Vietnam HR & payroll: Complete guide (2026).

HR and payroll compliance in Vietnam can be intimidating for new investors, so Vietnamese employers should ensure careful and conscious monitoring and review of their processes, policies, and calculations.

Our guide (both in PDF and the article below) provides an overview of understanding and implementing Vietnam’s labour laws, payroll processes and related human resource planning. It covers:

• Employment in Vietnam
• Overview of Vietnam HR and Payroll
• Payroll obligations
• Payroll calculations
• Employment and contracts
• Foreign employment and issues for attention
• Leave days and holidays

Employment in Vietnam

In 2025, Vietnam’s economy demonstrated exceptional strength and growth. GDP rose by 8.02%, marking the second-highest annual increase in 15 years and positioning Vietnam as a standout performer globally. This expansion was fuelled by robust activity across sectors: industry and construction grew by 8.95%, and services by 8.62%, both contributing significantly to the overall economic momentum.

Macroeconomic stability was maintained, with inflation averaging 3.31%, well within the central bank’s target range. Key balances remained secure, supported by an 18.2% year-on-year surge in trade with export and import volumes exceeded USD 930 billion.

Significant investment in infrastructure underpinned connectivity improvements. The Ministry of Transport advanced 70 key projects, including the extension of expressways and the initiation of metro and railway links. At the beginning of 2025, infrastructure spending was increased to around 6-7% of GDP, with plans to invest approximately USD 36 billion, up from an initial USD 31 billion.

FDI inflows reached new highs. Disbursed FDI totalled USD 27.62 billion, a 9% increase – the highest level in the 2021-2025 period. This growth reflects both new investments and reinvestment by existing investors, consolidating Vietnam’s position as a strategic destination in regional supply chains.

Vietnam continues on its trajectory towards achieving high-income status by 2045, backed by strategic infrastructure projects and comprehensive reforms. At Acclime Vietnam, we remain dedicated to supporting employers, especially foreign investors in managing employment regulations in this evolving landscape. These include guiding recruitment of foreign employees and ensuring compliance with increasingly complex immigration and Work Permit policies following the pandemic.

Overview of employment laws

The Vietnamese employment laws and structures are based on a collective concept and often remain weighted in favour of employees compared to other international jurisdictions.

Terminating contracts by employers during the term of an employment contract in Vietnam is complicated for employers (even in situations with cause), while employees have much more flexibility. Due to the general employee-leaning nature of the laws, employers need to ensure compliance at all times with requirements to provide a layer of protection against actions from employees or authorities.

Understanding documentation requirements, payroll (compensation and benefits), government reporting, and the processes behind these forms the basis of an employer’s compliant labour system.

Labour contracts

The Labour Code 2019 (Law No. 45/2019/QH14) stipulates that a labour contract is an agreement between an employee and an employer on paid employment, wages, working conditions, rights and obligations of each party in industrial relations. Where the two parties agree by another name with contents showing the paid job, salary and the management, administration and supervision of one party, the agreement is still considered a labour contract under Vietnamese laws.

After an employee successfully passes the probationary period (a probationary contract was signed before) and accepts to commence work, the employer must conclude the labour contract with the employee in writing with two copies, where the employee and employer keep one copy each.

There are two types of formal contracts:

• Indefinite term labour contract: the two parties do not define the term, the time of termination of the validity of the contract
• Definite term labour contract: The two parties define the term and the time of termination of the validity of the contract within a period not exceeding 36 months from the effective date of the contract

A definite-term labour contract can normally be signed a maximum of 2 times and the third one must be an indefinite term labour contract.

Labour regulations

As stipulated by the Vietnam Labour Code 2019, a newly established company must establish internal documents that define and specify internal regulations and policies.

These compulsory documents include Internal Labour Regulations, a Payroll Policy and a Salary Scale, which will be issued and publicised within the company for internal application. There is no requirement to lodge the Payroll Policy and Salary Scale with the authorities (differing from the Labour Code 2012, which required the registration of a Salary Scale); however, Internal Labour Regulations must be registered with DOLISA when the number of staff employed by the company is from 10 and above.

