the cap. The bonus adds no fee. - **In between**, the bonus raises the fee for that one month, up to the cap. Take a Tết bonus at the national FDI average of VND 9,210,000. For an employee on VND 20,000,000, salary plus bonus is VND 29,210,000, still under the floor threshold, so the fee stays at VND 2,600,000 and the bonus adds VND 9,946,800 to the invoice, which is simply the bonus plus 8% VAT. For an employee on VND 40,000,000 the fee rises for that month from VND 3,200,000 to VND 3,936,800, and the bonus adds VND 10,742,544. For an employee on VND 70,000,000 the fee is already capped, and the bonus again adds VND 9,946,800. ## Which allowances count towards social insurance? The label on an allowance does not decide how it is treated. What decides it is how the allowance is written into the contract and how it is paid. | Item | In the social insurance base? | Basis | |---|---|---| | Salary for the job or title | Yes | Law 41/2024, Art. 31(1)(b) | | Allowances for working conditions, job complexity, living conditions or labour-market attraction, agreed in the contract | Yes | Decree 158/2025, Art. 7(1)(b) | | Other fixed amounts agreed in the contract and paid regularly each pay period | Yes | Decree 158/2025, Art. 7(1)(c) | | Allowances or amounts that vary with productivity or performance | No | Decree 158/2025, Art. 7(1)(b) and (c) | | 13th-month salary, Tết bonus, performance and initiative bonuses | No | Circular 10/2020, Art. 3(5) | | Mid-shift meal, fuel, phone, travel, housing and childcare support, recorded as separate items | No | Circular 10/2020, Art. 3(5) | | Support for a relative's death, a family wedding or the employee's birthday | No | Circular 10/2020, Art. 3(5) | The trap is in that condition: recorded as separate items. A "phone allowance" or "lunch allowance" written into the salary structure as a fixed monthly amount, paid with the salary, looks exactly like the "other additional amounts paid regularly" that Decree 158/2025 includes in the base. A social insurance inspection can treat it that way and collect the contributions retrospectively. Support items stay outside the base when they are recorded as separate benefit items, not as part of the salary package. The ceiling on the base also limits how much any of this matters for senior staff: the social and health insurance base stops at **VND 50,600,000 a month** from 1 July 2026 under [Decree 161/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218107&pageid=27160). How the caps work is explained in our article on [why senior hires cost less per dollar](https://payrollservice.vn/tin-tuc/employer-costs-in-vietnam-are-capped-why-senior-hires-cost-less-per-dollar-2026). ## Which allowances and benefits are free of personal income tax in 2026? Social insurance and personal income tax are separate systems with separate rules. An item can be outside the insurance base and still fully taxable, and the reverse. From 1 July 2026 the tax treatment is set by Article 8 of Decree 253/2026/ND-CP. | Benefit | Personal income tax treatment | Decree 253/2026 | |---|---|---| | Mid-shift meal or lunch paid in cash | Tax-free up to VND 1,200,000 a month; the excess is taxable | Art. 8(2)(g) | | Meals the employer provides, buys in or gives as vouchers | Not taxable, no cap | Art. 8(2)(g) | | Lump-sum allowances for phone, stationery, business travel and work clothing | Tax-free up to the level deductible for corporate income tax; the excess is taxable | Art. 8(2)(dd) | | Rent and utilities the employer pays for the employee | Taxable, but capped at 15% of the employee's other taxable income from that employer | Art. 8(2)(h) | | Bonuses, including in kind or in securities | Taxable | Art. 8(2)(i) | | Gifts and benefits given at holidays and Tết | Taxable | Art. 8(2)(k) | | Private health insurance and term life insurance without a savings element | Not taxable | Art. 8(4)(h) | | Staff shuttle between home and work | Not taxable | Art. 8(4)(c) | | Job-related training paid by the employer | Not taxable | Art. 8(4)(i) | | Wedding and funeral support under the company's regulations | Not taxable, within corporate income tax limits | Art. 8(4)(m) | | Severance and job-loss allowances | Not taxable, including amounts above the statutory minimum if set in the contract or regulations | Art. 8(3)(h) | ### What is the tax-exempt meal allowance in Vietnam in 2026? **The tax-free cash meal (mid-shift) allowance in Vietnam is VND 1,200,000 a month from 1 July 2026**, under Article 8(2)(g) of Decree 253/2026/ND-CP. Anything above that is taxable, and a meal the employer provides in kind is tax-free with no cap. The old VND 730,000 ceiling that many pages still quote is out of date. Two of these rows are worth acting on. Private health insurance is not taxable to the employee, which makes it one of the more efficient benefits to offer. And a meal provided in kind is not taxable at any value, whereas cash above VND 1,200,000 is. ## Which extra benefits apply to foreign employees? Several tax-free benefits apply specifically to foreign nationals working in Vietnam, all under Decree 253/2026/ND-CP: - **One return flight home a year**, paid or reimbursed by the employer, is not taxable (Art. 8(4)(e)). - **School fees for the employee's children** studying in Vietnam, from preschool to upper secondary, paid by the employer, are not taxable (Art. 8(4)(g)). - **A one-off relocation allowance** for a foreigner coming to live in Vietnam is not taxable, at the amount set in the assignment decision, contract or company regulations (Art. 8(3)(l)). Foreign employees also get **two extra paid public holidays** a year, one traditional New Year holiday and the National Day of their own country, under Article 112(2) of the Labour Code. On the cost side, foreign nationals are outside unemployment insurance under the [Law on Employment 2025](https://vanban.chinhphu.vn/?pageid=27160&docid=214560) (No. 74/2025/QH15), which lowers the employer's contribution rate to 22.5%, but it also means severance is calculated on the whole period of service, as our [EOR pricing guide](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs) explains. Work permits and social insurance for foreign staff are covered in our guide to [foreign workers in Vietnam](https://payrollservice.vn/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance). ## How many paid public holidays are there in Vietnam in 2026? **From 1 July 2026, employees in Vietnam are entitled to 12 paid public holidays a year**, and foreign employees to 14. Eleven come from Article 112(1) of the Labour Code: - New Year's Day: 1 day (1 January) - Lunar New Year (Tết): 5 days - Reunification Day: 1 day (30 April) - International Labour Day: 1 day (1 May) - National Day: 2 days (2 September and one adjacent day) - Hung Kings' Commemoration Day: 1 day (10th day of the 3rd lunar month) The twelfth is new. Article 2(1) of [Resolution 28/2026/QH16](https://vanban.chinhphu.vn/?classid=1&docid=218008&pageid=27160) of the National Assembly, on the development of Vietnamese culture, makes **24 November Vietnamese Culture Day**, with employees entitled to the day off on full pay. The resolution took effect on 1 July 2026, so 24 November 2026, a Tuesday, is the first occurrence. Many English-language guides still say eleven. The Prime Minister fixes the exact Tết and National Day dates each year under Article 112(3). An employee who works on a public holiday is paid at least 300% of the normal rate, on top of the holiday pay itself for daily-paid staff, under Article 98. ## How much paid leave must an employer give? Beyond public holidays, the Labour Code sets three kinds of paid leave: - **Annual leave (Article 113):** 12 working days a year after 12 months' service in normal conditions; 14 days for minors, employees with disabilities and those in heavy, toxic or dangerous work; 16 days for especially heavy, toxic or dangerous work. Employees with less than 12 months' service accrue it pro rata. - **Seniority leave (Article 114):** one extra day for every five years with the same employer. - **Personal leave on full pay (Article 115):** 3 days for the employee's own marriage, 1 day for a child's marriage, and 3 days on the death of a parent, parent-in-law, spouse or child. For a monthly-salaried employee, paid leave is already inside the salary, so it is not an extra line on an invoice. It becomes cash in two situations: untaken annual leave must be paid out when the employment ends (Article 113(3)), and work on a public holiday or paid leave day is paid at 300%. ## Who pays for sick leave and maternity leave? Vietnam's social insurance fund pays for sick leave and maternity leave, not the employer. Sickness and maternity benefits under the Law on Social Insurance 2024 — including six months of maternity leave — are paid from the fund that the employer's monthly contributions finance. The employer's cost is the contribution it already pays each month. Topping those benefits up to full salary is something some employers choose to do. It is not required. ## What other statutory costs sit alongside pay? Alongside pay and insurance, five statutory costs commonly apply: periodic health checks, in-kind nourishment for hazardous work, the 2% trade-union levy, overtime premiums, and severance or job-loss allowances. - **An annual health check** for every employee, and every six months for those in heavy, toxic or dangerous work, minors, employees with disabilities and older employees, paid by the employer under Article 21 of the [Law on Occupational Safety and Hygiene](https://vanban.chinhphu.vn/?pageid=27160&docid=180606) (No. 84/2015/QH13). - **In-kind nourishment** for employees working with hazardous or dangerous factors above hygiene limits, under Article 24 of the same law and [Circular 24/2022/TT-BLDTBXH](https://congbao.chinhphu.vn/van-ban/thong-tu-so-24-2022-tt-bldtbxh-38574.htm). It must be given in kind during the shift and cannot be paid as cash. - **The 2% trade-union levy** on the social insurance salary fund, under the [Trade Union Law 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=212478), even where no union exists. It is already inside the 23.5% employer rate; details in our note on [trade union funding](https://payrollservice.vn/tin-tuc/trade-union-funding-2-percent). - **Overtime premiums** of at least 150% on working days, 200% on weekly rest days and 300% on public holidays, plus 30% for night work (Article 98). - **Severance and job-loss allowances** where they apply (Articles 46 and 47), calculated under Article 8 of [Decree 145/2020/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=201967). There is no general legal obligation to provide lunch or a meal allowance. Outside the in-kind nourishment rule for hazardous work, meals are customary. ## Which benefits are customary but not required? These are the benefits a candidate in Vietnam is likely to expect, even though no law requires them: - **A 13th-month salary**, usually one month's pay, pro-rated in the first year. - **A Tết bonus** on top, tied to company and individual results. - **Lunch**, either as a canteen meal in factories or as a cash allowance in offices. - **Private health insurance**, particularly at foreign-invested companies and for professional roles. - **Gifts or cash at Tết, Mid-Autumn Festival, International Women's Day (8 March) and Vietnamese Women's Day (20 October)** — taxable to the employee, as above. - **An annual company trip.** - **Topping up sickness or maternity pay** to full salary. Leaving these out is lawful. It also makes an offer harder to accept, and the 13th month in particular is so widespread that a candidate may read its absence as a pay cut. ## Do leased workers have to receive the same bonuses as the client's own staff? Not automatically. A client's discretionary year-end or Tết bonus is a bonus under Article 104, legally distinct from a wage, so it is not automatically owed to leased workers; the pay-parity rules still matter, though. The question arises for EOR arrangements that run through labour sub-leasing. Article 56(4) of the Labour Code obliges the sub-leasing company to pay the leased worker wages no lower than those of the client's own employees with the same qualifications doing the same work or work of equal value, and Article 58(3) gives the worker the matching right. Article 57(2) separately forbids the client from discriminating against leased workers in working conditions. The text of those articles speaks of wages, not bonuses. But where the client's comparable staff receive a 13th-month salary as a fixed, expected part of their pay, leaving leased workers out invites exactly the comparison those articles are written for. The safe course, and the one we recommend, is to align. ## How does an EOR handle bonuses and allowances in practice? Through Nhan Kiet, the mechanics are straightforward: - **You decide the bonus; we pay it through payroll** in the month you choose, with personal income tax withheld. - **It appears on that month's invoice** as part of gross salary, with the service fee and VAT applied as set out above. No contributions are added. - **Allowances are set up in the contract** in the way that matches how you intend them to work — inside the salary structure, or as separate benefit items — so that their insurance and tax treatment is settled before the first payroll, not argued about at an inspection. - **Other benefits**, such as private health insurance or a relocation allowance for a foreign hire, can be added to the monthly invoice. We quote them separately. If you want a 13th-month salary to be a firm promise, we write it into the labour contract. If you want to keep it discretionary, we word it that way. ## A budgeting checklist for benefits and bonuses - Decide whether the 13th month is a promise or a decision, and draft the contract to match. - Budget a bonus at the bonus plus the service fee effect plus 8% VAT — not plus 23.5% contributions. - If you offer net salaries, budget bonuses grossed up for tax. - Keep support allowances as separate benefit items if you do not intend them to be part of the insurance base. - Pay meals in kind, or keep cash meal allowances within VND 1,200,000 a month. - Count 12 paid public holidays from July 2026, and 14 for foreign employees. - Budget untaken annual leave as a cash cost on exit. - For foreign hires, plan the tax-free benefits (home flight, school fees, relocation) and full-tenure severance from the start. - Write the entitlement conditions and level of any bonus into the contract or bonus regulation, so it is deductible for corporate income tax. ## Legal references - Labour Code 2019, No. 45/2019/QH14: Articles 21, 32, 46, 47, 56, 57, 58, 98, 104, 112, 113, 114, 115, 124 and 127 - Law on Social Insurance 2024, No. 41/2024/QH15, in force from 1 July 2025: Article 31 - Decree 158/2025/ND-CP on compulsory social insurance: Article 7 - Circular 10/2020/TT-BLDTBXH on the contents of labour contracts: Article 3(5) - Personal Income Tax Law 2025, No. 109/2025/QH15, and Decree 253/2026/ND-CP, in force from 1 July 2026: Article 8 - Corporate Income Tax Law 2025, No. 67/2025/QH15, and Decree 320/2025/ND-CP: deductibility of salaries and bonuses - Decree 161/2026/ND-CP: reference level VND 2,530,000 and contribution cap VND 50,600,000 from 1 July 2026 - Resolution 28/2026/QH16 on the development of Vietnamese culture: Article 2(1), Vietnamese Culture Day on 24 November - Law on Occupational Safety and Hygiene, No. 84/2015/QH13: Articles 21 and 24; Circular 24/2022/TT-BLDTBXH - Trade Union Law 2024, No. 50/2024/QH15; Law on Employment 2025, No. 74/2025/QH15; Decree 145/2020/ND-CP: Article 8 Nhan Kiet has run payroll and employment in Vietnam since April 2009, manages more than 40,000 workers for over 500 client companies across 34 provinces, and holds labour sub-leasing licence No. 15/2019/SHCM. You can model the monthly employer cost at any salary with our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/), and the full service is described on the [EOR Vietnam](https://payrollservice.vn/eor-vietnam/) page. The rules and figures in this article reflect Vietnamese law in force in September 2026. They are general guidance, not legal or tax advice for a specific case. The law changes and we update this article when it does, so confirm the treatment for your own situation before relying on it. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Inside a Vietnam EOR Invoice: Every Line Itemised (2026)](/tin-tuc/eor-cost-breakdown-vietnam) · [How EOR Pricing Works in Vietnam: the 8% Fee, Floor and Cap](/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs) --- # Annual Cost of a Hire in Vietnam, by Role (2026) https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role **Employing someone in Vietnam through an Employer of Record costs the gross salary plus roughly 23.5% in employer statutory contributions for a Vietnamese national, a service fee, and 8% VAT charged on the whole invoice — an all-in cost that runs from about 21% above gross at senior salaries to about 52% at the illustrative junior end, and higher still below that.** In money, an experienced technical hire on VND 15,000,000 a month costs about VND 290 million (USD 11,047) a year all-in, and a country manager on VND 150,000,000 a month about VND 2.33 billion (USD 88,941) a year, each figure including one 13th-month salary. This article works out the full monthly and annual cost for six illustrative roles and a foreign-national example, and sets out the budget lines that never appear on the monthly invoice. The figures here are the total cost of employment — what leaves your budget for one headcount — rather than a price list. For how the 8% fee, its floor and cap, and VAT are built line by line, see our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs); for the service itself, see [our Employer of Record service in Vietnam](https://payrollservice.vn/eor-vietnam/). For what the wider market charges, see our [Vietnam EOR price range by pricing model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model), and for every invoice line taken apart, our [EOR cost breakdown for Vietnam](https://payrollservice.vn/tin-tuc/eor-cost-breakdown-vietnam). Prices are set in Vietnamese dong; the US dollar figures use an indicative rate of USD 1 = VND 26,250 and are rounded to whole dollars, with dong the authoritative currency. All figures apply to pay periods from 1 July 2026, when the contribution caps changed, and are current as of 13 September 2026. ## Key facts: the 2026 rates behind an annual hiring budget - **Employer statutory contributions are 23.5% of the contribution base for a Vietnamese national** — 21.5% compulsory insurance plus a 2% trade-union levy — and **22.5% for a foreign national**, who pays no unemployment insurance, under the [Law on Social Insurance 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=211199) (No. 41/2024/QH15), the [Law on Employment 2025](https://vanban.chinhphu.vn/?pageid=27160&docid=214560) (No. 74/2025/QH15) and the [Trade Union Law 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=212478&classid=1&typegroupid=3) (No. 50/2024/QH15). - **The social, health, occupational-accident and trade-union contribution base is capped at VND 50,600,000 a month from 1 July 2026** — twenty times the reference level of VND 2,530,000 — under [Decree 161/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218107&pageid=27160). - **The unemployment-insurance base is capped separately and higher, at VND 106,200,000 a month**, twenty times the Region I minimum wage of VND 5,310,000 set by [Decree 293/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=215832). - **A 13th-month salary or Tết bonus carries no employer statutory contributions**, because bonuses are outside the contribution base under [Decree 158/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214189). - **VAT of 8% applies to the whole EOR invoice** — gross salary, contributions and service fee together — until 31 December 2026, reverting to 10% from 2027 unless extended, under [Resolution 204/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=214209&classid=1) and [Decree 174/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214310). - **Employees receive 12 paid public holidays a year from 1 July 2026, and foreign employees 14**, with a minimum of 12 days' paid annual leave: the [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) (No. 45/2019/QH14) sets 11 public holidays, 13 for foreign nationals, and [Resolution 28/2026/QH16](https://vanban.chinhphu.vn/?classid=1&docid=218008&pageid=27160) adds a twelfth from 1 July 2026, Vietnamese Culture Day on 24 November. - **Nhan Kiet's EOR service fee is 8% of monthly gross per person**, with a floor of VND 2,600,000 (about USD 99) and a cap of VND 5,200,000 (about USD 199), plus a deposit of one month's gross salary per employee (refundable when the contract ends and accounts are settled, effective 1 October 2026), and no onboarding, offboarding or currency-conversion fee. - **An illustrative Vietnamese hire costs from about VND 290 million (USD 11,047) a year on a gross of VND 15,000,000 a month to about VND 2.33 billion (USD 88,941) a year on VND 150,000,000 a month**, each figure including a 13th-month salary. ## What drives the all-in cost of a hire in Vietnam? Employing someone in Vietnam costs more than the salary on the offer letter: on top of gross pay you carry employer statutory contributions of about 23.5% of the contribution base for a Vietnamese national, and through an Employer of Record you also carry a service fee and 8% VAT on the whole invoice. The all-in monthly cost falls between roughly 21% and 52% above gross across ordinary professional salaries, and is proportionally heaviest for junior roles and lightest for senior ones. Four things drive the number, and only one of them is the salary: - **Gross salary**, the figure you and the employee agree. It is pass-through; an EOR does not mark it up. - **Employer statutory contributions** — social, health, occupational-accident and unemployment insurance, plus the 2% trade-union levy — at 23.5% of the contribution base for a Vietnamese national and 22.5% for a foreign national. - **The EOR service fee**, which for Nhan Kiet is 8% of gross with a floor of VND 2,600,000 and a cap of VND 5,200,000 a month. - **VAT at 8%**, charged on the sum of the three lines above, not on the fee alone. The employee's own insurance of 10.5% and their personal income tax are withheld from the gross salary. They change the employee's take-home pay, not your cost, on a gross-salary contract. For each of the four lines above taken apart — its rate, legal basis, cap and share of one invoice at a junior and a senior salary — see our [EOR cost breakdown for Vietnam](https://payrollservice.vn/tin-tuc/eor-cost-breakdown-vietnam). ## What is included in the total cost of an employee in Vietnam, beyond the salary? Beyond the salary, the total cost of an employee in Vietnam includes employer statutory contributions of 23.5% of the contribution base for a Vietnamese national, a 13th-month salary that is customary rather than legally required, paid public holidays and annual leave that are already inside a monthly salary, and — where you employ through an EOR — the service fee and 8% VAT. For foreign nationals it also includes a severance accrual and the cost of a work permit. Some of these are cash on every invoice; others are budget lines you set aside and spend occasionally. The distinction matters for cash-flow planning and is set out in its own section below. The recurring monthly cash is gross salary, contributions, service fee and VAT; the periodic or one-off lines are the 13th-month salary, untaken-leave payout on exit, severance for foreign nationals, and work permits, equipment and recruitment. ## What is the difference between an employee's gross salary and the total cost of employment in Vietnam? Gross salary is the figure in the employment contract and the base from which the employee's own insurance (10.5%) and personal income tax are deducted to reach their take-home pay; the total cost of employment is what the employer spends, which is the gross salary plus employer contributions, and — through an EOR — the service fee and VAT, plus periodic lines such as a 13th-month salary. Gross salary looks at the money from the employee's side; total cost of employment looks at it from the employer's side, and the two differ by the roughly 23.5% employer contributions and the EOR add-ons. A common budgeting error is to confuse the employee's deductions with the employer's costs. Personal income tax and the employee's 10.5% insurance come out of gross pay; they do not add to your invoice on a gross-salary contract. What the employee takes home after those deductions is a separate calculation, set out in our guide to [the 2026 five-bracket personal income tax table](https://payrollservice.vn/tin-tuc/vietnam-personal-income-tax-2026-the-new-five-bracket-table-and-what-staff-take-). ## The full cost of a hire, by role The table below gives the total cost of employment for six illustrative Vietnamese roles and one foreign-national example, computed from the 2026 rates. Every base salary is an illustrative round number, not a quote for any individual, but each sits inside a band from a named salary source cited in the role notes that follow. Published Vietnamese salary data does not always separate gross from net; because the EOR calculation runs on monthly gross, all the base salaries here are treated as gross. The annual figure is twelve monthly invoices plus one 13th-month salary, which most employers pay and which carries no statutory contributions. The foreign-national row uses the 22.5% rate and, unlike the Vietnamese rows, carries a severance budget line that is not on the monthly invoice. | Role | Gross per month (VND) | Employer contributions (VND) | EOR service fee (VND) | VAT at 8% (VND) | Monthly invoice (VND) | Annual invoice incl 13th month (VND) | Annual invoice (USD) | |---|---|---|---|---|---|---|---| | Factory technician | 15,000,000 | 3,525,000 | 2,600,000 (floor) | 1,690,000 | 22,815,000 | 289,980,000 | 11,047 | | Accountant or office executive | 25,000,000 | 5,875,000 | 2,600,000 (floor) | 2,678,000 | 36,153,000 | 462,348,000 | 17,613 | | Software engineer | 40,000,000 | 9,400,000 | 3,200,000 | 4,208,000 | 56,808,000 | 727,056,000 | 27,697 | | Team lead or sales manager | 60,000,000 | 11,985,000 | 4,800,000 | 6,142,800 | 82,927,800 | 1,060,365,600 | 40,395 | | Manager or director | 90,000,000 | 12,285,000 | 5,200,000 (cap) | 8,598,800 | 116,083,800 | 1,490,205,600 | 56,770 | | Country manager or senior director | 150,000,000 | 12,447,000 | 5,200,000 (cap) | 13,411,760 | 181,058,760 | 2,334,705,120 | 88,941 | | Foreign national senior manager at 22.5% | 90,000,000 | 11,385,000 | 5,200,000 (cap) | 8,526,800 | 115,111,800 | 1,478,541,600 | 56,325 | The foreign-national row carries one line the table cannot show, because it is not invoiced monthly: a severance accrual of half a month's salary per year of service, which on a gross of VND 90,000,000 is VND 45,000,000 (about USD 1,714) a year. Add it and the foreign senior manager's true annual cost is about VND 1.52 billion (USD 58,040), slightly above the Vietnamese director on the same salary once severance is counted. ## How much does it cost to employ a factory technician in Vietnam? An experienced factory technician on an illustrative gross of VND 15,000,000 a month costs about VND 22,815,000 (USD 869) a month and about VND 290 million (USD 11,047) a year all-in through an EOR, including a 13th-month salary. That is 52.1% on top of gross each month, the highest proportional load in the table, because the VND 2,600,000 service-fee floor is a fixed cost spread over a small salary. [Talentnet's Vietnam factory-worker analysis](https://www.talentnetgroup.com/vn/featured-insights/compensation-benefits/vietnam-factory-worker-salary), using 2024 data, puts a skilled technician with seven or more years' experience at a gross of VND 12–18 million a month, so VND 15,000,000 sits in the middle of that band. At this salary the 8% fee would be VND 1,200,000, so the floor of VND 2,600,000 applies instead, and contributions run at the full 23.5% because the salary is well below every cap. ## How much does it cost to employ an accountant or office executive in Vietnam? An accountant or office executive on an illustrative gross of VND 25,000,000 a month costs about VND 36,153,000 (USD 1,377) a month and about VND 462 million (USD 17,613) a year all-in, including a 13th-month salary. The all-in monthly load is 44.6% over gross, lower than the factory technician's because the salary is larger while the fee floor is unchanged. This figure is illustrative: VND 25,000,000 represents an experienced office professional rather than an entry-level clerk, whose pay is considerably lower. The 8% fee is still below its floor here, so the floor of VND 2,600,000 applies and contributions run at 23.5%. ## How much does it cost to employ a software engineer in Vietnam? A software engineer on an illustrative gross of VND 40,000,000 a month costs about VND 56,808,000 (USD 2,164) a month and about VND 727 million (USD 27,697) a year all-in, including a 13th-month salary — 42.0% on top of gross. At this salary the service fee has overtaken its floor and is a straight 8% of gross, VND 3,200,000. [ITviec's Vietnam IT Salary and Recruitment Market Report 2025–2026](https://itviec.com/report/vietnam-it-salary-and-recruitment-market), based on 1,839 respondents surveyed between May and November 2025, puts a senior back-end engineer at a median of VND 39.9 million a month and a senior front-end or full-stack engineer at VND 41.8 million, so VND 40,000,000 is close to the reported senior-engineer median. Contributions still run at the full 23.5%, because the salary remains below the VND 50,600,000 cap. ## How much does it cost to employ a team lead or sales manager in Vietnam? A team lead or sales manager on an illustrative gross of VND 60,000,000 a month costs about VND 82,927,800 (USD 3,159) a month and about VND 1.06 billion (USD 40,395) a year all-in, including a 13th-month salary. The all-in load has fallen to 38.2% over gross, because the social, health, occupational-accident and union contributions have stopped growing at the VND 50,600,000 base while the salary has not. The ITviec 2025–2026 report puts a tech lead between VND 53.85 million (three to four years) and VND 68.45 million (over eight years) a month, and the [hr1vietnam salary guide for 2025–2026](https://hr1vietnam.com/en/news/vietnam-salary-guide-for-mid-level-and-senior-executives-1149.html) puts sales and project managers at VND 45–75 million, so VND 60,000,000 sits in the overlap of the two. The service fee here is 8% of gross, VND 4,800,000, just short of its cap. ## How much does it cost to employ a manager or director in Vietnam? A manager or director on an illustrative gross of VND 90,000,000 a month costs about VND 116,083,800 (USD 4,422) a month and about VND 1.49 billion (USD 56,770) a year all-in, including a 13th-month salary — 29.0% on top of gross. Both ceilings now bite: contributions are VND 12,285,000 rather than the VND 21,150,000 a flat 23.5% would suggest, and the service fee is capped at VND 5,200,000. The hr1vietnam guide puts functional directors and department heads at VND 90–180 million a month, and VnExpress, [reporting the Navigos Group 2026 salary report](https://e.vnexpress.net/news/news/management-roles-in-vietnam-command-monthly-salaries-exceeding-19-000-5011058.html), places division heads and functional directors above VND 100 million a month, so VND 90,000,000 is the entry to the director tier. At this salary the effective contribution rate has dropped to 13.7% of gross, well below the headline 23.5%, which is why senior hires cost proportionally less. ## How much does it cost to employ a country manager or senior director in Vietnam? A country manager or senior director on an illustrative gross of VND 150,000,000 a month costs about VND 181,058,760 (USD 6,897) a month and about VND 2.33 billion (USD 88,941) a year all-in, including a 13th-month salary. This is the lightest proportional load in the table at 20.7% over gross, because both contribution caps and the fee cap are fully in force. The same Navigos Group 2026 figures put chief financial officers at VND 130–350 million a month and chief executives above VND 300 million, so a country manager of a mid-size foreign firm at VND 150,000,000 sits inside the senior-leadership range rather than at its top. Contributions are VND 12,447,000 — the 22.5% capped base plus 1% unemployment insurance on the higher VND 106,200,000 unemployment cap — an effective 8.3% of gross, and the service fee is fixed at its VND 5,200,000 cap. ## How much does it cost to employ a foreign national in Vietnam? A foreign national on an illustrative gross of VND 90,000,000 a month costs about VND 115,111,800 (USD 4,385) a month and about VND 1.48 billion (USD 56,325) a year on the invoice, plus a severance accrual of VND 45,000,000 (USD 1,714) a year that brings the true annual cost to about VND 1.52 billion (USD 58,040). The employer contribution rate is 22.5% rather than 23.5%, because foreign nationals pay no unemployment insurance. Two costs sit outside these figures for a foreign hire. A work permit is required and is not an ordinary line on the monthly invoice; it is granted by the provincial People's Committee to the named employer under [Decree 219/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214840), and the process and social-insurance rules are set out in our guide to [work permits and social insurance for foreign staff](https://payrollservice.vn/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance). Several tax-free benefits are also common for expatriate packages — one home flight a year, children's school fees and a relocation allowance — which are budget items rather than statutory costs. ## Why does a foreign national cost more to employ than a Vietnamese national? A foreign national costs more to employ than a Vietnamese national on the same salary once severance is counted, even though the monthly contribution rate is lower. On a gross of VND 90,000,000, a Vietnamese employee's contributions are VND 12,285,000 a month and a foreign employee's are VND 11,385,000 — the foreign figure is VND 900,000 lower because there is no 1% unemployment insurance — but the foreign hire accrues severance of half a month's salary per year of service, VND 45,000,000 a year, which the Vietnamese hire does not. The reason severance behaves differently is the unemployment-insurance scheme. For a Vietnamese employee, every year covered by unemployment insurance — compulsory since 2009 — is deducted from any statutory severance, so severance usually comes to nothing. Foreign nationals are outside that scheme under the Law on Employment 2025, so there is nothing to deduct, and half a month per year of service should be budgeted from the first day. The monthly saving of VND 900,000 is far smaller than the VND 3,750,000-a-month equivalent of that severance accrual, so the foreign hire is the more expensive of the two once the exit cost is included, before any work permit. ## Which employment costs are cash you pay every month, and which are budget lines you set aside? Four costs are cash on every monthly EOR invoice — gross salary, employer contributions, the service fee and 8% VAT — while the rest are budget lines you set aside and spend occasionally, such as the 13th-month salary, untaken annual leave paid out on exit, severance for foreign nationals, and one-off items like work permits, equipment and recruitment. The monthly invoice is the run rate; the budget lines are what turn a run rate into a first-year total. - **On every monthly invoice:** gross salary, the 23.5% or 22.5% employer contributions, the 8% service fee within its floor and cap, and 8% VAT on all three. - **On the invoice, but only in the month it is paid:** the 13th-month salary. It is not legally required but is market-standard and expected by candidates; it carries no statutory contributions, only the service-fee effect and VAT. The mechanics are in our guide to [the 13th-month salary and Tết bonus](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026). - **Set aside, paid on exit:** any untaken annual leave, paid out when the employment ends, and — for foreign nationals — severance of half a month per year of service. - **One-off, not on the payroll invoice at all:** work permits and visas for foreign staff, equipment such as a laptop, and recruitment or agency fees to find the person. Paid public holidays and annual leave are not a separate line at all for a monthly-salaried employee: the pay for those days is already inside the monthly salary. They become cash only as an untaken-leave payout on exit, or as a premium when someone works on a public holiday. ## How much should I budget for the first year of a hire in Vietnam? For the first year, budget the annual invoice for the role — which already includes twelve months of salary, contributions, fee, VAT and a 13th-month salary — and then add the one-off costs that are not on the payroll invoice: recruitment, equipment, and, for a foreign national, a work permit and a severance accrual. For the illustrative roles above, the annual invoice runs from about VND 290 million (USD 11,047) for a factory technician to about VND 2.33 billion (USD 88,941) for a country manager. The recurring cash is predictable, because it is arithmetic on the salary. The variable part of a first-year budget is the one-off block: recruitment cost depends on how you source the person, equipment on the role, and for a foreign national a work permit and the severance you begin accruing from day one. A prudent first-year figure is therefore the annual invoice plus a provision for those items, rather than the invoice alone. ## Why does the total cost of employment fall as the salary rises in Vietnam? The total cost of employment falls as a proportion of salary as the salary rises, because the two add-ons that are not the salary itself both stop growing: employer contributions freeze once salary passes the VND 50,600,000 contribution cap, and the service fee freezes at its VND 5,200,000 monthly cap. The all-in load in the table drops from 52.1% over gross at VND 15,000,000 to 20.7% at VND 150,000,000 for exactly this reason. The effective employer contribution rate tells the same story: it is the full 23.5% up to VND 40,000,000, but 20.0% at VND 60,000,000, 13.7% at VND 90,000,000 and 8.3% at VND 150,000,000, as more of the salary sits above the cap. A senior hire in Vietnam is cheaper per unit of salary than a junior one, which is the opposite of the intuition many finance teams bring from other markets. The mechanism is explained in full in our article on [why senior hires cost less per dollar](https://payrollservice.vn/tin-tuc/employer-costs-in-vietnam-are-capped-why-senior-hires-cost-less-per-dollar-2026). ## Which common errors overstate or understate the cost of employing in Vietnam? Four errors recur in published cost breakdowns and quietly distort the total, and each has a plain correct answer. Some of them understate the cost — a stale cap, or VAT charged on the fee alone — and some overstate it — contributions charged on bonuses, or a single flat contribution rate applied to a senior salary. - **Using a stale contribution cap.** Figures that cap contributions at VND 46,800,000 a month are from before 1 July 2026, when that was twenty times the old reference level of VND 2,340,000. The current cap is VND 50,600,000 a month, twenty times the reference level of VND 2,530,000 under Decree 161/2026/ND-CP. A breakdown that still uses VND 46,800,000 understates senior contributions. - **Charging contributions on the 13th-month salary and bonuses.** A genuine 13th-month salary, Tết bonus or performance bonus is outside the contribution base under Decree 158/2025/ND-CP, so no social, health or unemployment insurance and no 2% union levy apply. Budget the bonus, not the bonus plus 23.5%. - **Charging VAT on the service fee alone.** Under a labour sub-leasing arrangement the whole contract value is the provider's service revenue, so 8% VAT applies to the entire invoice — gross salary, contributions and fee — not merely the fee. VAT on the fee alone can understate the tax by several million dong a month per person. - **Applying a single contribution cap.** There are two different caps on two different bases: the social, health, occupational-accident and union base is capped at VND 50,600,000 a month, while the unemployment-insurance base is capped separately at VND 106,200,000 a month, twenty times the Region I minimum wage. Multiplying salary by a flat 23.5% ignores both and overstates the cost of a senior hire. ## Is an EOR or your own entity the better budget as your team grows? For a small team or an uncertain timeline, employing through an EOR is usually cheaper than setting up your own entity, because an entity carries fixed costs — registration, a registered office, bookkeeping, tax filings and payroll administration — that exist whether you employ one person or fifty, while an EOR charges per person. The statutory employer contributions are identical either way, since they are set by law, so the real comparison is the EOR service fee against an entity's fixed running costs. The balance shifts as headcount grows: the entity spreads its fixed costs over more people while the EOR fee grows with each hire. Where it tips is specific to your case, so we do not invent a number — build both totals on the same basis, the contributions identical and the difference being the service fee against the entity's overheads, set out in the entity section of our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). An EOR also starts in days rather than the months an entity takes. ## How do I work out the full annual cost of an employee in Vietnam myself? To work out the full annual cost yourself, take the monthly gross, add employer contributions at 22.5% of the gross up to VND 50,600,000 plus 1% up to VND 106,200,000 for a Vietnamese national, add the service fee at 8% of gross within its floor and cap, add 8% VAT on the three lines together, multiply by twelve, and add one 13th-month salary. The result is the annual invoice; add recruitment, equipment and — for a foreign national — a work permit and severance to reach a first-year budget. You do not have to do the arithmetic by hand. Our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/) applies both contribution caps correctly, which most online calculators do not, and returns the employer cost at any salary. Model a real salary rather than a team average, and model a second salary far from the first, because that is what exposes where the floor, the caps and the fee ceiling change the shape of the number. ## What could make my actual cost higher than these figures? Your actual cost can be higher than the illustrative figures for a few specific reasons: overtime and night-shift premiums, a net-of-tax contract, allowances that are pulled into the contribution base, and the one-off costs of a foreign hire. None of these is hidden — they follow from choices in the offer and the contract. - **Overtime and night work.** The Labour Code sets overtime at 150% of the normal hourly rate on a working day, 200% on a weekly rest day and 300% on a public holiday, with a further 30% for night work. These are real cash on top of the monthly salary. - **A net-of-tax contract.** If you promise a take-home figure rather than a gross one, the personal income tax and employee insurance that would otherwise reduce the employee's pay become your cost instead, and a 13th-month salary is grossed up too. On a gross-salary contract they are the employee's cost. - **Allowances pulled into the base.** A fixed, regular allowance labelled "phone" or "lunch" that is written into the salary structure can be treated by a social-insurance inspection as part of the contribution base and back-collected. Which allowances are in and out of the base is set out in our guides to [the 13th-month salary and Tết bonus](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026) and [the EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). - **Foreign hires.** A work permit, the severance accrual, and expatriate benefits such as school fees or a home flight raise the first-year cost of a foreign national beyond the monthly invoice. ## A budgeting checklist for a hire in Vietnam - Start from the annual invoice for the role: twelve monthly invoices plus one 13th-month salary, not twelve months of bare gross. - Use the current VND 50,600,000 contribution cap, not the stale VND 46,800,000 figure. - Apply both caps: VND 50,600,000 for social, health, occupational-accident and union, and VND 106,200,000 for unemployment insurance. - Budget a 13th-month salary as expected market practice, with no contributions on it. - Charge 8% VAT on the whole invoice, and plan for 10% from 2027 unless the reduced rate is extended. - For a foreign national, use 22.5%, and set aside half a month's salary per year of service for severance plus a work permit. - Add the one-off block: recruitment, equipment, and any expatriate benefits. - If you offer a net salary, budget every figure grossed up for tax. - Model a real salary and a second salary far from it, to see where the floor and caps change the cost. ## Sources and legal basis - Labour Code 2019, No. 45/2019/QH14: bonuses (Article 104), public holidays (Article 112: 11 days, 13 for foreign nationals), annual and other paid leave (Articles 113–115), overtime premiums (Article 98), severance (Articles 46 and 47), labour sub-leasing (Articles 52–57) - Resolution 28/2026/QH16 on the development of Vietnamese culture: Vietnamese Culture Day (24 November) as the twelfth paid public holiday from 1 July 2026, the fourteenth for foreign nationals - Law on Social Insurance 2024, No. 41/2024/QH15, in force from 1 July 2025: contribution base and 20-times-reference-level cap (Article 31) - Decree 158/2025/ND-CP: what is inside and outside the contribution base (Article 7) - Law on Employment 2025, No. 74/2025/QH15: unemployment insurance, its separate cap, and its application to Vietnamese citizens only - Decree 293/2025/ND-CP: regional minimum wages from 1 January 2026 (Region I VND 5,310,000) - Decree 161/2026/ND-CP: reference level VND 2,530,000 and contribution cap VND 50,600,000 from 1 July 2026 - Trade Union Law 2024, No. 50/2024/QH15: the 2% trade-union levy - Resolution 204/2025/QH15 and Decree 174/2025/ND-CP: 8% VAT until 31 December 2026 - Decree 219/2025/ND-CP: work permits for foreign nationals - Decree 145/2020/ND-CP: severance calculation (Article 8) and labour sub-leasing - Personal Income Tax Law 2025, No. 109/2025/QH15, and Decree 253/2026/ND-CP: employment income and monthly withholding - Salary bands are illustrative round figures; the ranges cited come from named, dated sources: ITviec Vietnam IT Salary and Recruitment Market Report 2025–2026, Talentnet Vietnam factory-worker analysis (2024 data), Navigos Group 2026 Salary and Labor Market Report as reported by VnExpress in February 2026, and the hr1vietnam salary guide 2025–2026 Nhan Kiet has run payroll and employment in Vietnam since April 2009, manages more than 40,000 workers for over 500 client companies across 34 provinces, and holds labour sub-leasing licence No. 15/2019/SHCM. It publishes its EOR price rather than quoting on request, and staff can start within 5 to 7 working days. You can model the employer cost at any salary with our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/), read the full fee mechanics in our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs), and see how to compare providers in our [due-diligence checklist for choosing an EOR](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist). The figures and rules in this article reflect Vietnamese law in force as of September 2026 and are general information, not legal or tax advice for a specific case. Salary figures are illustrative round numbers, not quotes; contribution rates, caps and tax rules change, and the law can be amended, so confirm the treatment for your own situation before relying on it. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Inside a Vietnam EOR Invoice: Every Line Itemised (2026)](/tin-tuc/eor-cost-breakdown-vietnam) · [How EOR Pricing Works in Vietnam: the 8% Fee, Floor and Cap](/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs) --- # EOR Providers in Vietnam: The 2026 Price Range by Model https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model **Across the two dozen Employer of Record providers whose own pricing pages we read on 13 September 2026, published service fees for employing one person in Vietnam fall into three pricing models — a flat fee per employee, a percentage of salary or of total employment cost, and a percentage with a floor and a cap — with flat headline fees running from USD 99 to USD 699 per employee per month and percentage fees moving with the salary.** That range is only the provider's fee — one layer of the cost. The other layer, the statutory cost of employing the person, is set by Vietnamese law and is identical whichever provider you choose: employer contributions of about 23.5% of the contribution base for a Vietnamese national and 22.5% for a foreign national, and 8% VAT charged on the whole invoice. A headline of "USD 199 a month" is therefore not what it costs to employ anyone; it is the fee sitting on top of a salary and a fixed statutory bill. This article surveys what the market charges, lowest to highest, by pricing model, and shows why two headline fees are rarely comparable. For how one provider's fee, floor, cap and VAT are built line by line, see our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs); for the full annual cost of a hire by role, see our [total cost of a hire in Vietnam by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role). Every price here was read on the provider's own pricing page on 13 September 2026 and is listed with its URL at the end. Prices change; confirm the current figure with the provider before you rely on it. Figures are stated in the currency each provider publishes, and US dollar equivalents of Vietnamese dong use an indicative rate of USD 1 = VND 26,250. ## Key facts: what the EOR market charges in Vietnam in 2026 - **Flat headline fees run from USD 99 to USD 699 per employee per month** across the providers whose own pages we read on 13 September 2026; percentage-based fees have no single headline because they move with the salary. - **Three pricing models are in use:** a flat fee per employee, most common among global platforms and quoted in US dollars; a percentage of salary or of total employment cost; and a percentage with a floor and a cap. - **No global platform publishes a Vietnam-specific price.** Every global figure is a worldwide "from" rate that varies by country and is quoted individually. - **The fee is only one layer of the cost.