Vietnam Payroll Guide 2026

Tax residents (present 183 days or more in a 12-month period, or with a permanent residence in Vietnam) are taxed on worldwide employment income at progressive rates. Non-residents are taxed at a flat 20% on Vietnam-sourced employment income.

Taxable income is gross salary less employee insurance contributions, the personal deduction of VND 11,000,000 per month and VND 4,400,000 per month for each registered dependant.

• Monthly PIT withheld must be declared and paid by the 20th of the following month
• Quarterly filers declare and pay by the last day of the first month of the next quarter
• Annual finalisation is due by the last day of the third month after year end

Social insurance covers sickness, maternity, occupational disease and accident, retirement and survivorship. Employers contribute 17.5% of the contribution salary and employees 8%.

The contribution base is capped at 20 times the statutory base salary for social and health insurance, and at 20 times the applicable regional minimum wage for unemployment insurance. Registration must be completed within 30 days of the employment start date.

Health insurance gives employees access to the public healthcare scheme. Employers contribute 3% and employees 1.5% of the same capped contribution base. Contributions are paid together with social insurance in a single monthly transfer, and employees receive a health insurance card used at registered treatment facilities.

Unemployment insurance is contributed at 1% by the employer and 1% by the employee. It funds unemployment allowance, job counselling and vocational training. It applies to employees on contracts of three months or longer; foreign employees are not subject to unemployment insurance.

Employees with vocational training must be paid at least 7% above the regional minimum wage. Region classification follows the district in which the employee works.

• Salaries: paid monthly on the agreed date; late payment beyond 15 days requires interest compensation
• Social, health and unemployment insurance: paid by the last day of the same month
• PIT withholding declaration and payment: by the 20th of the following month (monthly filers)
• Quarterly PIT filers: by the last day of the first month of the following quarter
• Labour reports: submitted twice a year to the provincial labour department

After year end the employer reconciles all PIT withheld against each employee's actual annual liability and settles any shortfall or refund.

• Employer finalisation on behalf of employees: due by the last day of March
• Individual self-finalisation (multiple income sources): due by the last day of April
• Employees must sign an authorisation letter for the employer to finalise on their behalf
• Withholding certificates are issued to employees who finalise their own returns

Employers must give each employee a payslip for every pay run, in Vietnamese (bilingual payslips are common for foreign-invested companies).

• Employee name, position and pay period
• Gross salary, allowances, bonuses and overtime pay
• Employee social, health and unemployment insurance deductions
• Personal income tax withheld and any other agreed deductions
• Net amount paid and the payment date

• Foreign employees with a work permit of 12 months or more join social insurance (employer 17.5%, employee 8%)
• Health insurance applies at 3% employer and 1.5% employee
• Unemployment insurance does not apply to foreign employees
• Residency status determines whether progressive rates or the flat 20% non-resident rate applies
• Work permit, visa and temporary residence card must remain valid throughout employment
• Salaries may be agreed in USD but must be paid in VND unless the employee is a non-resident

A local payroll provider keeps registrations, contribution bases, filings and payslips correct as rules change, without you building an in-house payroll team or a legal entity payroll function. You get one monthly report, one invoice and full audit-ready documentation.