Working hours in Vietnam

The Labour Code 2019 stipulates that the regular working time is no more than 8 hours per day and no more than 48 hours per week. The employer has the right to set the working hours by day or week but must notify the employee. Additionally, according to the new provisions in the Labour Code 2019, the employer is responsible for ensuring limited working time exposure to dangerous and harmful factors in accordance with national technical regulations and relevant laws.

The employer must obtain the employee’s consent to work overtime and on the content of the work. The maximum overtime is 200 hours a year, with designated sectors, as stipulated by law, permitted to organise overtime work up to 300 hours a year and required to notify/register with relevant authorities.

From 1 February 2021, female employees, during their menstrual period, have the right to 30 minutes off each day, at least three working days per month counted as working hours, and still enjoy the full salary under the labour contract.

Overview of HR and payroll in Vietnam

HR and payroll compliance in Vietnam can be complicated. Vietnamese businesses need to monitor and review their processes, procedures, and calculations carefully and deliberately.

The following are key concepts that allow employers to ensure accurate compliance and obtain an overview of HR and payroll systems and obligations in Vietnam.

Gross salaries

Vietnamese labour laws are structured around gross salaries, which are the default approach for employers. Taxes are withheld from the employee’s gross salary, and insurances are applied to the employer and employee based on the gross salary. Where employers agree to apply net salary contracts for staff, calculations become somewhat more complicated as Vietnamese Labour Laws do not define or stipulate any relevant clause for net salary. Furthermore, although the employer is paying personal taxes, any tax refunds will usually be returned directly to the employee despite the employer having borne these as its costs.

Social security in Vietnam

In Vietnam, individuals with a labour contract (excluding some specific regulated cases) will generally be subject to three compulsory Social Security Programs covering:

1. Social Insurance. The components of the Social Insurance fund include:
   • Sickness and Maternity Fund
   • Labour Accident and Occupational Disease Fund
   • Pension and Survivorship Fund
2. Health insurance
3. Unemployment insurance

These insurance (SHUI) contributions are imposed on both employees and employers according to current requirements, based on stipulated rates on the gross salary of employees and thresholds set by the government. Employers are responsible for withholding the contribution portion of employees before paying salary to their staff and remitting it to the Social Insurance Funds for both employer and employee on a monthly basis.

Benefits of social security programs

Social Insurance benefits

• Pension: employees who reach retirement age as stipulated by the Labour Code 2019 and have paid Social Insurance for 15 years or more, will be entitled to state pension. The amount of the monthly pension depends on the number of years the employee participated in the Social Insurance fund, but not exceeding 75% of the legal average monthly salary
• Sick payment support
• Maternity allowance: To be entitled to this allowance, women employees must participate (contribute) in social insurance at least six months within twelve months before giving birth to a child. Generally, female employees have six months of maternity leave.
• Work-related injury allowance and occupational disease allowance
• Funeral payment

Health insurance benefits

Employees participating in Health Insurance will be granted a Health Insurance card. Health Insurance card holders undertake medical examination and treatment in public and private hospitals, engaging in a contract for medical examination and treatment under Health Insurance. The Health Insurance Fund pays all or a portion of the medical examination and treatment fee (the rate of payment depends on the specific subjects and right—or left-line treatment).

Pursuant to Decision No. 06/QD-TTg dated 6 January 2022 from the Prime Minister, the government has been digitising citizen data. Hence, social insurance authorities have been updating records accordingly so that employees can use their ID cards, which are integrated with their insurance information, to replace health insurance cards for medical treatment/ health checks.

In addition, employees can also use a photo of the Health Insurance card on the VissID application instead of a hard copy for health checkups and claims (Official Letter 1493/ BHXH-CSYT from the Social Insurance Department). A guide to set up an account can be accessed here.