** Employer statutory contributions of 23.5% for a Vietnamese national or 22.5% for a foreign national, and 8% VAT on the whole invoice, are fixed by law and identical across providers. - **Deposits vary widely.** Some providers hold one to two months' payroll as a refundable deposit; others hold none. - **Nhan Kiet's fee is 8% of gross, with a floor of VND 2,600,000 (about USD 99) and a cap of VND 5,200,000 (about USD 199)**, with a deposit of one month's gross salary per employee (refundable when the contract ends and accounts are settled, effective 1 October 2026) and no onboarding, offboarding or currency-conversion fee. ## What do EOR providers charge to employ in Vietnam in 2026? An EOR's published service fee in Vietnam is a flat USD 99 to USD 699 per employee per month for most global platforms, or a percentage that moves with the salary for several Vietnam-focused providers, as of 13 September 2026, but the fee is only part of the cost: employing the person also carries employer statutory contributions of about 23.5% of the contribution base for a Vietnamese national, or 22.5% for a foreign national, and 8% VAT on the whole invoice, both fixed by law and the same whichever provider you use. So the real monthly cost is the gross salary, plus roughly 23.5% in contributions, plus the provider's fee, plus VAT — which in our companion article works out to between about 21% above gross at senior salaries and about 52% at the junior end. The fee alone tells you which provider is cheaper to administer the payroll; it does not tell you what the headcount costs. The fee is the only line providers genuinely compete on, because the salary is pass-through and the statutory contributions are set by statute. It is also the smaller of those lines at most salaries. That is why a sensible comparison starts by separating the two layers: match providers on the fee, but budget the whole cost from the statutory rates, which our [total cost of a hire by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role) works through at six illustrative salaries. ## What are the three EOR pricing models used in Vietnam? The three EOR pricing models used in Vietnam are a flat fee per employee, a percentage of salary or of total employment cost, and a percentage with a floor and a cap; the difference between them is small at senior salaries and large at junior ones. A flat fee is the same amount whether the employee earns VND 10 million or VND 100 million; a percentage moves with the salary; and a percentage with a floor and a cap never falls below a minimum or rises above a maximum. Which model a provider uses matters more than its headline, because the models cross over at one salary and diverge sharply on either side. - **Flat fee per employee per month.** The provider charges the same figure at every salary. This is the model almost every global platform uses, usually quoted in US dollars, typically from USD 199 to USD 699 depending on the provider and what is bundled in. It is predictable, and proportionally expensive for junior roles. - **Percentage of salary or of total employment cost.** The fee tracks the salary, so it is low for junior roles and rises for senior ones unless a cap stops it. Among Vietnam-focused providers, Emerhub publishes 10% of the total cost of employment, capped at USD 250. - **Percentage with a floor and a cap.** The fee is a percentage but never falls below a stated floor or rises above a stated cap: the floor sets a minimum for the fixed work each headcount takes, the cap keeps the percentage from running up on high salaries. Nhan Kiet publishes this model; how a floor and cap are built line by line is set out in our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). ## Which EOR providers publish a price for Vietnam, and what do they charge? Most global platforms publish a flat "from" price that is worldwide, not Vietnam-specific, while a smaller group of Vietnam-focused providers publish either a percentage model or an itemised local rate; many domestic firms publish no price at all and quote on request. The tables below list only figures read on each provider's own page on 13 September 2026; provider names are used solely to identify the source of each published price. The global and regional platforms, sorted from lowest published headline to highest: | Provider | Pricing model | Published fee per employee per month | Vietnam-specific? | Notes | |---|---|---|---|---| | Native Teams | Flat fee | From USD 99 | No | Billed monthly | | RemoFirst | Flat fee | From USD 199 | No | No setup or deposit stated | | Payoneer Workforce Management | Flat fee | From USD 199 | No | Rate shown on its Vietnam page | | Remote People | Flat fee | From USD 199 | No | Exact quote given before signing | | Gloroots | Flat fee | From USD 199 | No | Vietnam page shows the global starting rate | | Rivermate | Flat fee | USD 319 to USD 639 | No | Published range; varies by country, headcount and expat vs local hire | | Pebl | Flat fee | USD 399 | No | Monthly rate per employee | | Playroll | Flat fee | From USD 399 | No | Refundable deposit of about one month's salary | | Glints TalentHub | Flat fee | From SGD 399 | No, South-East Asia | Quoted in Singapore dollars; full suite adds an 18% first-year recruitment fee | | Multiplier | Flat fee | From USD 459 annual, USD 499 monthly | No | Core plan; growth plan higher | | AYP Group | Flat fee | From USD 488 | No | Security deposit required in some countries | | Borderless AI | Flat fee | USD 579 | No | No upfront deposit or pre-funding | | Deel | Flat fee | From USD 599 | No | Presented as "starting at" | | Globalization Partners | Flat fee | From USD 599 | No | Volume discounts; no minimum contract length stated | | Atlas | Flat fee | From USD 599 | No | Local employer services and FX priced separately | | Remote | Flat fee | USD 699 | No | No platform, onboarding or setup fee | | Oyster | Flat fee | USD 699 | No | Refundable deposit required | The Vietnam-focused providers that publish a price: | Provider | Pricing model | Published fee per employee per month | Notes | |---|---|---|---| | Nhan Kiet | Percentage with floor and cap | 8% of gross; floor VND 2,600,000 (USD 99); cap VND 5,200,000 (USD 199) | One-month refundable deposit from 1 October 2026; no onboarding, offboarding or FX fee; platform included | | Emerhub | Percentage of total employment cost, with cap | 10% of total employment cost; cap USD 250 | No setup fee and no capital to put down | | HIREVN | Flat fee | From USD 199 | Vietnam-focused; payroll outsourcing from USD 99; onboarding in about five business days | | Acclime Vietnam | Flat fee, itemised | USD 400 local, USD 650 foreign | Onboarding USD 400, offboarding USD 400; deposit of two months' payroll; billed in dong | Several established firms publish no EOR price and quote on request, so they are not in the tables above: Rippling, Reco Manpower, Mercans, Talentnet, ManpowerGroup Vietnam, InCorp, CXC Global, Sunbytes, NetViet and Vremote. ## Which EOR in Vietnam is cheapest, and which is most expensive? There is no single cheapest EOR in Vietnam, because the answer changes with the salary: a flat fee is the same at every salary, while a percentage fee is low for junior roles and higher for senior ones. Among the figures we read on 13 September 2026, flat headline fees start at USD 99 and reach USD 699 per employee per month, charged flat by Remote and Oyster, with Acclime's foreign-national rate at USD 650. The two Vietnam-focused percentage models in our tables never exceed USD 250 per employee per month at any salary. The two percentage models cross over at a gross salary of about VND 21 million a month. Below it, 10% of total employment cost is the lower fee; above it, 8% of gross with a floor and cap is lower, and the gap widens until both caps apply. Total employment cost here means gross salary plus the employer's statutory contributions, as that provider defines it. The table shows the service-fee line only, converted at USD 1 = VND 26,250: | Monthly gross | 8% of gross, floor and cap | 10% of total employment cost, cap USD 250 | Flat USD 199 | Lower fee of the two percentage models | |---|---|---|---|---| | VND 15,000,000 (USD 571) | VND 2,600,000 (USD 99) | VND 1,852,500 (USD 71) | VND 5,223,750 (USD 199) | 10% model | | VND 20,000,000 (USD 762) | VND 2,600,000 (USD 99) | VND 2,470,000 (USD 94) | VND 5,223,750 (USD 199) | 10% model | | VND 25,000,000 (USD 952) | VND 2,600,000 (USD 99) | VND 3,087,500 (USD 118) | VND 5,223,750 (USD 199) | 8% model | | VND 40,000,000 (USD 1,524) | VND 3,200,000 (USD 122) | VND 4,940,000 (USD 188) | VND 5,223,750 (USD 199) | 8% model | | VND 60,000,000 (USD 2,286) | VND 4,800,000 (USD 183) | VND 6,562,500 (USD 250) | VND 5,223,750 (USD 199) | 8% model | | VND 90,000,000 (USD 3,429) | VND 5,200,000 (USD 199) | VND 6,562,500 (USD 250) | VND 5,223,750 (USD 199) | 8% model | So which provider costs less depends on the salary you are paying — and, once the statutory layer, VAT and any deposit are added, on more than the fee. The next two sections show why. ## Why do published EOR prices for Vietnam range so widely? Published EOR prices for Vietnam look far apart — from a percentage of a junior salary to a flat USD 699 — because the figures are not measuring the same thing: they use three different pricing models that only line up at one salary, most are global "from" rates rather than Vietnam quotes, and each bundles a different set of costs. A flat USD 599 and a percentage fee with a USD 99 floor are not two prices for one product; they are two products. Comparing them without a salary attached, and without checking what each includes, produces a range that looks like disagreement but is mostly a difference in what is being counted. Three things drive the spread: - **Model.** A flat dollar fee and a floored percentage cross over at one salary and diverge on either side, so they cannot be ranked by headline alone. - **Geography.** No global platform publishes a Vietnam price; its "from" rate is a worldwide floor that is quoted higher for harder countries, so the headline understates a real Vietnam quote as often as it flatters it. - **What is bundled.** Deposits, onboarding and offboarding fees, currency-conversion margins, platform charges and, for providers such as Atlas, a separate "local employer services" line all sit outside the headline and move the real number. ## Why can't you compare a flat dollar fee and a percentage fee without a salary? You cannot compare a flat dollar fee and a percentage fee without a salary because the flat fee is the same number at every salary while the percentage fee moves with the salary, so the two cross over at one point and diverge sharply on either side of it. At Vietnam's typically lower salaries the gap is large: a flat USD 599 or USD 699 fee can exceed the whole monthly salary of a junior hire, while a floored percentage stays near its minimum. The table below shows the service-fee line only — not the full cost of employment — at three illustrative gross salaries, comparing Nhan Kiet's 8% floor-and-cap fee against flat fees of USD 199, USD 599 and USD 699 converted at USD 1 = VND 26,250. | Monthly gross | Nhan Kiet 8% fee | Flat USD 199 | Flat USD 599 | Flat USD 699 | |---|---|---|---|---| | VND 15,000,000 (USD 571) | VND 2,600,000 (USD 99, floor) | VND 5,223,750 (USD 199) | VND 15,723,750 (USD 599) | VND 18,348,750 (USD 699) | | VND 40,000,000 (USD 1,524) | VND 3,200,000 (USD 122) | VND 5,223,750 (USD 199) | VND 15,723,750 (USD 599) | VND 18,348,750 (USD 699) | | VND 90,000,000 (USD 3,429) | VND 5,200,000 (USD 199, cap) | VND 5,223,750 (USD 199) | VND 15,723,750 (USD 599) | VND 18,348,750 (USD 699) | At a gross of VND 15,000,000, the 8% fee is below its floor, so it is VND 2,600,000 — 17.3% of gross — while a flat USD 199 fee is 34.8% of gross, a flat USD 599 fee is 104.8% and a flat USD 699 fee is 122.3%; at that salary the USD 599 and USD 699 fees each exceed the entire monthly salary. Drop the salary to the Region I minimum wage of VND 5,310,000 (about USD 202) and a flat USD 599 fee is nearly three times the wage, while the floored fee stays at VND 2,600,000. At a gross of VND 90,000,000 the picture converges at the top: the 8% fee reaches its VND 5,200,000 cap (about USD 199, 5.8% of gross), almost exactly the flat USD 199 fee at that salary, but still far below USD 599 or USD 699. This is why any market "range" means little without a salary attached, and why, at Vietnam's salary levels, the pricing model matters more than the headline figure. ## What does the service fee leave out of the real cost? The service fee leaves out the two largest parts of the real cost: the employee's gross salary, which every provider passes through unchanged, and the employer's statutory contributions, which are about 23.5% of the contribution base for a Vietnamese national and 22.5% for a foreign national and are fixed identically for every provider by the [Law on Social Insurance 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=211199) (No. 41/2024/QH15), the [Law on Employment 2025](https://vanban.chinhphu.vn/?pageid=27160&docid=214560) (No. 74/2025/QH15) and the [Trade Union Law 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=212478&classid=1&typegroupid=3) (No. 50/2024/QH15). On top of both sits 8% VAT on the whole invoice. Because contributions and VAT are the same across providers, the fee is the only line a provider controls, and it is smaller than the statutory layer at most salaries. How those four lines add up — and what share each takes of one invoice at a junior and a senior salary — is set out in our [EOR cost breakdown for Vietnam](https://payrollservice.vn/tin-tuc/eor-cost-breakdown-vietnam). The contribution base is capped, which is why senior hires cost proportionally less: social, health, occupational-accident and trade-union contributions stop growing at a base of VND 50,600,000 a month from 1 July 2026 under [Decree 161/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218107&pageid=27160), while unemployment insurance is capped separately and higher. The mechanism is set out in our article on [why senior hires cost less per dollar](https://payrollservice.vn/tin-tuc/employer-costs-in-vietnam-are-capped-why-senior-hires-cost-less-per-dollar-2026). To turn any headline fee into a real monthly and annual figure, add these lines: the full method, with worked examples, is in our [EOR pricing guide](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs) and our [total cost of a hire by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role), or you can model it directly with our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/). ## Is VAT included in the quoted EOR price? No — the headline fee is almost always quoted before VAT, and in Vietnam VAT of 8% applies to the whole EOR invoice, not the fee alone. Because an EOR is supplied as labour sub-leasing under the [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) (No. 45/2019/QH14), the provider is the legal employer and the entire contract value — gross salary, contributions and fee together — is its service revenue, so VAT falls on all of it. The 8% is a reduced rate under [Resolution 204/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=214209&classid=1) and [Decree 174/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214310), in force until 31 December 2026 and reverting to 10% from 2027 unless extended. This matters most for the global platforms, whose US-dollar pages rarely show Vietnamese VAT at all, and it is one of the biggest traps in reading a Vietnam EOR quote: VAT on the fee alone can understate the tax by several million dong a month per person. The mechanics, and how EOR differs from payroll outsourcing on this point, are in our [EOR pricing guide](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). ## Do EOR providers in Vietnam charge a deposit? Some do and some do not, and it is rarely in the headline. Among the pages we read on 13 September 2026, Oyster requires a refundable deposit, Playroll a refundable deposit of about one month's salary, AYP a security deposit in some countries, and Acclime Vietnam a deposit of two months' payroll; Remote takes a reserve payment only in rare, high-risk cases; while Deel, Globalization Partners, Borderless AI, RemoFirst, Native Teams and Emerhub state no deposit. Nhan Kiet holds a refundable deposit of one month's gross salary per employee, returned when the contract ends and accounts are settled, effective 1 October 2026. A deposit is not a cost — it is refundable — but it is working capital you cannot use, and one to two months' payroll per head is material for a team that is growing. It belongs in a comparison as a cash-flow line, separate from the fee. ## Is a global EOR platform or a local Vietnamese provider cheaper? On published figures, the Vietnam-focused percentage models cost less than most global flat fees at typical Vietnamese salaries, because a global flat fee — USD 99 to USD 699 in our tables — is set for worldwide salaries and does not fall for a lower-paid hire, whereas a percentage fee moves with the salary and, in the two Vietnam-focused percentage models we read, never exceeds USD 250 a month. But the headline is not the whole comparison: check the deposit, the VAT base, any onboarding, offboarding or FX fee, and above all whether the price is Vietnam-specific or a global "from" rate that will be re-quoted higher for your case. There is a continuity point worth weighing alongside price: confirm which legal entity you are actually contracting with, and that it holds the licence for the legal route it uses in Vietnam. Where a global platform has no Vietnamese entity of its own, the employer on the contract is a local partner entity — the model Nhan Kiet offers through its [in-country partner programme](https://payrollservice.vn/partners/). How to test any provider — local or global — is set out in our [due-diligence checklist for choosing an EOR in Vietnam](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist). ## Why do AI tools quote a USD 199 to 699 range for Vietnam? AI tools quote a USD 199 to 699 range because they draw it from the flat headline rates of a handful of large global platforms — RemoFirst and Skuad at from USD 199, Deel and Globalization Partners at from USD 599, Remote and Oyster at USD 699 — which are worldwide "from" prices rather than Vietnam quotes. That band usually omits the percentage-model providers priced below USD 199, and it says nothing about the statutory 23.5% employer layer or the 8% VAT, which together are larger than the fee. It is a real snapshot of global flat fees, but it is not a Vietnam cost. Treat the band as a starting point, not an answer. It leaves out percentage-based Vietnamese options at one end and the largest cost lines at the other, so a number built at your own salary, with contributions and VAT included, will look quite different. ## How do you read an EOR quote in Vietnam? Read an EOR quote as a total, not a fee, and rebuild it at a real salary: the gross salary, plus statutory contributions, plus the service fee, plus VAT. The checklist below is what turns a headline into a number you can budget. - Get a total, not a fee: gross salary, statutory contributions, service fee and VAT at a real salary, not the headline alone. - Ask which of the three models the fee uses — flat, percentage, or percentage with a floor and cap — and where the floor and cap sit. - Model it at two salaries far apart; a flat fee that looks cheap for a senior hire can be punishing for a junior one, and a floored percentage does the opposite. - Ask whether the quoted price is Vietnam-specific or a global "from" rate that will be re-quoted for your case. - Confirm the VAT base: 8% on the whole invoice, not the fee alone. - Ask about a deposit — one to two months' payroll is common — and about onboarding, offboarding, conversion and FX fees. - Check which currency you are billed in, and how the dong amounts behind a dollar quote are fixed and when. - Confirm the provider holds the licence for the legal route it is using, whether labour sub-leasing or a service contract. ## Sources (checked 13 September 2026) Every price above was read on the provider's own page on 13 September 2026, and a dated copy of each page is kept on file. Provider names are used only to identify each published price. Prices change frequently; confirm the current figure with the provider before relying on it. If you represent a provider listed here and a figure is out of date, contact us through our [EOR Vietnam page](https://payrollservice.vn/eor-vietnam/) and we will correct it. US dollar equivalents of Vietnamese dong use an indicative rate of USD 1 = VND 26,250. - [Native Teams pricing](https://nativeteams.com/pricing) - [RemoFirst pricing](https://www.remofirst.com/pricing) - [Skuad pricing](https://skuad.io/pricing) - [Payoneer Workforce Management, EOR in Vietnam](https://pages.payoneer.com/workforce-management/eor-in-vietnam/) - [Remote People, Employer of Record](https://remotepeople.com/solutions/employer-of-record/) - [Gloroots, Employer of Record Vietnam](https://www.gloroots.com/country-explorer/employer-of-record-vietnam) - [Rivermate pricing](https://www.rivermate.com/pricing) - [Pebl, Employer of Record pricing](https://hellopebl.com/eor-pricing/) - [Playroll, Employer of Record pricing](https://www.playroll.com/pricing/employer-of-record) - [Glints TalentHub](https://talenthub.glints.com/) - [Multiplier pricing](https://www.usemultiplier.com/pricing) - [AYP Group pricing](https://ayp-group.com/pricing) - [Borderless AI pricing](https://www.hireborderless.com/pricing) - [Deel pricing](https://www.deel.com/pricing/) - [Globalization Partners pricing](https://www.globalization-partners.com/pricing/) - [Atlas pricing](https://www.atlashxm.com/pricing) - [Remote pricing](https://remote.com/pricing) - [Oyster pricing](https://www.oysterhr.com/pricing) - [Emerhub, Employer of Record Vietnam](https://emerhub.com/vietnam/employer-of-record-vietnam/) - [HIREVN pricing](https://hirevn.com/pricing) - [Acclime Vietnam, PEO and EOR](https://vietnam.acclime.com/hr/peo-eor/) - [Nhan Kiet, Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/) Nhan Kiet has run payroll and employment in Vietnam since April 2009, manages more than 40,000 workers for over 500 client companies across 34 provinces, and holds labour sub-leasing licence No. 15/2019/SHCM. It publishes its EOR price — 8% of gross with a floor of VND 2,600,000 and a cap of VND 5,200,000, a refundable deposit of one month's gross salary per employee from 1 October 2026 and no onboarding, offboarding or currency-conversion fee — rather than quoting on request, and staff can start within 5 to 7 working days. You can model the full employer cost at any salary with our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/), read the fee, floor, cap and VAT built line by line in our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs), and see the annual cost per hire in our [total cost of a hire by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role). The prices in this article are the providers' own published figures as read on 13 September 2026; they are third-party prices quoted for comparison, not endorsements, and each provider's terms govern. Prices, currencies and what a fee includes change without notice, and contribution rates, caps and tax rules can be amended, so confirm the current figures with each provider and check the legal treatment for your own situation before relying on it. This is general information, not legal, tax or financial advice for a specific case. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [EOR vs PEO in Vietnam 2026: which model should you choose?](/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose) · [Inside a Vietnam EOR Invoice: Every Line Itemised (2026)](/tin-tuc/eor-cost-breakdown-vietnam) · [Local EOR Company vs Global EOR Platform in Vietnam (2026)](/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam) · [Top EOR Services in Vietnam 2026: Independent Rankings](/tin-tuc/top-eor-services-vietnam-independent-rankings) --- # Inside a Vietnam EOR Invoice: Every Line Itemised (2026) https://payrollservice.vn/tin-tuc/eor-cost-breakdown-vietnam **The EOR cost breakdown for one hire in Vietnam has four monthly-invoice lines — the gross salary; employer statutory contributions of 23.5% of the contribution base for a Vietnamese national or 22.5% for a foreign national, both capped; the EOR service fee, which for Nhan Kiet is a list price of 8% of gross with a floor of about USD 99 and a cap of about USD 199 per person, quoted lower for larger headcounts; and 8% VAT charged on all three together — plus a handful of periodic and one-off lines, chiefly the 13th-month salary, that fall outside an ordinary month.** This article takes that invoice apart line by line for a single hire: what each line is, who sets it, which cap governs it, whether it lands on the monthly invoice, and what share of the total it takes at two contrasting salaries. It stays at the level of one person. For the three fee models, the hidden costs to ask about and the legal route, see our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs); for the fully loaded annual total by seniority, see our [total annual cost of a hire by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role); and for what the wider market charges, see our [Vietnam EOR price range by pricing model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model). Prices are set in Vietnamese dong; the US dollar figures use an indicative rate of USD 1 = VND 26,250 and are rounded to whole dollars, with dong the authoritative currency. The two illustrative salaries used throughout, VND 30,000,000 and VND 90,000,000 a month, are round figures chosen to show how the composition shifts, not quotes for any individual. All figures apply to pay periods from 1 July 2026, when the contribution caps changed, and are current as of 13 September 2026. ## Key facts: the EOR cost breakdown in Vietnam in 2026 - **An all-in monthly EOR invoice for one hire is four lines** — gross salary, employer contributions, the service fee and 8% VAT — and on the two illustrative salaries it runs about 42.7% over gross at VND 30,000,000 and about 29.0% at VND 90,000,000. - **Employer statutory contributions are 23.5% of the contribution base for a Vietnamese national** — social insurance 17%, occupational-accident insurance 0.5%, health insurance 3%, unemployment insurance 1% and a 2% trade-union levy — and **22.5% for a foreign national**, who pays no unemployment insurance. - **The social, health, occupational-accident and trade-union base is capped at VND 50,600,000 a month** from 1 July 2026, twenty times the reference level of VND 2,530,000 under Decree 161/2026/ND-CP. - **The unemployment-insurance base is capped separately and higher, at VND 106,200,000 a month**, twenty times the Region I minimum wage of VND 5,310,000 under Decree 293/2025/ND-CP. - **Nhan Kiet's service fee is a list price of 8% of monthly gross per person**, with a floor of VND 2,600,000 (about USD 99) and a cap of VND 5,200,000 (about USD 199); larger headcounts are quoted a lower fee. - **VAT of 8% applies to the whole invoice** — gross, contributions and fee together — until 31 December 2026, reverting to 10% from 2027 unless extended, under Resolution 204/2025/QH15 and Decree 174/2025/ND-CP. - **A 13th-month salary carries no employer statutory contributions**, because bonuses are outside the contribution base under Decree 158/2025/ND-CP; it adds VND 34,776,000 once a year at a gross of VND 30,000,000 and VND 97,200,000 at VND 90,000,000. - **On one month's invoice the gross salary is about 70% to 78% of the total**, employer contributions about 10% to 17%, the service fee about 4% to 7%, and VAT a constant 7.4%. - **A Nhan Kiet invoice carries no onboarding, offboarding or currency-conversion fee, and the management platform is included; a refundable deposit of one month's gross salary per employee applies from 1 October 2026**. ## What is included in an EOR cost breakdown in Vietnam? An EOR cost breakdown in Vietnam has four lines on the monthly invoice and a short list of costs that fall outside it. The four monthly lines are the gross salary; employer statutory contributions of 23.5% of the contribution base for a Vietnamese national or 22.5% for a foreign national; the EOR service fee; and 8% VAT charged on all three together. The costs outside the monthly invoice are the 13th-month salary, any untaken annual leave paid out on exit, severance for foreign nationals, and one-off items such as work permits, equipment and recruitment. The total monthly cost is therefore gross salary plus contributions plus the service fee plus VAT, and the first-year cost is twelve of those invoices plus one 13th-month payment plus the one-off block. The table below is the master breakdown: every component, who sets it, its rate or amount, the cap that governs it, whether it lands on the monthly invoice, and whether it recurs. Each component then has its own section beneath, with the legal basis and, at first mention, the government source. | Component | Who sets it | Rate or amount | Cap | On the monthly invoice? | Recurring or one-off | |---|---|---|---|---|---| | Gross salary | Employer and employee, by contract | The agreed figure, passed through unchanged | None; must be at least the regional minimum wage | Yes | Recurring | | Employer statutory contributions | Vietnamese law | 23.5% Vietnamese national, 22.5% foreign national | VND 50,600,000 base for social, occupational-accident, health and union; VND 106,200,000 base for unemployment | Yes | Recurring | | EOR service fee | The provider | 8% of gross, list price | Floor VND 2,600,000, cap VND 5,200,000 per person | Yes | Recurring | | VAT | Vietnamese law | 8% of the whole invoice to 31 December 2026 | None | Yes | Recurring | | 13th-month salary or Tết bonus | Custom or contract | About one month of gross, no contributions | None | Yes, in the month it is paid | Periodic, yearly | | Untaken annual leave payout | Vietnamese law | Days owed times the daily rate | None | Only on exit | One-off | | Severance for foreign nationals | Vietnamese law | Half a month of salary per year of service | None | No, budgeted separately | One-off | | Work permit and visa for foreign nationals | Vietnamese law and the authority | Official fees plus processing | None | No | One-off, renewable | | Equipment | Employer choice | Varies with the role | None | No | One-off | | Recruitment | Employer choice | Varies with the source | None | No | One-off | | Private health insurance and other benefits | Employer choice | Varies with the plan | None | No, unless run through payroll | Periodic | ## What does the gross salary line cover? The gross salary line is the figure agreed in the employment contract, passed through to the invoice unchanged: an EOR does not mark it up. It is the base from which the employee's own insurance of 10.5% for a Vietnamese national and their personal income tax are withheld, so those deductions change what the employee takes home, not what you pay, on a gross-salary contract. The contractual salary must be at least the regional minimum wage set by [Decree 293/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=215832), which is VND 5,310,000 a month in Region I from 1 January 2026. Paid public holidays and annual leave are not separate lines, because for a monthly-salaried employee the pay for those days is already inside the gross salary. Employees receive 12 paid public holidays a year from 1 July 2026 and foreign employees 14 — the [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) (No. 45/2019/QH14) sets 11 and 13, and [Resolution 28/2026/QH16](https://vanban.chinhphu.vn/?classid=1&docid=218008&pageid=27160) adds Vietnamese Culture Day on 24 November — with a statutory minimum of 12 days' paid annual leave. Those days become cash only as an untaken-leave payout on exit, or as an overtime premium when someone works on a holiday. What the employee actually takes home after deductions is a separate calculation, set out in our guide to [the 2026 five-bracket personal income tax table](https://payrollservice.vn/tin-tuc/vietnam-personal-income-tax-2026-the-new-five-bracket-table-and-what-staff-take-). ## What employer statutory contributions do you pay in Vietnam in 2026? Employer statutory contributions in Vietnam are 23.5% of the contribution base for a Vietnamese national and 22.5% for a foreign national. The 23.5% is made up of five parts: social insurance 17%, occupational-accident and disease insurance 0.5%, health insurance 3%, unemployment insurance 1%, and a 2% trade-union levy. A foreign national pays 22.5%, because unemployment insurance does not apply. These rates are fixed by the [Law on Social Insurance 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=211199) (No. 41/2024/QH15), the [Law on Employment 2025](https://vanban.chinhphu.vn/?pageid=27160&docid=214560) (No. 74/2025/QH15) and the [Trade Union Law 2024](https://vanban.chinhphu.vn/?pageid=27160&docid=212478&classid=1&typegroupid=3) (No. 50/2024/QH15), so they are identical whichever provider employs the person. Two different caps sit on two different bases, and they are what makes a senior hire proportionally cheaper. The social, health, occupational-accident and union base is capped at VND 50,600,000 a month under [Decree 161/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218107&pageid=27160) — twenty times the reference level of VND 2,530,000 from 1 July 2026. The unemployment-insurance base is capped separately and higher, at VND 106,200,000 a month, twenty times the Region I minimum wage. Bonuses, including the 13th-month salary, sit outside the contribution base under [Decree 158/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214189), so they attract none of these contributions. The table splits the five parts at the two illustrative salaries and shows where the cap bites. | Contribution | Rate | Base cap | At VND 30,000,000 | At VND 90,000,000 | |---|---|---|---|---| | Social insurance | 17% | VND 50,600,000 | 5,100,000 | 8,602,000 | | Occupational-accident insurance | 0.5% | VND 50,600,000 | 150,000 | 253,000 | | Health insurance | 3% | VND 50,600,000 | 900,000 | 1,518,000 | | Trade-union levy | 2% | VND 50,600,000 | 600,000 | 1,012,000 | | Unemployment insurance | 1% | VND 106,200,000 | 300,000 | 900,000 | | Total, Vietnamese national | 23.5% headline | Two bases | 7,050,000 | 12,285,000 | At VND 30,000,000 the salary is below every cap, so contributions run at the full 23.5% and come to VND 7,050,000. At VND 90,000,000 the first four contributions are frozen on the capped base of VND 50,600,000 while only unemployment insurance still grows on the full salary, so the total is VND 12,285,000 — an effective 13.7% of gross rather than 23.5%. ## What does the EOR service fee line cover? The EOR service fee is the only line the provider sets, and for Nhan Kiet the list price is 8% of monthly gross per person, with a floor of VND 2,600,000 (about USD 99) and a cap of VND 5,200,000 (about USD 199). It covers the work of being the legal employer: running payroll, filing and paying the statutory contributions, administering leave and the labour contract, and giving the client access to the management platform at no separate charge. At a gross of VND 30,000,000, 8% would be VND 2,400,000, so the floor applies and the fee is VND 2,600,000; at VND 90,000,000, 8% would be VND 7,200,000, so the cap applies and the fee is VND 5,200,000. Between a gross of VND 32,500,000 and VND 65,000,000 the fee is a straight 8%. The list price is per person; for larger headcounts the fee is quoted lower. Because the floor covers the fixed administrative work every headcount takes and the cap stops the percentage running up on senior salaries, the fee is the smallest of the four invoice lines at most salaries. How the three market fee models — a flat fee, a plain percentage, and a percentage with a floor and cap — differ, and which hidden costs to ask any provider about, are set out in our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). ## How is VAT applied to an EOR invoice in Vietnam? VAT of 8% applies to the whole EOR invoice in Vietnam — gross salary, statutory contributions and service fee together — not to the service fee alone. The reason is structural: under a labour sub-leasing arrangement the provider is the legal employer, so the salary is its own wage cost and the entire contract value is service revenue, with no payment on behalf of the client to carve out. This is a common misunderstanding in Vietnam EOR pricing, and VAT quoted on the fee alone can understate the tax by several million dong a month per person. The 8% is a reduced rate under [Resolution 204/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=214209&classid=1), implemented by [Decree 174/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214310), in force until 31 December 2026. Unless it is extended, the rate reverts to 10% from 1 January 2027, which is worth building into any budget that runs past this year. Because 8% VAT on a subtotal is always eight parts in a hundred and eight, VAT is a constant 7.4% of every invoice, whatever the salary. ## What does one month's invoice look like, share by share? One month's invoice is mostly the salary itself: at a gross of VND 30,000,000 the total is VND 42,822,000, of which the gross salary is 70.1%, employer contributions 16.5%, the service fee 6.1% and VAT 7.4%. At a gross of VND 90,000,000 the total is VND 116,083,800, of which the gross salary is 77.5%, employer contributions 10.6%, the service fee 4.5% and VAT 7.4%. The higher the salary, the larger the share the salary itself takes, because both the contributions and the fee stop growing while the salary does not. The two tables give the full split; shares are rounded to one decimal place and may not sum to exactly 100. | Invoice line, gross VND 30,000,000 | Amount VND | Share of invoice | |---|---|---| | Gross salary | 30,000,000 | 70.1% | | Employer contributions | 7,050,000 | 16.5% | | Service fee, floor | 2,600,000 | 6.1% | | VAT at 8% | 3,172,000 | 7.4% | | Total monthly invoice | 42,822,000 | 100% | | Invoice line, gross VND 90,000,000 | Amount VND | Share of invoice | |---|---|---| | Gross salary | 90,000,000 | 77.5% | | Employer contributions | 12,285,000 | 10.6% | | Service fee, cap | 5,200,000 | 4.5% | | VAT at 8% | 8,598,800 | 7.4% | | Total monthly invoice | 116,083,800 | 100% | The point of the share view is that most of what you pay above the salary is not the provider's fee but the statutory layer that is identical whoever employs the person, plus VAT that falls on any labour sub-leasing invoice. At both salaries the fee is the smallest line, and a negotiation that looks only at the fee is arguing over 4% to 6% of the bill. ## What does a full year of invoices come to? Across a full year the same hire costs twelve monthly invoices plus one 13th-month salary: about VND 548,640,000 (USD 20,901) at a gross of VND 30,000,000, and about VND 1,490,205,600 (USD 56,770) at VND 90,000,000. The 13th-month payment is the only line that changes the shape of the year, and it is cheaper than an ordinary month because it carries no employer statutory contributions — only the extra gross, any incremental service fee it triggers, and 8% VAT. | Annual line | At VND 30,000,000 | At VND 90,000,000 | |---|---|---| | Twelve monthly invoices | 513,864,000 | 1,393,005,600 | | One 13th-month payment | 34,776,000 | 97,200,000 | | Annual total incl 13th month, VND | 548,640,000 | 1,490,205,600 | | Annual total incl 13th month, USD | 20,901 | 56,770 | The 13th-month payment adds about 6.8% to the year's invoice at VND 30,000,000 and about 7.0% at VND 90,000,000 — less than the 8.3% a full extra ordinary invoice month would add, precisely because no contributions apply to it. The mechanics of the payment, and which bonuses and allowances stay outside the contribution base, are in our guide to [the 13th-month salary and Tết bonus](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026). For the fully loaded annual figure across six illustrative roles and a foreign-national example, see our [total annual cost of a hire by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role). ## How does the cost breakdown change for a foreign national? The cost breakdown for a foreign national has the same four monthly lines, but contributions run at 22.5% rather than 23.5% because there is no unemployment insurance, so the monthly invoice is slightly lower on the same salary — and one line moves off the invoice: a severance accrual of half a month's salary per year of service, which a Vietnamese employee does not attract because their unemployment insurance offsets it. On a gross of VND 90,000,000 the monthly invoice is VND 115,111,800 against VND 116,083,800 for a Vietnamese hire, but the severance accrual of VND 45,000,000 a year makes the foreign hire the more expensive of the two once the exit cost is counted. | Line | Foreign at VND 30,000,000 | Foreign at VND 90,000,000 | |---|---|---| | Employer contributions, 22.5% | 6,750,000 | 11,385,000 | | Service fee | 2,600,000 | 5,200,000 | | VAT at 8% | 3,148,000 | 8,526,800 | | Monthly invoice | 42,498,000 | 115,111,800 | | Annual invoice incl 13th month | 544,752,000 | 1,478,541,600 | | Severance accrual per year, off-invoice | 15,000,000 | 45,000,000 | The severance of half a month per year of service is calculated under [Decree 145/2020/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=201967) (Article 8) and should be budgeted from the first day. A work permit is also required and is not an ordinary invoice line: it is issued to the named employer under [Decree 219/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=214840). The full rules on foreign-worker insurance, severance and work permits are in our guide to [work permits and social insurance for foreign staff](https://payrollservice.vn/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance). ## Which costs sit outside the monthly invoice? Several real costs never appear on the monthly invoice and have to be budgeted separately: the 13th-month salary, which lands in one month rather than spread across twelve; any untaken annual leave paid out when someone leaves, under Article 113 of the Labour Code; severance for foreign nationals; and one-off items such as work permits, equipment and recruitment. The recurring monthly invoice is the run rate; these are what turn a run rate into a first-year total. - **The 13th-month salary** is the largest of them. It is customary rather than legally required, carries no statutory contributions, and is covered in our guide to [the 13th-month salary and Tết bonus](https://payrollservice.vn/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026). - **Untaken annual leave** is paid out at the daily rate when the employment ends, so it appears only on exit. - **Severance** applies to foreign nationals at half a month's salary per year of service; for Vietnamese employees it usually comes to nothing, because unemployment-insurance years are deducted. - **Work permits and visas** for foreign nationals are one-off, renewable costs outside the payroll invoice. - **Equipment and recruitment** are employer choices that vary with the role and how you source the person. - **Benefits such as private group health insurance** are common voluntary add-ons; a cash meal allowance is free of personal income tax up to VND 1,200,000 a month under [Decree 253/2026/ND-CP](https://vanban.chinhphu.vn/?classid=1&docid=218684&pageid=27160&typegroupid=4), and the tax treatment of the wider benefit list is set out in the 13th-month and benefits guide linked above. ## Does a Nhan Kiet EOR invoice carry deposits, onboarding or currency fees? A Nhan Kiet EOR invoice carries no onboarding or offboarding fee and no currency-conversion fee, and the management platform is included; separately, a refundable deposit of one month's gross salary per employee applies from 1 October 2026, returned when the contract ends and accounts are settled. The only lines are the gross salary, the 23.5% or 22.5% employer contributions, any 13th-month or bonus accrual, the service fee within its floor and cap, and 8% VAT. A bonus paid through payroll is added to that month's gross and priced under the same floor and cap, so it does not create a separate charge. This matters when you compare quotes, because the fee is only comparable if the boundaries are. A refundable deposit of one or two months' payroll is working capital you cannot use; an onboarding or offboarding fee per head can exceed the monthly fee on a short engagement; and a currency-conversion margin of a few per cent on a payroll invoice is often larger than the gap between two providers' headline fees. The full checklist of hidden costs to ask any provider about is in our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). ## Why do senior hires cost less per dollar of salary? Senior hires cost less per dollar of salary because the two add-ons that are not the salary both stop growing while the salary keeps rising. Employer contributions freeze once the salary passes the VND 50,600,000 contribution base, and the service fee freezes at its VND 5,200,000 cap, so the all-in load falls from about 42.7% over gross at VND 30,000,000 to about 29.0% at VND 90,000,000, and the effective contribution rate drops from the full 23.5% to 13.7%. This is the opposite of the intuition many finance teams bring from other markets. The share view shows the same thing from the other side: as the salary rises, the gross line takes a larger share of the invoice and the contribution and fee lines take smaller ones, while VAT holds constant. The mechanism, and the exact salary points where each cap and the fee ceiling take effect, are explained in our article on [why senior hires cost less per dollar](https://payrollservice.vn/tin-tuc/employer-costs-in-vietnam-are-capped-why-senior-hires-cost-less-per-dollar-2026). ## Is the service fee the only line a provider sets? The service fee is the only invoice line a provider sets: the statutory contributions and 8% VAT are identical whichever provider you use, so a provider competes on the fee alone, and it is the smaller part of the cost at most salaries. Published EOR service fees in Vietnam fall into three pricing models — a flat fee per employee, a percentage of salary or of total employment cost, and a percentage with a floor and a cap — and they only line up at one salary, so a headline fee means little without a salary attached. This article does not restate competitor prices; the market survey, provider by provider and read on 13 September 2026, is in our [Vietnam EOR price range by pricing model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model). Before comparing any two quotes, confirm which legal entity you are contracting with and that it holds the licence for the route it uses; our [due-diligence checklist for choosing an EOR](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist) sets out how to test a provider. ## How do you build your own cost breakdown? To build your own cost breakdown, take one real salary and work the four monthly lines in order, then add the periodic and one-off lines. The checklist below is the whole method for one hire. - Start with the gross salary, passed through unchanged, and confirm it is at least the regional minimum wage. - Add employer contributions: 22.5% of the salary up to VND 50,600,000 plus 1% up to VND 106,200,000 for a Vietnamese national, or 22.5% up to VND 50,600,000 with no unemployment insurance for a foreign national. - Add the service fee: 8% of gross, but never below VND 2,600,000 and never above VND 5,200,000 per person as a list price. - Add 8% VAT on the three lines together, and plan for 10% from 2027 unless the reduced rate is extended. - That sum is the monthly invoice; multiply by twelve and add one 13th-month payment, which carries no contributions, to reach the annual figure. - Add the one-off block: recruitment, equipment, any untaken-leave payout on exit, and for a foreign national a work permit and a half-month-per-year severance accrual. - Express each line as a share of the invoice to see where the money goes, and repeat at a second salary far from the first to expose where the floor and the caps change the shape. - Model a real salary, not a team average, because the floor and caps make an average misleading. You do not have to do the arithmetic by hand. Our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/) applies both contribution caps and returns the employer cost at any salary, and our [Employer of Record service in Vietnam](https://payrollservice.vn/eor-vietnam/) page sets out the full service. ## Sources and legal basis - Law on Social Insurance 2024, No. 41/2024/QH15, in force from 1 July 2025: contribution base and the twenty-times-reference-level cap (Article 31). - Decree 158/2025/ND-CP: what is inside and outside the contribution base, including bonuses (Article 7). - Decree 161/2026/ND-CP: reference level VND 2,530,000 and the resulting contribution cap of VND 50,600,000 a month from 1 July 2026. - Decree 293/2025/ND-CP: regional minimum wages from 1 January 2026 (Region I VND 5,310,000), which set the separate VND 106,200,000 unemployment-insurance cap. - Law on Employment 2025, No. 74/2025/QH15: unemployment insurance, its separate cap, and its application to Vietnamese citizens only. - Trade Union Law 2024, No. 50/2024/QH15: the 2% trade-union levy. - Resolution 204/2025/QH15 and Decree 174/2025/ND-CP: 8% VAT until 31 December 2026. - Labour Code 2019, No. 45/2019/QH14: public holidays (Article 112), paid annual leave (Article 113), bonuses (Article 104) and severance (Articles 46 and 47). - Resolution 28/2026/QH16: Vietnamese Culture Day on 24 November as the twelfth paid public holiday from 1 July 2026, the fourteenth for foreign nationals. - Decree 145/2020/ND-CP: severance calculation (Article 8) and labour sub-leasing. - Decree 219/2025/ND-CP: work permits for foreign nationals. - Decree 253/2026/ND-CP: personal income tax treatment of allowances and benefits, including the VND 1,200,000-a-month cash meal-allowance cap. - Decree 283/2026/ND-CP: administrative penalties in the labour field, replacing Decree 12/2022/ND-CP from 10 September 2026. - Salary figures are illustrative round numbers used to show the composition, not quotes for any individual. Nhan Kiet has run payroll and employment in Vietnam since April 2009, manages more than 40,000 workers for over 500 client companies across 34 provinces, and holds labour sub-leasing licence No. 15/2019/SHCM. It publishes its EOR price — a list price of 8% of gross with a floor of VND 2,600,000 and a cap of VND 5,200,000, quoted lower for larger headcounts, with a refundable deposit of one month's gross salary per employee from 1 October 2026 and no onboarding, offboarding or currency-conversion fee — rather than quoting on request, and staff can start within 5 to 7 working days. You can model any salary with our free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/), read the fee mechanics in our [EOR pricing guide for Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs), see the annual cost per hire in our [total annual cost of a hire by role](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role), and compare the market in our [Vietnam EOR price range by pricing model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model). The figures and rules in this article reflect Vietnamese law in force as of September 2026 and are general information, not legal or tax advice for a specific case. Salary figures are illustrative round numbers, not quotes; contribution rates, caps, tax rules and the reduced VAT rate change, and the law can be amended, so confirm the treatment for your own situation before relying on it. