Insights
Hiring Seasonal Workers in Vietnam 2026: Rules and Options
By Nguyễn Quốc Trung — Deputy General Director · Updated
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.
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.
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.
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 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.
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%, while converting gross to net pay and the insurance base is covered in how to calculate payroll in 2026.
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, and how overtime pay and the 2026 overtime caps work is in overtime, night and holiday pay in Vietnam 2026.
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.
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 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) — Articles 18, 20, 52–57; in force from 1 January 2021
- Law on Social Insurance 2024 (No. 41/2024/QH15) — Article 2 on covered persons and part-time workers; in force from 1 July 2025
- Decree 145/2020/ND-CP — Appendix II, 20 sub-leasing jobs, Article 21 on the deposit; in force from 1 February 2021
- Decree 283/2026/ND-CP — 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) — Article 9 on deductible-expense conditions; in force from 1 October 2025
- Law on Employment 2025 (No. 74/2025/QH15) — Article 31 on persons covered by unemployment insurance; in force from 1 January 2026
- Decree 253/2026/ND-CP — 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 — [email protected]
- Switchboard: 028 3505 4224
- Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City
Call +84 908 636 108 or see labour compliance, payroll outsourcing, EOR Vietnam.