Unemployment insurance benefits

Employees who participate in Unemployment Insurance and are unemployed will be entitled to unemployment benefits, job counselling and placement support, and vocational training support when meeting specific requirements in participant time and declarations.

SHUI contributions for expatriate employees

Following the provisions of Article 12 and Article 13 of Decree 143/2018/ND-CP, foreign individuals working in Vietnam and their employers are required to fully participate in Vietnam’s compulsory Social Insurance program. This excludes:

• Employees who are intra-company transferees
• Employees having attained retirement age under Clause 1 Article 187 of the Labour Code

Decree 143/2018/ND-CP outlines SHUI contribution rates for foreign employees and their employers can be seen on page 13 for details.

Foreign employees that seek to receive a one-off payment to withdraw their contributions to the Social Insurance fund, entitlement to the one-off benefit (Clause 6, Article 9 of Decree 143/2018/NDCP), is subject to:

• The employee is reaching the prescribed age as provided in clause 1 of this Article but has not yet reached 20 years of Social Insurance contribution.
• The employee is suffering from deadly diseases, such as cancer, polio, cirrhosis with ascites, tuberculosis, HIV infection moved to the phase of AIDS, and others regulated by the Ministry of Health.
• The employee has fully satisfied retirement pension entitlement requirements per clause 1 of the Article but has discontinued residing in Vietnam.
• The employee’s employment contract is terminated, or his/her Work Permit, practising certificate or practising license expires without being renewed

Trade union

Where the company and its employees agree to establish a Grassroots Trade Union, on a monthly basis, the total contribution of the employer’s portion and the employee’s portion to the Trade Union fund will be 2,5% of salary for Social Insurance effective from 1 July 2025 (previously the employee rate was 1%). In which, employees will contribute an additional 0,5% of their salary and 2% for the
employer’s contribution directed to the Trade Union fund.

Minimum basic wage and minimum monthly wage

The minimum basic wage generally applies only to Government employees (who are paid a multiple of this value depending on various factors). However, it is set as a base for calculating the salary cap amount subject to social security programs. In particular, the maximum monthly salary subject to social security programs is capped at 20 times the Minimum Basic Wage.

Note: From 1 July 2025, the temporary reference level is equal to the minimum basic salary. The current minimum basic salary is VND 2,530,000 per month, applicable from 1 July 2026. However, when the minimum basic salary is completely abolished, the reference level will be regulated by the Government but not lower than the current figure.

Minimum monthly wage varies depending on the zone in which the enterprise is located. Employers should ensure that their staff are not paid less than the monthly minimums and note that these minimums are also a base for a maximum salary subject to Unemployment Insurance capped at 20 times the Minimum Monthly Wage.

Minimum basic wage and minimum monthly wage generally increase annually with adjustments announced by the Government (except for 2020-2021, the period impacted by COVID-19, for which the Government deferred the annual increase). The changes to Minimum Basic Wage and Minimum Monthly Wage will impact employers and employees in Vietnam due to the manner in which SIHIUI caps are linked.

Payroll obligations

Personal income tax

Individuals in Vietnam are subject to personal income tax (PIT) based on their tax residency status. Employment income is generally subject to varying progressive rates, with other income subject to fixed tax rates.

Employers are under statutory requirements to withhold and pay PIT for employees, based on the progressive rate from 5 to 35 per cent, depending on the employee’s salary. Note that the first VND 15,500,000 is exempted from PIT for an individual, and this amount can be increased depending on the number of dependents registered by the employee (VND 6,200,000 for each dependent).

Read our PIT guide for more details, including tax residency criteria and rates.

Social insurance

SHUI is to be contributed by both the employer and employee as follows:

• Social Insurance: 17.5% (for employers) and 8% (for employees) on salary; capped at a maximum of 20 times the minimum basic wage
• Health Insurance: 3% (for employers) and 1.5% (for employees) on salary; capped at a maximum of 20 times the minimum basic wage
• Unemployment Insurance: 1% (for employers) and 1% (for employees) on salary; capped at 20 times the Minimum Monthly Wage of the Zone the Employer is in

Who is not required to participate in social insurances?