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [How EOR Pricing Works in Vietnam: the 8% Fee, Floor and Cap](/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs) · [Annual Cost of a Hire in Vietnam, by Role (2026)](/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role) --- # PEO in Vietnam 2026: how the model works and when to use it https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it If your company already has a legal entity in Vietnam and needs to bring in a foreign expert, engineer or manager, a PEO (Professional Employer Organisation) arrangement lets you stay the legal employer while a local specialist runs the work permit, immigration, payroll and compliance. This article explains what PEO means in Vietnam in 2026, how it differs from EOR, the two compliant routes for foreign nationals, the social-insurance and tax rules that apply, and what a work permit and monthly service cost. **Key facts (2026):** - PEO fits companies that already have a Vietnam entity and are bringing in foreign staff — your entity stays the legal employer. - EOR is the opposite: no entity needed, for hiring Vietnamese staff, with Nhân Kiệt as the employer. - Two routes: Work Permit + TRC (low risk) or intra-corporate transfer (social-insurance exempt, higher risk). ## What is a PEO and how does it work in Vietnam? A PEO (Professional Employer Organisation) is a service model in which your company stays the legal employer of the worker while an external specialist handles the administrative side of employment. In Vietnam it is used mainly for foreign nationals: your Vietnamese entity signs the labour contract directly with the foreign employee, and the PEO provider handles the work permit and immigration procedures, monthly payroll, statutory insurance, personal income tax (PIT) filing and HR administration. You keep control of pay, role and day-to-day management; the provider keeps you compliant with Vietnamese labour, immigration, insurance and tax law. ## PEO vs EOR in Vietnam: which one do you need? The two models solve different problems, and the deciding factors are whether you already have a Vietnamese entity and whether you are hiring Vietnamese or foreign staff. | Question | EOR | PEO | |---|---|---| | Do you need a VN entity? | No — the provider is the employer | Yes — your entity is the employer | | Typical workers | Vietnamese staff | Foreign nationals (experts, engineers, managers) | | Legal employer | The provider (Nhân Kiệt) | Your company | | Who signs the labour contract | The provider | Your company, directly with the worker | | What the provider does | The whole employment relationship | Work permit, immigration, payroll, insurance, PIT, HR | In short: choose [EOR](https://payrollservice.vn/eor-vietnam/) when you have no entity in Vietnam and want to hire Vietnamese staff without setting one up; choose PEO when you already have a Vietnamese entity and need to employ foreign nationals compliantly. For the underlying legal rules on foreign work permits and insurance, see our 2026 guide to [foreigners working in Vietnam](https://payrollservice.vn/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance). ## When should a company use PEO in Vietnam? Use PEO when you already have a Vietnamese entity and are bringing foreign nationals to work in Vietnam for more than a short visit. Common cases are an FDI parent seconding a chief engineer or plant manager, a group rotating specialists between countries, or a company that needs a foreign hire on the ground quickly without building an in-house immigration and payroll team. Because the assignee usually stays more than 183 days, they become a Vietnam tax resident and PIT must be declared and paid in Vietnam — keeping payroll and insurance entirely offshore is generally not compliant for the Vietnam working period. ## What does Nhân Kiệt's PEO service cover? Nhân Kiệt handles the full administrative lifecycle so your entity can stay the employer without staffing an immigration and payroll function. The one-time immigration and licensing work covers preparing and filing the foreign-labour demand and approval with the labour authority, applying for the work permit under your entity's sponsorship, applying for the Temporary Residence Card (TRC, up to 2 years, renewable), and arranging the entry business visa with notarised translation of documents. The ongoing monthly administration covers payroll calculation and disbursement support with electronic payslips, registration and monthly filing of social and health insurance, PIT withholding, periodic declaration and annual finalisation, plus labour reporting, permit and TRC renewal tracking, bilingual employee support and monthly reporting to you. ## Option 1 or Option 2: the two compliant routes There are two lawful ways to place a foreign national, and they differ mainly in risk, cost and how social insurance is treated. | Criteria | Option 1 — Work Permit + TRC | Option 2 — Intra-group transfer (ICT) | |---|---|---| | Legal basis | Your VN entity sponsors work permit + TRC | Internal transfer across the corporate group chain | | Maximum stay | Up to 2 years, renewable | Per TRC, up to 2 years | | Social insurance | VN compulsory SI applies (22.5% employer) | Exempt from VN compulsory SI; may keep home-country cover | | Legal risk | Low — standard, compliant process | High — must prove the corporate chain | | Service fees | Priced per service (work permit, TRC, visa) | Higher — multi-country documents + legalisation | A short-term business-visa route (DN1, 3-month) is sometimes suggested but is not recommended: the holder is not authorised to work, and the arrangement risks penalties for unlicensed foreign labour. ## Do foreign employees pay social insurance in Vietnam? Yes in most cases, but at a different rate from Vietnamese workers and with one important exemption. Under the Law on Social Insurance 2024 (Law 41/2024/QH15) and Decree 158/2025/NĐ-CP (which replaced Decree 143/2018 from 1 July 2025), a foreign worker is subject to compulsory social insurance on a labour contract of 12 months or more with a valid work permit. The rates carry no unemployment insurance: the worker pays 9.5% and the employer pays 20.5%, plus 2% trade-union funding — a total employer cost of 22.5% on top of gross salary, capped at 20 times the reference level (VND 50,600,000 per month from 1 July 2026). The exemption is Option 2: an intra-corporate transferee is excluded from Vietnam compulsory social insurance and may retain home-country cover, though health insurance and Vietnam PIT still apply. ## What about tax residency after 183 days? An assignee who stays in Vietnam more than 183 days in a 12-month period becomes a Vietnam tax resident, and PIT on employment income must be declared and paid in Vietnam. This holds even under Option 2, where payroll and social insurance may stay in the home country. A double-taxation agreement between Vietnam and the home country may relieve double taxation, subject to conditions. This is the main reason a "keep everything offshore" plan does not work for a long assignment: the Vietnam working period creates a Vietnam tax obligation regardless of where the salary is paid. ## What does a foreign work permit and PEO service cost? Nhân Kiệt prices each service separately so you pay only for what you need: the work permit advisory and application is USD 650, the Temporary Residence Card is USD 450, the entry business visa is USD 250, and ongoing administration is a flat USD 35 per employee per month — all inclusive of government fees and exclusive only of 8% VAT. A work permit itself is issued within 10 working days of a complete, valid file, though you should allow extra time for consular legalisation (or, from 11 September 2026, an apostille for documents from Apostille Convention members) and notarised translation of foreign documents. For the full service menu and how to pick only the components your case needs, see [PEO cost in Vietnam 2026](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. For foreign nationals we act as your PEO service provider — your entity remains the employer while we run the work permit, immigration, payroll and compliance. To scope an assignment, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Work permit exemption in Vietnam 2026: intra-company transfer](/tin-tuc/work-permit-exemption-vietnam-2026-intra-company-transfer) · [PEO cost in Vietnam 2026: work permit, TRC, visa and monthly fees](/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees) --- # PEO cost in Vietnam 2026: work permit, TRC, visa and monthly fees https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees How much does a PEO arrangement for a foreign national cost in Vietnam? Nhân Kiệt publishes its PEO pricing in full and prices each service separately, so you pay only for the services you actually need rather than a fixed bundle. This article lists the per-service fees in USD and shows how to pick only the components your case requires. Fees are inclusive of government fees and exclude only 8% VAT. **Key facts (2026):** - Priced per service, all-in (incl. government fees), plus 8% VAT — pick only what you need. - Work permit USD 650 · TRC USD 450 · entry visa USD 250 · translation from USD 260 · monthly admin USD 35/employee. - Employer also bears 22.5% statutory contributions on salary (Option 1), capped at VND 50,600,000/month. ## How much does PEO cost in Vietnam? There is no single bundled price — each service is quoted separately so you choose only what you need. A company that already holds an entry visa and only needs a work permit pays for that one service, while a fresh assignment may need the visa, work permit and residence card together. The one constant is the monthly PEO administration fee of USD 35 per employee. All fees are inclusive of government fees, and only 8% VAT is added on top. ## The service menu: prices per service Each row is a standalone service you can select on its own. Figures are per employee, in USD, inclusive of government fees, and exclude 8% VAT. | Service (per employee) | Fee (USD) | |---|---| | Work permit — advisory & application | 650 | | Temporary Residence Card (TRC) | 450 | | Entry business visa (DN, single entry) | 250 | | Notarised translation of documents | from 260 | | Consular legalisation (intra-corporate transfer) | quoted after dossier review | | Monthly PEO administration | 35 / month | For an intra-corporate transfer (Option 2), the notarised translation set is larger — around USD 1,040 for a multi-country chain — and consular legalisation is quoted after reviewing the dossier, because it depends on how many countries are involved. ## What does the monthly PEO service fee cover? The monthly PEO service fee is a flat USD 35 per employee per month, and it applies whether you use Option 1 or Option 2. It covers the ongoing administration: payroll processing, statutory insurance and PIT filing, HR support and monthly reporting to you. The fee excludes 8% VAT, and more favourable pricing may be quoted by scale — the more employees, the lower the per-person rate. ## Which services do you actually need? Pick the components that match your situation instead of paying for a full bundle. A few common combinations: - Already have a Vietnam entity and only need the permit: work permit (650) + monthly administration (35/month). - Bringing someone in and they will reside here: add the Temporary Residence Card (450). - The person is entering Vietnam for the first time: add the entry business visa (250). - Intra-corporate transfer (Option 2): the multi-country translation set (around 1,040) + consular legalisation (quoted) + monthly administration (35/month), with the compulsory social-insurance exemption below. ## Option 1 vs Option 2: which route, and the insurance difference Option 1 (Work Permit + TRC) is the standard, lower-risk route where your entity sponsors the permit; Option 2 (intra-corporate transfer) suits a proven corporate chain and can exempt the assignee from Vietnamese compulsory social insurance. Under Option 1 the employer bears 22.5% statutory contributions on top of salary. Under Option 2, as an intra-corporate transferee the assignee is exempt from Vietnam compulsory social insurance (Decree 158/2025/NĐ-CP) and may keep home-country cover, though health insurance and Vietnam PIT still apply. Option 2 costs more in documentation but can save on ongoing contributions, so the cheaper route depends on salary and assignment length. ## The 22.5% employer contribution on top of salary Beyond the PEO fees, an employer under Option 1 pays statutory contributions of 22.5% of the salary base on top of gross salary. This is 20.5% compulsory insurance (social insurance 17%, occupational accident and disease 0.5%, health insurance 3%) plus 2% trade-union funding. Foreign employees are exempt from unemployment insurance, which is why the rate is 22.5% rather than the 23.5% for Vietnamese employees. The base is capped at 20 times the reference level — VND 50,600,000 per month from 1 July 2026 — so salary above that is not charged insurance. These amounts go to the State, not to Nhân Kiệt. ## How long does the process take? Option 1 runs to several weeks after a complete dossier: the foreign-labour demand approval, then work permit issuance (within 10 working days of a valid file), then the TRC. Option 2 takes longer — weeks to months — because it depends on multi-country notarisation and consular legalisation or apostilles, and it can be delayed or rejected if the corporate chain is not fully substantiated. Plan the timeline backwards from the intended start date and allow for legalisation of foreign documents. ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. Our PEO service lets your Vietnamese entity stay the employer while we handle the [work permit](https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process), [TRC](https://payrollservice.vn/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process), [visa](https://payrollservice.vn/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained) and compliance for your foreign staff. See the model in [PEO in Vietnam](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it), or call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This pricing is an estimate, valid for 30 days and subject to review of the actual dossier and the regulations in force; it is not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Vietnam work visa for foreign employees 2026: DN, LD, EV explained](/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained) · [Temporary Residence Card (TRC) in Vietnam 2026: cost and process](/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process) --- # Vietnam work permit for foreigners 2026: cost, documents, process https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process A foreign national working in Vietnam almost always needs a work permit, and in 2026 the rules changed: Decree 219/2025/NĐ-CP replaced the older decrees and merged the paperwork into a single application. This guide covers who needs a work permit, the current process and documents, how long it takes, how long it lasts, and what it costs — with the Nhân Kiệt service fee shown as a single all-in price. **Key facts (2026):** - Governed by Decree 219/2025/NĐ-CP (replaced Decree 152/2020 and 70/2023 from 7 August 2025). - Issued within 10 working days of a complete file; valid up to 2 years, renewable once. - Nhân Kiệt service USD 650 per employee, all-in (incl. government fees), plus 8% VAT. ## Who needs a work permit in Vietnam? A foreign national working in Vietnam must hold a work permit unless they fall into an exemption. Under the 2019 Labour Code (Articles 151 and 152), enterprises may only recruit foreign workers into managerial, executive, expert and technical positions that Vietnamese workers cannot yet fill, and the worker must be at least 18, in good health, suitably qualified and not serving a sentence. Some people are exempt — for example capital contributors of VND 3 billion or more, and intra-corporate transferees — but exemption still requires a written confirmation, covered in our guide to [work permit exemption and intra-company transfer](https://payrollservice.vn/tin-tuc/work-permit-exemption-vietnam-2026-intra-company-transfer). ## Which decree governs work permits in 2026? The governing document is Decree 219/2025/NĐ-CP, in force from 7 August 2025 and still current in 2026, which fully replaced Decree 152/2020/NĐ-CP and Decree 70/2023/NĐ-CP. Any checklist still citing the old decrees is out of date. The main changes are a merged file (the foreign-labour needs report now sits inside the permit application), licensing authority moved to the provincial People's Committee where the person will work, and issuance within 10 working days of a complete, valid file. ## How do I get a work permit in Vietnam? You get a Vietnam work permit through a sponsoring employer: the employer — not the worker — files one merged application with the People's Committee of the province where you will work, and the permit is issued within 10 working days once the file is complete and valid. There is no self-sponsored route; without an entity or a sponsoring employer in Vietnam, there is nothing to file under. In practice the sequence has six steps: - Confirm the position qualifies: managerial, executive, expert or technical work that Vietnamese workers cannot yet fill, for a worker aged 18 or over, in good health and not serving a criminal sentence (Articles 151 and 152 of the Labour Code 2019). - Gather the personal documents: passport, a degree matching the position, a work-experience certificate, a criminal record and a health certificate from an eligible hospital. - Legalise or apostille the documents issued abroad and have them translated and notarised — usually the longest step. - The employer prepares its side: business registration, the foreign-labour demand report (now inside the merged application) and the draft labour contract. - File the merged application with the provincial People's Committee; the permit is issued within 10 working days of a valid file. - After issuance, the worker obtains an LĐ visa or a temporary residence card, signs the contract, and is registered for social insurance and personal income tax. ## What documents does a Vietnam work permit need? The application must prove the worker meets the Labour Code conditions and identify the sponsoring employer. Typical documents are a valid passport, a university degree matching the position, a work-experience certificate, a judicial/criminal record, a health certificate from an eligible Vietnamese hospital, passport photos, and the employer's file (business registration, foreign-labour demand approval and the labour contract). Documents issued abroad need consular legalisation — or, from 11 September 2026, only an apostille if the issuing country applies the Apostille Convention with Vietnam — and notarised translation into Vietnamese; this is the most time-consuming step, so plan for it; see [consular legalisation and notarised translation](https://payrollservice.vn/tin-tuc/consular-legalisation-notarised-translation-vietnam-2026). ## How much does a Vietnam work permit cost? The Nhân Kiệt work-permit advisory and application service is USD 650 per employee, inclusive of government fees and exclusive only of 8% VAT. You pay one all-in service fee rather than tracking separate line items. Notarised translation of overseas documents is priced separately (from USD 260) because volume varies by case, and for an intra-corporate transfer consular legalisation is quoted after reviewing the dossier. The full service menu is in [PEO cost in Vietnam 2026](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## How long does a work permit take? The permit is issued within 10 working days of a complete and valid file, but that clock only starts once the dossier is valid. Before it, you need time to gather qualifications and records, legalise foreign documents at a consulate or obtain an apostille, and have them translated and notarised — often the longest part. A realistic plan counts backwards from the intended start date and allows several weeks for the full sequence, especially if documents come from abroad. ## How long is a work permit valid, and can it be renewed? A Vietnam work permit is valid for up to 2 years, and it may be renewed only once for up to a further 2 years (Article 155 of the 2019 Labour Code). The specific term follows the intended labour contract or secondment period, capped at 2 years. Set a reminder well before expiry: if the permit lapses while the person keeps working, it is treated as working without a permit, which carries fines by headcount and, for the worker, expulsion. ## Can a US citizen work in Vietnam? Yes — a US citizen can work in Vietnam, under exactly the same rules as other foreign nationals: Vietnamese law grants no nationality-based shortcut, so an American needs a sponsoring employer and a work permit, or a written exemption confirmation, before starting work. The same applies to UK, EU, Australian and other passport holders. Two points catch people out. A tourist entry or a business (DN) visa does not authorise employment — working on one is treated as working without a permit, which carries fines for the employer by headcount and, for the worker, expulsion. And the sponsor must be an entity in Vietnam: a US company with no Vietnamese entity hires lawfully by using a Vietnamese sponsoring employer, or by establishing its own presence first. ## What is the longest visa you can get in Vietnam? For a working foreign national, the longest stay is granted through a temporary residence card (TRC) rather than a visa: an employee's LĐ1 or LĐ2 card runs up to 2 years, tracking the work permit's 2-year cap, and is renewed together with it, while the LĐ visa is likewise tied to the permit. The longest card of all sits outside employment: an investor holding an ĐT1 card can receive up to 10 years. Family members of a foreign worker can hold a TT card of up to 3 years. For an employed foreign national, though, the practical ceiling stays at 2 years per cycle — the permit, the visa or TRC, and the registrations all renew on that rhythm, so plan renewals together. ## What if the company has no legal entity in Vietnam? Only an entity with a presence in Vietnam can sponsor a work permit, so a foreign company with no Vietnamese entity cannot apply directly. The lawful routes are to establish a presence, or to use a Vietnamese entity as the sponsoring employer — the [labour formalisation](https://payrollservice.vn/labour-compliance/) model — while for foreign staff under your own entity, [PEO](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) keeps you as the employer and runs the permit for you. The full legal background is in our guide to [foreigners working in Vietnam](https://payrollservice.vn/tin-tuc/foreign-workers-vietnam-work-permit-social-insurance). ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. We prepare and file the work permit under your entity's sponsorship and handle the visa, TRC, insurance and PIT alongside it. For a quotation, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Temporary Residence Card (TRC) in Vietnam 2026: cost and process](/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process) · [Consular legalisation & notarised translation in Vietnam 2026](/tin-tuc/consular-legalisation-notarised-translation-vietnam-2026) **Update 12/10/2026:** added a step-by-step guide to getting the permit, the rules for US and other foreign citizens, and the longest visa and TRC terms. --- # Temporary Residence Card (TRC) in Vietnam 2026: cost and process https://payrollservice.vn/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process A foreign employee who will live in Vietnam for the length of an assignment usually applies for a Temporary Residence Card (TRC) once the work permit is in hand. A TRC lets the holder reside in Vietnam without repeated visa renewals. This guide covers who qualifies, how long a TRC lasts for a worker, the documents and timeline, and the published all-in cost. **Key facts (2026):** - A TRC lets a foreign worker reside without repeated visa renewals; granted on a valid work permit. - Term follows the work permit — up to 2 years, renewed with it; processed in about 5 working days. - Nhân Kiệt service USD 450 per employee, all-in (incl. government fees), plus 8% VAT. **Updated 12 October 2026:** added a table of TRC symbols and maximum terms, what happens when a card expires, and TRCs for the spouse and children of a foreign employee. ## What is a Temporary Residence Card and who can get one? A Temporary Residence Card (TRC) is a document issued by the immigration authority that lets a foreign national reside in Vietnam for a fixed period without renewing a visa each time. For foreign employees, the common route is a TRC granted on the basis of a valid work permit, sponsored by the Vietnamese entity that employs them. Other categories — investors, board members and chief representatives — can also qualify, but for an assigned worker the TRC follows the work permit. ## How long is a TRC valid for a foreign worker? For a work-permit holder, the TRC is granted in line with the work permit, up to 2 years, and is renewed together with it. This matters for planning: because a work permit is capped at 2 years and renewable once, the worker's TRC tracks the same horizon. Holding a TRC removes the need to apply for a new entry visa on each trip, which is the main practical benefit over a standard business visa. ## What documents does a TRC application need? The core of a TRC file is a valid passport, the granted work permit, and the sponsoring employer's documents, together with the temporary-residence registration at the local police. Passport photos and the immigration application forms complete the set. Because the TRC depends on the work permit, the practical sequence is to secure the [work permit](https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) first, then apply for the TRC. ## How much does a TRC cost in Vietnam? The Nhân Kiệt TRC advisory and application service is USD 450 per employee, inclusive of government fees and exclusive only of 8% VAT. You pay one all-in fee rather than tracking separate line items. If you also need the work permit and entry visa, each is priced separately so you take only what you need — see the full service menu in [PEO cost in Vietnam 2026](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## How long does a TRC take? Once the work permit is issued and the file is complete, a TRC is typically processed in around five working days. The realistic timeline therefore stacks after the work permit: several weeks for the permit, then the TRC on top. Planning both together — rather than treating the TRC as an afterthought — avoids a gap where the worker is in Vietnam on a short visa while the residence card is still pending. ## TRC or a long visa: which does a worker need? A TRC is the better fit for someone staying for the assignment, while a business visa suits short visits. A business visa must be renewed and does not confer residence, whereas a TRC gives a stable residence status aligned with the work permit. For a foreign employee working here for a year or more, the TRC plus work permit is the standard, lower-friction combination; for short trips, see our guide to the [Vietnam work visa](https://payrollservice.vn/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained). ## What TRC symbols are there in Vietnam and how long does each last? A Temporary Residence Card carries a symbol for the purpose of residence, and each symbol has its own maximum term under Article 38 of the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam (as amended in 2019): employees hold LĐ1 or LĐ2, valid for up to 2 years, while ĐT1 investors can get up to 10 years. The symbols businesses meet most often: | Symbol | Issued to | Maximum term | |---|---|---| | LĐ1 | Employees certified as exempt from a work permit | 2 years | | LĐ2 | Employees who must hold a work permit | 2 years | | ĐT1 | Investors contributing VND 100 billion or more, or investing in sectors or areas given investment incentives by the Government | 10 years | | ĐT2 | Investors contributing VND 50 billion to under 100 billion, or investing in sectors encouraged for development | 5 years | | ĐT3 | Investors contributing VND 3 billion to under 50 billion | 3 years | | NN1, NN2 | Chief representatives of offices or projects of international and foreign non-governmental organisations; heads of representative offices or branches of foreign traders | 3 years | | TT | Spouse and children under 18 of holders in the groups above; parents, spouse and children of Vietnamese citizens | 3 years | A TRC's term must always end at least 30 days before the passport expires, so a passport close to expiry will shorten the card below the maximum. Investors contributing under VND 3 billion (ĐT4) can only get a visa, not a TRC. ## When a TRC expires, is it renewed or reissued? A Temporary Residence Card is not extended on the old card: when it expires, the holder may be granted a new card (Article 38(6) of the Law on Entry, Exit, Transit and Residence of Foreigners in Vietnam, as amended in 2019). For an employee, a new card can only be issued while the work permit, or the certificate of work-permit exemption, is still valid, so the right order is to renew or reissue the work permit first and then file for the new TRC. In practice, start early so the new card arrives before the old one expires; if the card lapses while the employee is still in Vietnam, they have to switch to a visa and may be fined for overstaying. Nhan Kiet tracks each person's work-permit, TRC and passport expiry dates together and sends reminders in advance. ## Can the spouse and children of a foreign employee get a TRC in Vietnam? Yes — the spouse and children under 18 of a foreigner holding a visa or TRC with the symbol LĐ1, LĐ2, ĐT1, ĐT2, ĐT3, NN1, NN2 or certain other symbols may be granted a TRC with the symbol TT, valid for up to 3 years and in practice usually not beyond the employee's own card. The file needs documents proving the relationship, such as a marriage certificate and the children's birth certificates; documents issued abroad must be consular-legalised, or from 11 September 2026 carry an apostille if the issuing country applies the Apostille Convention with Vietnam, and then be translated and notarised. A TT card lets family members live with the employee but does not allow them to work; a spouse who wants to work in Vietnam needs a work permit of their own. ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. Under our [PEO service](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it), your Vietnamese entity stays the employer while we handle the work permit, TRC, visa and monthly compliance together. For a quotation, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Vietnam work permit for foreigners 2026: cost, documents, process](/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) · [Vietnam work visa for foreign employees 2026: DN, LD, EV explained](/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained) --- # Vietnam work visa for foreign employees 2026: DN, LD, EV explained https://payrollservice.vn/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained Which visa does a foreign employee need to work in Vietnam, and can they simply use a business visa? The visa is only one part of lawful employment — it must line up with the work permit and, for a longer stay, the residence card. This guide explains the main visa categories for foreign staff in 2026, why a business visa is not work authorisation, and what the entry visa costs. **Key facts (2026):** - A foreign employee needs an LD work visa (with a work permit); a DN business visa does NOT authorise work. - Business visa categories are capped at 12 months; for a real assignment, move to a TRC. - Nhân Kiệt entry-visa service USD 250 per employee, all-in (incl. government fees), plus 8% VAT. ## Which visa does a foreign employee in Vietnam need? A foreign employee generally needs an LD work visa, granted on the basis of a work permit or a confirmation of work-permit exemption. The LD visa is the category tied to employment: broadly, it is issued to those who hold a work permit, and a separate exempt category covers people confirmed as not requiring one. A short entry can start on a business (DN) visa, but that does not by itself authorise work. ## DN business visa vs LD work visa: what is the difference? A DN business visa is for business activities such as meetings, market research and working with a Vietnamese partner, while an LD work visa is for actual employment backed by a work permit. Both DN categories are capped at 12 months. The distinction matters because immigration and labour authorities treat performing employment duties on a business visa as unlicensed work, which carries penalties by headcount and, for the worker, expulsion. ## Can you work in Vietnam on a business (DN) visa? No — a business visa does not authorise employment. It facilitates visits, meetings and market entry activities, but the holder is not permitted to perform employment duties. A short-term business-visa route is sometimes suggested as a shortcut for a foreign hire, but it is not recommended: it exposes both the worker and the company to fines for unlicensed foreign labour. The compliant path is a work permit, then an LD visa or a Temporary Residence Card. ## How long is a work visa valid? An entry visa is short-term, and for a real assignment the worker moves onto a longer status. Business visa categories are capped at 12 months, and for someone staying for the assignment the practical destination is a [Temporary Residence Card](https://payrollservice.vn/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process) aligned with the work permit, which removes repeated visa renewals. The visa is best seen as the entry step, not the long-term basis for living and working here. ## How much does the entry visa cost? The Nhân Kiệt service for the entry business visa (DN, single entry) is USD 250 per employee, inclusive of government fees and exclusive only of 8% VAT. It is priced on its own, so if the person is entering Vietnam for the first time you add it to the work permit and TRC; if they are already in-country on a valid status you may not need it. The full menu, with each service priced separately, is in [PEO cost in Vietnam 2026](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## From visa to work permit to TRC: the sequence The lawful sequence is entry on the correct visa, then the work permit, then the Temporary Residence Card, and only then does the person work under a labour contract. Getting the order wrong — for example starting work on a business visa while the permit is pending — is the most common compliance mistake. Under a [PEO arrangement](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it), Nhân Kiệt sequences all three so the dates line up and there is no gap. ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. We arrange the entry visa alongside the [work permit](https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) and TRC so the whole immigration file moves as one. For a quotation, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Temporary Residence Card (TRC) in Vietnam 2026: cost and process](/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process) · [Vietnam work permit for foreigners 2026: cost, documents, process](/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) --- # Consular legalisation & notarised translation in Vietnam 2026 https://payrollservice.vn/tin-tuc/consular-legalisation-notarised-translation-vietnam-2026 Foreign documents used in a Vietnam work-permit file — a degree, an experience certificate, a criminal record — must have their origin certified and be translated before they are accepted: from 11 September 2026, documents from Apostille Convention member states need only an apostille, while documents from other countries still need consular legalisation. This is the step foreign hires underestimate most, and it drives the timeline. This guide explains what consular legalisation is, when an apostille can replace it, which documents need it, and the cost and timing. **Key facts (2026):** - From 11 September 2026 Vietnam is a party to the Apostille Convention — documents from member states with which the Convention applies need only an apostille; other countries still require consular legalisation. - Degree, experience certificate and criminal record are legalised, then translated and notarised. - Notarised translation from USD 260; larger for multi-country intra-corporate transfers; legalisation quoted. **Updated 12 October 2026:** Vietnam has acceded to the Apostille Convention, in force from 11 September 2026 under Decree 293/2026/ND-CP; the apostille section has been corrected and a section on using apostilled documents in Vietnam added. ## What is consular legalisation, and when do you need it? Consular legalisation is the official certification that a document issued in one country is genuine so it can be used in another. For a Vietnam work permit, documents issued abroad — degrees, experience letters, criminal-record certificates — generally must be legalised so Vietnamese authorities will accept them. It is needed whenever the supporting paperwork originates outside Vietnam, which is the norm for a foreign assignee. ## Does Vietnam accept an apostille instead? Yes — from 11 September 2026 Vietnam is a party to the 1961 Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (the Apostille Convention), so public documents from member states with which the Convention applies to Vietnam, bearing an apostille, are exempt from consular legalisation. Vietnam deposited its instrument of accession on 31 December 2025, and [Decree 293/2026/ND-CP](https://vpubnd.daklak.gov.vn/CMS/Content/VanBan/2026/7.2026/293_2026_ND-CP.pdf) of 23 July 2026 implements it from 11 September 2026. Documents from countries that are not members, or from members with which the Convention does not apply to Vietnam, still need full consular legalisation as before: certification in the issuing country and then legalisation at the Vietnamese diplomatic mission. ## What do apostilled documents need for use in Vietnam from 11 September 2026? From 11 September 2026, a public document issued by a member state with which the Convention applies to Vietnam, bearing an apostille from that state's competent authority, can be used in Vietnam without consular legalisation, and Vietnamese authorities may not require any further certification (Article 25(2) and (3) of Decree 293/2026/ND-CP). The document must still be translated into Vietnamese, and the translation notarised or certified (Article 27(1)): - **Public documents** include court and judicial documents, administrative documents such as degrees and criminal-record certificates, and notarial acts. - **An experience letter issued by a private company** is not a public document; it usually has to be notarised in the issuing country first, and the apostille is then issued for that notarial act. - **Documents are refused** where the apostille was not issued by a competent authority, lacks the title "Apostille (Convention de La Haye du 5 octobre 1961)", shows signs of forgery, has been revoked, or where the document is an administrative document directly related to commercial or customs operations (Article 26). - **Documents legalised before 11 September 2026** remain valid; no apostille needs to be added (Article 36(2)(a)). For a work-permit file, an apostille usually shortens document preparation considerably, because one step in the issuing country replaces the chain of certification and legalisation. Before filing, check whether the issuing country has an applicable Convention relationship with Vietnam on the website of the Hague Conference on Private International Law (HCCH) or Vietnam's Consular Department. ## Which documents must be legalised for a work permit? The documents that typically need legalisation are those proving the worker's qualifications and background. In practice this means the university degree matching the position, the work-experience certificate, and the criminal-record/judicial certificate issued abroad. Once legalised, each is translated into Vietnamese and notarised. Employer documents issued in Vietnam do not need legalisation, only the foreign-issued papers. ## How does notarised translation work in Vietnam? After legalisation, foreign documents are translated into Vietnamese by a qualified translator and the translation is notarised so it is officially recognised. The volume of translation is what varies most between cases: a single assignee under a standard work permit needs a modest set, while an intra-corporate transfer with corporate decisions and relationship evidence across several countries needs a much larger set — which is why translation is priced by the actual documents rather than as a flat fee. ## How much does legalisation and translation cost? The notarised translation service starts at USD 260 per employee for a standard file, inclusive of government fees and exclusive only of 8% VAT, and rises with volume — around USD 1,040 for a multi-country intra-corporate transfer set. Consular legalisation for an intra-corporate transfer is quoted after reviewing the dossier, because it depends on how many countries are in the chain. Each item is priced separately so you pay for what your file actually needs — see the full menu in [PEO cost in Vietnam 2026](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## How long does legalisation take? Legalisation is usually the longest part of the whole immigration timeline, because it runs through offices in the issuing country before the file even reaches Vietnam. This is why the work permit's 10-working-day issuance clock — which only starts on a complete, valid file — can be misleading if legalisation has not been planned. Start the legalisation and translation of foreign documents first, in parallel with everything else, to avoid it becoming the bottleneck. ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. We coordinate legalisation and notarised translation as part of the [work permit](https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) file under our [PEO service](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it), so the paperwork is ready when the application is filed. For a quotation, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [Vietnam work permit for foreigners 2026: cost, documents, process](/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) · [Vietnam work visa for foreign employees 2026: DN, LD, EV explained](/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained) --- # Work permit exemption in Vietnam 2026: intra-company transfer https://payrollservice.vn/tin-tuc/work-permit-exemption-vietnam-2026-intra-company-transfer Not every foreign worker in Vietnam needs a work permit — intra-company transferees and a few other categories are exempt. But exemption is not "nothing to do", and the intra-company transfer (ICT) route has its own conditions, paperwork and a valuable social-insurance exemption. This guide explains who is exempt, what an ICT requires, and how its cost and risk compare with a standard work permit. **Key facts (2026):** - Intra-corporate transferees can be exempt from the work permit and from Vietnam compulsory social insurance (Decree 158/2025/NĐ-CP). - Requires at least 12 months' prior employment abroad, a committed service sector, and a proven corporate chain. - Exemption still needs a written confirmation filed 10 days before (and within 60 days of) the start date. ## Who is exempt from a Vietnam work permit? A foreign worker must hold a work permit unless they fall within an exemption under Article 154 of the 2019 Labour Code. The common exempt categories include capital contributors of VND 3 billion or more, chairpersons or board members of a company with that capital, heads of representative offices, people entering for under 3 months to offer services or handle technical incidents, intra-corporate transferees within committed service sectors, and certain priority-field roles. Even so, most exempt cases still require a written confirmation, covered below. ## What is an intra-company transfer (ICT), and who qualifies? An intra-company transfer is the movement of a manager, specialist or technician from a foreign enterprise to its commercial presence in Vietnam. To qualify, the transfer must fall within the service sectors Vietnam committed under the WTO, the receiving entity must be an established commercial presence in Vietnam, and the worker must have been continuously employed by the overseas enterprise for at least 12 months before the transfer. Where these are met, the transferee can be exempt from the work permit — though the corporate relationship must be proven with legalised or, from 11 September 2026, apostilled documents. ## Does an exempt person still need paperwork? Yes — most exempt cases still require a written confirmation of exemption from the work-permit requirement. The file must be submitted at least 10 days before, and within 60 days of, the date the person is expected to start work. Skipping it is a common and expensive mistake: without the confirmation, the worker is treated exactly as if they had no permit, and the employer faces the same fines by headcount. Exemption removes the permit, not the procedure. ## Do intra-company transferees pay social insurance in Vietnam? No — an intra-corporate transferee is exempt from Vietnam compulsory social insurance under Decree 158/2025/NĐ-CP and may retain home-country social insurance. This is the main financial advantage of the ICT route, because it removes the employer's compulsory social-insurance contribution for that person. Health insurance and Vietnam personal income tax still apply, and an assignee who stays more than 183 days remains a Vietnam tax resident regardless of the route. ## What does the ICT route cost and require? The ICT route carries a larger documentation set than a standard permit: notarised translation of transfer and appointment decisions plus relationship evidence across the countries in the chain — around USD 1,040 for a multi-country set — with consular legalisation quoted after the dossier is reviewed. The monthly PEO administration fee is the same flat USD 35 per employee. All figures are inclusive of government fees and exclude only 8% VAT; the full menu is in [PEO cost in Vietnam 2026](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## ICT or a standard work permit: which is right? A standard work permit is simpler and lower-risk, while the ICT route costs more in documentation but can exempt the transferee from compulsory social insurance. The ICT route only works if you can fully substantiate the corporate chain; if you cannot, it risks delay or rejection, and the standard [work permit](https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) is the safer choice. The decision turns on salary level, assignment length and how cleanly the group structure can be proven — see the trade-off in [PEO in Vietnam](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it). ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. We assess whether the exemption applies, prepare the confirmation or the full permit, and run payroll, insurance and PIT under our [PEO service](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it). For a quotation, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [PEO in Vietnam 2026: how the model works and when to use it](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) · [Vietnam work permit for foreigners 2026: cost, documents, process](/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process) --- # How to choose a PEO provider in Vietnam 2026: a checklist https://payrollservice.vn/tin-tuc/how-to-choose-a-peo-provider-in-vietnam-2026-checklist Choosing a PEO provider in Vietnam is really about one question: can they keep your foreign staff compliant end to end, or only run payroll? Many providers advertise PEO and EOR but cannot handle the work permit and immigration side that foreign nationals actually need. This checklist covers what to verify before you sign, so you can compare providers on the points that matter. **Key facts (2026):** - The decisive test is whether the provider can handle foreign work permits and immigration, not just payroll. - Check for a real labour sub-leasing licence and an employment-services licence, and for published, per-service pricing. - Beware the business-visa shortcut and "all-in" quotes that hide what is actually included. ## What should you check when choosing a PEO in Vietnam? Check licences, immigration capability, pricing transparency and whether they recommend the right model for your case. A provider that only does payroll will leave you to solve the hardest part — the work permit, visa and residence card for a foreign national — on your own. The strongest providers own the full compliance chain, publish their prices, and tell you plainly whether you need PEO or EOR rather than selling one model to everyone. ## Does the provider hold the right licences? Ask to see the provider's licences, because employing people in Vietnam is regulated. A credible provider can show a labour sub-leasing licence and an employment-services licence issued by the labour authority. Nhân Kiệt holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. If a provider cannot show licences, treat that as a stop sign. ## Can they handle foreign work permits, not just payroll? This is the question that separates real PEO providers for foreign staff from payroll-only vendors. Bringing a foreign national on board needs the [work permit](https://payrollservice.vn/tin-tuc/vietnam-work-permit-for-foreigners-2026-cost-documents-process), entry [visa](https://payrollservice.vn/tin-tuc/vietnam-work-visa-for-foreign-employees-2026-dn-ld-ev-explained), [Temporary Residence Card](https://payrollservice.vn/tin-tuc/temporary-residence-card-trc-vietnam-2026-cost-and-process) and [document legalisation](https://payrollservice.vn/tin-tuc/consular-legalisation-notarised-translation-vietnam-2026) sequenced correctly, then payroll, insurance and PIT. A provider that only runs payroll leaves the immigration file to you — which is exactly where compliance goes wrong. ## Is the pricing transparent and published? Prefer a provider that publishes prices per service so you can see what you pay and compare. Many providers quote only "contact us" or a single bundled figure, which hides what is included and makes comparison impossible. Nhân Kiệt publishes each service separately — work permit, TRC, visa, translation and a flat monthly fee — so you pay only for what you need; see the [PEO cost guide](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## PEO or EOR: are they offering the right model? A good provider matches the model to your situation instead of selling one to everyone. PEO suits a company that already has a Vietnam entity and is bringing in foreign staff, while EOR suits a company with no entity hiring Vietnamese staff. If a provider pushes a single model without asking whether you have an entity or whom you are hiring, that is a warning sign — see the difference in [PEO in Vietnam](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it). ## What are the red flags to avoid? Watch for the business-visa shortcut, hidden fees and missing licences. A provider suggesting your foreign hire "just work on a business visa" is steering you into unlicensed labour, which carries fines by headcount and expulsion for the worker. Other red flags are quotes that will not itemise what is included, no verifiable licence, and no clarity on who is the legal employer. The safe provider is licensed, transparent, and explicit about the compliance chain. ## Why Nhân Kiệt Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) is a licensed Vietnamese provider that handles the full chain for foreign staff — work permit, visa, TRC, legalisation, payroll, insurance and PIT — under a [PEO model](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) where your entity stays the employer. Prices are published per service, so you can compare us line by line. For a quotation, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [PEO in Vietnam 2026: how the model works and when to use it](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) · [What is an EOR? Employer of Record in Vietnam explained](/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained) --- # What is an EOR? Employer of Record in Vietnam explained https://payrollservice.vn/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained EOR stands for Employer of Record — a local company that becomes the legal employer of your staff on your behalf. It is how a foreign company hires and pays Vietnamese employees lawfully without first setting up a Vietnamese entity. This guide explains the model, the framework Vietnam actually applies, the published cost, and when an EOR is the right choice. **Key facts (2026):** - An EOR becomes the legal employer; it is for companies with **no Vietnamese entity** hiring **Vietnamese** staff. - Vietnam has **no dedicated EOR law** — the arrangement must sit inside labour sub-leasing or a commercial service contract. - Nhân Kiệt fee: 8% of gross salary per person per month, floor VND 2,600,000, cap VND 5,200,000; deposit of one month's gross salary (refundable) from 1 October 2026. - Staff can start in 5–7 working days instead of the 2–6 months it takes to incorporate. **Updated 12 October 2026:** added a worked cost example, the risks and limits of an EOR, a comparison with other hiring models, and why an EOR costs more than payroll outsourcing. ## What is an EOR? An EOR (Employer of Record) is a local legal entity that acts as the official employer for the people you choose. The EOR signs the employment contract directly with each worker, pays compulsory social insurance, registers and remits personal income tax, runs monthly payroll, and carries the legal responsibility for that employment relationship. Your company signs a service agreement with the EOR and still decides who to hire, what to pay them, and what they work on. ## How does an EOR work in practice? You choose the person, the EOR employs them formally, and you reimburse the cost monthly. The sequence is usually: you select the candidate and the salary, the EOR signs the employment contract and registers insurance, the person starts working for you, each cycle you pre-fund payroll and statutory contributions, and the EOR pays your people in full and on time and then invoices its service fee. All the statutory records — contract, labour management book, payslips, annual leave — are kept by the EOR in the form the law requires. ## Does Vietnam have a dedicated EOR law? No — and this is the most important point most international providers gloss over. Vietnam has **no** legislation written for EOR, so an EOR arrangement must fit entirely inside one of two existing frameworks: - **Labour sub-leasing** — Articles 52–57 of the Labour Code 2019 and Decree 145/2020/NĐ-CP. The client directs the work; it is limited to the 20 job categories in Appendix II and to a maximum of **12 months per worker** under Article 53. The provider must hold a sub-leasing licence. - **A service contract under the Commercial Law** — Nhân Kiệt assigns, manages and supervises the staff; there is no time limit, but the client does not direct each person the way it would its own employee. Choosing the wrong framework is a risk for **both** parties: the client is penalised directly too, up to VND 100 million for organisations under Article 19(2) of Decree 283/2026/NĐ-CP, which replaced Decree 12/2022/NĐ-CP from 10 September 2026. So the applicable framework has to be settled **before signing**, not after an inspection. ## How much does an EOR cost in Vietnam? Nhân Kiệt's service fee is 8% of gross salary per person per month, with a floor of VND 2,600,000 (about USD 99) and a cap of VND 5,200,000 (about USD 199) per person per month. From 1 October 2026 there is also a deposit of one month's gross salary per employee, **refundable** when the contract ends and accounts are settled; there is no onboarding fee and no offboarding fee. On top of the service fee the employer bears salary and the employer-side statutory contributions for Vietnamese staff, which come to 23.5% (21.5% insurance plus 2% trade-union funding). A breakdown at different salary levels is in [EOR pricing in Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). ## When should you use an EOR instead of incorporating? Use an EOR when you need people working quickly and are not yet certain about long-term scale in Vietnam. Setting up your own entity normally takes 2–6 months and brings maintenance, accounting and reporting costs with it; through an EOR staff can start within 5–7 working days. The clearest fits are remote engineering teams, market-entry pilots, 6–24 month project teams, and the waiting period before an investment licence is granted. If you have already committed to long-term investment and will hire dozens of people, your own entity is usually cheaper on a total-cost basis. ## How is an EOR different from a PEO? An EOR is for companies that do **not** yet have a Vietnamese entity, while a PEO requires you to **already have** one and you remain the legal employer. The second difference matters just as much: at Nhân Kiệt, EOR serves **Vietnamese employees**, while PEO serves **foreign nationals** who need a work permit and a residence card. They solve different problems — the full comparison with a decision tree is in [EOR vs PEO in Vietnam](https://payrollservice.vn/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose), and the PEO model is explained in [what is a PEO](https://payrollservice.vn/tin-tuc/what-is-a-peo-professional-employer-organization-explained). ## What should you check before choosing an EOR provider? Check the licences, which legal framework they will apply, and how transparent their pricing is. A credible provider can show a labour sub-leasing licence and an employment-services licence, will tell you plainly which of the two frameworks above your arrangement sits in, and publishes prices rather than only "contact us". Nhân Kiệt holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) issued in Ho Chi Minh City, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. ## Can you give an example of how an EOR works? A Singapore software company with no Vietnamese entity hires one backend developer in Ho Chi Minh City on a gross salary of VND 30,000,000 a month through Nhân Kiệt. As with most remote engineering roles, the hire runs under the service-contract route rather than labour sub-leasing, so the 12-month limit does not apply. Nhân Kiệt signs the employment contract, registers the personal tax code and social insurance, and the developer starts within 5–7 working days. Each month the company pre-funds a single invoice: | Item | VND per month | |---|---| | Gross salary | 30,000,000 | | Employer statutory contributions (23.5%) | 7,050,000 | | Nhân Kiệt service fee (8% would be 2,400,000, so the 2,600,000 floor applies) | 2,600,000 | | VAT 8% on the whole invoice | 3,172,000 | | **Total payable** | **42,822,000** | The developer's own 10.5% insurance and personal income tax are deducted from the gross salary, so take-home pay is lower than VND 30,000,000. A deposit equal to one month's gross salary (VND 30,000,000) is held and refunded when the contract ends and accounts are settled. Totals for other salary levels are in [EOR pricing in Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). ## What are the risks and limits of using an EOR in Vietnam? An EOR is lawful in Vietnam only inside the framework it runs under, and most problems come from ignoring those limits: - **Labour sub-leasing route:** only the 20 jobs listed in Appendix II of Decree 145/2020/NĐ-CP, and no more than 12 months per worker (Article 53, Labour Code 2019). - **Service-contract route:** no time limit, but your managers should not direct each person as if they were your own employees — Nhân Kiệt manages and supervises them. - **Penalties reach the client too:** an organisation that uses sub-leased labour unlawfully can be fined up to VND 100 million (Article 19(2), Decree 283/2026/NĐ-CP). - **Tax exposure:** if people in Vietnam habitually conclude contracts on your behalf, your company may create a permanent establishment — see [does a Vietnam EOR create a permanent establishment](https://payrollservice.vn/tin-tuc/does-a-vietnam-eor-create-a-permanent-establishment). - **Intellectual property and confidentiality:** ask for IP-assignment and confidentiality clauses in the employment contract; Nhân Kiệt adds the terms you specify. - **Personal data:** employee records sent abroad fall under the Personal Data Protection Law No. 91/2025/QH15 from 1 January 2026 — see [cross-border data transfer through an EOR](https://payrollservice.vn/tin-tuc/vietnam-cross-border-data-transfer-eor-peo-and-payroll). ## How is an EOR different from payroll outsourcing, a PEO or a staffing agency? An EOR is the only one of these models in which the provider becomes the legal employer and you need no Vietnamese entity. With payroll outsourcing or a PEO your own company stays the employer, and a staffing agency supplies workers to a business that already operates in Vietnam. | Model | Legal employer | Own Vietnamese entity needed? | Best for | |---|---|---|---| | [EOR](https://payrollservice.vn/eor-vietnam/) | Nhân Kiệt | No | Hiring Vietnamese staff before, or instead of, incorporating | | [Payroll outsourcing](https://payrollservice.vn/payroll-outsourcing/) | Your company | Yes | Keeping your own employees while outsourcing payroll, tax and insurance | | [PEO for foreign staff](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) | Your company | Yes | Foreign nationals who need a work permit and a residence card | | [Staffing / manpower supply](https://payrollservice.vn/manpower-supply/) | Nhân Kiệt | Usually yes | Large numbers of factory and general workers | | Your own entity | Your company | Yes — 2 to 6 months to set up | Long-term plans and a larger headcount | ## Why does an EOR cost more than payroll outsourcing? An EOR costs more because the provider becomes the legal employer and carries the employment liability, while payroll outsourcing only processes payroll for people your company already employs. At Nhân Kiệt, payroll outsourcing is VND 250,000–900,000 (about USD 10–35) per employee per month, while the EOR fee is 8% of gross salary with a floor of VND 2,600,000 and a cap of VND 5,200,000. If you already have a Vietnamese entity, [payroll outsourcing](https://payrollservice.vn/tin-tuc/payroll-service-pricing-in-vietnam-2026-what-the-fee-covers) is the cheaper option; if you do not, an EOR is usually far cheaper than setting one up. ## Next step If you are weighing up hiring Vietnamese staff without an entity, see the scope and commitments on the [EOR Vietnam service page](https://payrollservice.vn/eor-vietnam/), or the [labour compliance](https://payrollservice.vn/labour-compliance/) model if the people already work for you and need to move onto compliant contracts. To discuss a specific case, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [What is a PEO? Professional Employer Organization explained](/tin-tuc/what-is-a-peo-professional-employer-organization-explained) · [EOR vs PEO in Vietnam 2026: which model should you choose?](/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose) · [Local EOR Company vs Global EOR Platform in Vietnam (2026)](/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam) --- # What is a PEO? Professional Employer Organization explained https://payrollservice.vn/tin-tuc/what-is-a-peo-professional-employer-organization-explained PEO stands for Professional Employer Organization — a provider that handles the administration of employment while **your company remains the legal employer**. In Vietnam the model is used mainly when a company already has a local entity and needs to bring in **foreign** experts, engineers or managers lawfully. This guide explains the model, the 2026 legal basis, the published per-service cost, and when to use it. **Key facts (2026):** - Under a PEO, the **client** (a Vietnamese entity) is the legal employer and signs the employment contract; the PEO handles permits, immigration, payroll, insurance and tax. - It is for **foreign nationals** and requires you to **already have** a Vietnamese entity (unlike an EOR). - Legal basis: Decree 219/2025/NĐ-CP for work permits, and the Law on Social Insurance 2024 with Decree 158/2025/NĐ-CP. - Nhân Kiệt prices each service separately: work permit USD 650, TRC USD 450, entry visa USD 250, monthly administration USD 35 per employee. ## What is a PEO? A PEO is a service model in which your company keeps the role of legal employer while an external specialist handles the administrative side of the employment relationship. Your Vietnamese entity signs the employment contract directly with the worker and decides salary, job title and day-to-day management. The PEO handles the work permit and immigration procedures, payroll, insurance registration and filing, personal income tax withholding and finalisation, and the periodic labour reports. ## Who is a PEO for in Vietnam? A PEO suits a company that already has a Vietnamese entity and needs to bring foreign nationals in for longer than a short business trip. Typical cases are an FDI group seconding a chief engineer or plant manager, a group rotating specialists between countries, or a company that needs one foreign hire working quickly without building an in-house immigration function. If you do **not** have an entity, a PEO does not apply — the right routes are then to establish a presence, or to use the EOR model for Vietnamese staff. ## What does a PEO actually do? A PEO covers the whole administrative lifecycle so your entity can stay the employer without staffing the function. The one-time work covers preparing and filing the foreign-labour demand and approval, applying for the work permit under your entity's sponsorship, applying for the Temporary Residence Card, arranging the entry business visa, and notarised translation of documents. The ongoing monthly work covers payroll calculation and disbursement support with electronic payslips, registration and monthly filing of social and health insurance, PIT withholding and annual finalisation, tracking work permit and TRC renewals, bilingual employee support, and monthly reporting to you. ## What legal basis applies in 2026? Work permits follow **Decree 219/2025/NĐ-CP**, in force from 7 August 2025, which fully replaced Decree 152/2020 and 70/2023; the permit is issued within 10 working days of a complete file, is valid for up to 2 years, and may be renewed only once under Article 155 of the Labour Code 2019. Social insurance for foreign workers follows the **Law on Social Insurance 2024 (41/2024/QH15)** and **Decree 158/2025/NĐ-CP**, which replaced Decree 143/2018 from 1 July 2025. Foreign workers pay 9.5% and the employer pays 20.5% plus 2% trade-union funding — 22.5% on top of salary, with no unemployment insurance — capped at a salary base of VND 50,600,000 per month from 1 July 2026. ## What routes are there for bringing a foreign employee in? There are two lawful routes, differing in risk and in how social insurance is treated. **Option 1 — work permit plus Temporary Residence Card**: your Vietnamese entity sponsors the permit, the process is standard and the risk is low, and the employer bears the 22.5% statutory contributions. **Option 2 — intra-corporate transfer (ICT)**: the assignee is exempt from Vietnam compulsory social insurance under Decree 158/2025 and may keep home-country cover, but the corporate chain must be proven with consular-legalised or, from 11 September 2026, apostilled documents, so documentation cost and risk are higher. The detail is in [work permit exemption and intra-company transfer](https://payrollservice.vn/tin-tuc/work-permit-exemption-vietnam-2026-intra-company-transfer). ## How much does a PEO cost? Nhân Kiệt prices each service separately so you pay only for what you need: work permit USD 650, Temporary Residence Card USD 450, entry business visa USD 250, notarised translation from USD 260, and PEO administration USD 35 per employee per month. These are inclusive of government fees, with only 8% VAT added. There is no fixed bundle — a company that already holds a visa and needs only the permit pays for that alone. The full menu with common combinations is in [PEO cost in Vietnam](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## What happens to tax after 183 days? An assignee who stays in Vietnam more than 183 days in a 12-month period becomes a Vietnam tax resident and must declare and pay personal income tax in Vietnam. This holds even under Option 2, where payroll and social insurance may remain in the home country. A double-taxation agreement between Vietnam and the home country may relieve double taxation, subject to conditions. This is why a "keep everything offshore" plan does not work for a long assignment. ## How is a PEO different from an EOR? A PEO requires you to **already have** an entity and you remain the legal employer; an EOR is the opposite — it is for companies with **no** entity, and the provider is the employer. At Nhân Kiệt there is a second difference: PEO serves **foreign nationals**, EOR serves **Vietnamese staff**. The full comparison with a decision tree is in [EOR vs PEO in Vietnam](https://payrollservice.vn/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose); the EOR model is explained in [what is an EOR](https://payrollservice.vn/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained). ## PEO vs EOR vs staffing agency: which is which? The three models differ by who the legal employer is: under a PEO your own Vietnamese entity employs the worker and the provider runs the administration; under an EOR the provider is the legal employer of staff who work for you; and a staffing agency both employs and supplies workers — typically at volume — under its own licence. Picking between them is therefore not a price question first, but a structure question. | Model | Legal employer | Typical use in Vietnam | Do you need an entity? | |---|---|---|---| | PEO | Your Vietnamese entity | Foreign experts and managers at a company that already has an entity | Yes | | EOR | The provider | Vietnamese staff for a foreign company with no entity | No | | Staffing agency (manpower supply, labour sub-leasing) | The provider | Blue-collar and volume workforce, recruitment included | No | In practice two questions decide it: does your company already have a Vietnamese entity, and are you hiring Vietnamese nationals or foreign nationals? An entity plus foreign hires points to a PEO; no entity plus Vietnamese hires points to an EOR; a volume workforce that still has to be recruited points to a staffing agency. ## Does PEO mean the same thing in Vietnam as in the US? No — in the United States a PEO typically works under a co-employment arrangement, sharing employer responsibilities with the client, while Vietnamese law has no co-employment status: the client's entity remains the sole legal employer, and in Vietnam "PEO" is used as a label for a service that runs the employment administration on that entity's behalf. The same word therefore describes two different legal structures. The practical consequence: a US-style co-employment PEO cannot be bought in Vietnam. What is sold under the PEO label here is administrative — work permits, immigration, payroll, insurance and personal income tax — for foreign employees of your own entity, while hiring without an entity is the EOR model, and the two should be compared as different products rather than different prices for the same thing. ## Next step See the service scope, both routes and all conditions in [PEO in Vietnam](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it). Nhân Kiệt Supplying Manpower Co., Ltd (tax code 0308022768, established 2009) holds a labour sub-leasing licence (No. 15/2019/SHCM) and an employment-services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ), and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. To discuss a specific case, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [What is an EOR? Employer of Record in Vietnam explained](/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained) · [PEO in Vietnam 2026: how the model works and when to use it](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) **Update 12/10/2026:** added a three-way comparison of PEO, EOR and staffing agencies, and the difference between the US and Vietnamese meanings of PEO. --- # EOR vs PEO in Vietnam 2026: which model should you choose? https://payrollservice.vn/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose EOR and PEO are often used interchangeably, but in Vietnam they solve two genuinely different problems. Choosing the wrong one does not just cost money — it puts the employment relationship on the wrong legal footing. This guide compares them directly, gives a decision tree, and explains why the Vietnamese definition of PEO differs from the way the global market uses the word. **Key facts (2026):** - First decisive question: **do you already have a Vietnamese entity?** No → EOR. Yes → PEO. - Second question: **are you hiring Vietnamese or foreign staff?** Vietnamese → EOR. Foreign → PEO. - EOR: Nhân Kiệt is the legal employer. PEO: **your company** remains the legal employer. - Cost: EOR is 8% of gross salary (floor VND 2,600,000, cap VND 5,200,000); PEO is priced per service in USD. **Updated 12 October 2026:** added which model suits a small business, the downsides of each, and what EOR and PEO stand for. ## What is the difference between an EOR and a PEO? The core difference is **who is named as the legal employer**. Under an EOR, the provider signs the employment contract and carries the full legal responsibility for the employment relationship, so you do not need a Vietnamese entity. Under a PEO, your company remains the legal employer and signs the contract directly while the provider handles only the administration — so you must already have an entity. | Criterion | EOR | PEO | |---|---|---| | Vietnamese entity needed? | No | **Yes — required** | | Legal employer | Nhân Kiệt | Your company | | Who signs the employment contract | Nhân Kiệt | Your company, directly | | Typical workers | **Vietnamese** staff | **Foreign** nationals | | What the provider does | The whole employment relationship | Work permit, TRC, visa, payroll, insurance, tax | | Pricing model | 8% of gross, floor 2.6m, cap 5.2m VND | Per service, in USD | | Legal basis | Labour sub-leasing or a service contract | Decree 219/2025 and Law on Social Insurance 2024 | | Time to start | 5–7 working days | Several weeks, driven by the permit | ## Should you choose an EOR or a PEO? Answer two questions in order. **One:** does your company already have a Vietnamese entity? If **not**, a PEO is not available to you — only an entity with a presence in Vietnam can employ and sponsor a work permit — so the choice is an EOR (or incorporating). If you **do**, go to question two. **Two:** is the person you need to bring on Vietnamese or foreign? For **Vietnamese** staff your own entity can contract directly, or use labour formalisation if you want the obligations transferred; for **foreign** nationals choose a PEO, because the hard part is the work permit, the residence card and tax residency rather than the signing of a contract. ## How do the costs compare? The two models price in different units, so there is no single number that compares them. **EOR** is salary-based: 8% of gross salary per person per month, with a floor of VND 2,600,000 and a cap of VND 5,200,000, plus a deposit of one month's gross salary (refundable) from 1 October 2026, with no onboarding fee and no offboarding fee. **PEO** is priced per service in USD: work permit 650, Temporary Residence Card 450, entry visa 250, notarised translation from 260, and administration 35 per employee per month, inclusive of government fees and excluding 8% VAT. In short, EOR is a **recurring cost proportional to salary**, while PEO is **front-loaded on the immigration paperwork** and very light monthly. ## Do the two models rest on different law? Yes, and the difference is significant. **There is no dedicated EOR law in Vietnam** — the arrangement must sit inside labour sub-leasing (Articles 52–57 of the Labour Code 2019 and Decree 145/2020, limited to 20 job categories and a maximum of 12 months per worker under Article 53) or a service contract under the Commercial Law; if the structure is wrong, **the client is penalised too**, up to VND 100 million for organisations under Article 19(2) of Decree 283/2026/NĐ-CP. **PEO, by contrast, rests on explicit rules**: Decree 219/2025/NĐ-CP for work permits and the Law on Social Insurance 2024 with Decree 158/2025/NĐ-CP for foreign workers' insurance. ## Why does the Vietnamese definition of PEO differ from the global market? Internationally, PEO usually means a **co-employment** model for staff in general, and many global platforms use PEO and EOR as near-synonyms. In Vietnam, **true co-employment barely exists in legal practice**, so that usage misleads. Nhân Kiệt therefore defines the term narrowly and explicitly: PEO is administrative service for **foreign nationals** while the client remains the legal employer. When you compare quotes between providers, ask directly "who signs the employment contract" rather than trusting the PEO or EOR label on the brochure. ## Can you move from an EOR to a PEO later? Yes, and it is the natural path as a business grows. Early on, with no entity, an EOR gets Vietnamese staff working in 5–7 working days; once long-term investment is decided, you incorporate, move the employees onto contracts with your own entity, and from then on use a PEO for the foreign staff who need permits. One technical reason to plan this early: if your EOR arrangement sits inside the labour sub-leasing framework, each worker is capped at **12 months**, so the transition has to be planned before that limit is reached. ## Is a PEO or an EOR better for a small business? For a small foreign company with no Vietnamese entity, an EOR is the better fit: it needs no entity, gets Vietnamese staff working in 5–7 working days and costs 8% of gross salary per person, capped at VND 5,200,000 a month. A PEO only becomes an option once you have your own Vietnamese entity, and at Nhân Kiệt it is designed for foreign staff who need a work permit and a residence card. In practice: a handful of Vietnamese hires and no long-term commitment yet — choose an [EOR](https://payrollservice.vn/eor-vietnam/); an entity already in place and foreign managers to bring in — choose a PEO. ## What are the downsides of an EOR and of a PEO? Neither model is free of trade-offs: an EOR costs more every month and must stay inside its legal framework, while a PEO requires your own entity and leaves the employer's liability with you: - **EOR:** the fee rises with salary up to the cap and continues for as long as the person stays; on the labour sub-leasing route each worker is limited to the 20 listed jobs and to 12 months; and because Nhân Kiệt is the legal employer, contract changes go through Nhân Kiệt. - **PEO:** only available if your company already has a Vietnamese entity; your company remains the legal employer and carries the liability; and the work permit and residence card take several weeks and are paid up front (work permit USD 650, Temporary Residence Card USD 450 — see [PEO cost in Vietnam](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees)). ## What do EOR and PEO stand for? EOR stands for Employer of Record and PEO stands for Professional Employer Organization. In Vietnam the practical difference is who signs the employment contract: under an EOR it is the provider, under a PEO it is your own company. ## Next step Read each model in [what is an EOR](https://payrollservice.vn/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained) and [what is a PEO](https://payrollservice.vn/tin-tuc/what-is-a-peo-professional-employer-organization-explained), see the detailed pricing in [EOR pricing](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs) and [PEO cost](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees), or go straight to the [EOR Vietnam service page](https://payrollservice.vn/eor-vietnam/). To get a recommendation for your specific case, call +84 908 636 108 (Mr Trung) or +84 28 3505 4224. This is general information, not legal advice. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [What is an EOR? Employer of Record in Vietnam explained](/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained) · [How to choose a PEO provider in Vietnam 2026: a checklist](/tin-tuc/how-to-choose-a-peo-provider-in-vietnam-2026-checklist) · [PEO in Vietnam: how the model works and when to use it](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) --- # Vietnam Cross-Border Data Transfer: EOR, PEO and Payroll https://payrollservice.vn/tin-tuc/vietnam-cross-border-data-transfer-eor-peo-and-payroll When the data of employees in Vietnam — payroll, timesheets, personnel files — is sent or made available to a company abroad, that is a **cross-border transfer of personal data** under Article 20(1) of the Law on Personal Data Protection No. 91/2025/QH15. The transferring party must prepare an impact assessment dossier and file it with the specialised personal data protection authority under the Ministry of Public Security within 60 days of the first transfer, unless an exemption applies. With EOR, PEO and outsourced payroll, the deciding question is **who the transferring party is**: the service provider, or your own company. This article is written for foreign companies that employ staff in Vietnam through a provider, and for Vietnamese subsidiaries that report HR data to their group. Every provision cited comes from the original text of Law 91/2025/QH15 and Decree 356/2025/ND-CP, both in force since 1 January 2026. ## When is employee data treated as transferred out of Vietnam? Law 91/2025/QH15 treats three activities as cross-border transfers of personal data, and all three are common whenever HR has a foreign element: - **Storage abroad**: data held in Vietnam is moved to a system located outside the country, for example a group-wide HR platform. - **Sending to an organisation abroad**: an organisation in Vietnam passes data to an organisation or individual abroad, for example a detailed payroll report sent to a client or parent company. - **Processing on a platform abroad**: a platform located outside Vietnam is used to process data collected in Vietnam, for example payroll software hosted overseas. Article 17 of Decree 356/2025/ND-CP restates these three cases and makes clear that they apply to every role — controller, processor and third party alike. In other words, a service provider that sends data abroad at a client's request is itself making a cross-border transfer. ## If a foreign client only views data on a portal, is that still a transfer? The prudent reading is yes. The law has no exemption for "view-only" access, and Article 2(6) of Law 91/2025/QH15 lists "providing" data as a form of processing. When someone abroad opens a payroll screen, the data travels to their device, so it can be regarded as provided to an organisation abroad. That does not make a view-only approach worthless — quite the opposite. The impact assessment must describe how the data is kept secure after transfer, and the process by which the recipient passes data on to third parties (Article 18(3) of Decree 356/2025/ND-CP). When a client can only view data inside the transferring party's system, there are fewer copies, fewer leak points, and the transferring party can show it keeps control of the data end to end. View-only access does not remove the obligation, but it is the strongest way to meet it. ## Who files the dossier under EOR, PEO or payroll outsourcing? The dossier is filed by whoever makes the transfer abroad, and that depends on who the employer is. Under EOR, the provider is the employer and the party making the data available to the foreign client, so the provider files. Under PEO and payroll outsourcing, your Vietnamese entity is the employer; when that entity shares data with its parent company, the obligation sits with that entity. | Model | Employer | Provider's data role | Who transfers data abroad | |---|---|---|---| | EOR | The EOR provider | Controller-processor | The provider, when it makes data available to the foreign client | | PEO | The client's Vietnamese entity | Processor | The Vietnamese entity, when it shares data with the parent company | | Payroll outsourcing | The client company | Processor | The client company, when it shares data with the parent company | The cleanest split for PEO and payroll: the provider delivers reports to your Vietnamese entity, and forwarding them to the group is the employer's decision — and the employer's dossier. If you ask the provider to send reports straight to the parent company, the provider also becomes a transferring party and must be named in the dossier. The full difference between the two models is covered in [EOR vs PEO in Vietnam](/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose). ## Are transfers to a parent company exempt from the impact assessment? They can be, if the transfer serves cross-border personnel management under labour rules, internal labour regulations and collective labour agreements. This is a new exemption in Article 17(3)(d) of Decree 356/2025/ND-CP, written for groups that manage staff in several countries. The condition is in the wording itself: the sharing must follow the employer's labour rules, internal labour regulations and collective labour agreement. A company that has not written group HR reporting into these documents will struggle to rely on the exemption. The law has one more exemption, but a narrow one: an organisation **storing** data of its own employees on a cloud computing service (Article 20(6)(b) of Law 91/2025/QH15). It covers storage only; sending or sharing that same data with a parent company abroad is still a transfer that requires a dossier. ### Why is it hard for EOR to rely on the personnel-management exemption? Under EOR, the foreign client is not the employer: it signs no employment contract, issues no work rules, and is not in the same group as the provider. The data moves from the employer to a separate legal entity abroad — exactly the "transfer to an organisation abroad" case that the personnel-management exemption was not written for. No guidance yet addresses this point, so the prudent course is to treat it as an ordinary cross-border transfer and file the dossier. An exemption from the dossier is not an exemption from the law. Every other duty still applies: a lawful basis for processing, security, a contract binding the recipient, and deletion of employee data when the employment contract ends, unless otherwise agreed or required by law (Article 25(2) of Law 91/2025/QH15). Separately, the impact assessment for **processing** personal data is a dossier of its own, which the controller must file within 60 days of the first processing (Article 21 of Law 91/2025/QH15) — an exemption from the transfer dossier does not exempt you from this one. ## What must the contract with a foreign client bind the recipient to? The contract must bind the recipient abroad to specific responsibilities, because a copy of that contract is a mandatory part of the impact assessment dossier (Article 18(2)(b) of Decree 356/2025/ND-CP). The principle to use is that the client may only view data to direct the work, and every other form of processing is excluded: - **View only, for the stated purpose**: timesheets, payroll and files, to the extent needed to assign and sign off work. - **No collecting or storing of its own**: no copying of personal data into the client's own systems. - **No analysis or aggregation for other purposes**: no building of separate profiles on employees. - **No editing**: every change goes through the employer. - **No providing or onward transfer**: nothing passed to subsidiaries, partners or any other third party. - **Incident reporting and access removal**: report at once if a viewing account is compromised; accounts are closed and any copies deleted when the service contract ends. This list mirrors the activities that Article 2(6) of Law 91/2025/QH15 defines as "processing of personal data": collecting, analysing, aggregating, editing, providing, transferring. Excluding each of them from the client's scope is how a "view-only, no processing" clause gets a legal footing, rather than being a promise. When vetting a provider, ask whether this clause is ready — the full question list is in [how to choose an Employer of Record in Vietnam](/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist). ## Which employee data counts as sensitive under Decree 356? Under Article 4 of Decree 356/2025/ND-CP, the four kinds of HR data most often classed as sensitive are ID card images, location determined through positioning services, biometric data and health status. By contrast, the ID number and phone number are basic data (Article 3). That line decides what should go abroad: - **ID card images** in recruitment files: a foreign client does not need them to direct the work. - **Location data** from attendance apps: clock-in and clock-out times are enough; coordinates are not needed. - **Fingerprints and face data** from attendance terminals: biometric data should stay in the source system. - **Medical certificates and sick notes**: send only what the work requires, such as the number of days off, not medical records. The general rule: send aggregated or de-identified reports wherever possible. De-identified data is data that cannot help identify a specific person (Article 2(11) of Law 91/2025/QH15). Watch out for small groups: a "by department" payroll summary for a one-person department is still that person's data. ## What are the risks of non-compliance? The maximum fine for an organisation that breaches the cross-border transfer rules is 5% of its revenue in the preceding year; if there was no revenue in the preceding year, or 5% comes to less than VND 3 billion, the maximum is VND 3 billion (Article 8(4) and (5) of Law 91/2025/QH15). Beyond the fine, three procedural milestones matter: - **60 days**: the deadline for filing the dossier, counted from the first day data is transferred abroad (Article 20(2) of Law 91/2025/QH15). - **Prepared once, always available**: the dossier is prepared once for the whole period of operation, but must always be ready for inspection by the authority. - **6 months**: periodic updates when a new purpose arises or when a controller, processor or third party changes (Article 20 of Decree 356/2025/ND-CP). The six-month update matters especially for EOR: every new foreign client is a new recipient of data. When choosing a provider, you are entitled to ask directly whether its impact assessment dossier has been filed, and whether the data flow to your company has been added to it. ## How does Nhan Kiet handle data for foreign clients? Nhan Kiet separates roles by model. Under EOR, Nhan Kiet is the employer and the transferring party, so the impact assessment obligation rests with Nhan Kiet and is not passed to the client; the foreign client signs recipient commitments on a view-only, no-processing basis. Under PEO and payroll outsourcing, Nhan Kiet is a processor under contract and delivers reports to the client's Vietnamese entity. This split tells each client exactly what its part is. With [EOR services in Vietnam](/eor-vietnam/), you sign the recipient commitments. With [payroll outsourcing](/payroll-outsourcing/) or [PEO](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it), onward sharing with your group sits in your own company's labour regulations and dossier. Nhan Kiet Manpower Supply Company Limited (tax code 0308022768) was founded in April 2009 and is now in its 17th year. It operates under labour sub-leasing Licence No. 15/2019/SHCM, holds ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022 certification, and serves more than 500 clients with more than 40,000 workers across 34 provinces and cities. ## Sources - [Law on Personal Data Protection No. 91/2025/QH15](https://chinhphu.vn/?pageid=27160&docid=214590) — Articles 2, 8, 20, 25; in force from 1 January 2026 - [Decree 356/2025/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=216387) — Articles 3, 4, 17, 18, 20; in force from 1 January 2026, replacing Decree 13/2023/ND-CP This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Companies that need to organise how employee data flows abroad under EOR, PEO or outsourced payroll can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Vietnam Public Holidays 2026–2027: 12 Days & Pay https://payrollservice.vn/tin-tuc/vietnam-public-holidays-2026-2027-12-days-and-pay In 2026, employees in Vietnam are entitled to 12 paid public holidays: 11 days under Article 112(1) of the 2019 Labour Code (No. 45/2019/QH14), plus 24 November — Vietnam Culture Day — under Article 2(1) of Resolution No. 28/2026/QH16, in force from 1 July 2026. Foreign employees are entitled to 14 days. This article is written for directors, HR and payroll staff who need to fix the holiday calendar, calculate holiday pay and the number of working days in a month; it reflects the rules in force up to September 2026. **Updated 12 October 2026:** the Government has confirmed the 2027 Tet and National Day holidays (Letter No. 10065/VPCP-KGVX of 2 October 2026); added the official Tet 2027 schedule, the three options for businesses and the Gregorian date of Tet 2027. ## How many paid public holidays does Vietnam have in 2026? Employees in Vietnam have 12 paid public holidays in 2026. Eleven of them are statutory holidays under Article 112(1) of the 2019 Labour Code — New Year's Day (1 day), Lunar New Year, or Tet (5 days), Hung Kings' Commemoration Day (1 day), Reunification Day on 30 April and International Labour Day on 1 May (1 day each), and National Day (2 days) — plus 24 November under Resolution No. 28/2026/QH16. Foreign employees get 2 extra days, for a total of 14. | Holiday | 2026 date | Day | Basis | |---|---|---|---| | New Year's Day | 1 Jan 2026 | Thursday | Article 112(1)(a) | | Lunar New Year (Tet, Year of the Horse), 5 days | 17 Feb 2026 is day 1 | Tuesday | Article 112(1)(b) | | Hung Kings' Commemoration Day (10th day, 3rd lunar month) | 26 Apr 2026 | Sunday, make-up day 27 Apr | Article 112(1)(e) and Article 111(3) | | Reunification Day | 30 Apr 2026 | Thursday | Article 112(1)(c) | | International Labour Day | 1 May 2026 | Friday | Article 112(1)(d) | | National Day, 2 days | 2 Sep 2026 and one adjacent day | Wednesday | Article 112(1)(đ) | | Vietnam Culture Day | 24 Nov 2026 | Tuesday | Resolution 28/2026/QH16, Article 2(1) | Paid public holidays should not be confused with Tet-season bonuses: whether they are mandatory, and how insurance and tax apply to [13th-month pay and Tet bonuses in 2026](/tin-tuc/13th-month-pay-tet-bonus-vietnam-2026), are covered separately. Public holidays also differ from annual leave — annual leave is set by Article 113 of the 2019 Labour Code and increases with seniority, rather than falling on fixed dates each year. ## Is Vietnam Culture Day on 24 November an official public holiday? Yes. From 1 July 2026, 24 November each year is Vietnam Culture Day, and employees are entitled to a paid day off under Article 2(1) of Resolution No. 28/2026/QH16. This is a standalone resolution that does not amend Article 112 of the 2019 Labour Code, which is why many older benefit tables still show 11 holidays. Resolution No. 28/2026/QH16 was passed at the first session of the 16th National Assembly and states: "24 November each year is Vietnam Culture Day; employees are entitled to a day off with full pay." Because it takes effect from 1 July 2026, 24 November 2026 is the first time employees enjoy this day off. In 2026, employees have 1 day off on Tuesday 24 November, with no make-up day, because this date is not listed in Article 112(1) of the 2019 Labour Code. ## Does Vietnam have 11 or 12 public holidays — and why do some sources say 26? The correct figure for 2026 is 12 paid public holidays: 11 statutory days under Article 112(1) of the 2019 Labour Code plus 1 day, 24 November, under Resolution No. 28/2026/QH16. The "11 days" figure applied before 1 July 2026 and is still copied by many summary tables. The "26 days" figure that some tables give comes from adding adjacent weekend days to the longer breaks, which produces a larger run of consecutive days off — it is not the number of statutory paid public holidays. For a labour inspection or a timesheet, only 12 days for Vietnamese employees and 14 days for foreign employees count as statutory paid public holidays; the added weekend days depend on each year's working calendar and are not fixed. ## If a public holiday falls on a weekly rest day, is there a make-up day off? Yes, but only for the holidays listed in Article 112(1) of the 2019 Labour Code: if a holiday coincides with a weekly rest day, the employee takes a make-up day off on the next working day, under Article 111(3). Because 24 November sits in Resolution No. 28/2026/QH16 and not in Article 112(1), this statutory make-up rule does not apply to it. Article 111(3) provides: "If a weekly rest day coincides with a public holiday under Article 112(1) of this Code, the employee takes the weekly rest day off on the next working day." For example, in 2026 Hung Kings' Commemoration Day (10th day of the 3rd lunar month) falls on Sunday 26 April 2026, so workplaces that rest on Saturday and Sunday take a make-up day on Monday 27 April. 