In case of a full-time regular employee, following contribution and fees must be paid either by the employee (deducted from gross salary) or by the employer (computed from gross salary, paid as extra by employer):

Social Insurance

Part of the social insurance is deducted from employee‘s gross salary. Local employees contribute 8%, foreign employees do not contribute to social insurance.

Starting in January 2022, foreigners will need to start contributing to social fund as well.

The second part is covered by the employer. In the case of a local employee, the employer‘s contribution is 17.5%, for foreign employees just 3.5%.

Health Insurance

Employee’s contribution to both local and foreign employees is 1.5% of the gross salary.

Employer’s contribution is then 3% both for locals and foreigners.

Unemployment Insurance

Unemployment insurance concerns only local Vietnamese employees.

Their contribution is 1% from their gross salary, the employer contributes 1% as well.

Trade Union fees

For every full-time employee, the employer must contribute with 2% of their gross salary.

When the company reaches 5 full-time employees, it is possible to register a trade union in the company and get 68% of the trade union contribution back.

Personal income tax (PIT)

Both local and foreign employees must deduct personal income tax from their gross salary. It differs based on type of contract, tax residency and gross income.

PIT calculation depends on the tax residency of the employee.

Vietnamese nationals and foreigners who stay in Vietnam for at least 183 days within 1 consecutive year, or have a lease contract for at least 183 days in the tax year are considered as Vietnamese tax residents.

The PIT is computed based on the taxable income of the employee (all gross income minus personal deduction, dependent deduction and employee‘s contributions).

1. If taxable income of employee is less than 5 million VND/month, PIT is 5%
   
2. If taxable income of employee is more than 5 million VND/month and less than 10 million VND, PIT is 10%
3. If taxable income of employee is more than 10 million VND/month and less than 18 million VND, PIT is 15%
4. If taxable income of employee is more than 18 million VND/month and less than 32 million VND, PIT is 20%
5. If taxable income of employee is more than 32 million VND/month and less than 52 million VND, PIT is 25%
6. If taxable income of employee is more than 52 million VND/month and less than 80 million VND, PIT is 30%
7. If taxable income of employee is more than 80 million VND/month, PIT is 35%

In case of hiring n part-time employee or a freelancer, the contributions for social, health and unemployment insurance are not paid. Trade union contribution is not requisite.

Personal income tax deduction for such a type of contract is 10% of the gross salary of the employee.

In contrary to employees with a long-term contract, insurances (social, health, unemployment) and trade union fees do not apply.

The only deduction from the gross salary is a personal income tax (PIT), which is 10% for Vietnamese nationals and 20% for foreigners.

If an employee is not a tax resident of Vietnam, personal income tax is calculated as 20% deduction of the gross salary.

Social, health and unemployment insurance

Social, health and unemployment insurances should be paid on a monthly basis to the Social insurance office, based on your company registration address.

Initial one-time registered needed. In the case of hiring a new employee, a quarterly HR report is required.

Personal income tax

PIT should be paid on a quarterly basis to the Tax office.

Initial registration at Tax office is required.

Trade Union fees

Trade Union fees shall be paid monthly to a local Trade Union organization.

Initial registration at the Trade Union office is required.