The following foreign individuals are not required to participate in social insurance:

• Individuals employed by an overseas employer, which is then internally sent to Vietnam, will not be subject to these insurance programs
• Employees having attained retirement age under Clause 1 Article 187 of the Labour Code.

Note: From 15 July 2020, enterprises operating in industries at high risk of occupational accidents and diseases may be able to apply a decrease in their Social Insurance contributions (particularly, a decrease to the Occupational Diseases and Accident Fund) by 0.2% where they have a demonstrated decrease in accidents and on-time reporting, for the past three consecutive years before the submission year.

Trade union

Trade Union contributions are to be paid by the employer at 2% of salaries to the Trade Union authority or the internal Trade Union at the employer (following a prescribed ratio), regardless of whether or not such employers have their own internal Trade Union. Contributions are capped at 20 times the minimum basic wage. Trade Union contributions are also to be paid by employees (0,5% of salary for Social Insurance) if they are a Trade Union member (of the internal Trade Union), with contributions capped at 10 times the minimum basic wage.

Initial procedures for newly established companies

After completing the establishment process, the company will register a Social Insurance Code. Subsequently, initial employment registrations are required, along with preparation of the policies and procedures regarding HR and payroll that are to be lodged with relevant authorities.

A Collective Labour Agreement is a written document stating the company’s regulations for its staff regarding their benefits and duties. Where the company employs more than 10 staff, it is generally required to establish a Trade Union (unless the staff and the company mutually agree not to), which creates a framework for protecting employee and employer rights in compliance with Vietnamese law.

The Salary Scale is a mandatory internal policy document, regardless of the company’s headcount. While it is not subject to mandatory submission or lodgement with the authorities, it must be made available for submission upon request.

Where a company has at least 10 employees, it is required to register itsInternal Labour Regulations with the ward‑level administrative authority in order to comply with Vietnamese labour regulations. Companies with fewer than 10 employees are not required to register Internal Labour Regulations; however, they may elect to issue these regulations in writing. Where written Internal Labour Regulations are not issued, the terms of the labour contracts will serve as the primary basis for compliance with, and enforcement of, labour obligations.

The company is also required to put in place Payroll Policies which clarify the cash or non-cash benefits employees are entitled to, such as petrol, parking fees, phone allowances, meals, etc.

Compulsory statutory reporting

Reports on Labour Accidents and on Occupational Health: Vietnamese companies are mandated to submit the Semi-annual Report to DOHA prior to 5 July and 10 January.

Report on occupational safety and hygiene: This report must be submitted to both DOLISA and the Department of Health before 10 January.

Report on labour changes to the centre of employment service (CES): Employers must submit this report every month, specifically on the third day of each month.

Additionally, businesses in Vietnam must submit the Semi-annual report on changes to employment. Employers declare the employment situation during the first six months and the last six months of the year, and these reports must be submitted before 5 June and 5 December according to the forms issued by the authorities.

Furthermore, an Annual report on unemployment insurance contributions should be submitted before 15 January.

In addition to the compulsory reports for companies mentioned above, if the entity is a Representative Office, an Annual operation report of the representative office with the Department of Industry & Trade is also required by 31 January each year.

Vietnam HR and payroll compliance calendar

This compliance calendar is designed to help businesses in Vietnam navigate and plan their accounting, taxation, payroll, and statistical reporting obligations. It also offers in-depth guidance on the specific reporting and compliance requirements for foreign investors in Vietnam, highlighting all key obligations throughout the year.

Download the compliance calendar for a comprehensive overview of the reporting and compliance essentials for foreign investors operating in Vietnam.

Payroll calculations in Vietnam

Managing payroll in Vietnam requires a clear understanding of local regulations and compliance requirements. Our guide on payroll calculation provides a concise overview of the essential payroll processes, including salary calculations, tax obligations and social insurance contributions.