24 November 2026, however, falls on a Tuesday, so no make-up day arises this year. ## How many extra public holidays do foreign employees get? Two extra days, not one. Under Article 112(2) of the 2019 Labour Code, foreign employees working in Vietnam get one additional day for their nation's traditional New Year and one additional day for their country's national day, on top of the days in paragraph 1. Including 24 November, foreign employees in Vietnam have 14 paid public holidays in 2026. Article 112(2) reads in full: "In addition to the days off under paragraph 1 of this Article, a foreign employee working in Vietnam is entitled to one more day for their nation's traditional New Year and one more day for their country's national day." A business with foreign employees should record these two days by each person's nationality when drawing up the holiday calendar. ## How does adding 24 November affect the number of working days in the month? Each public holiday is a paid day off: the employee does not come to work but is still paid in full, so for a monthly-salaried worker the holiday is already contained in the monthly salary and is not itemised separately. When a holiday falls on a working day, the number of days the employee actually has to be present that month drops accordingly; 24 November 2026 is a Tuesday — a working day — so November 2026 has one more public holiday than before. The number of standard working days in each month depends on each company's own working calendar — for instance, resting on both Saturday and Sunday, or on Sunday only. The safe method is to take the days from the company's working calendar and subtract the holidays in the table above that fall on working days, rather than applying a single fixed annual figure. ## What is the 2026 holiday calendar and the expected 2027 Tet schedule? In 2026 there are seven holiday periods, running from New Year's Day on 1 January to Vietnam Culture Day on 24 November, as listed in the table at the start of this article. Day 1 of Tet in the Year of the Horse falls on 17 February 2026, and Hung Kings' Commemoration Day (10th day of the 3rd lunar month) falls on Sunday 26 April 2026. The Lunar New Year days off and the day adjacent to National Day are set each year by the Prime Minister under Article 112(3) of the 2019 Labour Code. Article 112(3) provides: "Each year, based on actual conditions, the Prime Minister decides the specific days off set out in points b and đ of paragraph 1 of this Article." However the specific schedule falls in a given year, the number of paid Lunar New Year days off for employees remains 5 days under point b of Article 112(1). For Tet in the Year of the Goat 2027, day 1 of the lunar new year falls on Saturday 6 February 2027. On 2 October 2026 the Government confirmed the Tet 2027 holiday in Letter No. 10065/VPCP-KGVX; the official schedule and the three options for businesses are set out in the next section. ## What is the official Tet 2027 holiday schedule in Vietnam? For Tet in the Year of the Goat 2027, civil servants and public employees take 7 consecutive days off from Thursday 4 February 2027 to Wednesday 10 February 2027 (the 28th day of the 12th lunar month of the Year of the Horse to the 5th day of Tet), made up of 5 Tet days off and 2 weekly rest days, under Letter No. 10065/VPCP-KGVX of 2 October 2026 from the Government Office. Employees of businesses still get 5 paid Tet days off, and the employer chooses one of three options announced by the Ministry of Home Affairs: - 1 day at the end of the Year of the Horse and 4 days at the start of the Year of the Goat. - 2 days at the end of the Year of the Horse and 3 days at the start of the Year of the Goat. - 3 days at the end of the Year of the Horse and 2 days at the start of the Year of the Goat. Businesses should notify employees of their Tet schedule at least 30 days in advance. Any Tet day off that falls on a weekly rest day is made up on the next working day under Article 111(3) of the 2019 Labour Code, and anyone who has to work on a Tet day off is paid at least 300% of salary, not counting the holiday pay itself (Article 98(1)(c)). For National Day 2027, civil servants take 4 consecutive days off from Thursday 2 September to Sunday 5 September 2027. ## When is Tet 2027? Day 1 of Tet, the Lunar New Year of the Year of the Goat, falls on Saturday 6 February 2027; New Year's Eve is the night of Friday 5 February 2027, the 29th day of the 12th lunar month, because the last lunar month of the Year of the Horse has only 29 days. In 2026, day 1 of Tet fell on Tuesday 17 February, so Tet 2027 comes about 11 days earlier in the Gregorian calendar. For businesses, this date shapes the January and February 2027 payroll cycles: Tet bonuses, the 13th-month salary and often January pay are usually paid before the break, so timesheets and cash planning should be closed before the first Tet day off under the option the business chooses. ## How does Nhan Kiet arrange and pay for holiday shifts for clients? Nhan Kiet — Nhan Kiet Manpower Supply Co., Ltd, in operation since 2009 and holding labour sub-leasing Licence No. 15/2019/SHCM (first issued as No. 029/LĐTBXH in 2015) — signs employment contracts directly with workers, records attendance by each client's actual shifts, and pays holiday wages in full plus at least 300% for holiday overtime under point c, Article 98(1) of the 2019 Labour Code. For factories, retail chains or vehicle fleets that need to run shifts during holidays, Nhan Kiet arranges the shifts, tracks the statutory overtime caps, files personal income tax and submits labour reports on time; for foreign employees, it applies their right to 2 extra days correctly. A business can transfer the full employer responsibility to Nhan Kiet through [labour compliance services](/labour-compliance/), use [seasonal manpower supply for factories](/manpower-supply/) when it needs extra people at peak times, or choose [payroll outsourcing](/payroll-outsourcing/) so that Nhan Kiet computes holiday wages and overtime in full. ## Sources - [2019 Labour Code (No. 45/2019/QH14)](https://vanban.chinhphu.vn/?docid=198540&pageid=27160) — Article 98(1)(c) (holiday work at least 300%), Article 111(3) (make-up day off), Article 112(1), (2), (3) (11 holidays; foreign employees get 2 extra days); in force from 1 January 2021 - [Resolution No. 28/2026/QH16 on the development of Vietnamese culture](https://vanban.chinhphu.vn/?classid=1&docid=218008&pageid=27160) — Article 2(1) (24 November is Vietnam Culture Day, employees take a paid day off); in force from 1 July 2026 - [Letter No. 10065/VPCP-KGVX of 2 October 2026 from the Government Office](https://datafiles.chinhphu.vn/cpp/files/vbpq/2026/9/10065_vpcp-kgvx_02102026_1-signed.signed.pdf) — holidays for Vietnam Culture Day on 24 November 2026, Tet 2027 (4–10 February 2027) and National Day 2027 (2–5 September 2027) This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Businesses that need to arrange holiday shifts and pay employees in full for days off and overtime can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Vietnam Social Insurance Penalties 2026 (Decree 283) https://payrollservice.vn/tin-tuc/vietnam-social-insurance-fines-2026-decree-283 From 10 September 2026, Decree 283/2026/ND-CP replaces Decree 12/2022/ND-CP as the basis for administrative penalties on social insurance. For a business, late payment of compulsory social insurance is fined 12–15% of the amount paid late, evasion is fined 18–20% of the amount evaded, both capped at VND 75 million for an individual and doubled to VND 150 million for an organisation; on top of the fine, the business must still pay the outstanding amount in full and pay a further 0.03% per day into the fund. This article is written for directors, HR managers and accountants who need the exact fine figures, the line between late payment and evasion, a correct reading of the arrears due, and the way to put things right; it reflects the rules in force to September 2026. ## When does Decree 283/2026 take effect, and which decree does it replace? Decree 283/2026/ND-CP was signed on 15 July 2026, took effect on 10 September 2026 and, from that same date, ended Decree 12/2022/ND-CP under Article 66. The decree runs to 6 chapters and 68 articles, covering penalties on labour, social insurance and Vietnamese workers going abroad. One transitional point matters: conduct that began before 10 September 2026 but is still ongoing when the decree takes effect is handled under Decree 283/2026 (Article 67(2)). In other words, a shortfall or non-payment carried over from earlier is not treated as closed under the old text. Fine figures quoted from Decree 12/2022 are now out of date. ## What are social insurance arrears, and what extra must a business pay? Social insurance arrears — the collection of unpaid contributions — are a remedial measure, not a fine: the business is required to pay the outstanding compulsory social insurance in full, plus 0.03% per day on that amount over the number of days it was late or evaded, into the social insurance fund under Article 43(4) and Article 44(3) of Decree 283/2026. This amount is separate from the percentage fine and is not rolled into a single figure. The 0.03%-per-day charge is calculated on the number of days the amount was late or evaded, running from after the latest payment date under Article 34(4) of the Law on Social Insurance No. 41/2024/QH15, so the longer an unpaid amount is left, the larger it grows. For a part-time worker subject to contributions — a contract of at least one month and a monthly wage at or above the reference level — the duty to contribute arises from 1 July 2025, the date the Law on Social Insurance 2024 took effect. Arrears must be told apart from the one-year limitation period for administrative penalties on labour and social insurance breaches (Article 3(4) of Decree 283/2026). The one-year limit only caps when a fine decision can be issued; it does not clear the duty to pay the arrears in full or the 0.03%-per-day charge. Do not assume that once a year has passed there is nothing left to collect. Who is covered and how much it costs to insure one person a month is set out in [compulsory social insurance for part-time workers](/tin-tuc/compulsory-social-insurance-for-part-time-workers-in-2026-the-real-cost-to-busin), including whether [social insurance is due during probation](/tin-tuc/do-you-pay-social-insurance-during-probation). ## How do late payment and evasion of social insurance differ, and what are the fines? Late payment and evasion are two distinct acts, each defined in the Law on Social Insurance 2024 and each with its own fine band in Decree 283/2026. Late payment is fined 12–15% of the total amount paid late (Article 43(3)); evasion is fined 18–20% of the total amount evaded (Article 44(2)); both are capped at VND 75 million for an individual, measured when the record of violation is drawn up. For late payment by percentage, if the total amount paid late measured at that time is under VND 400,000, only a warning is issued (Article 43(1)); the fines by headcount for failing to register or under-registering carry no such warning threshold. | Criterion | Late payment | Evasion | |---|---|---| | Defining basis | Article 38, Law on Social Insurance 2024 | Article 39, Law on Social Insurance 2024 | | Typical sign | Not paid or underpaid against the registered records, after the latest payment date | Over 60 days after a reminder and still unpaid; wages registered below the required level | | Percentage fine | 12–15% of the amount paid late (Art. 43(3)) | 18–20% of the amount evaded (Art. 44(2)) | | Fine cap | VND 75 million (individual) / VND 150 million (organisation) | VND 75 million (individual) / VND 150 million (organisation) | | Remedy | Pay in full + 0.03%/day into the fund (Art. 43(4)) | Pay in full + 0.03%/day into the fund (Art. 44(3)) | The real dividing line sits in two places: more than 60 days after the latest social insurance payment date (Article 34(4) of the Law on Social Insurance 2024), a competent authority has sent a reminder and the amount is still unpaid, or the wages registered as the contribution base are below the required level — either one turns late payment into evasion. Whether a given person is a worker subject to compulsory contributions is analysed in [collaborator and piecework contracts](/tin-tuc/collaborator-or-piecework-contracts-when-is-compulsory-social-insurance-still-du). ## What is the fine for failing to register, or under-registering, social insurance participants? Failing to register, or not registering the full number of compulsory social insurance participants, is fined on a scale set by the number of workers affected. Within 60 days, or beyond 60 days but not treated as evasion, the late-payment band of VND 5 million to VND 75 million for an individual applies (Article 43(2)); beyond 60 days and treated as evasion, the band of VND 6 million to VND 75 million applies (Article 44(1)). Organisations pay double these amounts. | Workers affected | Late payment — Art. 43(2) | Evasion — Art. 44(1) | |---|---|---| | Under 10 | VND 5–10 million | VND 6–12 million | | 10 to under 50 | VND 10–15 million | VND 12–20 million | | 50 to under 100 | VND 15–20 million | VND 20–30 million | | 100 to under 300 | VND 20–30 million | VND 30–40 million | | 300 to under 500 | VND 30–40 million | VND 40–50 million | | 500 to under 700 | VND 40–50 million | VND 50–60 million | | 700 to under 1,000 | VND 50–60 million | VND 60–70 million | | 1,000 or more | VND 60–75 million | VND 70–75 million | These are the figures for an individual; a business is an organisation and so pays double. This headcount band has no warning threshold — the under-VND 400,000 threshold applies only to late payment by percentage under Article 43(3). ## Is a signed agreement not to pay social insurance lawful? No. For a person subject to compulsory contributions, taking part in social insurance is mandatory under Article 168(1) of the Labour Code 2019; an agreement not to take part does not remove that duty, and if it leads the business to fail to register or to leave payment overdue beyond the deadline in Article 39 of the Law on Social Insurance 2024, that is evasion — an act strictly prohibited by Article 9(1) of the same law. The agreement itself is fined VND 500,000–1,000,000 under Article 48(2) of Decree 283/2026, but that is an individual-level fine reaching the worker who signs; the business's heavier duty is still to pay in full, pay 0.03% per day, and possibly face a late-payment or evasion fine under Articles 43 and 44. Only a person not subject to compulsory contributions may instead receive an extra amount paid together with wages in place of the contribution, under Article 168(3) of the Labour Code 2019. Put another way, a waiver signed by the worker does not protect the business. At an inspection it does the opposite: it is evidence that the two sides agreed something unlawful, and becomes grounds for a fine alongside the arrears. Article 168(1) of the Labour Code 2019 already requires an employer and a worker subject to compulsory contributions to take part in social insurance; the extra payment in clause 3 is only for a person outside that group. ## Does a business pay double the individual fine? Yes. Every monetary figure in the penalty chapters of Decree 283/2026 is the fine for an individual; the fine for an organisation is twice the fine for an individual, under Article 7(1). The articles on social insurance and unemployment insurance — Articles 43, 44, 45 and 46 — are not on the list of exceptions, so for a business the fine rates stay the same (12–15% for late payment, 18–20% for evasion) and the banded fines double, while the fine cap rises from VND 75 million to VND 150 million. The correct basis for doubling is Article 7(1), not some other article that is sometimes cited by mistake. The list of organisations in Article 7(2) includes enterprises established under Vietnamese law, along with branches and representative offices. A worked example: a business that evades payment is fined 18–20% of the amount evaded and, being an organisation, faces a cap of VND 150 million. And because the individual cap is VND 75 million and the organisation cap is VND 150 million, there is no separate round VND 100 million mark for late payment or evasion — a figure is only right when it is tied to the correct article, clause and organisational status. ## We are using workers whose social insurance is unpaid — how do we put it right correctly? The business is required to file a registration for the full number of compulsory social insurance participants, pay the late or evaded amount in full and pay 0.03% per day into the fund, under Article 43(4) and Article 44(3) of Decree 283/2026. Putting things right before a record of violation is drawn up is the correct course; a repeated act of evasion may have the file referred to a competent authority for review where there are signs of a crime (Article 4(2) of Decree 283/2026). The remedy should follow these steps: - Review the actual list of workers to identify who still lacks a compulsory social insurance record. - File a registration, or a supplementary registration, for the full number required. - Pay the outstanding amount in full and pay the 0.03%-per-day charge into the fund. - Review the wages used as the contribution base, so as not to fall into registering below the required level. On criminal liability, a careful word: organised, fraudulent evasion, where it meets the elements of the offence, may be subject to criminal prosecution. This article gives no specific sentence; the point to remember is that putting things right early and correctly always costs less than letting the situation run on. ## How does Nhan Kiet put workers on the books lawfully for a business? The risk of arrears, a 12–15% or 18–20% fine and the 0.03%-per-day charge all start from workers not being entered into the insurance records on time — exactly the part Nhan Kiet takes on when it stands as the employer. As the party signing the employment contract directly with each person, including part-time workers on short shifts, Nhan Kiet handles social insurance registration increases and decreases as headcount changes, pays social insurance, health insurance, unemployment insurance and occupational-accident and disease insurance in full, registers tax codes, files personal income tax, submits labour reports, and carries the legal responsibility at an inspection or a dispute. When everyone subject to compulsory contributions is on the books and paid on time, the business has no unpaid amount left to be collected as arrears or to draw a record of violation. Nhan Kiet Manpower Supply Company Limited (tax code 0308022768) was founded in April 2009 and is now in its 17th year, operating under labour sub-leasing Licence No. 15/2019/SHCM (first issued as No. 029/LDTBXH in 2015), holds ISO 9001:2015 and ISO/IEC 27001:2022 certification, and serves more than 500 clients with more than 40,000 workers across 34 provinces and cities. How workers are transferred to Nhan Kiet as the named employer is set out on the [labour compliance services](/labour-compliance/) page. ## Sources - [Decree 283/2026/ND-CP](https://congbao.chinhphu.vn/van-ban/nghi-dinh-so-283-2026-nd-cp-470103.htm) — Articles 3, 7, 43, 44, 48, 66, 67; signed 15 July 2026, in force 10 September 2026, replacing Decree 12/2022/ND-CP - [Law on Social Insurance No. 41/2024/QH15](https://luatvietnam.vn/bao-hiem/luat-bao-hiem-xa-hoi-2024-360809-d1.html) — Articles 9, 38, 39; in force from 1 July 2025 - [Labour Code No. 45/2019/QH14](https://luatvietnam.vn/lao-dong/bo-luat-lao-dong-2019-179015-d1.html) — Article 168(1) and (3); in force from 1 January 2021 This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Businesses that need to put workers on the books lawfully, handle arrears or review their social insurance penalty exposure can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Overtime Pay in Vietnam 2026: Night & Holiday Rates https://payrollservice.vn/tin-tuc/overtime-night-and-holiday-pay-in-vietnam-2026 In 2026, overtime in Vietnam is still paid at no less than 150% of the hourly rate on a normal day, 200% on a weekly rest day and 300% on a public holiday or Tet holiday; night work adds at least 30%, and overtime worked at night adds a further 20%, so the highest multiplier reaches 390% for a night shift on a public holiday (Article 98 of the Labour Code 2019, No. 45/2019/QH14). The overtime ceiling is 40 hours per month and 200 hours per year (Article 107); the 60-hour monthly figure from the pandemic period no longer applies. The biggest change for 2026: from the 2026 tax period, overtime and night-work pay at the statutory rate is exempt from personal income tax (Article 4(8) of the Personal Income Tax Law No. 109/2025/QH15). This article is written for directors, HR managers and accountants who need to pay overtime and night-shift wages correctly and record the cost correctly, updated to the rules in force as of September 2026. ## What are the overtime pay rates in Vietnam for 2026? An employee working overtime is paid at least 150% of the hourly wage rate on a normal day, 200% on a weekly rest day and 300% on a public holiday, Tet holiday or paid leave day, under Article 98(1)(a), (b) and (c) of the Labour Code 2019. These are floor rates: an employer may pay more but never less. These percentages apply to the hourly wage rate of the job actually performed. Under Article 55(1)(a) of Decree 145/2020/ND-CP, that rate equals the actual wage paid for the month, week or day divided by the actual hours worked, and it excludes overtime pay itself, the night-work premium, holiday and Tet pay, bonuses, mid-shift meals and allowances for fuel, phone or housing. Getting the hourly rate right is the decisive step that makes every multiplier below come out correct. | Overtime situation | Minimum multiplier | Legal basis | |---|---|---| | Normal day | 150% | Article 98(1)(a) | | Weekly rest day | 200% | Article 98(1)(b) | | Public holiday, Tet, paid leave day | 300% | Article 98(1)(c) | | Night work (added) | +30% | Article 98(2) | | Overtime at night (added) | +20% | Article 98(3) | | Night shift on a weekly rest day | 270% | Decree 145/2020, Article 57 | | Night shift on a public holiday or Tet | 390% | Decree 145/2020, Article 57 | ## How is night work and night overtime pay calculated? Night-work hours run from 22:00 to 06:00 the next morning (Article 106 of the Labour Code 2019). An employee working at night is paid an extra 30% of the hourly wage rate of a normal working day (Article 98(2)); if those night hours are also overtime, a further 20% is paid, calculated on the daytime hourly rate for that same type of day (Article 98(3)). The two cases must be separated because they pay differently. A night shift within normal working hours (not overtime) is paid 100% plus 30%, that is 130% of the hourly rate, under Article 56 of Decree 145/2020/ND-CP. Overtime worked at night adds three parts under Article 57: the overtime multiplier for the type of day, plus 30% for night work, plus 20% calculated on the daytime hourly rate for that type of day. The daytime hourly rate used for the 20% part is set in Article 57(1)(b) of Decree 145/2020/ND-CP: 100% on a normal day (150% if the employee has already worked daytime overtime), 200% on a weekly rest day and 300% on a public holiday, Tet holiday or paid leave day. ## What is the maximum holiday night-overtime pay — 300% or 390%? Overtime worked at night on a public holiday or Tet holiday is paid up to 390% of the hourly wage rate, made up of 300% for holiday overtime (Article 98(1)(c)), plus 30% for night work (clause 2), plus 60% for night overtime (clause 3, being 20% times 300%), under Article 57 of Decree 145/2020/ND-CP. In other words, 300% on its own is correct only for daytime overtime on a holiday; once those hours fall at night, the rate rises to 390%. The build-up for each type of day is: - Night shift on a weekly rest day: 200% + 30% + (20% × 200%) = 270%. - Night shift on a public holiday or Tet: 300% + 30% + (20% × 300%) = 390%. - Night shift on a normal day: 150% + 30% + 20% = 200%, or 210% if the employee has already worked daytime overtime. The "490%" figure is correct only for day-wage employees. For them, Article 98(1)(c) states that the 300% rate is "not including the holiday, Tet or paid-leave-day wage", meaning they still receive full holiday pay (100%) on top of the 390% for night overtime, roughly 490% of the value of one working day in total. For monthly-salary employees, holiday pay is already inside the monthly salary, so the extra 100% is not added and the maximum stays at 390%. So the "490%" rate should not be applied to monthly-salary employees. Public holidays and Tet here are the days on which employees are off with full pay; for the 12 public holidays in 2026 (which dates, which weekdays and how days-in-lieu work), see [Vietnam public holidays 2026–2027: 12 days and pay](/tin-tuc/vietnam-public-holidays-2026-2027-12-days-and-pay). ## How many overtime hours a month are allowed — 40 or 60? In 2026, the overtime ceiling is no more than 40 hours in one month and no more than 200 hours in one year; certain industries, trades and cases may be arranged up to 300 hours in one year (Article 107 of the Labour Code 2019). The 60-hour monthly level that was once allowed was only a temporary measure under Resolution 17/2022/UBTVQH15 during COVID-19 prevention and control, and it expired on 1 January 2023, so it no longer applies in 2026. Beyond the monthly and yearly ceilings, the law also sets a daily limit: overtime hours must not exceed 50% of normal working hours in one day; where working time is counted by the week, normal hours plus overtime must not exceed 12 hours in one day; and overtime on a public holiday, Tet or weekly rest day must also not exceed 12 hours in one day (Article 107 and Article 60 of Decree 145/2020/ND-CP). The monthly and yearly ceilings are two independent limits that do not conflict: just 40 hours a month over about seven to eight months already reaches 300 hours a year. The group that may be arranged up to 300 hours a year includes the production and export processing of textiles, garments, leather and footwear, electrical goods and electronics, and the processing of agricultural, forestry, salt and fishery products; electricity generation and supply, telecommunications, oil refining, and water supply and drainage; and certain other cases under Article 107(3) and Article 61 of Decree 145/2020/ND-CP. Arranging overtime beyond the ceiling breaches the working-time rules and may draw an administrative penalty under Decree 283/2026/ND-CP; the penalties for social insurance breaches under that decree are set out in [social insurance fines and arrears in 2026 under Decree 283](/tin-tuc/vietnam-social-insurance-fines-2026-decree-283). ## Is overtime and night-shift pay subject to personal income tax in 2026? No. From the 2026 tax period, night-work and overtime wages paid in accordance with the law are income exempt from personal income tax, under Article 4(8) of the Personal Income Tax Law No. 109/2025/QH15 and Article 26(1) of Decree 253/2026/ND-CP. This changes the old rule, which exempted only the portion of pay above the daytime hourly rate. The text of Article 4(8) lists exempt income as "wages for night work and overtime, and wages paid for days of untaken leave under the law". Because the wording is no longer limited to the "higher-paid portion", overtime and night pay computed correctly at the Article 98 rates of the Labour Code 2019 is fully exempt. There is a condition in return: the overtime must be lawful — agreed to by the employee and within the hour ceilings. Any amount an employer pays above the statutory rate is not exempt: under Article 26(3) of Decree 253/2026/ND-CP, the portion above the rate set by law is counted as the employee's taxable income. Article 26(1) also requires the enterprise to draw up a schedule of the night and overtime hours and the amounts paid, keep it at the enterprise and produce it when the tax authority asks; where no separate schedule is drawn up, this must be proved through the payroll, the timesheet and the employment contract. On timing, Law No. 109/2025/QH15 takes effect from 1 July 2026, but the rules on wage and salary income of resident individuals apply from the 2026 tax period (Article 29), that is for the whole of 2026. The five-bracket progressive tax table and the 2026 family-circumstance deductions are set out in [Vietnam personal income tax 2026: the new five-bracket table](/tin-tuc/vietnam-personal-income-tax-2026-the-new-five-bracket-table-and-what-staff-take-); how to convert gross pay to take-home pay and the insurance contribution base is covered in [how to calculate payroll in 2026](/tin-tuc/how-to-calculate-payroll-in-2026-for-businesses-gross-to-net-social-insurance-an). ## What does overtime actually cost an employer? An employer's overtime cost equals the overtime hours times the hourly wage rate times a multiplier of 150%–390%, depending on the type of day and shift (Article 98 of the Labour Code 2019 and Articles 55–57 of Decree 145/2020/ND-CP). Because statutory overtime and night pay is exempt from personal income tax, the employee receives the full uplift and the employer withholds no extra tax on this amount. An illustration with assumed figures: in that month the employee works 26 normal working days, 8 hours a day, that is 208 hours; assuming an actual wage paid for the month of 10,400,000 VND, the hourly rate is 50,000 VND, determined under Article 55(1)(a) of Decree 145/2020/ND-CP. From that rate, one hour of overtime in each case is: - Normal day (150%): 75,000 VND an hour. - Weekly rest day (200%): 100,000 VND an hour. - Public holiday or Tet (300%): 150,000 VND an hour, not counting holiday pay for day-wage employees. - Night shift within normal hours (130%): 65,000 VND an hour. - Night overtime on a holiday (390%): 195,000 VND an hour. This is only an example; under Article 55 the hourly rate is the actual wage paid for the month divided by the total hours actually worked (not exceeding normal working days and hours), so each employer, and each month, can arrive at a different rate. Note too that overtime pay and the night-work premium are not part of the hourly wage rate used to calculate pay (Article 55(1)(a) of Decree 145/2020/ND-CP), so when comparing the cost of different shift arrangements, an employer must count this part separately rather than folding it into base pay. ## What paperwork does an employer need to arrange overtime? An employer must obtain the employee's consent to overtime (Article 107(2)(a) of the Labour Code 2019), ensure the hour ceilings are not exceeded, and, when arranging more than 200 up to 300 hours of overtime a year, give written notice to the specialised labour authority of the provincial People's Committee — since 2025 the Department of Home Affairs — no later than 15 days after starting (Article 107(4) of the Labour Code 2019; Article 62 of Decree 145/2020/ND-CP; Article 24 of Decree 283/2026/ND-CP). The consent should be a separate document on Form No. 01/PLIV, stating the time, place and work to be done as overtime (Article 59 of Decree 145/2020/ND-CP); the notice to the Department goes on Form No. 02/PLIV (Article 62). Beyond labour compliance, this file also serves tax purposes: the schedule of overtime and night hours is the basis for proving that the overtime and night pay exempted from personal income tax is lawful (Article 26(1) of Decree 253/2026/ND-CP). The cases that may be arranged up to 300 hours a year are in Article 107(3) of the Labour Code 2019 and Article 61 of Decree 145/2020/ND-CP. ## How does Nhan Kiet calculate overtime and night pay for clients? Nhan Kiet runs the full chain of attendance, payroll, disbursement and compliance for more than 40,000 workers across more than 500 clients in 34 provinces and cities, with an overtime multiplier matrix from 150% to 390% already coded to Article 98 of the Labour Code 2019. The system stitches together night shifts that cross midnight, enforces the ceiling of 40 hours a month and 200 hours a year (300 hours for the industries the law lists) and warns before it is exceeded. Each pay cycle comes with an open-formula Excel reconciliation sheet so clients can verify every overtime and night-pay amount themselves. Overtime and night pay is applied under the 2026 personal-income-tax exemption, together with a retained schedule of overtime and night hours for year-end finalisation. Nhan Kiet delivers the arrangement and calculation of night and holiday pay through its [payroll outsourcing service](/payroll-outsourcing/), where each company's rules are coded and test-run until they match exactly before going live. ## Sources - [Labour Code 2019 (No. 45/2019/QH14)](https://luatvietnam.vn/lao-dong/bo-luat-lao-dong-2019-179015-d1.html) — Article 98 (overtime and night-work pay), Article 106 (night hours 22:00–06:00), Article 107 (conditions and overtime ceilings); in force from 1 January 2021 - [Decree 145/2020/ND-CP](https://luatvietnam.vn/lao-dong/nghi-dinh-145-2020-huong-dan-thi-hanh-dieu-kien-lao-dong-va-quan-he-lao-dong-195612-d1.html) — Articles 55–57 (formulas for overtime, night work and night overtime), Articles 59–62 (consent, hour limits, notice to the specialised provincial labour authority — the Department of Home Affairs); in force from 1 February 2021 - [Personal Income Tax Law No. 109/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=216495&classid=1&typegroupid=3) — Article 4(8) (exemption of night-work and overtime pay), Article 29 (application from the 2026 tax period); in force from 1 July 2026 - [Decree 253/2026/ND-CP](https://vanban.chinhphu.vn/?classid=1&docid=218684&pageid=27160&typegroupid=4) — Article 26 (exemption of night-work and overtime pay at the statutory rate; the portion above that rate is taxable; the schedule requirement), Article 69 (application from the 2026 tax period); in force from 1 July 2026, replacing Decree 65/2013/ND-CP - [Resolution 17/2022/UBTVQH15](https://luatvietnam.vn/lao-dong/nghi-quyet-17-2022-ubtvqh15-so-gio-lam-them-trong-01-nam-01-thang-cua-nld-218794-d1.html) — Article 2 (the level above 40 up to 60 hours a month during COVID-19 prevention and control); expired on 1 January 2023 - [Decree 283/2026/ND-CP](https://congbao.chinhphu.vn/van-ban/nghi-dinh-so-283-2026-nd-cp-470103.htm) — Article 24 (notice of overtime above 200 hours a year; penalties for breaches of working-time rules); in force from 10 September 2026 This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Companies that need to pay overtime, night and holiday wages correctly and record the cost and tax correctly can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Annual Leave in Vietnam 2026: Days & Unused Payout https://payrollservice.vn/tin-tuc/annual-leave-in-vietnam-2026-days-and-unused-payout An employee who has worked a full 12 months for one enterprise is entitled to 12, 14 or 16 working days of annual leave on full pay, depending on the nature of the work (Article 113 of the Labour Code 2019, No. 45/2019/QH14, in force from 1 January 2021). When an employee resigns or loses their job with leave still untaken, the enterprise must pay wages for those days: the wage used as the basis is the contractual salary of the month immediately preceding the month of resignation or job loss (Decree 145/2020/ND-CP, Article 67(3)), which is then converted into a daily leave rate by dividing it by the number of ordinary working days in the month under the enterprise's calendar (the law fixes no set denominator) and multiplying by the number of leave days remaining. This article is written for directors, HR managers and accountants who need to finalise annual leave and calculate leave pay, updated to the rules in force as of September 2026, including the new penalties of Decree 283/2026/ND-CP that apply from 10 September 2026. ## How many annual leave days do employees get in Vietnam (12, 14 or 16)? An employee who has worked a full 12 months for one employer is entitled to annual leave on full pay of 12 working days for work under normal conditions, 14 working days for minors, people with disabilities and those in heavy, hazardous or dangerous jobs, and 16 working days for especially heavy, hazardous or dangerous jobs (Article 113(1) of the Labour Code 2019, No. 45/2019/QH14). These are working days, not calendar days, so weekly rest days and public holidays are not counted towards the leave entitlement. | Type of work | Leave per year (after a full 12 months) | |---|---| | Normal conditions | 12 working days | | Minors, people with disabilities, heavy/hazardous/dangerous jobs | 14 working days | | Especially heavy/hazardous/dangerous jobs | 16 working days | Annual leave is different from public holidays, Tet and weekly rest days. Public holidays are the days the whole country rests on full pay under Article 112 — see the [Vietnam public holidays 2026–2027](/tin-tuc/vietnam-public-holidays-2026-2027-12-days-and-pay); and when an employee works on a weekly rest day or a public holiday, that pay is calculated as overtime — see [how overtime, night and holiday pay is calculated in 2026](/tin-tuc/overtime-night-and-holiday-pay-in-vietnam-2026). ## How does annual leave increase with length of service? For every full 5 years of work for one employer, the number of annual leave days increases by a corresponding 1 day (Article 114 of the Labour Code 2019). Length of service is counted by the time attached to the same enterprise; it does not carry over from a previous workplace. | Length of service at one enterprise | Annual leave (normal work) | |---|---| | Under 5 years | 12 days | | A full 5 years | 13 days | | A full 10 years | 14 days | | A full 15 years | 15 days | This is an illustration for work under normal conditions; the 14-day and 16-day baseline groups also gain days the same way, one day for every 5 years. ## How is annual leave calculated for less than 12 months of service? An employee who has worked less than 12 months for one employer earns annual leave in proportion to the number of months worked (Article 113(2) of the Labour Code 2019). The method is set out in Article 66(1) of Decree 145/2020/ND-CP: take the annual leave days plus any extra days for length of service (if any), divide by 12, then multiply by the number of months actually worked in the year. For a partial working month, if the employee's total working days and paid leave days make up 50% or more of the ordinary working days in that month, the month counts as 1 month for leave purposes (Article 66(2)). The Labour Code 2019 and Decree 145/2020/ND-CP set no rounding rule for a fractional leave day, so any fraction is settled between the enterprise and the employee in the internal rules or the leave schedule. Article 65 of Decree 145/2020/ND-CP also lists the periods treated as working time for leave purposes, even when the employee is not present at the workplace: - Probation time, if the employee then continues to work for the enterprise - Paid personal leave under Article 115(1) - Sick leave adding up to no more than 2 months in a year - Leave for occupational accidents or diseases adding up to no more than 6 months - Maternity leave taken under social insurance law ## How is unused annual leave paid out on termination in Vietnam? Only on resignation or job loss with leave unused does the employee become entitled to wages for the untaken leave days (Article 113(3) of the Labour Code 2019). The wage used as the basis is the contractual salary of the month immediately preceding the month of resignation or job loss (Decree 145/2020/ND-CP, Article 67(3)); from that figure, the daily leave rate is derived by dividing by the number of ordinary working days in the month under the enterprise's calendar, then multiplying by the number of untaken leave days. The daily leave rate follows the enterprise's actual working calendar, because the law fixes only the numerator — the preceding month's salary — without hard-setting a denominator of 24 or 26 standard working days. Take an example with assumed figures: an employee has 5 leave days left, and the preceding month's contractual salary is VND 13,000,000. | Standard working days on the enterprise's calendar | Daily leave rate | Pay for 5 untaken leave days | |---|---|---| | 26 days | VND 500,000 | VND 2,500,000 | | 24 days | about VND 541,667 | about VND 2,708,000 | The two results differ only because the denominator differs, so the enterprise should state clearly how it determines the month's standard working days in its internal rules or employment contract, to avoid disputes when settling final pay. It is also worth noting a common but outdated understanding: since 1 January 2021, the Labour Code 2019 allows payment for untaken leave only on resignation or job loss, having dropped the "for other reasons" case of the Labour Code 2012. So the claim that "unused leave is always paid out" does not match the law in force. On tax, Article 4(8) of the Personal Income Tax Law No. 109/2025/QH15 classifies "wages and remuneration paid for days of untaken leave under the law" as income exempt from tax; for resident individuals, this applies from the 2026 tax period (Article 29(2)). Article 26(2) of Decree 253/2026/ND-CP makes clear that this exemption applies to pay for days of untaken leave under Article 113(3) of the Labour Code; the portion paid above the rate set by law is counted as taxable income (Article 26(3)). So pay for untaken leave made correctly under Article 113 and Article 67 above is not subject to personal income tax withholding. **See also:** [Severance Pay in Vietnam (2026): Eligibility, Formula and Examples](https://payrollservice.vn/tin-tuc/severance-pay-in-vietnam) ## Which month's salary is the basis for paying unused leave? The wage used to pay for untaken leave days on resignation or job loss is the contractual salary of the month immediately preceding the month in which the employee resigns or loses their job (Decree 145/2020/ND-CP, Article 67(3)). It is not a 6-month average, and it is not the salary of the final month. This must be distinguished from leave days an employee actually takes while still working: that pay uses the contractual salary at the time of the leave (Article 67(2)). Only leave left untaken at the point of termination uses the preceding month's salary (Article 67(3)). Confusing these two reference points is why many spreadsheets produce figures that differ. ## Can unused annual leave be carried over to the next year? The Labour Code 2019 sets no "3-day carry-over cap" for annual leave. The only rule on combining leave is that an employee may agree with the employer to take annual leave in several instalments or to combine it at most once every 3 years (Article 113(4) of the Labour Code 2019). "Combining leave at most once every 3 years" is about how leave is scheduled — pooling up to three years of leave into one block by agreement — not a limit of only 3 days carried into the next year. The employer is responsible for setting the annual leave schedule after consulting employees. The law does not provide that leave is automatically lost if not fully taken within the year; carrying leave into the next year is decided by agreement between the two parties and by the enterprise's internal rules and leave schedule. ## What is the fine for not paying out unused leave on termination (2026)? Failing to pay, or underpaying, wages for untaken leave days when an employee resigns or loses their job is a wage violation under Article 23(2) of Decree 283/2026/ND-CP (in force from 10 September 2026), fined according to the number of affected employees, from VND 5,000,000 to VND 50,000,000 for an individual and double that for an organisation under Article 7(1). | Number of affected employees | Fine for an individual | Fine for an organisation (double) | |---|---|---| | 1–10 employees | VND 5–10 million | VND 10–20 million | | 11–50 employees | VND 10–20 million | VND 20–40 million | | 51–100 employees | VND 20–30 million | VND 40–60 million | | 101–300 employees | VND 30–40 million | VND 60–80 million | | 301 or more employees | VND 40–50 million | VND 80–100 million | So the "VND 100 million" figure is correct only when an organisation offends against 301 or more employees; it is not a flat penalty. Beyond the fine, Article 23(5)(a) requires the enterprise to pay the full wages plus interest calculated at the highest non-term deposit rate published by state-owned commercial banks at the time of the penalty. A separate act — breaching the rules on annual leave, such as not letting employees take their leave — is fined under Article 24(2) of Decree 283/2026/ND-CP: from VND 10,000,000 to VND 20,000,000 for an individual and VND 20,000,000 to VND 40,000,000 for an organisation, a fixed amount not scaled by headcount. The full picture of fines and back-collection under this decree is in [social insurance fines 2026 under Decree 283](/tin-tuc/vietnam-social-insurance-fines-2026-decree-283). ## How does Nhan Kiet finalise leave balances and pay out leave for clients? The hard part of annual leave is not the formula but tracking the leave balance throughout employment and then settling it correctly when the employee leaves. Nhan Kiet keeps each person's leave record on its system; when an employee resigns, it finalises the leave balance and pays out untaken leave under Article 113(3) of the Labour Code 2019 and Article 67(3) of Decree 145/2020/ND-CP, along with closing the social insurance book and completing the exit file. Nhan Kiet has operated since 2009 and is now in its 17th year, under labour sub-leasing Licence No. 15/2019/SHCM (first issued as No. 029/LDTBXH — 2015), serving more than 40,000 workers and more than 500 clients across 34 provinces and cities. A company that wants to move leave tracking, leave-pay calculation and employer responsibilities to a single point of contact can look at [labour compliance services](/labour-compliance/); if only payroll and the exit paperwork for finalising leave are needed, use [payroll outsourcing services](/payroll-outsourcing/). ## Sources - [Labour Code 2019 (No. 45/2019/QH14)](https://luatvietnam.vn/lao-dong/bo-luat-lao-dong-2019-179015-d1.html) — Article 113 (annual leave), Article 114 (length of service); in force from 1 January 2021 - [Decree 145/2020/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=201967) — Articles 65, 66, 67 (time counted for leave, proration, wage for untaken days); in force from 1 February 2021 - [Personal Income Tax Law No. 109/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=216495&classid=1&typegroupid=3) — Article 4(8) (tax exemption for wages paid for days of untaken leave), Article 29 (application from the 2026 tax period); in force from 1 July 2026 - [Decree 253/2026/ND-CP](https://vanban.chinhphu.vn/?classid=1&docid=218684&pageid=27160&typegroupid=4) — Article 26(2) and (3) (exemption of pay for days of untaken leave; the portion above the statutory rate is taxable); in force from 1 July 2026 - [Decree 283/2026/ND-CP](https://congbao.chinhphu.vn/van-ban/nghi-dinh-so-283-2026-nd-cp-470103.htm) — Article 23 (wages), Article 24 (working and rest time), Article 7 (organisations fined double); in force from 10 September 2026 This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Companies that need to finalise leave balances, calculate pay for untaken leave when an employee leaves, or standardise lawful exit paperwork can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Does a Vietnam EOR Create a Permanent Establishment? https://payrollservice.vn/tin-tuc/does-a-vietnam-eor-create-a-permanent-establishment Hiring Vietnamese staff through an EOR that is an independent Vietnamese legal entity does not, in itself, usually create a permanent establishment (PE) for the foreign company. The reason is that the party named as the employer — the one that carries the labour, insurance and tax obligations in Vietnam — is the EOR entity itself, not the foreign parent company. But the conclusion is not absolute: a PE can still arise depending on what the workers actually do and for whom, under the Law on Corporate Income Tax No. 67/2025/QH15 (Article 2(3), in force from 1 October 2025) and Circular 95/2026/TT-BTC guiding double taxation agreements (Article 14(2), in force from 1 July 2026). This article is written for foreign companies weighing up whether to hire staff in Vietnam through an EOR, and for their tax and legal teams. It reflects the texts in force up to September 2026 and sets out the cases in which an EOR arrangement can still give rise to a PE; this is general legal information, not a substitute for tax advice on a specific situation. ## How is a permanent establishment (PE) defined in Vietnam? A permanent establishment in Vietnam has two definitions that must be kept apart. The domestic-law layer sits in Article 2(3) of the 2025 CIT Law (No. 67/2025/QH15): a permanent establishment is a production or business establishment through which a foreign enterprise carries out part or all of its activities in Vietnam, grouped into six categories a to e, in which the service-supplying establishment carries no day threshold. The second layer comes from the double taxation agreement — Circular 95/2026/TT-BTC, Article 14(2) — which applies only to enterprises resident in a country that has signed an agreement with Vietnam, and is narrower: there must be a fixed place of business, or the supply of services for more than 183 days in any 12 months, or a dependent agent. | Definition layer | Legal basis | Time threshold | Applies to | |---|---|---|---| | Domestic law | 2025 CIT Law (67/2025/QH15), Article 2(3) | No day threshold for a service-supplying establishment | Every foreign enterprise | | Tax treaty (DTA) | Circular 95/2026/TT-BTC, Article 14(2) | A service establishment must exceed 183 days in any 12 months | Only enterprises resident in a country that has signed an agreement with Vietnam | Domestic law lists six categories of permanent establishment: - a) A branch, operating office, factory, workshop, means of transport, mine, oil or gas field, or other place of resource extraction. - b) A building site, or a construction, installation or assembly project. - c) A service-supplying establishment, including consultancy services, provided through employees or through other organisations or individuals. - d) An agent for the foreign enterprise. - đ) A representative in Vietnam who has authority to sign contracts in the name of the foreign enterprise, or a representative without signing authority who regularly delivers goods or supplies services in Vietnam. - e) An e-commerce platform or digital platform. The point that matters for the EOR model is point (c), which reads in full: "A service-supplying establishment, including consultancy services, provided through employees or through other organisations or individuals." Because domestic law sets no day threshold for a service establishment, it is wrong for many sources to apply a hard 183-day mark to every case — 183 days is only the treaty rule. The 2025 CIT Law took effect on 1 October 2025 and replaced the 2008 CIT Law, so the current basis is the 2025 version. ## Does hiring Vietnamese staff through an EOR create a PE for the foreign company? Hiring Vietnamese staff through an EOR that is a Vietnamese legal entity usually does not by itself create a permanent establishment for the foreign company, because the EOR entity — not the parent company — is the party that signs the employment contract, pays the insurance and files the tax, so the workers belong to the EOR entity rather than to an office or representative of the parent in Vietnam. The tax treaty states plainly that one company controlling or being controlled by another "shall not of itself make either company a permanent establishment of the other" (Article 14(2) of Circular 95/2026/TT-BTC). Even so, the conclusion is not absolute and depends on what the workers actually do. Two things must be told apart. Having no permanent establishment does not mean having no tax obligation: under Article 2(2) of the 2025 CIT Law, a foreign enterprise without a permanent establishment in Vietnam still pays tax on taxable income arising in Vietnam. In other words, the PE question decides how tax is charged and the scope of income taxed, not whether a tax obligation exists at all. If you are not yet clear on how the EOR model works, see [what an EOR is and how it works in Vietnam](/tin-tuc/what-is-an-eor-employer-of-record-in-vietnam-explained). ## When can an employee's activity in Vietnam still create a PE even with an EOR? An EOR arrangement can still give rise to a permanent establishment for the parent company in three main groups of situation, whoever is named on the employment contract, because the dividing line is what the worker actually does rather than the EOR label. Those three groups are: - Workers in Vietnam supply the parent company's services directly to customers in Vietnam. Under domestic law (Article 2(3)(c) of the 2025 CIT Law) this is a service establishment with no day threshold; under the treaty it becomes a service permanent establishment once it exceeds 183 days in any 12 months. - The parent company has a fixed place of business in Vietnam — an office or premises through which it carries out its activities — even where the staff there are hired by the EOR. This is a permanent establishment on the fixed-place basis (Article 2(3)(a); Article 14(2) of Circular 95/2026/TT-BTC). - A worker has authority to, or regularly does, negotiate and sign contracts in the name of the parent company — the case of a representative or dependent agent, set out in the next section. On the other side, the treaty lists activities that do not create a permanent establishment, such as use solely for storage or display of goods, or solely to carry on preparatory or auxiliary activities (Article 14(2)(c) of Circular 95/2026/TT-BTC). Because the line depends on the real situation, a foreign company should review its specific model with a tax adviser before drawing a conclusion. ## Does an employee with authority to sign contracts for the parent create a dependent agent? It can. Both domestic law and the treaty treat a person who regularly negotiates and signs contracts in the name of a foreign enterprise as a sign of a permanent establishment through a representative or dependent