Employment and contracts

General requirements for employment and contracts

A company can initially engage employees using a probation agreement (generally limited to 30 days or 60 days for positions with technical qualifications). When an employee successfully passes the Probationary period, the company will proceed to sign a labour contract, which is the foundation agreement between the employee and employer. The labour contract lays out the key terms of the employment relationship, including the location of work, scope of work, work and rest hours, length of the employment term, salary, details of social insurance and matters relevant to preserving health and safety.

The company has the right to sign two definite labour contracts with an employee, with these contracts not to exceed 36 months, after which indefinite contract terms will automatically apply. There are still some disparities in the legal framework regarding labour contract terms, especially regarding foreign employees, as foreign employees are only allowed to enter labour contracts for a maximum period equivalent to the validity of their Work Permit – which by law is a maximum of two years – therefore, moving a foreign employee from a definite to an indefinite contract is deemed non-compliant by the authorities.

Specified salary packages include the salary based on the work specifications and title, any allowance(s) and other additional payments to which employees are entitled. An employee’s salary must not be lower than the minimum wage set by the Government.

Onboarding and probationary contracts

After the recruitment process is finalised and the employee has accepted the hiring proposal and offer, the company will proceed to acquire information from the employee using a thorough Data Collection procedure to sign the Offer Letter and, subsequently, the labour contract:

• Notarised identity card copy
• Notarised household book copy or residency certification
• Education certificate(s) (if required)
• Medical certificate (if required)
• Application form
• Reference check (if required)

With the required data and the offer letter signed, the company will issue the probationary contract, where the probation period must be based on the nature and complexity of the job. Probation can only be applied once for each job. The period must not exceed 60 days for positions that require a degree or above or 30 days for positions that require a secondary vocational certificate, professional secondary school, positions of or for technicians, and skilled employees; up to 180 days for the position of enterprise executive; or six working days for other jobs, with the wage for the employee during probation equal to at least 85% of the final offered wage for the specific position.

Types of contracts

An employment contract will be concluded in one of the following types:

• An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination.
• A fixed-term employment contract is a contract in which the two parties fix the term for a duration of up to 36 months from the date of its conclusion.

When a definite term contract is to expire within 30 days, employers and employees will conclude a new employment contract or give notice that they will not be renewing the contract; otherwise, it will be deemed to become an indefinite contract.

After the 2nd definite term labour contract, the 3rd labour contract will be indefinite-term contract. Although it is generally encouraged that all parties mutually agree on any termination of labour contracts, thus allowing flexibility with terms and payments, this is not always possible.

Termination

Vietnamese Labour Laws are drafted with the core concept of protecting employees. The ability to cease employment relationships in Vietnam is not always straightforward (or even permissible) in many cases. However, employers and employees can follow the regulations to achieve their desired outcomes.

Labour contracts come to an end when:

Obligations for terminating labour contracts

Where the above events arise, employers are generally required to give 30 days’ notice (45 days for indefinite-period contracts) and pay severance pay and/or termination pay. Immediate termination options may arise for acts of gross misconduct; however, caution should be taken as specific processes must still be followed, which can take time.

Termination pay is required to be at least two months’ salary plus one month for each additional year worked, based on the average monthly salary received for the previous six months.

The involvement of the Trade Union (internal Trade Union of the Employer or the District-level Trade Union) and DOLISA in the termination process requires specific meetings, minutes, and approvals. Although the processes may not specifically require Trade Union consent to gain final DOLISA approval, it is certainly encouraged to avoid protracted disputes.

Employee termination of labour contracts

Employees can unilaterally terminate their employment by providing written notice to their employer. This requires:

• Not less than 45 days’ notice for indefinite contracts
• Not less than 30 days’ notice for a definite contract with a fixed term of 12 – 36 months
• Not less than three days’ notice for definite term contracts with a fixed term of under 12 months

Employees who fail to provide the above notice periods to employers may be required to compensate them for failing to provide appropriate notice periods. Lesser periods can apply during periods of extended illness.

Foreign employment and issues for attention

Under Vietnamese Law, there is no automatic right to work or be employed in Vietnam if you are a foreign national. If a company in Vietnam wishes to recruit a foreign individual or a foreign individual is seeking to work in Vietnam, certain processes must be followed.

Work permit requirements for foreign employees and points for attention

In Vietnam, visas (business visas, visa exemptions, resident cards, etc.) do not provide employment rights. Visas are immigration/border matters.

In accordance with Vietnam’s Labour Code (and the current applicable Decrees relating to the Labour Code), all foreign individuals require a Work Permit before undertaking any employment in Vietnam unless they satisfy the exemptions and have the appropriate Exemption Certificates.

The duration of a foreign employee’s employment contract must not exceed that of the Work Permit. When a foreign employee in Vietnam is recruited, both parties may negotiate the conclusion of multiple fixed-term labour contracts. Foreign employees working in Vietnam will comply with and be protected by the labour law of Vietnam unless otherwise prescribed by treaties to which Vietnam is a signatory.

The work permit is tied to the role applied for

This often frustrates foreign employees if they wish to change employers in Vietnam – they must apply for a new Work Permit again for the new role. If they have two jobs and employers in Vietnam, they must hold two work permits, one from each employer. The reason is that the employer applies for the Work Permit, not the individual. The application is for a specific role at a specific employer. If an employee ever changes roles with the same employer, then a new Work Permit is often required to be applied for (most don‘t).

Probation contracts still require work permits

This point is extremely frustrating to employers in Vietnam. Employers have to go through the entire process of obtaining a Work Permit before they can test a foreign employee’s ability to perform the job (i.e., include the standard probation clauses in an employment contract).

Some employers work around this by inviting individuals to Vietnam for a 90-day contract (using the three-month rule exemption). If they complete the period, they will begin discussions for longer contract negotiations (and apply for Work Permits). There are risks with this process, but some argue that they can work around the requirements and essentially use the laws to allow a probation element. Whether these are acceptable to a potential employee is another story.

Work permit exemption categories

There are 15 categories of foreign employees who are exempt from obtaining a Work Permit in Vietnam under Article 7 of the relevant regulations. Depending on the case, some exemptions still require an Exemption Certificate to be issued before commencing work, while others only require notification to the competent authority.

Common work‑permit exemption cases include:

• Owners or capital‑contributing members of a limited liability company with a capital contribution of at least VND 3 billion;
• The Chairperson or members of the Board of Directors of a joint‑stock company with a capital contribution of at least VND 3 billion;
• Foreign managers, executives, experts or technical employees working for less than 90 days in a year;
• Intra‑company transferees employed by a foreign enterprise for at least 12 consecutive months, transferred to its commercial presence in Vietnam;
• Foreign students or interns studying in Vietnam or abroad with internship agreements or employment invitation letters;
• Foreigners married to Vietnamese citizens and residing in Vietnam;
• Volunteers, journalists accredited by the Ministry of Foreign Affairs, individuals entering Vietnam to implement international treaties or ODA projects, and relatives of foreign diplomatic missions authorised to work in Vietnam.

Although a Work Permit is not required in these cases, employers must still comply with applicable reporting or certification requirements before the foreign employee begins working in Vietnam.

Position/profession for foreign employment

Regarding the requirements for employment of foreigners in Vietnam, enterprises, organisations, individuals and contractors will only employ foreign individuals to hold positions of managers, executive directors, specialists and technical workers for the professional requirements that Vietnamese workers cannot meet. Recruitment of foreign employees in Vietnam will be explained and subject to written approval by relevant authorities. In addition, before recruiting foreign employees in Vietnam, a contractor will list the positions, necessary qualifications, skills, experience and employment period of the contract and obtain written approval from a relevant authority.

Tax finalisation for foreigner resident before returning home

According to Vietnamese Law, foreign residents who finishes their employment contract in Vietnam are to complete their tax PIT finalisation statement before returning home.