agent. Under Article 14(2) of Circular 95/2026/TT-BTC, an enterprise that has in Vietnam an agent devoting all or most of its activity to that enterprise (a dependent agent), or a person with "authority to habitually negotiate and conclude contracts in the name of that enterprise", is treated as having a permanent establishment. Domestic law says the same at Article 2(3)(đ) of the 2025 CIT Law. For the EOR model, the operational point is this: if a worker only performs internal professional work for the foreign company and is not given power to sign or bind contracts in the name of the parent, that activity does not fall into the "representative with signing authority" branch. This is something to design into the scope of work stated in the contract, not a given that holds in every case, so each position still needs to be reviewed against what actually happens. ## How does an EOR differ from setting up your own entity on PE risk and setup time? The core difference is who is present in Vietnam. When you set up your own entity — a subsidiary or a wholly (100%) foreign-owned company — that entity is itself a tax resident in Vietnam and pays corporate income tax in full; it is a taxable presence you deliberately create. With an EOR, an existing Vietnamese legal entity is named as the employer, so the model does not by itself create a fixed presence for the parent company, and staff start work in 5 to 7 working days rather than the 2 to 6 months it takes to set up an entity. Circular 95/2026/TT-BTC also notes that the relationship of ownership or control between the foreign parent and the Vietnamese entity does not by itself create a permanent establishment for either side; the parent is treated as having a permanent establishment through that joint-venture or 100% foreign-owned enterprise only where one of the three conditions in point (d) of Article 14(2) is met — that entity habitually signs contracts in the name of the parent, habitually acts as a delivery agent for the parent, or the parent has the right to dispose of the entity's facilities and equipment on other than arm's-length terms. Comparing the cost of the two options is outside the scope of this article — see the fee structure and the items a company must budget for on the [EOR services in Vietnam](/eor-vietnam/) page. ## Who is liable for PIT and insurance when hiring Vietnamese staff through an EOR? For a Vietnamese worker hired through an EOR run by a Vietnamese legal entity, that entity is the employer on record, so the EOR entity withholds, declares and finalises personal income tax and pays social insurance, health insurance, unemployment insurance and occupational-accident and occupational-disease insurance on the salary used as the contribution base. The foreign company does not have to register as an employer, register for insurance or file personal income tax in Vietnam itself. This is very easily mixed up with the PE question, so the two subjects and the two kinds of tax must be kept apart. The personal income tax and insurance above are the obligation of each individual Vietnamese worker, handled by the EOR entity; the permanent establishment and corporate income tax in the sections above are the parent company's story. If you are weighing the two service models, see [how EOR and PEO differ](/tin-tuc/eor-vs-peo-in-vietnam-2026-which-model-should-you-choose). ## How does the double taxation agreement affect PE risk? A double taxation agreement applies only to an enterprise that is a resident of a country that has signed an agreement with Vietnam, and it generally narrows the scope of a permanent establishment compared with domestic law: there must be a fixed place of business, or the supply of services for more than 183 days in any 12 months, or a dependent agent or a representative with authority. For an enterprise in a country with no agreement with Vietnam, only the domestic definition applies — which is wider, because a service establishment carries no day threshold. One frequent confusion to correct: the 183-day treaty threshold is used to establish a company's service permanent establishment, which concerns corporate income tax, and is entirely different from the 183-day mark used to decide whether an individual is a tax resident for personal income tax. The two marks share the same number but concern different subjects and different taxes. The time threshold for a permanent establishment can differ from one bilateral agreement to another, so the applicable agreement must be checked rather than relying on a single common figure. How an individual tax residence is determined is covered in [PEO services in Vietnam](/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it). ## How does Nhan Kiet act as the legal employer when you use an EOR? Nhan Kiet — Nhan Kiet Manpower Supply Company Limited, tax code 0308022768 — is the Vietnamese legal entity named as the employer on the employment contract with the Vietnamese worker, so it is Nhan Kiet that bears the labour relationship in Vietnam, not your parent company abroad. Because Vietnam has no dedicated law for an "employer of record", Nhan Kiet runs EOR through two statutory frameworks and settles which one applies before signing: - Labour sub-leasing: the worker signs a contract with Nhan Kiet but works under your direct management — the true sense of international EOR. This framework requires a labour sub-leasing licence; Nhan Kiet holds Licence No. 15/2019/SHCM (first issued as No. 029/LDTBXH — 2015), and the law limits it to 20 jobs in Appendix II of Decree 145/2020/ND-CP, up to 12 months per person (Article 53 of the Labour Code 2019). - Service contract under the Commercial Law: Nhan Kiet arranges, manages and is responsible for the result, with no limit on the list of work and no time limit. Because a Vietnamese legal entity is named as the employer and bears the labour relationship in Vietnam, the workers belong to Nhan Kiet rather than to an office or representative of the parent — the core PE argument set out in the sections above, though the final conclusion still depends on the actual work. Nhan Kiet is the entity that holds the licence and does not sub-contract this part out. To understand the line between labour sub-leasing and labour supply, see [how labour outsourcing and labour dispatch differ](/tin-tuc/labor-outsourcing-vs-labor-dispatch-what-s-the-difference); to run proper due diligence before choosing a provider, see [how to choose an Employer of Record in Vietnam](/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist). ## Sources - [Law on Corporate Income Tax No. 67/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=214607) — Article 2(3) (definition of permanent establishment, six categories a–e), Article 19 (effect); in force from 1 October 2025, replacing the Corporate Income Tax Law 2008 - [Circular 95/2026/TT-BTC guiding double taxation agreements](https://luatvietnam.vn/thue/thong-tu-95-2026-tt-btc-huong-dan-hiep-dinh-tranh-danh-thue-hai-lan-va-ngan-ngua-tron-thue-439970-d1.html) — Article 14(2) (permanent establishment under the treaty), Article 84 (effect, replacing Circular 205/2013/TT-BTC); in force from 1 July 2026 - [Labour Code 2019 (No. 45/2019/QH14)](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) — Articles 52–57 (labour sub-leasing), Article 53 (up to 12 months per person); in force from 1 January 2021 This article summarises the rules for orientation; specific situations need individual tax advice. ## Contact us Foreign companies that need to assess permanent establishment risk when hiring staff in Vietnam through an EOR can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Hiring Seasonal Workers in Vietnam 2026: Rules and Options https://payrollservice.vn/tin-tuc/hiring-seasonal-workers-in-vietnam-2026-rules-and-options Hiring seasonal workers in Vietnam is still legal in 2026, but since 1 January 2021 there is no longer a separate "seasonal contract": a company that brings people in for a peak season does so through one of three lawful routes — signing short fixed-term employment contracts itself, outsourcing the work as a service, or sub-leasing labour through a licensed provider. This article is written for factory directors, HR managers and accountants who need extra headcount for holidays and Tet, order surges or short projects, and it reflects the rules in force to September 2026. **Updated 12 October 2026:** added the limit on signing consecutive seasonal contracts and when a contract of under 1 month can be made orally. ## Can a company still sign a seasonal contract in 2026? No — there is no "seasonal labour contract" as a separate type any more. Since 1 January 2021, when the Labour Code 2019 (No. 45/2019/QH14) took effect, only two types of employment contract remain: indefinite-term, and fixed-term of no more than 36 months (Article 20(1)). Seasonal work can still be staffed lawfully, but it is done with a short fixed-term employment contract, not a "seasonal contract". The Labour Code 2019 defines a fixed-term contract as one in which "the two parties fix the term and the time of termination of the contract for a period not exceeding 36 months". So when someone talks about "signing a 3-month seasonal contract", in substance that is a 3-month fixed-term employment contract. This change dates from 2021, not from any new 2026 rule — many older guides still wrongly use the phrase "seasonal contract". For seasonal work of under 12 months, a group of workers aged 18 or over may authorise one person in the group to enter into a single employment contract on the group's behalf; the contract must still be in writing, with a list and the signature of each person attached (Article 18(2) of the Labour Code 2019). ## Do you have to pay social insurance for seasonal workers? Yes, if two conditions are both met. A seasonal worker on an employment contract of one month or more is subject to compulsory social insurance; for a part-time worker, coverage arises only where there is both a contract of one month or more and a monthly wage equal to or above the reference level (VND 2,530,000 per month from 1 July 2026). This obligation has applied since 1 July 2025, the date the Law on Social Insurance 2024 (No. 41/2024/QH15) took effect. Who pays depends on how the labour is mobilised. If you hire through a licensed supply or sub-leasing provider, that provider is the employer, signs the contract and pays the insurance; if your company signs the employment contract itself, your company pays. From 1 January 2026, a worker on an employment contract of one month or more is also covered by unemployment insurance (Law on Employment 2025, No. 74/2025/QH15, Article 31). The full cost picture and three ways to handle part-time staff are in [compulsory social insurance for part-time workers in 2026](/tin-tuc/compulsory-social-insurance-for-part-time-workers-in-2026-the-real-cost-to-busin). ## Do you have to withhold 10% personal income tax from seasonal workers' pay? Yes, when the worker has no contract or an employment contract of under 3 months and each payment is VND 5 million or more: the payer must withhold 10% of the income before paying it (Article 50(2) of Decree 253/2026/ND-CP, in force from 1 July 2026). The threshold is now VND 5 million per payment; the earlier rule under Circular 111/2013/TT-BTC used VND 2 million. For payments below VND 5 million, the 10% is withheld only if the worker asks for it. If this is the worker's only income and their estimated taxable income for the year after family deductions stays below the taxable level, they can give the payer a written commitment so that tax is temporarily not withheld; at year end the payer must still compile a list of these workers and their income and file it with the tax authority. Workers on contracts of 3 months or more are taxed under the progressive schedule, like regular staff. ## How many legal ways are there to mobilise peak-season labour? There are three lawful routes, differing on three points: who signs the employment contract, who pays insurance, and who directs the daily work. First, sign short fixed-term contracts yourself — your company is the employer, pays the insurance and directs the work. Second, outsource the work or contract it out under a service contract — the provider recruits, pays wages, pays insurance and runs its own team, while you buy the result. Third, sub-lease labour — only through a licensed enterprise, where the worker is directed by the hirer but keeps the employment relationship with the leasing company, applies only to certain jobs, and runs for no more than 12 months. | Model | Who signs the employment contract | Who pays social insurance | Who directs daily work | Legal limit | Best for a peak season when | |---|---|---|---|---|---| | Short fixed-term contract signed yourself | The company | The company | The company | Fixed-term employment contract of up to 36 months; must be in writing if one month or more | You need few people, can manage them yourself and want full control | | Service outsourcing / contracted work | The provider | The provider | The provider | Service contract under the Commercial Law; must be genuine contracted work | You hand over a whole stage such as loading, packing or cleaning; paid by output | | Labour sub-leasing | The leasing company | The leasing company | The hirer (your company) | 20 jobs in Appendix II of Decree 145/2020; up to 12 months; provider posts a VND 2 billion deposit | The role is on the list and you need people under your direction for a short time | The table is ordered around peak-season mobilisation. The conceptual difference between labour supply and labour sub-leasing — including the signs of "disguised sub-leasing" — is analysed in [how labour outsourcing and labour dispatch differ](/tin-tuc/labor-outsourcing-vs-labor-dispatch-what-s-the-difference). ## When can you sub-lease seasonal workers through a licensed enterprise? Only when three conditions are met at the same time. One, the job must be among the 20 jobs listed in Appendix II of Decree 145/2020/ND-CP. Two, it must fall within one of the three cases the law allows, which include "temporarily meeting a sudden surge in the demand for labour" — precisely the peak-season situation (Article 53(2) of the Labour Code 2019). Three, the sub-leasing term for each worker is no more than 12 months (Article 53(1) of the Labour Code 2019), and it must go through a licensed sub-leasing enterprise that has posted a VND 2 billion deposit (Article 21(2) of Decree 145/2020/ND-CP). This is an easy point to get wrong: the Appendix II list is specific jobs such as interpreting, secretarial work, reception, sales support, operating and repairing specialised machinery, building and factory cleaning, security, driving, and certain maritime, oil-and-gas and aviation occupations — it does not include direct production workers or general factory labour. For roles outside the list, the correct model is service outsourcing or labour supply, where the supplier is named as the employer, not sub-leasing. The job groups in the [list of 20 jobs eligible for sub-leasing](/tin-tuc/labor-supply-in-2026-choosing-the-right-provider-and-avoiding-legal-risk) and how to match each role against it are set out in the in-depth article. The two remaining sub-leasing cases are replacing someone on maternity leave, injured at work, with an occupational disease or performing citizen duties, and cases where highly qualified, technical labour is needed. A company should match each role against the list before choosing a model. ## What contract, records and procedures do you need to hire seasonal workers? A written employment contract is mandatory for work lasting one month or more. The contract must contain the main terms required by Article 21 of the Labour Code 2019: the work and workplace, the term, the wage and method of payment, working and rest hours, social — health — unemployment insurance, and labour protection. Entering into work of one month or more without a written contract is a punishable act (Article 15 of Decree 283/2026/ND-CP). The sequence comes down to a checklist: - Choose the right mobilisation model (sign yourself, outsource the service, or sub-lease) for each role. - Sign a written employment contract with the required main terms; a seasonal group of under 12 months may authorise one person to sign for the whole group, with a name list attached. - Report the headcount increase, pay insurance under the correct category, and declare and withhold personal income tax as required. - Provide occupational safety and hygiene training before workers enter the floor. - For sub-leasing: check the licence is still valid, sign a written sub-leasing contract (Article 55 of the Labour Code 2019) and agree responsibility for compensating occupational accidents and diseases. The specific penalties for each contract and insurance breach — including disguised sub-leasing or using workers from an unlicensed provider — are set out in [social insurance penalties and back-collection in 2026 under Decree 283](/tin-tuc/vietnam-social-insurance-fines-2026-decree-283). ## What does the cost of one seasonal worker include? The real cost includes several items beyond wages and can be split by who bears it. On the company side: a wage no lower than the applicable regional minimum wage, the employer's compulsory insurance share of 21.5% of the wage used as the contribution base, and 2% trade-union funding — a total of 23.5% on the employer side. The worker bears 10.5%, deducted from wages. On top of this are recruitment, health checks, rules and safety training, and uniforms; hiring through a provider adds a service fee. | Item | Borne by | Note | |---|---|---| | Wage | The company or the supplier | No lower than the regional minimum wage | | Employer's compulsory insurance share (21.5%) | The employer | On the wage used as the contribution base | | Trade-union funding (2%) | The employer | Added to 21.5%, making 23.5% | | Worker's insurance share (10.5%) | The worker | Deducted from wages | | Recruitment, health checks, training, uniforms | The company or the supplier | By agreement | | Service fee (when hiring through a provider) | The company | Shown on the statement and invoiced | The regional minimum wage in force from 1 January 2026 under Decree 293/2025/ND-CP is VND 5,310,000 per month in Region I, VND 4,730,000 in Region II, VND 4,140,000 in Region III and VND 3,700,000 in Region IV. The wage used as the insurance contribution base is capped at VND 50,600,000 per month from 1 July 2026. An item often missed in internal budgeting is the insurance and trade-union funding for the seasonal group itself — multiplied across a few dozen people it is a very different figure from the first estimate; who pays the 2% trade-union funding, how much and where is covered in [trade-union funding of 2%](/tin-tuc/trade-union-funding-2-percent), while converting gross to net pay and the insurance base is covered in [how to calculate payroll in 2026](/tin-tuc/how-to-calculate-payroll-in-2026-for-businesses-gross-to-net-social-insurance-an). Peak seasons often fall on holidays and Tet and easily bring overtime: the number of fully paid public holidays and the 2026–2027 holiday calendar are in [Vietnam public holidays 2026–2027: 12 days and pay](/tin-tuc/vietnam-public-holidays-2026-2027-12-days-and-pay), and how overtime pay and the 2026 overtime caps work is in [overtime, night and holiday pay in Vietnam 2026](/tin-tuc/overtime-night-and-holiday-pay-in-vietnam-2026). **See also:** [Vietnam Minimum Wage 2026: Regional Rates, Hourly Rates and 2027](https://payrollservice.vn/tin-tuc/vietnam-minimum-wage) ## How do you correctly account for the cost of hiring seasonal workers? The cost of hiring seasonal workers is deductible for corporate income tax if it is an actual expense related to production and business, supported by full invoices and documents, and paid by non-cash means as required (Article 9(1) of the Law on Corporate Income Tax 2025, No. 67/2025/QH15). Missing any of these, the expense risks being disallowed at finalisation. In practice the records differ by model. Hiring through a provider needs a service contract, a VAT invoice and a statement. Signing short employment contracts yourself needs the employment contracts, payroll, wage payment documents, and proof of insurance and tax paid. Complete labour and insurance records are exactly what keeps wage costs from being disallowed when the tax authority reviews them. On the personal income tax of seasonal workers, the company or the supplier named as the employer withholds before payment — at 10% or under the progressive schedule depending on contract length, as set out in the 10% withholding section above — and finalises it annually. ## Can a business sign consecutive seasonal contracts with the same worker in Vietnam? No — a business may sign only one further fixed-term employment contract; if the worker keeps working after the second contract, an indefinite-term contract must be signed (Article 20(2)(c) of the 2019 Labour Code). The rule applies to short contracts signed for seasonal work too, so three consecutive 3-month contracts with the same person breach the law: - If a contract expires and the worker keeps working, the parties must sign a new contract within 30 days; until they do, rights and obligations follow the old contract. - If no new contract is signed within 30 days, the expired fixed-term contract becomes an indefinite-term contract. - Exceptions that may sign repeated fixed-term contracts are older workers, foreign workers, people hired as director of an enterprise with state capital, and members of the leadership of the employee representative organisation during their term (Article 20(2)(c)). For needs that recur every year, the safe route is to mobilise workers through a licensed labour supply or labour sub-leasing provider rather than chaining short contracts with the same person. ## Does an employment contract of under 1 month have to be in writing? An employment contract of under 1 month may be made orally (Article 14(2) of the 2019 Labour Code), except in three cases that still require writing: a group of seasonal workers authorising one person to sign for the whole group (Article 18(2)), workers under 15 (Article 145(1)(a)) and domestic workers (Article 162(1)). A contract of 1 month or more must always be in writing. Even when the agreement is oral, the business should keep a list of workers, timesheets and payment records for each person, because they support the 10% personal income tax withholding on payments of VND 5,000,000 or more each time and serve as evidence if the authorities ask. ## How does Nhan Kiet mobilise peak-season labour for clients? The key to peak-season mobilisation is choosing the right model for each role. For roles on the sub-leasing list, Nhan Kiet operates under labour sub-leasing Licence No. 15/2019/SHCM (first issued as No. 029/LDTBXH — 2015); for roles outside the list — mostly production workers — Nhan Kiet is named as the employer through labour supply or full contracted work. In both directions, the employment relationship, the social — health — unemployment insurance obligations and personal income tax withholding are all handled by Nhan Kiet as the employer, and the client simply receives workers onto the shift. Nhan Kiet Manpower Supply Company Limited (tax code 0308022768) was founded in April 2009 and is now in its 17th year, holds ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022 certification, and currently has more than 40,000 workers on assignment, more than 500 clients across 34 provinces and cities and a recruitment pool of more than 2 million candidates. Its three forms of cooperation — regular supply, seasonal peak supply and full turnkey contracting — are set out on the [manpower supply service](/manpower-supply/) page, suited to peak seasons around holidays and Tet, order surges or short projects. Nhan Kiet has supplied labour for large-scale projects such as Viettel (more than 10,000 workers), Saigon Stec (more than 2,000), Vinataba and Aldila (more than 1,000 each), LG Electronics Hai Phong (more than 700), and Samsung SEHC and Masan (more than 600 each) — these are results already delivered. The decisive step before signing is to match the client's roles against the Appendix II list of Decree 145/2020 and settle the appropriate contract form. ## Sources - [Labour Code 2019 (No. 45/2019/QH14)](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) — Articles 18, 20, 52–57; in force from 1 January 2021 - [Law on Social Insurance 2024 (No. 41/2024/QH15)](https://xaydungchinhsach.chinhphu.vn/toan-van-luat-so-41-2024-qh15-bao-hiem-xa-hoi-119240723163650489.htm) — Article 2 on covered persons and part-time workers; in force from 1 July 2025 - [Decree 145/2020/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=201967) — Appendix II, 20 sub-leasing jobs, Article 21 on the deposit; in force from 1 February 2021 - [Decree 283/2026/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=218871) — Articles 7, 15, 19; in force from 10 September 2026, replacing Decree 12/2022/ND-CP - [Law on Corporate Income Tax 2025 (No. 67/2025/QH15)](https://vanban.chinhphu.vn/?pageid=27160&docid=214607) — Article 9 on deductible-expense conditions; in force from 1 October 2025 - [Law on Employment 2025 (No. 74/2025/QH15)](https://vanban.chinhphu.vn/?pageid=27160&docid=214560) — Article 31 on persons covered by unemployment insurance; in force from 1 January 2026 - [Decree 253/2026/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=218684) — Article 50(2) on 10% withholding; in force from 1 July 2026, replacing Decree 65/2013/ND-CP This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Companies that need to mobilise seasonal workers for a peak season while staying within the law can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Payroll Outsourcing Cost in Vietnam 2026: Price per Employee https://payrollservice.vn/tin-tuc/payroll-outsourcing-cost-in-vietnam-2026-price-per-employee **Payroll outsourcing in Vietnam costs from about USD 10 to USD 80 per employee per month on the prices providers publish, as of September 2026. Global payroll platforms list USD 20–29: Multiplier from USD 20, RemotePeople from USD 25, and Remote and Papaya Global from USD 29, before setup and delivery fees. Local boutique firms charge USD 15–40 and regional specialists USD 40–80 in Bestar Asia's range, while Big-4 firms set monthly minimums above USD 2,000. Deel, ADP and G-P quote only on request. Nhan Kiet lists VND 250,000–900,000 (about USD 10–35) with no setup fee.** | Payroll outsourcing cost in Vietnam (September 2026) | Published price per employee per month | |---|---| | Nhan Kiet | VND 250,000–900,000 (about USD 10–35), no setup fee | | Global platforms (Multiplier, RemotePeople, Remote, Papaya Global) | From USD 20–29, plus setup or delivery fees at some | | Local boutique firms (Bestar Asia range) | USD 15–40 | | Regional specialists (Bestar Asia range) | USD 40–80 | | Big-4 advisory firms | Monthly minimum above USD 2,000 | This guide compares the payroll prices that providers publish for Vietnam, from local firms to global payroll platforms, and sets out the pricing models, the fees that are easy to miss, how VAT applies, and when outsourcing costs less than an in-house payroll accountant. **Quick summary (September 2026):** - Typical model: a fee per employee on each month's payroll, sometimes with a base fee, a monthly minimum or annual billing. - Global platforms: Multiplier from USD 20, RemotePeople from USD 25, Remote and Papaya Global from USD 29 per employee per month; Deel, ADP, G-P and others quote on request. - Local market: USD 15–40 (boutique) and USD 40–80 (regional) in Bestar Asia's range; Nhan Kiet VND 250,000–900,000 (about USD 10–35). - Fees to check: setup or implementation, payroll delivery fees, expatriate surcharges, per-person tax finalisation, off-cycle runs and currency costs. - VAT: 8% on the service fee only for payroll, against the whole invoice for EOR. ## How much does payroll outsourcing cost in Vietnam in 2026? Payroll outsourcing in Vietnam costs about USD 10–80 per employee per month on published prices, before VAT and setup fees; Big-4 firms charge a monthly minimum instead. Where a company lands in that range depends on five things: - **Type of provider:** local firms and global platforms sit at the lower end, regional specialists higher, and Big-4 advisers charge minimums that suit only large payrolls. - **Headcount:** per-employee prices fall as headcount rises; RemotePeople, for example, offers volume discounts from 50 employees. - **Complexity of pay rules:** shift work, piece rates, attendance bonuses and several pay dates take more work each cycle. - **Foreign employees:** tax residency, exempt allowances and annual finalisation are often charged extra. - **Currency and billing terms:** global platforms price in US dollars and some bill annually; Vietnamese providers invoice in dong. The sections below give each provider's published price, the fees that come on top, and what 50 employees would cost with each type of provider. ## What do global payroll platforms like Deel, Remote, Papaya and Multiplier charge for Vietnam? Five global platforms publish a payroll price that applies to Vietnam, all in US dollars and all as a starting price. Global payroll here means the platform runs payroll for your own Vietnamese entity; it is not Employer of Record. Each price was read on the provider's own pricing page on 25 September 2026. | Provider | Payroll product | Published price | Vietnam | |---|---|---|---| | Multiplier | Global Payroll | From USD 20 per employee per month, billed annually; setup, implementation, payment and statutory fees "as applicable" | Vietnam country guide | | RemotePeople (formerly Horizons) | Global Payroll | From USD 25 per employee per month; volume discounts from 50 employees | Dedicated Vietnam payroll page | | Remote | Payroll | USD 29 per employee per month, plus an implementation fee and a recurring payroll delivery fee (amounts not published) | Payroll price shown on its Vietnam page | | Papaya Global | Payroll Plus | From USD 29 per employee per month | Vietnam country guide | | Borderless AI | Global Payroll | USD 29 a month as listed; the per-employee basis is not stated | Payroll listed for Vietnam | Deel, ADP, G-P, Safeguard Global, CloudPay, Skuad and Pebl (formerly Velocity Global) list Vietnam among their countries but publish no payroll price; each quotes after a demo. Playroll publishes from USD 10 per employee with minimums, but Vietnam is not on its list of payroll countries. The same platforms charge far more for Employer of Record, USD 459–699 per employee a month on Multiplier's, Papaya Global's and Remote's pricing pages, because the provider then becomes the legal employer. ## What do local firms, regional specialists and Big-4 advisers charge? Local and regional providers in Vietnam rarely publish a rate card, so the market range comes from a handful of sources. Bestar Asia, a regional provider, publishes the bands for Vietnam shown below. | Provider type (Bestar Asia) | Pricing model | Published price | |---|---|---| | Local boutique firms | Per employee per month | USD 15–40 | | Regional specialists | Per employee per month | USD 40–80 | | Big-4 advisory firms | Monthly minimum | USD 2,000+ per month | | Teams of 1–10 employees | Flat monthly retainer | USD 150–300 per month | Vina TPT, an accounting firm serving small FDI companies, lists packages of VND 4–15 million a month. The 2026 roundup of ten Vietnamese payroll providers by terra, which includes Acclime, ADP, PwC, InCorp, Manpower, Talentnet and BDO, gives no prices at all and advises readers to request a quote. Nhan Kiet publishes VND 250,000–900,000 (about USD 10–35) per employee per month, with its full rate card in the [payroll service pricing guide](https://payrollservice.vn/tin-tuc/payroll-service-pricing-in-vietnam-2026-what-the-fee-covers). ## Which pricing models do providers use: PEPM, base fee, retainer or minimum? Four pricing models cover almost every payroll quote in Vietnam: - **Per employee per month (PEPM):** one rate multiplied by the headcount on each month's payroll. Cost rises and falls with headcount. Most global platforms and many local firms use this model. - **Base fee plus PEPM:** a fixed monthly platform or account fee on top of the per-employee rate, which weighs heavily on small teams. - **Flat retainer:** a fixed monthly amount for very small teams, common with accounting firms that bundle payroll with bookkeeping and tax filing. - **Monthly minimum:** large advisory firms set a floor, so a 20-person payroll can cost as much as a 100-person one. Global platforms add two variations: annual billing (Multiplier's USD 20 rate is billed annually) and a recurring delivery fee on top of the per-employee rate (Remote). Nhan Kiet uses a pure per-employee model with no base fee and no setup fee, invoiced in Vietnamese dong. ## Which hidden costs push the real price up? The costs most often left out of a headline payroll price in Vietnam are setup, expatriate surcharges and tax finalisation. Ask every provider for these in writing: - **Setup or implementation:** Bestar Asia puts this at about one month's fees. - **Expatriate surcharge:** an extra USD 20–50 per foreign employee per month in Bestar Asia's range, because tax residency and tax-exempt allowances need extra tracking. - **Annual tax finalisation:** about USD 50–100 per foreign employee in the same range. - **Off-cycle runs:** a separate charge each time an extra payroll run is needed. - **Monthly minimums and base fees:** they change the real per-employee price for small teams. - **Platform fees on global payroll:** Remote adds an implementation fee and a recurring payroll delivery fee to its USD 29 rate; Multiplier adds setup, implementation, payment and statutory fees "as applicable"; Playroll applies minimums. - **Currency and cross-border costs:** global platforms price in US dollars, so exchange-rate movements and international transfer fees add to the bill, and payments to an overseas provider may be subject to foreign contractor tax withheld by your company. - **Other add-ons:** HR1 Vietnam lists data processing, compliance update, system integration and after-hours support fees as common extras. ## What would 50 employees cost across provider types? At 50 employees, the monthly service fee runs from about USD 500 to USD 4,000 or more depending on the type of provider, before VAT and one-off setup fees. Each line multiplies the published per-employee price by 50. | Provider or category | Price used | Monthly fee for 50 employees | |---|---|---| | Nhan Kiet | VND 250,000–900,000 | VND 12.5–45 million (about USD 500–1,750) | | Multiplier | From USD 20, billed annually | From USD 1,000 (about VND 26.3 million) | | RemotePeople | From USD 25 | From USD 1,250 (about VND 32.8 million) | | Remote or Papaya Global | From USD 29 | From USD 1,450 (about VND 38.1 million), plus Remote's implementation and delivery fees | | Local boutique firms | USD 15–40 | USD 750–2,000 (about VND 19.7–52.5 million) | | Regional specialists | USD 40–80 | USD 2,000–4,000 (about VND 52.5–105 million) | | Big-4 advisory firms | Monthly minimum | Above USD 2,000 (about VND 52.5 million) | Published starting prices are a floor, not a quote: volume discounts, expatriate surcharges and setup fees move every figure. Nhan Kiet's own monthly invoice at 20, 50, 100 and 200 employees is set out in its [payroll service pricing guide](https://payrollservice.vn/tin-tuc/payroll-service-pricing-in-vietnam-2026-what-the-fee-covers). ## Which questions reveal the true scope of a quote? Two quotes at the same headline price can cover very different work. Ten questions put every offer on the same footing: - Is the rate charged on the actual headcount each month, or on a contracted minimum? - Is there a setup, implementation or onboarding fee, and how much? - Does the fee include social, health and unemployment insurance reporting, or only the salary calculation? - Does it include personal income tax filing and annual finalisation for every employee? - Are foreign employees charged at a higher rate? - Who processes raw time-clock data and matches shifts, including night shifts past midnight? - Are off-cycle runs, final pay for leavers and bonus runs included? - Is the invoice in Vietnamese dong or in a foreign currency, and who bears the exchange cost? - Is VAT charged on the service fee only? - What reconciliation does the provider hand over each cycle, and who approves payroll before it is paid? Nhan Kiet answers each of these questions in writing in its quote; its own answers are set out in the [payroll service pricing guide](https://payrollservice.vn/tin-tuc/payroll-service-pricing-in-vietnam-2026-what-the-fee-covers). ## Why is VAT on payroll lower than on EOR? VAT on payroll outsourcing in Vietnam applies to the service fee only, at 8% until 31 December 2026 under Resolution 204/2025/QH15. Salaries, insurance contributions and personal income tax stay outside the provider's invoice, because under a payroll service your company remains the employer and pays those amounts itself from the files the provider prepares. Under an Employer of Record, the provider is the legal employer, so VAT applies to the whole invoice: gross salary, employer contributions, trade union fee and service fee together. This is the main reason payroll outsourcing and EOR prices cannot be compared line by line. ## When is an in-house payroll accountant cheaper? An in-house payroll accountant becomes cheaper than outsourcing only above a certain headcount, and even then companies often outsource for accuracy and continuity rather than price. A bilingual payroll accountant in Vietnam earns about VND 15–25 million a month, according to Vina TPT. Adding the 23.5% employer contributions (21.5% social, health and unemployment insurance plus the 2% trade union fee) brings the employer cost to about VND 18.5–30.9 million a month, before software and cover for leave. At an outsourced rate of VND 250,000 per employee, that budget covers payroll for about 74–124 employees. Below that range, outsourcing is usually cheaper. Above it, companies outsource for three reasons: rules applied correctly, zero-variance reconciliation, and no dependence on one person. A fuller comparison is in our guide to [in-house or outsourced payroll](https://payrollservice.vn/tin-tuc/in-house-or-outsourced-payroll-a-2026-comparison-for-businesses). ## Payroll outsourcing, labour compliance or EOR: which cost model fits? Payroll outsourcing applies when your company already has a Vietnamese legal entity and employs its staff directly; an Employer of Record applies when it does not. The three models are priced on different bases. | Service | Legal employer | Fee basis | 8% VAT applies to | |---|---|---|---| | Payroll outsourcing | Your company | Per employee per month; Nhan Kiet VND 250,000–900,000 (about USD 10–35) | Service fee only | | [Labour compliance](https://payrollservice.vn/labour-compliance/) | Nhan Kiet | Per employee, quoted case by case | Whole invoice | | [Employer of Record](https://payrollservice.vn/eor-vietnam/) | Nhan Kiet, for companies with no Vietnamese entity | 8% of gross salary, floor VND 2,600,000, cap VND 5,200,000 per employee per month | Whole invoice | The full cost of an EOR hire at five salary levels is worked through in our guide to [EOR pricing in Vietnam](https://payrollservice.vn/tin-tuc/eor-pricing-vietnam-2026-fees-caps-and-full-costs). ## How should you request and compare quotations? Send every provider the same three items: headcount by payroll group, your pay rules, and one month of time-attendance data in the format your system exports. Then compare the offers on the same basis: the monthly cost at your real headcount, plus setup and add-ons over the first year, converted to Vietnamese dong, with VAT shown separately. Nhan Kiet returns a written quotation within 24 hours of receiving those three items; what its quotation states, and the monthly invoice at 20 to 200 employees, are in the [payroll service pricing guide](https://payrollservice.vn/tin-tuc/payroll-service-pricing-in-vietnam-2026-what-the-fee-covers). To estimate gross-to-net pay, insurance and tax for any salary first, use the free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/). The 2026 rules behind every figure are explained in our guide to [calculating payroll in 2026](https://payrollservice.vn/tin-tuc/how-to-calculate-payroll-in-2026-for-businesses-gross-to-net-social-insurance-an). ## Who compiled this guide This guide was compiled by Nhan Kiet Manpower Supply Company Limited (tax code 0308022768), a Vietnamese payroll and manpower provider founded in April 2009 that serves more than 40,000 workers for over 500 clients across 34 provinces, certified to ISO 9001:2015 and ISO/IEC 27001:2022. Nhan Kiet is one of the providers compared above. Every other price is taken from a public page of the provider or source cited, read on 25 September 2026 and linked in the sources below. ## Sources - [Multiplier — Pricing](https://www.usemultiplier.com/pricing) — Global Payroll from USD 20 per employee per month, billed annually; read 25 September 2026 - [RemotePeople — Pricing](https://remotepeople.com/pricing/) — Global Payroll from USD 25 per employee per month - [Remote — Pricing](https://remote.com/pricing) — Payroll USD 29 per employee per month; implementation and payroll delivery fees - [Papaya Global — Pricing](https://www.papayaglobal.com/pricing/) — Payroll Plus from USD 29 per employee per month - [Borderless AI — Pricing](https://www.hireborderless.com/pricing) — Global Payroll USD 29 a month - [Playroll — Payroll pricing](https://www.playroll.com/pricing/payroll-software) — from USD 10 with minimums; list of payroll countries - [Bestar Asia — Outsourced Payroll Services in Vietnam](https://www.bestar-asia.com/post/outsourced-payroll-services-in-vietnam) — price ranges by provider type, read 25 September 2026 - [terra — Top 10+ Outsourced Payroll Services in Vietnam for 2026](https://terra-plat.vn/en/news/top-10-outsourced-payroll-services-in-vietnam) — ten providers, no prices published - [Vina TPT — Payroll outsourcing for small FDI companies](https://vinatpt.com/payroll-outsourcing-vietnam-companies-with-5-employees/) — VND 4–15 million packages; payroll accountant salaries of VND 15–25 million - [HR1 Vietnam — Cost of payroll outsourcing services in Vietnam: hidden fees](https://hr1vietnam.com/en/news/cost-of-payroll-outsourcing-services-in-vietnam-hidden-fees-you-should-know-1037.html) — common add-on fee categories - [Resolution 204/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=214209&classid=1) — 8% VAT rate until 31 December 2026 USD figures for Nhan Kiet are approximate, rounded conversions at about VND 26,250 per US dollar; Nhan Kiet quotes and invoices in Vietnamese dong. Other providers' prices are shown as each provider publishes them and may change without notice; always confirm the current price with the provider. This article is general information, not tax advice for a specific case. ## Contact - **Nguyen Quoc Trung** — Deputy General Director - Phone and WhatsApp: **+84 908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **+84 28 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Payroll Service Pricing in Vietnam 2026: What the Fee Covers https://payrollservice.vn/tin-tuc/payroll-service-pricing-in-vietnam-2026-what-the-fee-covers **Nhan Kiet's payroll outsourcing pricing in Vietnam is VND 250,000–900,000 (about USD 10–35) per employee per month, effective September 2026. The fee covers three areas in full: payroll calculation, social, health and unemployment insurance, and personal income tax. There is no setup fee and no software fee. The 8% VAT applies to the service fee only. Each company's exact rate is fixed in a written quote after a review of headcount and pay rules.** | Nhan Kiet payroll outsourcing (September 2026) | Price | |---|---| | Fee per employee per month | VND 250,000–900,000 (about USD 10–35) | | Setup fee | None | | VAT | 8% of the service fee only | This page is Nhan Kiet's own fee schedule: the rate card, what the fee pays for, where a company sits in the range, the monthly invoice at different headcounts, and what a quotation states. For published prices across the market, including global payroll platforms, see our separate guide to [payroll outsourcing cost in Vietnam](https://payrollservice.vn/tin-tuc/payroll-outsourcing-cost-in-vietnam-2026-price-per-employee). **Rate card at a glance (September 2026):** - Service fee: VND 250,000–900,000 (about USD 10–35) per employee per month, charged on the actual headcount on each month's payroll. - All-inclusive: time and attendance, payroll, social, health and unemployment insurance, personal income tax, payslips and reports. - No setup fee, no software fee, no add-on fees. - 8% VAT on the service fee, not on salaries or insurance contributions. - A written quote within 24 hours of receiving your headcount and pay rules. ## What are Nhan Kiet's payroll fees for 2026? Nhan Kiet's payroll fees for 2026 are VND 250,000–900,000 (about USD 10–35) per employee per month, before 8% VAT. Every line of the rate card is listed below so it can go straight into a budget. | Item | Price | Note | |---|---|---| | Service fee per employee | VND 250,000–900,000 (about USD 10–35) per month | Charged on the actual headcount on that month's payroll | | Setup and configuration of pay rules | VND 0 | Not charged | | Software, client portal and employee app accounts | VND 0 | Included in the per-employee fee | | VAT | 8% of the service fee | The 8% rate applies until 31 December 2026 | The fee does not depend on salary. An employee earning VND 6 million and one earning VND 60 million are charged the same agreed rate. ## Which tasks does the monthly fee pay for? The per-employee fee pays for the whole chain from time data to compliance filings, with no separate charge for any stage: - **Time and attendance:** raw files from time clocks, UKG/Kronos, Excel or Google Sheets; shifts matched, including night shifts past midnight; reconciled 100% to source before payroll runs. - **Payroll calculation:** your pay rules encoded as written; overtime, night and holiday rates under Article 98 of the 2019 Labour Code (150–390%); allowances, attendance bonuses and net-to-gross conversion. - **Social, health and unemployment insurance:** contributions on the correct base, joiner and leaver reporting, and closing of insurance books when staff leave. - **Personal income tax:** withholding under the five-bracket schedule of Law No. 109/2025/QH15, and the 10% flat rate for contracts under three months under Decree 253/2026/ND-CP; periodic filing and annual finalisation for each employee. - **Payment files and reporting:** bank transfer files, itemised payslips in each employee's app, and journal entries by cost centre. - **Controls:** an open-formula Excel reconciliation workbook every cycle; payroll is paid only after you approve it on the client portal. The full scope of the service is on the [payroll outsourcing page](https://payrollservice.vn/payroll-outsourcing/). ## Why do two companies get different rates? Two companies get different rates because the work per employee differs, not because salary levels differ. Five factors decide where a company sits within the VND 250,000–900,000 range: - **Headcount:** the cost of building and controlling the pay rules is spread across more or fewer people. - **Complexity of pay rules:** the number of shifts, rate matrices, attendance bonuses, piece rates and output-based pay. - **Payroll groups and pay dates:** one payroll differs from several groups paid twice a month. - **Time-data format:** raw time-clock files take more processing than a summarised timesheet. - **Foreign employees:** tax residency and finalisation need separate tracking. ## Where in the range does a typical company sit? A company with a large headcount and simple, stable pay rules sits toward the lower end of the range; a small team with complex rules or foreign staff sits toward the upper end. The profiles below show how the five factors combine. | Company profile | Likely position in the range | Main reason | |---|---|---| | Several hundred workers, one payroll group, summarised timesheet | Lower end | Setup cost spread across many people; little data processing | | 50–150 staff, shift work, raw time-clock files, attendance bonuses | Middle | Shift matching and rate matrices every cycle | | Under 30 staff, two pay dates, several allowance types | Upper end | Fixed control work spread across few people | | Any size with foreign employees | Moves up within the range | Tax residency, exempt allowances and finalisation tracked separately | These positions are a guide only. The rate for your company is the one written in your quote and contract. ## What will Nhan Kiet invoice each month for 20 to 200 staff? Nhan Kiet's monthly invoice is the number of employees on that month's payroll multiplied by the agreed rate, plus 8% VAT on the fee. The table shows both ends of the range. | Employees | At VND 250,000 (about USD 10) each | At VND 900,000 (about USD 35) each | |---|---|---| | 20 | VND 5,000,000 (about USD 200) | VND 18,000,000 (about USD 700) | | 50 | VND 12,500,000 (about USD 500) | VND 45,000,000 (about USD 1,750) | | 100 | VND 25,000,000 (about USD 1,000) | VND 90,000,000 (about USD 3,500) | | 200 | VND 50,000,000 (about USD 2,000) | VND 180,000,000 (about USD 7,000) | For a company of 100 employees at VND 250,000, the fee is VND 25,000,000, VAT is VND 2,000,000, and the total paid to Nhan Kiet is VND 27,000,000 a month. When people leave, the invoice falls with the headcount on the payroll. ## Does Nhan Kiet charge setup, software or add-on fees? No. Nhan Kiet charges no setup fee, no rule-configuration fee, no software installation fee and no account fee for the client portal or the employee app. You also do not need to change your time clocks or current software. The per-employee rate in the quote is the whole service fee. ## What is not part of the service fee? The service fee pays for Nhan Kiet's work only. Four kinds of cost stay outside it: - **Amounts owed to employees and the state:** net salaries, social, health and unemployment insurance contributions, the 2% trade union fee and personal income tax payable. Your company pays these from the files Nhan Kiet prepares. - **Bank charges:** fees your own bank charges for salary transfers. - **Employment in Nhan Kiet's name:** if staff need contracts signed by Nhan Kiet rather than your company, that is [labour compliance](https://payrollservice.vn/labour-compliance/) or [Employer of Record](https://payrollservice.vn/eor-vietnam/), quoted separately. - **Recruitment:** finding and supplying workers is a separate Nhan Kiet service. ## How does VAT appear on Nhan Kiet's payroll invoice? VAT on Nhan Kiet's payroll invoice is 8% of the service fee only. Under a payroll service your company remains the employer and pays salaries, insurance and tax itself, so those amounts never appear on Nhan Kiet's invoice. The 8% rate applies until 31 December 2026 under Resolution 204/2025/QH15. Where Nhan Kiet is the legal employer, as with labour compliance and EOR, VAT applies to the whole invoice instead. ## What does a Nhan Kiet payroll quotation state? A payroll quotation from Nhan Kiet is a written document that states six things, so it can be compared line by line with other offers: - **Rate:** the fee per employee per month that applies to your company, within the VND 250,000–900,000 (about USD 10–35) range. - **Basis:** the fee is charged on the actual headcount on each month's payroll. - **Scope:** the stages covered, from time data to payslips and tax filings. - **Fees and VAT:** no setup or software fee; 8% VAT on the service fee only. - **Timeline:** setup, a parallel run of at least one payroll cycle, then go-live. - **Service commitments:** the standards written into the contract, such as payroll paid only after your approval. ## What should you send to get a quote within 24 hours? Send three items and Nhan Kiet returns a written quote within 24 hours: - **Headcount:** the number of employees on each payroll group, and how many are foreign nationals. - **Pay rules:** the salary policy or rule sheet, including shifts, allowances and bonuses. - **A sample time-attendance file:** one month in the format your system exports today. After the quote, the switch runs in three stages: setup of rules and employee records, a parallel run alongside your current process for at least one payroll cycle with every employee reconciled, then go-live with the contract's service commitments in full. To estimate gross pay, insurance and tax per employee first, use the free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/). ## Is Nhan Kiet cheaper than other payroll providers? Nhan Kiet's entry rate of about USD 10 per employee sits below most published prices in Vietnam, and it charges no setup fee. Price is only one part of the comparison: scope, add-on fees and how VAT is charged all change the real cost. Published prices from local firms, regional specialists and global payroll platforms, with the fees that are easy to miss, are compared in our guide to [payroll outsourcing cost in Vietnam](https://payrollservice.vn/tin-tuc/payroll-outsourcing-cost-in-vietnam-2026-price-per-employee). Whether outsourcing beats a payroll accountant at your headcount is covered in our guide to [in-house or outsourced payroll](https://payrollservice.vn/tin-tuc/in-house-or-outsourced-payroll-a-2026-comparison-for-businesses). ## Why Nhan Kiet Nhan Kiet Manpower Supply Company Limited (tax code 0308022768) was founded in April 2009 and serves more than 40,000 workers for over 500 clients across 34 provinces, certified to ISO 9001:2015 and ISO/IEC 27001:2022. Its in-house payroll platform has been verified on real UKG/Kronos time data from an FDI manufacturer with more than 1,000 employees, reconciling every hour and every dong. ## Sources - [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) — Article 98 on overtime, night and holiday pay - [Law on Personal Income Tax No. 109/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=216495) — five-bracket schedule from the 2026 tax period - [Decree 253/2026/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=218684) — Article 50 on tax withholding; in force from 1 July 2026 - [Resolution 204/2025/QH15](https://vanban.chinhphu.vn/?pageid=27160&docid=214209&classid=1) — 8% VAT rate until 31 December 2026 USD figures are approximate, rounded conversions at about VND 26,250 per US dollar; Nhan Kiet quotes and invoices in Vietnamese dong. Prices apply from September 2026 and may change; the binding rate is the one in your quote and contract. This page is general information, not tax advice for a specific case. ## Contact for a quote - **Nguyen Quoc Trung** — Deputy General Director - Phone and WhatsApp: **+84 908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **+84 28 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Local EOR Company vs Global EOR Platform in Vietnam (2026) https://payrollservice.vn/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam **A local EOR company in Vietnam is a Vietnamese-registered firm that is itself the legal employer of your staff; a global EOR platform sells employment in many countries under one contract and, in Vietnam, employs through its own Vietnamese subsidiary or through a local partner. If you hire only in Vietnam, the local company is usually the closer option and, at Vietnamese salary levels, the lower-fee one; if one contract must cover several countries, the platform usually fits better.** This guide is published by Nhan Kiet, which is itself a local EOR company in Vietnam, so read it with that in mind: where a global platform is the better choice, we say so. Nhan Kiet has operated in Vietnam since 2009, holds labour sub-leasing licence No. 15/2019/SHCM and employs more than 40,000 workers across 34 provinces. The prices quoted are service fees only, read on each provider's own page on 8 October 2026 and listed at the end. For what the whole market charges, provider by provider, see [EOR Providers in Vietnam: The 2026 Price Range by Model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model); to vet a single provider, use our [due-diligence checklist for choosing an employer of record in Vietnam](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist). ## Key facts: local EOR company vs global EOR platform in Vietnam - **Two kinds of EOR provider serve Vietnam.** A local EOR company is the Vietnamese employer named on the contract. A global EOR platform contracts with you abroad and employs in Vietnam through its own subsidiary or an in-country partner. - **The legal employer is always a Vietnam-registered company.** The employment contract, the social insurance registration and the personal income tax filing carry that company's name and tax code, whichever model you buy. - **Service fees are built differently.** Nhan Kiet charges 8% of gross salary with a floor of VND 2,600,000 and a cap of VND 5,200,000 (about USD 99 to 199) per employee per month; 16 global and regional platforms publish flat fees starting from USD 99 to USD 699 (checked 8 October 2026). - **Coverage is the main trade-off.** A local company employs in Vietnam only; a global platform covers many countries under one agreement, from 90 to more than 185 on the pages listed below. - **Support sits in different places.** A local company's operations team is in Vietnam and answers workers in Vietnamese; with a platform, ask who in Vietnam answers, and in which language. - **Nhan Kiet's EOR covers Vietnamese nationals only**, in Vietnam only, and staff can start 5 to 7 working days after signing. - **Sector experience and local reach differ from provider to provider.** Nhan Kiet publishes client names and headcounts in electronics, telecommunications and consumer goods manufacturing, names clients in warehousing, retail and banking, and has cooperation agreements with the public Employment Service Centres of seven provinces. ## What is a local EOR company, and what is a global EOR platform? A local EOR company is a company registered and operating in Vietnam that signs the employment contract with your staff in its own name, while a global EOR platform is an international provider that sells Employer of Record services in many countries through one agreement and one software platform. The difference is not one of quality; it is one of structure: who you sign with, who signs with the employee, and how many companies stand between the two. Three structures are in use in Vietnam: | Structure | You sign the service agreement with | The employment contract is signed by | Companies between you and the legal employer | |---|---|---|---| | Local EOR company | The Vietnamese company | The same Vietnamese company | None | | Global platform with its own Vietnamese subsidiary | The platform's contracting entity, usually outside Vietnam | The platform's Vietnamese subsidiary | One | | Global platform using an in-country partner | The platform's contracting entity, usually outside Vietnam | A separate Vietnamese company, the partner | Two | Vietnam has no law written for EOR as such. Whichever structure you buy, the arrangement has to sit inside one of two existing legal routes, labour sub-leasing or a service contract; our [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/) page sets out both. ## What kinds of local EOR companies operate in Vietnam? Local EOR companies in Vietnam can be grouped into five broad kinds: licensed manpower and staffing companies, the Vietnamese companies of international staffing groups, corporate-services and market-entry firms, recruitment and HR agencies, and providers that focus on technology hires. Each offers to act as the legal employer in Vietnam; they differ in what else they do, and in whether they hold a labour sub-leasing licence themselves. | Kind of local provider | What it usually offers besides EOR | What to confirm | |---|---|---| | Licensed manpower and staffing company | Recruitment at volume; shift, overtime and multi-site payroll | Its labour sub-leasing licence number, and that it signs the employment contracts itself | | Vietnamese company of an international staffing group | Recruitment and temporary staffing under a global brand | Which Vietnamese entity is the employer, and its licence | | Corporate-services and market-entry firm | Company formation, accounting, work permits and visas | Whether it employs through its own licensed entity or through another company | | Recruitment and HR agency | Executive search, staffing and HR administration | Who the employing entity is, and whether payroll is run in-house | | Technology-focused provider | Sourcing of software engineers and other technical staff | Which legal route it uses for roles outside the 20 sub-leasing categories | Nhan Kiet belongs to the first kind: a licensed manpower company that is itself the employer, under licence No. 15/2019/SHCM. For named providers and the fee each one publishes, see [EOR Providers in Vietnam: The 2026 Price Range by Model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model). ## Who is the legal employer in Vietnam under each model? The legal employer is the Vietnam-registered company whose name and tax code appear on the employment contract, on the social insurance registration and on the personal income tax filing: with a local EOR company that is the company you contract with, and with a global platform it is the platform's Vietnamese subsidiary or its in-country partner. Vietnamese law requires the employer to be the signing party, so the role cannot be white-labelled. This matters for three practical reasons. The legal employer is the party a labour inspector, the social insurance agency and the tax office deal with. It is the party that carries the liability for a wrongful termination. And it is the party whose licence has to match the legal route: if you direct the workers' daily work, the arrangement is labour sub-leasing under Articles 52 to 57 of the [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) and [Decree 145/2020/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=201967), which requires a licence and is limited to 20 job categories and 12 months per worker. Ask any provider for three things in writing before you sign: the full name of the employing entity, its tax code, and, where the route is labour sub-leasing, its licence number. A company can be looked up by tax code on Vietnam's [National Business Registration Portal](https://dangkykinhdoanh.gov.vn/). Nhan Kiet's own answers are Nhan Kiet Supplying Manpower Co., Ltd, tax code 0308022768, and labour sub-leasing licence No. 15/2019/SHCM. ## Do global EOR platforms have their own legal entity in Vietnam? Some do and some do not: several global EOR platforms have registered a Vietnamese subsidiary, while others serve Vietnam through an in-country partner, a local company that acts as the legal employer on their behalf. A platform's general statements about its entities may not say which arrangement applies to Vietnam, so ask which company employs there. Neither arrangement is wrong. A partner model simply adds one company to the chain: you contract with the platform, the platform contracts with the partner, and the partner employs your staff. What you should know is who that company is. Ask the same three questions as above, and ask what happens to your employees if the platform changes its partner. Nhan Kiet works on both sides of this line: it employs for clients directly, and it is the [in-country partner in Vietnam for EOR and payroll providers](https://payrollservice.vn/partners/) that have no entity here. ## How do a local EOR company and a global EOR platform compare, point by point? They differ most on coverage, on how the fee is built and on where the support team sits, and least on the statutory cost of the hire, which Vietnamese law fixes identically for every provider. A local EOR company employs in Vietnam only, charges a fee tied to Vietnamese salaries and supports workers from inside the country; a global EOR platform covers many countries under one agreement, charges a flat US-dollar fee and supports through its platform. The table sets Nhan Kiet, as a local EOR company, against what global platforms state on their own pages; treat the right-hand column as a list of things to confirm with the platform you are considering. | Point | Local EOR company (Nhan Kiet) | Global EOR platform | |---|---|---| | Legal employer in Vietnam | The company you contract with | Its Vietnamese subsidiary or an in-country partner; ask which | | Legal route | Both: labour sub-leasing under licence No. 15/2019/SHCM, or a service contract; settled before signing | Depends on the employing entity; ask which route and which licence | | Countries covered | Vietnam only | Many, under one agreement: from 90 to more than 185 on the pages listed below | | How the fee is built | A percentage of gross salary with a floor and a cap, set in dong | A flat fee per employee per month, usually in US dollars, published as a worldwide starting rate | | Published service fee | VND 2,600,000 to 5,200,000 (about USD 99 to 199) | Starting from USD 99 to USD 699 across 16 platforms (8 October 2026) | | Set-up, onboarding and offboarding fees | None | Varies by platform | | Deposit | One month's gross salary per employee, refundable | Varies: none stated, a reserve in some cases, or a refundable deposit | | Invoice currency | Dong or US dollars; no currency-conversion fee | Usually US dollars or another major currency; FX terms vary | | Time to first working day | 5 to 7 working days | Stated per platform; confirm it for Vietnam | | Who answers your workers | An operations team in Vietnam, in Vietnamese: more than 200 staff in ten locations | Platform support; ask who in Vietnam answers and in which language | | Client account languages | English, Korean, Japanese, Chinese and Vietnamese | Confirm which account languages are supported | | Shift, overtime and multi-site payroll | Built in: attendance by face recognition and GPS, statutory overtime multipliers of 150% to 390% | Confirm how shift work, overtime multipliers and multi-site attendance are handled for Vietnam | | Recruiting the people | Yes, including volume hiring | Confirm whether sourcing is offered, and whether it is a separate product | | Sector references in Vietnam | Client names and headcounts published for electronics, telecommunications and consumer goods manufacturing; clients named in warehousing, retail and banking | Ask for Vietnam references in your own sector | | Local network | Cooperation agreements with the public Employment Service Centres of seven provinces; ten office locations | Ask which company in Vietnam deals with the provincial agencies and recruits locally | | Software and integrations | Own platform: worker app, client portal, electronic contracts; imports from UKG/Kronos and Excel | A multi-country dashboard, with integrations to HR and finance systems | | Where employee data is held | In Vietnam, on Nhan Kiet's own platform; ISO/IEC 27001:2022 | On the platform's international infrastructure | | Leaving, or moving staff to your own entity | No offboarding fee and no fee for the move | Check the notice period and exit terms | Two rows deserve a note. On software, a global platform is ahead if you need one dashboard for many countries or a direct integration with the HR system you already run. On data, holding employee records outside Vietnam is lawful but brings Vietnam's cross-border transfer rules into play; see [Vietnam Cross-Border Data Transfer: EOR, PEO and Payroll](https://payrollservice.vn/tin-tuc/vietnam-cross-border-data-transfer-eor-peo-and-payroll). ## How do the fees of the two models differ? They are built differently: a local EOR company sets its fee in dong against Vietnamese salaries, while a global platform publishes one flat US-dollar fee as a worldwide starting rate, so the same fee is a very different share of a local salary and of a senior one. On the pages we read on 8 October 2026, Nhan Kiet's service fee is 8% of gross salary with a floor of VND 2,600,000 and a cap of VND 5,200,000 per employee per month, about USD 99 to 199, and the 16 global and regional platforms that publish a US-dollar fee start between USD 99 and USD 699. The table groups those published starting fees and shows each as a share of two gross salaries. It compares the service-fee line only, converted at an indicative USD 1 = VND 26,250. | Published starting fee per employee per month | Platforms publishing it | Share of a VND 20,000,000 gross salary (USD 762) | Share of a VND 60,000,000 gross salary (USD 2,286) | |---|---|---|---| | USD 99 | Native Teams | 13% | 4% | | USD 199 | RemoFirst, Payoneer Workforce Management, Remote People, Gloroots | 26% | 9% | | USD 319 to 488 | Rivermate, Pebl, Playroll, Multiplier, AYP Group | 42% to 64% | 14% to 21% | | USD 579 to 699 | Borderless AI, Deel, Globalization Partners, Atlas, Remote, Oyster | 76% to 92% | 25% to 31% | | Nhan Kiet: 8% of gross, with floor and cap | A local EOR company | VND 2,600,000 (USD 99), 13% | VND 4,800,000 (USD 183), 8% | Two things follow from the published figures. Nhan Kiet's fee has a floor of VND 2,600,000, about USD 99, which is the level of the lowest published starting fee among the 16 platforms. And it has a cap of VND 5,200,000, about USD 199, at any salary: that is where the USD 199 group starts, roughly a third of the USD 599 fees and under 30% of the USD 699 fees. A flat fee does not move with salary and a percentage fee does, so compare the two at the salary you will actually pay. These are fee lines, not the cost of a hire. Gross salary, employer statutory contributions and VAT sit on top of every provider's fee, so compare quotes as totals at your own salary. [EOR Providers in Vietnam: The 2026 Price Range by Model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model) lists each provider's published figure with its deposit terms. ## When is a global EOR platform the better choice? A global EOR platform is the better choice when Vietnam is one of several countries you hire in and you want one agreement, one invoice run and one dashboard for all of them. It is usually also the better choice when: - you hire one or two people in each of many countries, so a single vendor matters more than the fee in any one of them; - your HR or finance team needs the provider's software to integrate with systems you already run worldwide; - your procurement rules require one master agreement under the law of your home jurisdiction; - you want to employ a foreign national in Vietnam without an entity, in which case ask whether the platform's Vietnamese entity sponsors the work permit, because Nhan Kiet's EOR covers Vietnamese nationals only. In each case, still ask which company employs your staff in Vietnam. If the answer is an in-country partner, you are buying a local EOR company's work through an intermediary, which is reasonable when the platform's coverage is what you need. ## When is a local EOR company the better choice? A local EOR company is the better choice when Vietnam is your only or main hiring country and you want to deal directly with the company that employs your people. It usually fits best when: - **the roles are paid at Vietnamese salary levels**, where a flat dollar fee is a large share of pay: at VND 20,000,000 gross, published flat starting fees of USD 99 to 699 come to 13% to 92% of salary, while Nhan Kiet's fee is 13% and never rises above VND 5,200,000 at any salary; - **the team works shifts, overtime or several sites**, such as a factory, a warehouse, a store network or a field team, where attendance has to feed payroll every month; for a team of about 20 factory or warehouse workers this is usually the deciding point; - **the people still have to be found**: Nhan Kiet recruits as well as employs, from a database of 2 million candidates and through provincial Employment Service Centres; - **your vendor due diligence wants the employer itself**: one company, one tax code and one licence, with documents you can check, rather than a chain of contracts; - **your head office works in Korean, Japanese or Chinese**: Nhan Kiet's client teams work in those languages and in English, and support workers in Vietnamese. For a situation-by-situation table that also covers when your own entity or a PEO is the right answer, see [How to Choose an Employer of Record in Vietnam: A Due-Diligence Checklist](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist). ## What does day-to-day support look like under each model? Day to day, a local EOR company's own staff in Vietnam handle the worker and the paperwork directly, while a global platform routes requests through its support system to whichever Vietnamese entity carries them out. The monthly cycle is the same in both: attendance closes, payroll is calculated, you confirm it, salaries are paid in dong, and insurance and tax are filed. The difference shows in the events between pay runs. A new hire needs a tax code checked, a bank account verified and dependants registered. A worker falls ill and has to claim sick pay from the social insurance fund, or goes on maternity leave. Someone resigns and needs the social insurance record closed and final pay within 14 working days. Each of these is a conversation in Vietnamese, with a Vietnamese agency or a Vietnamese employee. At Nhan Kiet those conversations are handled by more than 200 operations staff in ten locations, from Ho Chi Minh City to Hanoi, in the same time zone as the worker. Workers use a mobile app for attendance, shift rosters, leave, requests, electronic payslips and their social insurance record; your managers approve timesheets and confirm payroll in a client portal; and head office receives a monthly report in English. With a global platform, ask three things: who in Vietnam answers a worker's question, in which language, and within what response time. ## Which industries use an EOR company in Vietnam, and what changes by sector? An EOR company in Vietnam can be the legal employer in any industry, from a two-person sales office to a factory shift of several hundred, because an employer's duties under the Labour Code are the same in every sector. What changes by sector is the legal route the roles fall under, how working time reaches payroll and how many people have to be recruited, and those are the three points to test with any provider, local or global. **The legal route follows the role, not the name of the industry.** Labour sub-leasing is open only to the 20 job categories in Appendix II of Decree 145/2020/ND-CP. The list includes sales support, project support, reception, secretarial and administrative assistance, telephone marketing and customer care, driving, security, the cleaning of buildings and factories, the programming of production machinery systems, and the production and installation of television and telecommunications equipment. Roles outside the list, software engineering among them, are handled under a service contract, in which the provider manages the team and answers for the result, with no 12-month limit. **Working time is the second difference.** A salaried office team needs little more than a leave record. Shift-based work needs attendance by shift, night-work pay of at least 30% extra and overtime multipliers from 150% to 390%, inside the overtime ceiling of 40 hours a month and 200 hours a year. Article 107 of the Labour Code 2019 raises the yearly ceiling to 300 hours in listed cases, among them the manufacture or processing for export of electronic products, garments and footwear, and the supply of telecommunications, provided the provincial labour authority is notified in writing. [Overtime Pay in Vietnam 2026: Night & Holiday Rates](https://payrollservice.vn/tin-tuc/overtime-night-and-holiday-pay-in-vietnam-2026) sets out the calculation. **Volume is the third.** Hiring three engineers is a search; staffing a production line or a peak season is a recruitment campaign counted in hundreds of people and in weeks. The table shows what each sector asks of the legal employer, and what Nhan Kiet has published about its own work in that sector. | Sector | What the legal employer has to get right | What Nhan Kiet has published | |---|---|---| | Electronics manufacturing | Shift rosters, night work and overtime inside the legal ceiling; fast ramp-up before a peak season | LG Electronics in Hai Phong (700+ workers), Samsung SEHC in Ho Chi Minh City (600+), Saigon Stec in Binh Duong (2,000+) | | Telecommunications | Workers spread across many provinces; equipment production and installation is on the sub-leasing list | Viettel programme of more than 10,000 workers; cooperation agreements with Viettel Ho Chi Minh City and VNPT – VinaPhone Ho Chi Minh City | | Consumer goods and other factory production | Several plants under one payroll; headcount that follows the production plan | Masan Consumer (600+), Aldila (1,000+), Vinataba (1,000+ across six factories) | | Warehousing, e-commerce and retail | Attendance across many sites; seasonal peaks; frequent joiners and leavers | Named clients: Shopee, Lazada, Tiki, DHL and AEON; no headcount published | | Banking | Staff spread across many branches; strict handling of personal data | Named clients: Vietcombank and Agribank; no headcount published; certified to ISO/IEC 27001:2022 | | Technology and other professional teams | Service-contract route with no 12-month limit; monthly salary and personal income tax settled precisely | Set up for remote engineering teams and for market-entry teams of 1 to 5 people; client names are not published in this segment | In the manufacturing and telecommunications programmes above, Nhan Kiet signs the employment contracts and is the legal employer of the workers it supplies. For warehousing, retail and banking it names clients but publishes neither a headcount nor the service each client uses, so ask for a reference in your own sector. A foreign company with no entity in Vietnam uses the same employer, payroll and insurance operation, whether for one hire or for several hundred. This bears on the choice of model. For a few salaried professionals, a local EOR company and a global platform can both run the payroll, and the decision turns on coverage and fee. For shift-based, multi-site or high-volume teams, ask any provider for a Vietnam reference in your own sector and for a description of how attendance, night work and overtime reach payroll each month. ## Why do local relationships matter for an EOR provider in Vietnam? They matter because most of an employer of record's work in Vietnam is done locally: social insurance is handled by the agency that manages the employer, labour matters go to the provincial labour authority, minimum wages are set by region, and candidates are found through local networks. Local relationships do not change what the law requires, which is the same for every employer; what they add is familiarity with how each local office works, a known point of contact, and a shorter route to candidates. Nhan Kiet publishes its local network with names and dates so that it can be checked: - **Public employment services.** On 20 February 2025 Nhan Kiet signed cooperation agreements with the public Employment Service Centres of seven provinces: Ninh Thuan, Can Tho, Long An, Binh Duong, Ho Chi Minh City, Bac Ninh and Binh Phuoc (province names as at the signing date). These centres process unemployment-benefit claims and hold local labour supply-and-demand data. - **Recognition from public authorities.** A Certificate of Merit from the Chairman of the Binh Duong Province People's Committee, in addition to those from the Ministry of Finance and Ho Chi Minh City Social Insurance described further down. - **Large domestic enterprises.** Cooperation agreements with Viettel Ho Chi Minh City and VNPT – VinaPhone Ho Chi Minh City. - **Business and professional community.** Membership of the Korean Chamber of Commerce and Industry in Vietnam (KOCHAM); on 4 April 2026 Nhan Kiet co-hosted the HR & Data Compliance 2026 seminar with MobiFone and the Saigon HR Club. - **Presence on the ground.** Ten office locations: Ho Chi Minh City, Binh Duong, Dong Nai, Binh Phuoc, Ha Nam, Bac Ninh, Da Nang, Quang Ngai, Hai Phong and Hanoi. Recruitment draws on a database of 2 million candidates, more than 100 community channels and field recruiters at the industrial parks, as the [manpower supply](https://payrollservice.vn/manpower-supply/) page describes. A global platform can have local reach too, through its Vietnamese subsidiary or its in-country partner. The question is the one that runs through this guide: which company in Vietnam does the work, and what can it show for its record with the local agencies and its recruiting reach in the provinces where your people will work? ## Can you move staff from a global platform to a local EOR company, or to your own entity, later? Yes. Vietnam has no mechanism for assigning an employment contract from one EOR provider to another; instead the contract with the current legal employer ends, normally by mutual agreement under Article 34(3) of the Labour Code 2019, and the new employer signs a fresh contract, timed so that social insurance cover has no gap. In practice the move has four steps: - Check the notice period and any exit charge in your service agreement with the current provider. - Agree the end date with the employee and with the current legal employer. - The outgoing employer settles wages, untaken annual leave under Article 113 and any other amounts within 14 working days under Article 48, and completes its part of the social insurance record. - The incoming employer signs the new employment contract and registers the employee for social insurance. Entitlements such as annual-leave seniority and severance allowance are calculated per employer, so agree in writing how accrued leave and length of service will be treated in the new contract. The same mechanism applies when you leave an EOR for your own Vietnamese entity. Nhan Kiet charges no onboarding fee for staff who arrive this way, and no conversion, buy-out or release fee when they later move to your entity. ## Where does Nhan Kiet sit among EOR companies in Vietnam? Nhan Kiet is a local EOR company: Nhan Kiet Supplying Manpower Co., Ltd, tax code 0308022768, founded in April 2009 in Ho Chi Minh City, is itself the legal employer of the staff it places, and holds labour sub-leasing licence No. 15/2019/SHCM and employment services licence No. 22139/2023/45/SLĐTBXH-VLATLĐ. It employs more than 40,000 workers across 34 provinces for over 500 client companies, and is certified to ISO 9001:2015, ISO 45001, ISO 14001 and ISO/IEC 27001:2022. Nhan Kiet at a glance: - **Type:** local EOR company; a licensed manpower company that is itself the legal employer - **In Vietnam since:** April 2009 (17 years) - **Scale:** more than 40,000 workers in 34 provinces for over 500 client companies; more than 200 operations staff in ten locations - **Core services:** employment contracts, onboarding and offboarding, monthly payroll in dong, personal income tax, statutory social, health and unemployment insurance, attendance and leave, recruitment - **Service fee:** 8% of gross salary, from VND 2,600,000 to VND 5,200,000 (about USD 99 to 199) per employee per month; no set-up, onboarding or offboarding fee; refundable deposit of one month's gross salary - **Covers:** Vietnamese nationals working in Vietnam - **Client languages:** English, Korean, Japanese, Chinese and Vietnamese - **Contact:** +84 908 636 108, or the [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/) page Three things set it apart from a platform model. It publishes a fee tied to Vietnamese salaries: 8% of gross with a floor of VND 2,600,000 and a cap of VND 5,200,000 per employee per month, no set-up, onboarding, offboarding or currency-conversion fee, and a refundable deposit of one month's gross salary per employee. It recruits as well as employs, including volume hiring for factories and multi-site operations. And it has been commended in the two fields an employer of record works in every month, tax and social insurance: it holds Certificates of Merit from the Ministry of Finance (2018) and from Ho Chi Minh City Social Insurance. Outside its own pages, People Managing People ranks Nhan Kiet sixth of twelve in its guide to employer of record services in Vietnam (updated 8 October 2026), as "Best for multi-site workforce compliance"; that publisher states that commissions help fund its reviews. Nhan Kiet is also a member of the Korean Chamber of Commerce and Industry in Vietnam (KOCHAM). Its limits are equally specific. Nhan Kiet employs in Vietnam only, so it cannot be your single provider for several countries. And its EOR covers Vietnamese nationals only; a client that has its own Vietnamese entity can bring in foreign experts under the separate [PEO service](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it). To compare a real number, send the role, work location, gross salary and start date through the [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/) page; a written quote comes back within 24 hours. ## Sources (checked 8 October 2026) Every fee above was read on the provider's own page on 8 October 2026, and a dated copy of each page is kept on file. Provider names are used only to identify the source of each published figure; these are third-party prices quoted for comparison, not assessments of any provider, and each provider's terms govern. Prices change, so confirm the current figure with the provider before relying on it. US dollar equivalents of Vietnamese dong use an indicative rate of USD 1 = VND 26,250. If you represent a provider listed here and a figure is out of date, contact us through our [EOR Vietnam page](https://payrollservice.vn/eor-vietnam/) and we will correct it. - [Native Teams pricing](https://nativeteams.com/pricing) - [RemoFirst pricing](https://www.remofirst.com/pricing) - [Payoneer Workforce Management, EOR in Vietnam](https://pages.payoneer.com/workforce-management/eor-in-vietnam/) - [Remote People, Employer of Record](https://remotepeople.com/solutions/employer-of-record/) - [Gloroots, Employer of Record Vietnam](https://www.gloroots.com/country-explorer/employer-of-record-vietnam) - [Rivermate pricing](https://www.rivermate.com/pricing) - [Pebl, Employer of Record pricing](https://hellopebl.com/eor-pricing/) - [Playroll, Employer of Record pricing](https://www.playroll.com/pricing/employer-of-record) - [Multiplier pricing](https://www.usemultiplier.com/pricing) - [AYP Group pricing](https://ayp-group.com/pricing) - [Borderless AI pricing](https://www.hireborderless.com/pricing) - [Deel pricing](https://www.deel.com/pricing/) - [Globalization Partners pricing](https://www.globalization-partners.com/pricing/) - [Atlas pricing](https://www.atlashxm.com/pricing) - [Remote pricing](https://remote.com/pricing) - [Oyster pricing](https://www.oysterhr.com/pricing) - [Labour Code 2019, No. 45/2019/QH14](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) - [Decree 145/2020/ND-CP on labour sub-leasing](https://vanban.chinhphu.vn/?pageid=27160&docid=201967) This is general information, not legal, tax or financial advice for a specific case. Contribution rates, caps and tax rules can be amended, so check the treatment for your own situation before relying on it. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [EOR Providers in Vietnam: The 2026 Price Range by Model](/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model) · [How to Choose an Employer of Record in Vietnam: A Due-Diligence Checklist](/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist) · [Top EOR Services in Vietnam 2026: Independent Rankings](/tin-tuc/top-eor-services-vietnam-independent-rankings) --- # Hire Developers in Vietnam: Salaries, Recruitment and EOR https://payrollservice.vn/tin-tuc/hire-developers-in-vietnam-recruitment-and-eor You can hire software developers in Vietnam without a local company by having one licensed Vietnamese firm do two jobs: find the candidate, then employ that person for you through an Employer of Record (EOR) arrangement. Nhan Kiet does both under one contract, so you can start hiring Vietnamese staff without incorporating in Vietnam first. You choose the developer, set the salary and direct the technical work. Nhan Kiet becomes the legal employer and runs the contract, social insurance, personal income tax and payroll. When recruitment is combined with EOR, the recruitment fee falls from two months' gross salary to one month, payable only when the developer starts work. This guide is written for companies in the United States, Canada, the United Kingdom, Europe, Japan, South Korea, China, Malaysia, Singapore and Australia that want Vietnamese developers working for them full-time as a dedicated offshore team. It covers 2025 salary medians by role and seniority, how the combined fee works, the full first-year cost at three salary levels, time-zone overlap by country, and the legal points that decide whether the arrangement holds up in Vietnam. **Key facts at a glance** - **Last updated:** 11 October 2026. - **One company, two licences:** Nhan Kiet holds an employment services licence (No. 22139/2023/45/SLĐTBXH-VLATLĐ) for recruitment and a labour sub-leasing licence (No. 15/2019/SHCM) for EOR, both issued in Ho Chi Minh City. - **Recruitment fee:** two months' gross salary on its own, or **one month's gross salary when the developer is then employed through Nhan Kiet's EOR for at least 12 months**. It is invoiced on the developer's first working day, nothing is charged before that, and a free replacement is guaranteed if the hire leaves within 60 days. - **EOR fee:** 8% of gross salary per person per month, with a floor of VND 2,600,000 and a cap of VND 5,200,000 (about USD 99 and USD 199 at VND 26,250 per US dollar). A refundable deposit of one month's gross salary per employee applies from 1 October 2026. - **Onboarding:** typically 5–7 working days from the moment the service contract is agreed and the candidate's details are provided. - **Salary benchmark:** the median monthly salary of a back-end developer in Vietnam is VND 37.8 million across all levels (ITviec, 2025–2026 report). ## How does recruiting a developer and employing them through EOR work in Vietnam? Recruitment plus EOR means one Vietnamese provider sources and screens the candidates, you interview and choose, and the same provider then signs the employment contract and becomes the developer's legal employer while the developer works only for you. There is no hand-over between a recruiter and a separate employer, so the offer you approve is the contract the developer signs. | Step | What happens | Who decides | |---|---|---| | 1. Brief | You send the role, stack, seniority, salary range and working hours | You | | 2. Sourcing and screening | Nhan Kiet searches, screens CVs and checks availability and salary expectations | Nhan Kiet | | 3. Technical assessment | Coding tests and technical interviews are designed or run by your team | You | | 4. Offer | You choose the candidate and the gross salary; Nhan Kiet issues the offer as the employer | You | | 5. Contract and registration | Nhan Kiet signs a Vietnamese labour contract, registers social insurance and the personal tax code | Nhan Kiet | | 6. Work | The developer joins your stand-ups, tools and code base | You direct the technical work | | 7. Every month | Nhan Kiet pays salary, contributions and tax, and sends one itemised invoice | Nhan Kiet | Nhan Kiet does not promise a hiring deadline or a number of hires. Time to fill depends on the stack, seniority and salary you set; once the candidate accepts, onboarding through EOR typically takes 5–7 working days. ## How much does a software developer earn in Vietnam in 2025? A back-end developer in Vietnam earns a median of VND 37.8 million a month (about USD 1,440) across all experience levels, rising from VND 12.4 million in the first year to VND 54.9 million after more than eight years, according to ITviec's IT Salary and Recruitment Market Report 2025–2026, based on 1,839 respondents surveyed in 2025. The report does not say whether the figures are gross or net, so use them as a market benchmark and confirm the gross salary in each offer. The table below reproduces ITviec's medians in millions of VND per month. A dash means the report does not publish a figure for that cell. USD figures are Nhan Kiet's reference conversion at about VND 26,250 per US dollar, rounded. | Role | All levels | Under 1 year | 1–2 years | 3–4 years | 5–8 years | Over 8 years | All levels in USD (approx.) | |---|---|---|---|---|---|---|---| | Back-end developer | 37.8 | 12.4 | 25.35 | 30.1 | 39.9 | 54.9 | 1,440 | | Front-end developer | 34.8 | – | – | 30.8 | 41.8 | 46.3 | 1,326 | | Full-stack developer | 37.25 | 10.1 | 20.35 | 34.5 | 41.8 | 44.8 | 1,419 | | Mobile developer | 36.85 | 14.15 | 28.8 | 29.05 | 37.35 | 45.7 | 1,404 | | Embedded engineer | 34.35 | 21.4 | 23.9 | 28.4 | 39.4 | 60.65 | 1,309 | | Game developer | 33.35 | – | 26.5 | 40.4 | 57.85 | – | 1,270 | | Tester | 28.8 | 14.15 | 14.2 | 20.7 | 25.3 | 36.5 | 1,097 | | QA–QC | 31.2 | – | 18 | 24.4 | 29.75 | 38.5 | 1,189 | | Business analyst | 30 | 12.2 | 14 | 28 | 37.4 | 41.35 | 1,143 | | Data analyst / data scientist / BI | 40.65 | – | 23.8 | – | 42.5 | – | 1,549 | | Data engineer | 41.3 | – | – | 56.9 | – | – | 1,573 | | Tech lead | 51.8 | – | 45.3 | 53.85 | – | 68.45 | 1,973 | | Project leader / project manager | 50.1 | 17.2 | 29.85 | 48.4 | 58.45 | – | 1,909 | | Product owner / product manager | 50.1 | – | 25.3 | 42.7 | 60.4 | 75 | 1,909 | For senior back-end developers with 5–8 years' experience the median is VND 39.9 million a month (about USD 1,520), and after more than 8 years it is VND 54.9 million (about USD 2,091). Salary is only part of the cost of employing someone in Vietnam; the next sections add the statutory contributions, the fees and VAT. ## How much does Nhan Kiet charge to recruit and employ a developer? With Nhan Kiet, recruiting a developer costs two months' gross salary on its own, or one month's gross salary when the same developer is then employed through Nhan Kiet's EOR for at least 12 months; the EOR fee is 8% of gross salary a month, with a VND 2,600,000 floor and a VND 5,200,000 cap. The recruitment fee is payable once, when the developer starts work, and nothing is payable if no hire starts. | Option | Recruitment fee | Monthly EOR fee | Best for | |---|---|---|---| | Recruitment only | 2 months' gross salary | — | You already have a Vietnamese entity | | **Recruitment + EOR** | **1 month's gross salary** | 8% of gross (floor VND 2.6M, cap VND 5.2M) | No entity in Vietnam yet; long-term dedicated developer | | EOR only | — | 8% of gross (floor VND 2.6M, cap VND 5.2M) | You have already found the candidate | The reduced recruitment fee applies when the role stays on Nhan Kiet's EOR for 12 months; the payment steps, the 60-day replacement guarantee and what happens if the arrangement ends earlier are set out below. Recruitment fees are quoted excluding VAT. Teams of several developers are quoted lower as volume grows. The EOR deposit — one month's gross salary per employee, refundable — applies from 1 October 2026. ### What is the full first-year cost of one developer? The table below uses the same three gross salaries as Nhan Kiet's EOR price list. Each month you pay the gross salary, the employer's statutory contributions of 23.5%, the EOR fee, and 8% VAT on the whole invoice. All three salaries sit below the social insurance cap of VND 50,600,000 that applies from 1 July 2026. | Gross salary per month | Roughly matches (ITviec median) | Monthly invoice incl. VAT | Recruitment fee (with EOR) | First-year total | |---|---|---|---|---| | VND 20,000,000 (about USD 762) | Full-stack, 1–2 years | VND 29,484,000 (about USD 1,123) | VND 20,000,000 | VND 373,808,000 (about USD 14,240) | | VND 30,000,000 (about USD 1,143) | Back-end, 3–4 years | VND 42,822,000 (about USD 1,631) | VND 30,000,000 | VND 543,864,000 (about USD 20,719) | | VND 50,000,000 (about USD 1,905) | Tech lead, all levels | VND 71,010,000 (about USD 2,705) | VND 50,000,000 | VND 902,120,000 (about USD 34,366) | How the VND 30,000,000 row is built: salary 30,000,000 + employer contributions 7,050,000 + EOR fee 2,600,000 (8% would be 2,400,000, so the floor applies) = 39,650,000, plus 8% VAT of 3,172,000 = 42,822,000 a month. Over 12 months that is 513,864,000, plus the one-off recruitment fee of 30,000,000. Recruiting the same developer without EOR would cost 60,000,000. The 23.5% employer share is 21.5% compulsory insurance plus a 2% trade union fee. The 8% VAT rate applies until 31 December 2026 and returns to 10% from 1 January 2027 unless extended. A 13th-month salary is not required by Vietnamese law (Article 104 of the Labour Code 2019); if you pay one, it is added to that month's gross for the EOR fee and is not subject to social insurance. For other salary levels, try the [Vietnam salary calculator](/vietnam-salary-calculator/) or read the [annual cost of a hire by role](/tin-tuc/eor-cost-vietnam-total-annual-cost-of-a-hire-by-role). ## How and when do you pay the recruitment fee? You pay nothing until the developer you chose starts work: Nhan Kiet invoices the recruitment fee on the developer's first working day, payable within 7 working days, and there is no retainer, no upfront search fee and no charge for shortlists or interviews before that day. | Milestone | What you pay | What happens | |---|---|---| | You sign the service contract and send the brief | Nothing | Nhan Kiet starts sourcing and screening | | Shortlist and interviews | Nothing | You interview as many candidates as you need | | The candidate signs the offer | Nothing | Nhan Kiet confirms the start date and prepares the labour contract | | First working day | Recruitment fee (1 month's gross salary with EOR, 2 months without) plus VAT; EOR deposit of 1 month's gross salary, refundable | Invoice payable within 7 working days; the 60-day replacement guarantee starts | | Before each payday | Monthly EOR invoice: salary, 23.5% contributions, 8% fee and 8% VAT | You fund payroll in advance so the developer is paid in full and on time | | Day 61 | Nothing | The replacement guarantee ends | | End of the EOR service | Nothing | The deposit is refunded after the final settlement | Example: you hire a back-end developer at VND 30,000,000 gross a month with EOR. On the first working day you receive one invoice for the recruitment fee of VND 30,000,000 plus VAT and the refundable deposit of VND 30,000,000. From then on you receive one EOR invoice a month of VND 42,822,000. If you, or a company related to you, hire a candidate introduced by Nhan Kiet outside the service contract within 12 months of the introduction, the recruitment-only fee of two months' gross salary applies. ## What happens if the developer leaves within the first 60 days? If the developer resigns, fails probation or is dismissed for a disciplinary breach within 60 days of the first working day, Nhan Kiet recruits a replacement for the same role once, free of charge. Sixty days is the longest probation Vietnamese law allows for jobs that require a college-level qualification or higher, which covers developer roles (Article 25(2) of the Labour Code 2019). During probation either side may end the contract without notice and without compensation (Article 27(2)), so a hire that does not work out can be closed quickly and cleanly. The guarantee applies to both recruitment options, with or without EOR. ### What the guarantee covers - The developer resigns within 60 days of the first working day - The developer does not pass probation - The labour contract is ended for a disciplinary breach ### What you receive - One replacement for the same role, with the same job description and salary range, and no new recruitment fee - With recruitment + EOR, the replacement joins on the same EOR terms, and the 12 months for the reduced fee keep counting for the role from the first developer's start date - If Nhan Kiet has not presented a replacement you accept within 60 days of your notice, or you decide not to refill the role, you choose between a refund of 50% of the recruitment fee or keeping 100% of it as credit for another role within 6 months ### How to claim - Email Nhan Kiet within 5 working days of the developer's last working day, or of your decision that probation was not passed - The recruitment fee must have been paid by its due date ### When the guarantee does not apply - You end the contract for reasons that have nothing to do with the developer's performance or conduct, such as restructuring, budget cuts or a cancelled project - The job description, salary, working hours or place of work changed materially from the signed offer - The recruitment fee or the monthly EOR invoices are overdue ### When does the guarantee end? The guarantee ends at the end of day 60 after the first working day, or as soon as the free replacement has been used, whichever comes first; the replacement developer does not carry a second guarantee. After that: - If the developer resigns later, there is no further free replacement, and with recruitment + EOR you are not charged anything extra for that resignation - If you end the EOR service for the role yourself before 12 months, outside the guarantee, the one-month difference between the two recruitment fees falls due on the final invoice - The EOR deposit is refunded when the service ends, after the final settlement ## How does this compare with recruitment agency fees at home? Recruiting through Nhan Kiet costs two months' gross salary on its own (about 16.7% of a 12-month salary) or one month's gross salary with EOR (about 8.3%), while agency fees are commonly quoted at 15–25% of annual salary in the United States, from about 15% up to around 30% in the United Kingdom, and 30–40% of theoretical annual income in Japan. | Where you recruit | Typical agency fee (published guide) | Source | |---|---|---| | United States | 15–25% of the new hire's annual salary (contingency) | AIHR | | United Kingdom | from about 15% of yearly salary, up to about 30% for highly paid hires | REC (2014) | | Japan | 30–40% of theoretical annual income (理論年収) | Recruit | | Vietnam, Nhan Kiet recruitment only | 2 months' gross salary (about 16.7% of 12 months) | Nhan Kiet price | | Vietnam, Nhan Kiet recruitment + EOR | 1 month's gross salary (about 8.3% of 12 months) | Nhan Kiet price | The percentages are applied to very different salaries, so the gap in absolute cost is larger than the gap in rates. Fees in each market also vary by role and seniority; the figures above are published guides, not quotes. ## Which IT roles can you hire in Vietnam through Nhan Kiet? Nhan Kiet takes recruitment briefs for software engineering, testing, data, infrastructure and delivery roles, and employs the hired person through EOR. Typical briefs include: - **Back-end developers:** Java, .NET/C#, Node.js, Python, Go, PHP - **Front-end developers:** React, Angular, Vue - **Full-stack developers** and **mobile developers:** iOS (Swift), Android (Kotlin), Flutter, React Native - **QA and testing:** manual testers, QA–QC, automation test engineers - **DevOps and cloud engineers:** AWS, Azure, Google Cloud - **Data and AI:** data engineers, data analysts, BI developers, machine learning engineers - **Embedded and game developers** - **Delivery roles:** business analysts, project managers, scrum masters, tech leads, and bridge software engineers (BrSE) for Japanese clients Each brief is assessed on its own; Nhan Kiet does not guarantee a number of candidates or a hiring date. ## What changes when you hire from the US, UK, Japan, China, Malaysia, Singapore, Australia or Europe? The main practical differences are working-hour overlap and, for US and Canadian teams, the night-work premium; the employment itself always follows Vietnamese law, wherever your company is based. Vietnam is on UTC+7 all year with no daylight saving, so the working-day overlap ranges from the whole day with Thailand and Indonesia, and almost the whole day with China, Malaysia, Singapore, Japan and Korea, to one or two hours with the US East Coast. The table assumes a standard Vietnamese working day of 08:00–17:00. | Your location | Vietnam is | Overlap in a standard Vietnamese day | |---|---|---| | Thailand, Indonesia (Jakarta) (UTC+7) | Same time | The whole day | | China, Malaysia, Singapore, the Philippines, Hong Kong, Taiwan (UTC+8) | 1 hour behind | Almost the whole day | | Japan, South Korea (UTC+9) | 2 hours behind | Almost the whole day (Vietnam 08:00 = Tokyo 10:00) | | Sydney, Melbourne (UTC+10/+11) | 3–4 hours behind | From late morning to the end of the Australian working day | | New Zealand (UTC+12/+13) | 5–6 hours behind | About 3–4 hours in your afternoon | | India (UTC+5:30) | 1 hour 30 minutes ahead | Almost the whole day | | United Arab Emirates (UTC+4) | 3 hours ahead | About 5–6 hours from your morning to early afternoon | | Germany, France, Netherlands, Denmark (UTC+1/+2) | 5–6 hours ahead | About 2–4 hours in your morning | | United Kingdom (UTC+0/+1) | 6–7 hours ahead | About 1–3 hours in your morning | | US and Canada East Coast (UTC−5/−4) | 11–12 hours ahead | None; about 1–2 hours if the shift ends at 22:00 Vietnam time | | US and Canada West Coast (UTC−8/−7) | 14–15 hours ahead | None before 22:00 Vietnam time | ### United States and Canada For American and Canadian teams the practical pattern is asynchronous work with a short daily call. Normal hours in Vietnam cannot exceed 8 hours a day and 48 hours a week (Article 105 of the Labour Code 2019), but the shift itself can be scheduled later, for example 13:00–22:00 with a break. Night work in Vietnam runs from 22:00 to 06:00 (Article 106), and every hour worked at night earns at least 30% extra (Article 98(2)); overtime at night adds a further 20%. A late shift that ends at 22:00 gives one to two hours with US Eastern mornings without triggering the night premium. ### United Kingdom and Europe A Vietnamese afternoon covers the British and continental morning, which suits a daily stand-up at 09:00 London or Berlin time. Contracts with Nhan Kiet are signed remotely in English or bilingual English–Vietnamese, and monthly reports to head office are in English. ### Japan and South Korea With only a two-hour difference, Japanese and Korean teams can work with Vietnamese developers through the normal business day. Nhan Kiet has Japanese-speaking staff for consultations and quotations, and the Japanese page explains the [differences between an offshore development company and a dedicated EOR team](https://dichvutinhluong.vn/ja/eor-vietnam/). ### China, Malaysia, Thailand and the rest of Southeast Asia Companies in China, Malaysia, Singapore, Thailand, Indonesia and the Philippines work within one hour of Vietnam, so the time zone is not the constraint. Two other points matter more. The employment is governed by Vietnamese law whichever country you hire from: probation, notice, social insurance and the 13th-month question all follow the Labour Code 2019, not your home rules. And Tết usually falls on the same days as the Lunar New Year holidays in China, Singapore and Malaysia, so plan releases around that week across the whole region. ### Australia, New Zealand and Singapore Australian, New Zealand and Singaporean companies share a large part of the working day with Vietnam. For all three, the usual decision is not time zones but structure: whether a Vietnamese entity is worth setting up yet, or whether recruitment plus EOR covers the first years. ## Can a foreign company direct a developer employed through EOR in Vietnam? A foreign company can direct a Vietnamese developer employed through EOR: under Nhan Kiet's service-contract model you direct the professional and technical work, while Nhan Kiet arranges working time and labour supervision as the legal employer. That division is what keeps a service contract from being treated as disguised labour sub-leasing. Vietnamese law offers two routes. Labour sub-leasing, where the client manages the worker day to day, is limited to the 20 jobs listed in Appendix II of Decree 145/2020/ND-CP and to 12 months per worker (Article 53 of the Labour Code 2019). Under a service contract under the Commercial Law, the client directs what is built, in what order and how it is accepted, and Nhan Kiet organises working hours, attendance and discipline. Getting this wrong exposes both sides: since 10 September 2026, Decree 283/2026/ND-CP penalises each party directly for disguised sub-leasing. The [EOR Vietnam page](/eor-vietnam/) sets out both routes in detail. On intellectual property, Nhan Kiet signs confidentiality and IP-assignment terms with the developer to your requirements. Employee records are kept on Nhan Kiet's own HR and payroll platform hosted in Vietnam, and transfers of personal data abroad follow the Personal Data Protection Law (Law 91/2025/QH15), covered in our guide to [cross-border data transfer for EOR and payroll](/tin-tuc/vietnam-cross-border-data-transfer-eor-peo-and-payroll). ## Why recruit and employ through one company instead of an agency plus an EOR? Using one licensed company for both steps removes the hand-over between recruiter and employer: the offer, the employment contract, payroll and the monthly invoice all come from the same Vietnamese entity, and the recruitment fee is halved when you keep the developer on that EOR. | Point | Recruiter + separate EOR | Offshore development company | Nhan Kiet recruitment + EOR | |---|---|---|---| | Contracts you sign | Two (recruiter and EOR) | One (development services) | One (recruitment + EOR) | | Who chooses the developer | You | The development company assigns | You | | Who sets the salary | You, via the EOR | The development company | You | | Developer works only for you | Yes | Depends on the contract | Yes | | Legal employer in Vietnam | The EOR | The development company | Nhan Kiet (licence 15/2019/SHCM) | | How you pay | Agency fee + EOR invoices | Rate per person-month or per deliverable | Salary + contributions + 8% fee + VAT, itemised | | If the hire leaves early | Depends on the agency's terms | The company reassigns someone | One free replacement within 60 days | | Moving the developer to your own entity later | Depends on both contracts | Depends on the contract | No transfer fee from Nhan Kiet | When you later set up your own company in Vietnam, Nhan Kiet charges no conversion, buy-out or release fee. The contract with Nhan Kiet ends by mutual agreement under Article 34(3) of the Labour Code 2019, your entity signs a new contract, and the social insurance record continues without a gap. Statutory seniority restarts with the new employer; Nhan Kiet hands over the full service history so you can recognise prior service in the new contract. You also see your developers in Nhan Kiet's management platform at no extra cost: attendance, payslips, leave, overtime and each signed employment contract. Because Nhan Kiet is the employer of record, these are the same records that are produced in a labour inspection. ## Can Nhan Kiet hire foreign developers who are not Vietnamese? Nhan Kiet's EOR covers Vietnamese employees only, so a foreign developer needs a different structure. A work permit for a foreign national names an employer with a presence in the province where the work is done, so the employer must be your own Vietnamese company, branch or representative office. For that case Nhan Kiet provides PEO support for work permits, temporary residence cards and payroll; see [PEO costs in Vietnam](https://payrollservice.vn/tin-tuc/peo-cost-in-vietnam-2026-work-permit-trc-visa-monthly-fees). ## Do I pay anything if Nhan Kiet does not find the right developer? Nothing is payable for recruitment unless a developer you have chosen starts work: the recruitment fee is charged only at that point, and the EOR fee starts with the first payroll month. Nhan Kiet does not charge a retainer or an upfront search fee for developer recruitment, and if the developer you hired leaves within 60 days, the free replacement guarantee applies. ## Sources - ITviec, [Vietnam IT Salary and Recruitment Market Report 2025–2026](https://itviec.com/report/vietnam-it-salary-and-recruitment-market) — median salaries by position and years of experience, 1,839 respondents, surveyed 27 May–31 July and 21 October–11 November 2025. - AIHR, [Recruitment fees](https://www.aihr.com/hr-glossary/recruitment-fees/) — contingency fees of 15% to 25% of the new hire's annual salary. - REC (Recruitment and Employment Confederation), [What should you be spending on recruitment?](https://www.rec.uk.com/our-view/insights/your-recruitment-career/what-should-you-be-spending-recruitment) — agency rates from about 15% up to about 30% of yearly salary (article of 5 September 2014). - Recruit Co., Ltd., [人材紹介会社に支払う手数料の相場は？](https://directscout.recruit.co.jp/biz/guide/?p=1211) — 30%–40% of theoretical annual income (26 April 2023). - [Labour Code 2019 (No. 45/2019/QH14)](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) — Articles 34, 53, 98, 104, 105 and 106. Send us the role, stack, seniority and salary range, and Nhan Kiet will reply within 24 hours with a recruitment-plus-EOR quote and a draft English service contract. Contact Mr. Trung Nguyen, Deputy General Director, at trungnguyen@nhankiet.vn or on WhatsApp +84 908 636 108, or use the form on the [EOR Vietnam page](/eor-vietnam/#lien-he). --- # Vietnam Minimum Wage 2026: Regional Rates, Hourly Rates and 2027 https://payrollservice.vn/tin-tuc/vietnam-minimum-wage Vietnam's regional minimum wage in 2026 is **VND 5,310,000 a month in Region I (about USD 202), VND 4,730,000 in Region II, VND 4,140,000 in Region III and VND 3,700,000 in Region IV**, in force from 1 January 2026 under Decree 293/2025/ND-CP, up VND 250,000–350,000 on 2025. The matching hourly rates are VND 25,500, 22,700, 20,000 and 17,800. This article is for business owners, HR and finance teams hiring in Vietnam who need to identify the right region, check pay scales and insurance bases, and budget for the proposed rates from 1 January 2027; it reflects the rules as of 12 October 2026. ## What is the minimum wage in Vietnam in 2026? The 2026 regional minimum wage in Vietnam is VND 5,310,000 a month (Region I), VND 4,730,000 (Region II), VND 4,140,000 (Region III) and VND 3,700,000 (Region IV); the hourly minimums are VND 25,500, 22,700, 20,000 and 17,800, under Decree 293/2025/ND-CP effective 1 January 2026. | Region | Monthly minimum (VND/month) | Hourly minimum (VND/hour) | Increase on 2025 (VND/month) | |---|---|---|---| | Region I | 5,310,000 | 25,500 | +350,000 | | Region II | 4,730,000 | 22,700 | +320,000 | | Region III | 4,140,000 | 20,000 | +280,000 | | Region IV | 3,700,000 | 17,800 | +250,000 | The monthly rate applies to employees paid by the month; the hourly rate applies to employees paid by the hour, typically part-time, seasonal or short-shift workers. For employees paid weekly, daily, by output or on a lump-sum basis, pay converted to a monthly or hourly figure must not fall below these levels either. ## When did the 2026 minimum wage take effect, and under which decree? The current regional minimum wage took effect on 1 January 2026 under Decree 293/2025/ND-CP of 10 November 2025, which replaced Decree 74/2024/ND-CP. The legal basis is Article 91 of the 2019 Labour Code: the minimum wage is set by region, fixed per month and per hour, and announced by the Government on the recommendation of the National Wage Council. In 2025 the corresponding rates were VND 4,960,000, 4,410,000, 3,860,000 and 3,450,000 a month under Decree 74/2024/ND-CP. Businesses still holding pay scales, contracts or annexes with the old figures need to review them for payroll from January 2026. ## What is the regional minimum wage, and how does it differ from the base salary and the reference level? The regional minimum wage is the lowest wage payable to an employee doing the simplest work under normal working conditions, intended to secure a minimum standard of living for the employee and their family (Article 91(1) of the 2019 Labour Code); it is a mandatory floor for every business paying wages under an employment contract. Two figures that are often confused with it play very different roles: - **The base salary (lương cơ sở)** is used in the public sector to calculate pay and allowances for civil servants, public employees and the armed forces. Private businesses do not use it to set wages. - **The reference level** (VND 2,530,000 a month from 1 July 2026) is used in the social insurance formula under Social Insurance Law No. 41/2024/QH15: it is the lowest contribution base and the basis of the 20× cap (VND 50,600,000) for social and health insurance. So a full-time employee in Region I must have a contract salary of at least VND 5,310,000 a month, even though the insurance reference level is much lower. ## How do you know whether a workplace is in Region I, II, III or IV? The minimum-wage region is determined by **the area where the employee actually works**, looked up in the list of areas issued with Decree 293/2025/ND-CP — after Vietnam's 2025 administrative reorganisation, the list is drawn up by commune, ward and special zone rather than by district as before. A business with branches, factories, warehouses or shops in several areas applies each area's rate at each site, not one rate based on its head office. Three principles commonly used when looking up the region: - A unit or branch operating in an area applies the minimum wage set for that area. - An industrial park or export processing zone spanning areas with different rates applies the highest rate among them. - Outsourced or seconded staff working at a client's factory are assessed by where they actually work, not by the address of the contracting party. When unsure which region a new commune or ward falls into, match its name against the decree's annex and keep a record of the lookup in case of an inspection. ## What is the penalty for paying below the minimum wage in Vietnam? An employer that pays below the minimum wage is fined according to the number of employees affected: VND 20–30 million (1–10 employees), VND 30–50 million (11–50) and VND 50–75 million (51 or more), under Article 23(3) of Decree 283/2026/ND-CP, in force from 10 September 2026 and replacing Decree 12/2022/ND-CP. These are the rates for individuals; a business, as an organisation, is fined double under Article 7(1), i.e. VND 40–60, 60–100 and 100–150 million. On top of the fine, the business must pay the wage shortfall plus interest at the highest non-term deposit rate published by state-owned commercial banks at the time of the penalty (Article 23(5)(a)). A wage shortfall also means insurance was under-paid on the contribution base. ## How much social insurance is paid on a salary of VND 6 million? On a contract salary of VND 6,000,000 a month used as the contribution base, the employee pays 10.5%, or **VND 630,000 a month** (social insurance 8%, health insurance 1.5%, unemployment insurance 1%), and the employer pays 21.5%, or **VND 1,290,000 a month**, plus the 2% trade union fee of VND 120,000. VND 6,000,000 is above the minimum wage in all four regions, so it is valid anywhere. This employee takes home VND 5,370,000 and owes no personal income tax, because income after insurance is below the VND 15,500,000 personal deduction. The employer's total cost for the position is VND 7,410,000 a month. ## What else changes when the regional minimum wage rises? When the regional minimum wage rises, besides the lowest wage in each contract, a business has to review at least four other items, because they are calculated from or capped by this figure: - **Internal pay scales:** grade 1 cannot be below the new rate; if the scale is built on coefficients, the higher grades move too. - **Hourly pay for part-time and seasonal staff:** it cannot be below the region's hourly rate, for example VND 25,500 an hour in Region I. - **The unemployment insurance cap:** 20 times the regional minimum wage, i.e. VND 106,200,000 a month in Region I in 2026. - **Overtime and night-work pay:** calculated on the wage actually paid, so it rises when the lowest wage rises. Allowances that the business's own pay policy links to the minimum wage (for example an allowance set as a percentage of it) also change, so the pay policy should be re-read before the first payroll of the year. ## What will Vietnam's minimum wage be in 2027? Vietnam's regional minimum wage is proposed to rise by an average of 7.8% from 1 January 2027, to VND 5,700,000 a month (Region I), VND 5,080,000 (Region II), VND 4,450,000 (Region III) and VND 4,040,000 (Region IV), under the option agreed by the National Wage Council in July 2026 and submitted to the Government by the Ministry of Home Affairs. As of 12 October 2026 the Government had not issued the official decree, so the figures below are still proposals. | Region | 2026 (VND/month) | Proposed 2027 (VND/month) | Increase | Proposed 2027 hourly (VND/hour) | |---|---|---|---|---| | Region I | 5,310,000 | 5,700,000 | +390,000 | 27,400 | | Region II | 4,730,000 | 5,080,000 | +350,000 | 24,400 | | Region III | 4,140,000 | 4,450,000 | +310,000 | 21,400 | | Region IV | 3,700,000 | 4,040,000 | +340,000 | 19,400 | The draft also proposes moving some areas of Ho Chi Minh City, Hai Phong, Dong Nai, Da Nang and Hung Yen into a higher region. Businesses should budget 2027 payroll on the proposed rates and re-check each site's region once the decree is issued. ## What should employers do when the minimum wage changes? Employers need to do four things before the first payroll at the new rates: re-confirm the region of every workplace, raise any monthly or hourly wage below the new floor, update insurance contribution bases and the unemployment insurance cap, and notify employees of the change through a contract annex or a pay-rise decision. Nhan Kiet — Nhan Kiet Manpower Supply Co., Ltd, in operation since 2009 and holding labour sub-leasing Licence No. 15/2019/SHCM — runs monthly payroll for employees in 34 provinces and cities, and updates the minimum-wage region for each workplace from the first payroll of the year. Businesses that want to hand this over can use [payroll outsourcing in Vietnam](https://payrollservice.vn/payroll-outsourcing/), check the cost of a position with the free [Vietnam salary calculator](https://payrollservice.vn/vietnam-salary-calculator/), or, without a Vietnamese entity, hire through an [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/). **See also:** [Severance Pay in Vietnam (2026): Eligibility, Formula and Examples](https://payrollservice.vn/tin-tuc/severance-pay-in-vietnam) · [Hiring Seasonal Workers in Vietnam 2026: Rules and Options](https://payrollservice.vn/tin-tuc/hiring-seasonal-workers-in-vietnam-2026-rules-and-options) ## Sources - [List of areas applying the minimum wage, issued with Decree 293/2025/ND-CP](https://xaydungchinhsach.chinhphu.vn/danh-muc-dia-ban-ap-dung-muc-luong-toi-thieu-tu-01-01--2026-11925111017422725.htm) — monthly and hourly minimum wages and the list of areas; decree issued 10 November 2025, in force 1 January 2026 - [2019 Labour Code (No. 45/2019/QH14)](https://vanban.chinhphu.vn/?docid=198540&pageid=27160) — Article 90 (wages), Article 91 (minimum wage) - [Decree 283/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218871&pageid=27160) — Article 23(3) and (5) (paying below the minimum wage), Article 7(1) (organisations fined double); in force 10 September 2026 - [Ministry of Home Affairs proposes a 7.8% average minimum wage rise from 1 January 2027](https://baochinhphu.vn/bo-noi-vu-de-xuat-tang-luong-toi-thieu-vung-binh-quan-78-tu-ngay-1-1-2027-10226072211235806.htm) — Government e-newspaper, 22 July 2026 This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Businesses that need to check minimum-wage regions, pay scales and insurance bases against the new minimum wage can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Severance Pay in Vietnam (2026): Eligibility, Formula and Examples https://payrollservice.vn/tin-tuc/severance-pay-in-vietnam Severance pay in Vietnam (trợ cấp thôi việc) is the allowance an employer must pay when an employment contract ends lawfully to an employee who has worked regularly for it **for at least 12 months**: **half a month's salary for each year worked**, based on the average salary of the 6 months before leaving, under Article 46 of the 2019 Labour Code. The point many employers get wrong is that any period covered by unemployment insurance is deducted, so an employee whose unemployment insurance was paid in full often has little or no time left to count. This article is for business owners, HR and finance teams employing staff in Vietnam; it reflects the rules in force as of 12 October 2026. ## What is severance pay in Vietnam and who is entitled to it? Severance pay is the amount an employer pays an employee when the employment contract ends under paragraphs 1, 2, 3, 4, 6, 7, 9 or 10 of Article 34 of the 2019 Labour Code, provided the employee has worked regularly for that employer for at least 12 months; each year worked earns half a month's salary (Article 46(1)). The most common qualifying terminations are: - The fixed-term contract expires, or the work under the contract is completed. - Both parties agree to end the contract. - The employee lawfully terminates the contract under Article 35, giving the required notice. - The employer lawfully terminates the contract under Article 36, except where the employee abandoned work for 5 or more consecutive working days without a valid reason. The employer pays this from its own funds, unlike unemployment benefit, which is paid by the unemployment insurance fund. ## How is severance pay calculated in Vietnam in 2026? Severance pay = **years of service counted for severance × 1/2 × average contractual salary of the 6 months immediately before leaving**. The service counted is the total time actually worked for the employer, minus the time covered by unemployment insurance and any time for which severance or job-loss allowance has already been paid (Article 46(2) and (3)): - **Time actually worked** includes probation, employer-sponsored training, sick leave, maternity leave and other paid leave, under Article 8 of Decree 145/2020/ND-CP. - **Rounding odd months:** from 1 month to under 6 months counts as half a year; 6 months or more counts as a full year. - **Average salary** is the salary stated in the employment contract for the 6 months before leaving, including the base wage, wage allowances and other supplements under Article 90(1). Unemployment insurance began on 1 January 2009, so for employees who joined after that date and were covered continuously, the time left to count for severance is usually very short. ## What is a worked example of severance pay for someone employed before 2009? An employee who worked continuously from 1 July 2006 to 30 June 2026, covered by unemployment insurance from 1 January 2009, with an average salary over the last 6 months of VND 12,000,000 a month, receives severance pay of **VND 18,000,000**. The calculation: - Total time actually worked: 1 July 2006 – 30 June 2026 = 20 years. - Time covered by unemployment insurance: 1 January 2009 – 30 June 2026 = 17 years 6 months. - Time counted for severance: 20 years − 17 years 6 months = 2 years 6 months; the 6 odd months round up to 1 year, so **3 years** are counted. - Severance pay: 3 × 1/2 × 12,000,000 = **VND 18,000,000**. If the same employee had no pre-2009 period and was covered by unemployment insurance throughout, the time counted would be zero and no severance pay would be due. ## Do employees covered by unemployment insurance still get severance pay? An employee whose unemployment insurance was paid for the whole period of employment has no time left to count for severance, because all of it is deducted under Article 46(2); severance is only due for periods of work not covered by unemployment insurance. The periods most often overlooked are: - Probation under a separate probation agreement, before unemployment insurance started. - Work before 1 January 2009. - Periods when the employer should have paid unemployment insurance but did not — the employer must still count these for severance. Example: an employee on a separate 2-month probation agreement then signs an employment contract and is covered by unemployment insurance for 4 years, with an average salary over the last 6 months of VND 12,000,000. The uncovered period is 2 months, rounded to half a year, so severance pay is 1/2 × 1/2 × 12,000,000 = **VND 3,000,000**. ## Does an employee who resigns get severance pay in Vietnam? An employee who resigns still receives severance pay if the resignation is lawful — a unilateral termination under Article 35 of the 2019 Labour Code with the full notice period — and the employee has worked regularly for at least 12 months. The notice periods under Article 35(1) are: - At least 45 days for an indefinite-term contract. - At least 30 days for a fixed-term contract of 12 to 36 months. - At least 3 working days for a fixed-term contract of less than 12 months. An employee who walks out without the full notice, outside the cases where no notice is required, has terminated the contract unlawfully: they receive no severance pay and must pay the employer half a month's salary plus salary for the days of notice not given (Article 40). ## When is severance pay not payable? Severance pay is not payable when the employee qualifies for a retirement pension, when the employer terminates the contract because the employee abandoned work for 5 or more consecutive working days without a valid reason (Article 36(1)(e)), or when the contract ends for a reason outside the qualifying paragraphs of Article 34. Common cases: - Dismissal as a disciplinary measure (Article 34(8)). - Unlawful unilateral termination by the employee (Article 40). - Less than 12 months worked for the employer. - The whole period of work already covered by unemployment insurance or already compensated. Employees let go because of structural or technological change, for economic reasons, or because of a division, merger or consolidation of the business (Article 34(11)) receive job-loss allowance instead of severance pay, at a higher rate. ## How do severance pay, job-loss allowance and unemployment benefit differ? Severance pay and job-loss allowance are both paid by the employer, but they apply to different reasons for termination and at different rates; unemployment benefit is paid by the unemployment insurance fund, not by the employer: | Criterion | Severance pay | Job-loss allowance | Unemployment benefit | |---|---|---|---| | Legal basis | Article 46, 2019 Labour Code | Article 47, 2019 Labour Code | Employment and unemployment insurance law | | Paid by | Employer | Employer | Unemployment insurance fund | | When | Termination under paragraphs 1, 2, 3, 4, 6, 7, 9, 10 of Article 34 | Redundancy for restructuring, economic reasons, division or merger (Article 34(11)) | Job loss, with enough unemployment insurance contributions and an application filed | | Amount | Half a month's salary per year | One month's salary per year, at least two months' salary | Based on the average salary used for unemployment insurance contributions | | Time counted | Excludes time covered by unemployment insurance | Excludes time covered by unemployment insurance | Based on months of unemployment insurance contributions | One person can receive severance pay for an uncovered period and unemployment benefit for the covered period; the two do not exclude each other. ## When must severance pay be paid, and what is the penalty for paying late? The employer must pay severance pay and other final entitlements within 14 working days of the end of the employment contract; in certain special cases this can be extended, but not beyond 30 days (Article 48(1) of the 2019 Labour Code). Not paying, or paying less than due, is fined under Article 18(2) of Decree 283/2026/ND-CP, in force from 10 September 2026 and replacing Decree 12/2022/ND-CP: - VND 1–2 million for violations affecting 1–10 employees. - VND 2–5 million for 11–50 employees; VND 5–10 million for 51–100 employees. - VND 10–15 million for 101–300 employees; VND 15–20 million for 301 employees or more. These are the rates for individuals; a business, as an organisation, is fined double under Article 7(1). The business must also pay the full allowance plus interest at the highest non-term deposit rate published by state-owned commercial banks at the time of the penalty (Article 18(4)(a)). ## How does Nhan Kiet calculate and pay severance for clients? Nhan Kiet — Nhan Kiet Manpower Supply Co., Ltd, in operation since 2009 and holding labour sub-leasing Licence No. 15/2019/SHCM — signs employment contracts directly with employees, so it is responsible for calculating and paying severance in full, confirming insurance contribution periods and returning documents within 14 working days when a contract ends. For each employee, Nhan Kiet checks three sources: the contract and annexes for the 6-month average salary, the unemployment insurance record to deduct the right period, and probation records so that no uncovered period is missed. Foreign companies without a Vietnamese entity can hand all of this over through an [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/), and businesses with their own entity through [payroll outsourcing in Vietnam](https://payrollservice.vn/payroll-outsourcing/). **See also:** [Annual Leave in Vietnam 2026: Days & Unused Payout](https://payrollservice.vn/tin-tuc/annual-leave-in-vietnam-2026-days-and-unused-payout) · [Vietnam Minimum Wage 2026: Regional Rates, Hourly Rates and 2027](https://payrollservice.vn/tin-tuc/vietnam-minimum-wage) ## Sources - [2019 Labour Code (No. 45/2019/QH14)](https://vanban.chinhphu.vn/?docid=198540&pageid=27160) — Article 34 (grounds for termination), Articles 35 and 36 (unilateral termination), Article 40 (unlawful termination), Article 46 (severance pay), Article 47 (job-loss allowance), Article 48 (payment deadline), Article 90 (wages); in force from 1 January 2021 - Decree 145/2020/ND-CP guiding the Labour Code on working conditions and labour relations — Article 8 (service time and salary for severance and job-loss allowance) - [Decree 283/2026/ND-CP](https://vanban.chinhphu.vn/?docid=218871&pageid=27160) — Article 18(2) and (4)(a) (failure to pay severance), Article 7(1) (organisations fined double); in force 10 September 2026 This article summarises the rules for orientation; specific situations need individual advice. ## Contact us Businesses that need to calculate severance or job-loss allowance, or check employees' unemployment insurance records before ending contracts, can contact: - **Nguyen Quoc Trung** — Deputy General Director - Phone: **0908 636 108** — trungnguyen@nhankiet.vn - Switchboard: **028 3505 4224** - Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City --- # Top 10 EOR Services in Vietnam 2026: Two Independent Rankings https://payrollservice.vn/tin-tuc/top-eor-services-vietnam-independent-rankings **As of 15 October 2026, Nhan Kiet is one of the top 10 EOR providers in Vietnam in two independent rankings: sixth of 12 in People Managing People's "12 Best Employer of Record Services in Vietnam in 2026" (version of 8 October 2026), as its pick for multi-site workforce compliance, and seventh of 10 in EOR Overview's "Best Employer of Record in Vietnam: Top 10 EORs of 2026" (updated 14 October 2026). Five providers appear in both lists, and Nhan Kiet is the only Vietnam-based provider among them.** This page records every independent ranking that includes Nhan Kiet: who publishes it, how providers are scored, and the full list in the ranker's own order. It is updated each time a new ranking appears. Nhan Kiet publishes this page and is itself one of the ranked providers, so read it with that in mind: every position and label is reported from the publisher's page, not assigned by us. Both publishers state that their guides are funded by commissions or referral fees from listed providers, and Nhan Kiet is one of those providers. We cite each ranking by publisher, guide title and version date rather than linking to it; each guide is the first result when you search its title. ## Key facts: independent rankings of EOR services in Vietnam - **Two independent rankings currently include Nhan Kiet, and it is in the top 10 of both.** People Managing People's guide, updated 8 October 2026, ranks 12 providers; EOR Overview's top 10, updated 14 October 2026, ranks 10. - **Nhan Kiet places sixth and seventh.** It is sixth of 12 in People Managing People's guide, labelled "Best for multi-site workforce compliance", and seventh of 10 in EOR Overview's list, described as a Vietnam specialist with published pricing. - **Five providers appear in both lists:** Deel, Multiplier, Remote, Oyster and Nhan Kiet. Nhan Kiet is the only Vietnam-based provider among them; the other four are multi-country platforms. - **The two rankings are built differently.** People Managing People scores six core functions from 0 to 5; EOR Overview compares published pricing, country coverage and ratings on review platforms. - **Both publishers disclose their funding.** Each states that commissions or referral fees from listed providers help fund its work. - **Rankings move.** Between the 1 October and 8 October 2026 versions of People Managing People's guide, the list grew from 10 to 12 providers and six names changed; Nhan Kiet stayed sixth in both. - **This page is a registry.** Each new independent ranking that includes Nhan Kiet is added here with its date, its full list and Nhan Kiet's position. ## Which EOR services rank in the top list for Vietnam in 2026? Twelve EOR services are ranked in People Managing People's guide for Vietnam, updated on 8 October 2026: G-P is first, Deel second, and Nhan Kiet — the only Vietnam-only employer among them — sixth. The full list follows, in the publisher's own order, with what each provider is picked for stated in our own words. | # | Provider | Picked for | |---|---|---| | 1 | G-P | Hiring at scale | | 2 | Deel | Onboarding workflows | | 3 | Native Teams | Employer expense cards | | 4 | RemotePeople | Fast onboarding of Vietnam hires | | 5 | Multiplier | Automated statutory insurance contributions | | 6 | Nhan Kiet (Nhan Kiet Supplying Manpower) | Multi-site workforce compliance | | 7 | Gloroots | Benefit packages localised for Vietnam | | 8 | Rivermate | Flat-fee hiring | | 9 | Papaya Global | Automated payroll in Vietnamese dong | | 10 | Acclime | Moving staff between your own entity and an EOR | | 11 | Remote | Protection of intellectual-property transfer | | 12 | Oyster | Protection against worker misclassification | Eleven of the twelve are multi-country platforms that employ in Vietnam through a Vietnamese subsidiary or an in-country partner; Nhan Kiet is the one provider on the list that employs in Vietnam only. What that structural difference means in practice is covered in [Local EOR Company vs Global EOR Platform in Vietnam](https://payrollservice.vn/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam). ## Which EOR services rank in EOR Overview's top 10 for Vietnam? Ten EOR services are ranked in EOR Overview's top 10 for Vietnam, updated on 14 October 2026: RemoFirst is first, Remote second, and Nhan Kiet — again the only Vietnam-only employer on the list — seventh. The full list follows in the publisher's own order. | # | Provider | |---|---| | 1 | RemoFirst | | 2 | Remote | | 3 | Multiplier | | 4 | Hire with Columbus | | 5 | Payoneer Workforce Management | | 6 | Deel | | 7 | Nhan Kiet | | 8 | Pebl (formerly Velocity Global) | | 9 | Oyster | | 10 | Rippling | Nine of the ten are multi-country platforms. The list sets out each provider's starting price, country coverage and review-platform ratings side by side, and Nhan Kiet's listed starting price is the lowest of the ten. ## Which providers appear in both rankings? Five providers appear in both rankings — Deel, Multiplier, Remote, Oyster and Nhan Kiet — and Nhan Kiet is the only Vietnam-based provider among them. Their positions differ from one list to the other, as the table shows. | Provider | People Managing People (8 Oct 2026) | EOR Overview (14 Oct 2026) | |---|---|---| | Deel | 2nd | 6th | | Multiplier | 5th | 3rd | | Remote | 11th | 2nd | | Oyster | 12th | 9th | | Nhan Kiet | 6th | 7th | The other providers appear in only one of the two lists: G-P, Native Teams, RemotePeople, Gloroots, Rivermate, Papaya Global and Acclime in People Managing People's guide; RemoFirst, Hire with Columbus, Payoneer Workforce Management, Pebl and Rippling in EOR Overview's top 10. ## Who publishes these rankings, and how are providers scored? People Managing People and EOR Overview publish the two rankings, and they score providers in different ways: People Managing People rates six core functions from 0 to 5, while EOR Overview compares providers on published pricing, country coverage and ratings on review platforms such as G2 and Capterra. The first ranking is published by People Managing People, an HR publication operated by Black & White Zebra in Vancouver, and written by Josh Barker; each provider is scored from 0 to 5 on six core functions, the total is converted to a percentage, and two functions carry extra weight because the reviewer treats them as essential: employing staff without the client needing a Vietnamese entity, and compliance with Vietnamese labour law. The other four core functions are payroll and tax remittance, statutory benefits administration, employment-contract management, and onboarding and offboarding support. After the core score, the reviewer compares how providers handle the 13th-month salary and Tet bonus, immigration support, alerts when regulations change, how clearly fees are itemised against statutory contributions, and hands-on support with terminations and disputes. The second ranking is published by EOR Overview, a site in the same publishing group as EOR Select and Payroll Overview, whose co-founder Robbin Schuchmann is credited on the page. Its Vietnam page gives each provider a verdict and a best-fit profile, and sets out starting prices, contractor pricing, country coverage and ratings on G2 and Capterra side by side, leaving cells blank where data is not yet verified. Both publishers state how they are funded: People Managing People says commissions help fund its testing, and EOR Overview says it is referral-funded and may earn a fee when a reader signs up through its links — a common financing model for guides of this kind, and a reason to read any ranking as an informed editorial opinion rather than an audit. ## Where does Nhan Kiet rank, and what do the reviews say? Nhan Kiet ranks sixth of 12 in People Managing People's guide, as its pick for "Best for multi-site workforce compliance", and seventh of 10 in EOR Overview's top 10, where it is described as a Vietnam-only EOR operating since 2009 with simple published pricing and no onboarding, offboarding, setup or currency-exchange fees. People Managing People describes Nhan Kiet as a Vietnam-based employer of record running dong payroll, statutory benefits, bilingual employment contracts and labour compliance for companies hiring Vietnamese nationals without a local entity. Its review highlights four things: payroll that handles shift-based overtime, Tet bonuses and statutory contributions across several sites in one run; a worker app with electronic payslips, leave balances, overtime requests and daily wage advances; ISO/IEC 27001:2022 certification, with employee data hosted in Vietnam and cross-border transfer dossiers filed under Law 91/2025; and a labour-compliance service that moves workers at existing locations onto compliant contracts without a new entity. EOR Overview's verdict says Nhan Kiet suits foreign companies that want to hire local staff in Vietnam without setting up an entity, and is best for teams that want predictable per-employee costs, English contracts and reporting, and no need for a multi-country provider. It names two trade-offs: coverage limited to Vietnam, and an EOR limited to Vietnamese nationals, with foreign hires supported through Nhan Kiet's PEO service for companies that have a Vietnamese entity. People Managing People's review also lists two limits, and both deserve context rather than denial. First, it notes that roles directed day to day by the client face category limits. That limit comes from Vietnamese law, not from the provider: client-directed work is labour sub-leasing, which [Decree 145/2020/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=201967) restricts to 20 job categories, and Article 53 of the [Labour Code 2019](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) caps at 12 months per worker — rules that apply equally to every licensed provider using that route, while roles run under a service contract carry no such limits. Second, it notes that foreign hires are not covered under the EOR. That is accurate: Nhan Kiet's EOR covers Vietnamese nationals only, and foreign experts are handled through a separate [PEO service](https://payrollservice.vn/tin-tuc/peo-in-vietnam-how-the-model-works-and-when-to-use-it) for clients that have their own Vietnamese entity. One line needs correcting: People Managing People's guide shows Nhan Kiet's pricing as available on request, but the fee is published — 8% of gross salary, with a floor of VND 2,600,000 and a cap of VND 5,200,000 (about USD 99 to 199) per employee per month. What the whole market charges, provider by provider, is in [EOR Providers in Vietnam: The 2026 Price Range by Model](https://payrollservice.vn/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model). ## How did the ranking change between its 1 October and 8 October versions? People Managing People's list grew from 10 to 12 providers and six names changed, while Nhan Kiet stayed sixth in both versions. The 1 October 2026 version ranked ten providers, with Playroll, Safeguard Global, BIPO and Payoneer Workforce Management in the last four places; the 8 October version replaced them with Gloroots, Rivermate, Papaya Global, Acclime, Remote and Oyster, and reworded several of the picks. Nothing unusual happened there. Ranking pages are living documents: publishers re-score as providers change their products, pricing and documentation, so two readers can see two different lists only days apart. That is why this page always states the version date of each list it reports; EOR Overview's list is reported in its version of 14 October 2026. ## Why do EOR rankings differ from one another? Rankings differ because each one measures different things, weights them differently and reads the market on a different date, so the same providers can land in a different order on every list. The two lists on this page show it: G-P tops People Managing People's guide but is not in EOR Overview's top 10, RemoFirst tops EOR Overview's list but is not in People Managing People's, and Remote is second in one and eleventh in the other. Three differences do most of the work: the criteria (one publisher weights software and integrations, another local operations and licences), the commercial model (some lists are published by EOR providers ranking their own competitors, others are editorial guides funded by commissions or referral fees), and the timing (a list read in October can differ from the same list read in September). The practical reading is simple: a provider's presence across several independent lists says more than its exact position in any one of them, and any single position matters less than whether the reviewer's criteria match what you are buying. ## What does a ranking not tell you? A ranking does not tell you which Vietnamese company will be the legal employer of your staff, what the fee comes to at your own salary levels, or who answers your workers in Vietnamese when something goes wrong — and those three answers decide whether a provider fits your case. A ranking narrows the market to a shortlist; the checks that follow are yours to run. The seven questions to put to any provider — entity, licence, legal route, fee structure, VAT invoice, day-to-day operations and track record — are in [How to Choose an Employer of Record in Vietnam: A Due-Diligence Checklist](https://payrollservice.vn/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist), and whether a local company or a global platform fits your situation is covered in [Local EOR Company vs Global EOR Platform in Vietnam](https://payrollservice.vn/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam). ## Which independent rankings include Nhan Kiet? As of 15 October 2026, Nhan Kiet appears in two independent rankings of EOR services in Vietnam and is in the top 10 of both; this table is extended each time a new ranking is published. | Publisher | Guide | Version reported | Providers ranked | Nhan Kiet's position | Picked for | |---|---|---|---|---|---| | People Managing People (Black & White Zebra) | 12 Best Employer of Record Services in Vietnam in 2026 | 8 October 2026 | 12 | 6th | Multi-site workforce compliance | | EOR Overview | Best Employer of Record in Vietnam: Top 10 EORs of 2026 | 14 October 2026 | 10 | 7th | Vietnam specialist with published pricing | **Update 15/10/2026:** added EOR Overview's top 10 for Vietnam (14 October 2026), where Nhan Kiet ranks seventh. Nhan Kiet is now in the top 10 of two independent rankings and is the only Vietnam-based provider listed in both. **Update 12/10/2026:** page created, recording the People Managing People ranking in its versions of 1 and 8 October 2026, and third-party profiles on EOR Overview, EOR Select and Payroll Overview. ## Where else is Nhan Kiet reviewed by third parties? Besides the two rankings above, Nhan Kiet is covered on three EOR and payroll sites run by the same publishing group — EOR Overview, EOR Select and Payroll Overview — through provider profiles, a Vietnam hiring guide and a provider comparison. These pages are profiles and directory listings rather than ranked lists, so this page records them separately from the ranking table above. | Site | Page | What it reports | Version | |---|---|---|---| | EOR Overview | Provider profile | The published fee (8% of gross salary, about USD 99 to 199 per employee per month), no set-up or onboarding fees, a start within 5 to 7 working days, and both licences | 8 October 2026 | | EOR Overview | Vietnam hiring guide | Lists six providers with their starting fees; Nhan Kiet is the one Vietnam-only provider on it, at the lowest published starting fee of the six listed | 11 October 2026 | | EOR Overview | Comparison with a US–Vietnam provider | Its verdict favours Nhan Kiet for most Vietnam hiring teams, citing fee transparency | October 2026 | | EOR Select | Provider profile with an index score | The fee from about USD 99, three further ISO certifications, and Vietnam-only coverage noted as the main limit | 5 October 2026 | | Payroll Overview | Provider profile | More than 40,000 workers for over 500 client companies, both licences, and the dong floor and cap behind the fee | September 2026 | Like every entry on this page, these are cited by site, page and date rather than linked, and each site's own page governs. Profiles confirm facts; they do not rank. EOR Overview's ranked list for Vietnam, published on 14 October 2026, is recorded in the ranking table above. ## Sources (checked 15 October 2026) - People Managing People, "12 Best Employer of Record Services in Vietnam in 2026", by Josh Barker; Black & White Zebra, Vancouver; version of 8 October 2026. We cite rankings by publisher, title and date instead of linking; the guide is the first result when you search its title. - EOR Overview, "Best Employer of Record in Vietnam: Top 10 EORs of 2026", updated 14 October 2026; the site states that it is referral-funded. - [Labour Code 2019, No. 45/2019/QH14](https://vanban.chinhphu.vn/?pageid=27160&docid=198540) - [Decree 145/2020/ND-CP on labour sub-leasing](https://vanban.chinhphu.vn/?pageid=27160&docid=201967) - Nhan Kiet's published fee and service details: [Employer of Record in Vietnam](https://payrollservice.vn/eor-vietnam/) Provider names on this page identify who appears in a third-party ranking; positions and labels belong to each publisher, and this page does not assess any provider. Prices and rankings change, so check the current version of each source before relying on it. This is general information, not legal, tax or financial advice for a specific case. **See also:** [EOR services in Vietnam](/eor-vietnam/) · [How to Choose an Employer of Record in Vietnam: A Due-Diligence Checklist](/tin-tuc/how-to-choose-an-employer-of-record-in-vietnam-a-due-diligence-checklist) · [Local EOR Company vs Global EOR Platform in Vietnam (2026)](/tin-tuc/local-eor-company-vs-global-eor-platform-vietnam) · [EOR Providers in Vietnam: The 2026 Price Range by Model](/tin-tuc/eor-cost-vietnam-price-range-by-pricing-model)