An annual tax finalisation is applicable to income from business and income from wages or remuneration. The tax period is the calendar year if the person is present in Vietnam for 183 days or more in the calendar year.

If the person has been present in Vietnam for fewer than 183 days in a calendar year, but has been in Vietnam for 183 days over 12 consecutive months from the date of arrival, the first tax period is the 12 consecutive months from the date of arrival. In the second year, the tax period is the calendar year.

Leave days and holidays

Public holidays

Employees will be entitled to fully paid days off on the following public holidays:

• Gregorian Calendar New Year Holiday: one day (1 January of the Gregorian calendar)
• Lunar New Year Holidays (Tet holidays): five days
• Reunification Day: one day (30 April)
• International Labour Day: one day (1 May)
• National Day: two days (2 September and the previous or next day)
• Hung Kings Commemoration Day: one day (the 10 of the third month of the Lunar calendar)
• Vietnamese Culture Day: one day (24 November)

Foreign employees in Vietnam are entitled to one traditional public holiday and one National Day of their country, in addition to the Vietnamese public holidays. The Prime Minister will decide the specific public holidays every year.

Personal paid leave

An employee is entitled to take a fully paid personal leave in the following circumstances:

• Marriage: three days
• Marriage of his/her biological child or adopted child: one day
• Death of his/her biological parent; death of his/her spouse’s biological parent; death of spouse, biological child: three days
• Death of his/her adoptive parent; death of his/her spouse’s adoptive parent; death of spouse, adoptive child: three days (effective from 1 January 2021)

An employee is entitled to one day of unpaid leave and must inform the employer in the case of the death of his/ her grandparent or biological sibling or the marriage of his/her parent or natural sibling.

The employee may negotiate with his/her employer on taking unpaid leave other than the leave.

Annual leave

The annual leave is a minimum of 12 days per year plus one more day for five consecutive working years at the company.

Any employee who has been working for an employer for 12 months is entitled to fully paid annual leave, which is stipulated in his/her employment contract as follows:

• 12 working days for employees who work in normal working conditions
• 14 working days for employees that are minors, the disabled, employees who do laborious, toxic or dangerous works
• 16 working days for employees who do highly laborious, toxic or dangerous works

Retirement regulations

Retirement age

According to the Labour Code 2019, in 2026, male employees will be able to retire at the age of 61 and 6 months (increased by 3 months compared to 2025), female employees will be able to retire at the age of 57 (increased by 4 months compared to 2025).

Employees who suffer from work capacity reduction, perform laborious, toxic or dangerous work, or work in highly disadvantaged areas can retire up to five years earlier than the specified retirement age.

Pension and social insurance benefits

From 1 July 2025, pensions, social allowances, and monthly allowances for pensioners and retirees before and after 1995 will be increased by 15%.

Conclusion

Vietnam’s employment landscape in 2026 presents a complex yet dynamic environment for both local and foreign employers. The country’s labour laws and regulations are designed to protect employees while also fostering economic growth and foreign investment. Key aspects for employers to consider include comprehensive social security programs, strict regulations on labour contracts and working hours, specific requirements for hiring foreign employees, detailed payroll obligations and stringent termination procedures that generally favour employee protection.

As Vietnam positions itself as an attractive destination for foreign investment and a growing manufacturing hub, employers must stay informed about the evolving labour regulations. Compliance with these regulations is crucial for maintaining smooth operations and avoiding legal issues. Companies, especially foreign entities, are advised to seek local expertise to navigate the intricacies of Vietnam’s labour landscape effectively. By understanding and adhering to these regulations, employers can contribute to Vietnam’s economic growth while ensuring fair and compliant employment practices.

How Acclime can help with HR and payroll in Vietnam

Acclime Vietnam offers invaluable support to employers navigating the complex employment landscape in Vietnam. With extensive local expertise, we provide practical guidance on employment regulations, assist with hiring foreign employees and help manage the increased immigration paperwork and Work Permit requirements. Contact us for more information.