Payroll outsourcing services in Vietnam.

The E-payslip service provides remote access for your staff to access their payroll and payment-related information. It provides a central place for corporate staff (including those in foreign headquarters) to access corporate payroll data.

For all staff:

• Convenient access via website/app to view payslips and associated data
• Send feedback via website/app should there be any issues or queries with calculations or payments, freeing the employer from admin/support duties

For management or administrative staff:

• Provides access to employee payroll information in a transparent and confidential manner
• Efficiently manage and retrieve payroll data for the company, which can assist with local analysis as well as meet international/group data requirements

Set-up

• Establishment of the services and provide each staff with an individual account/login to access the software
• Input required information, assign software parameters, and assign administrator permissions appropriately based on staff positions and company authority structures
• Provide practical instruction documentation and support

Ongoing scope of work

Specific details of work to be undertaken include:

• Generating the payslips, in the agreed format, from the paysheet calculation process
• Attending to enquiries from employees on feedback received through the website/app

The E-leave management service provides remote access for staff to view their leave balances, and for them to submit leave requests to their managers. This allows your management to monitor and approve leaves, without the need for paper submissions, which can be authorised remotely or from abroad, and provides necessary flexibility in companies with operations across multiple locations.

For all staff:

• Ease of application (or modification) of leave requests via website or mobile app without paperwork or physical signatures
• Viewing of leave history and balances via website/app

For management or administrative staff:

• Automatic notification of pending leave requests for approval
• Online approval or rejection of the annual leave applications without paperwork or signatures
• Conveniently manage and view leave data for staff or teams for efficient planning

Set-up

• Establishment of the services and provide each staff with an individual account/login to access the software
• Input the required information, and assign software parameters and appropriate administrator permissions, based on staff positions and company authority structures
• Provide practical instruction documentation and support

Ongoing scope of work

Specific details of work to be undertaken include:

• Tracking employee leave requests and balance of leave available
• Integrate leave process into payroll calculation
• Export the leave reports for client submission for monthly review and sign-off

The 13th-month salary is not compulsory in Vietnam; it depends on company performance of the year, and investors can choose whether to use this bonus structure or not in Vietnam.

Annual paid holidays: Employees in Vietnam benefit from fully paid holidays. Annual leave (12 days), public holidays (10 days) which will increase to 11 days effective from Jan 1, 2021. Also, an employee may take fully paid leave for personal reasons in the following cases: Marriage (3 days); marriage of his/her child (1 day); death of a blood parent or a parent of his/her spouse, his/her spouse or child (3 days).

Rest breaks during working hours: An employee who works for eight hours consecutively or six hours is entitled to a break of at least 30 minutes in the middle of working which must be counted in the working hours. An employee who works at night is entitled to a break of at least 45 minutes in the middle of working schedule, which must be counted in the working hours. 

Weekly breaks: Every week, an employee is entitled to a break of at least 24 consecutive hours. In special cases, the employer shall ensure the employees have at least four days off on average in a month.

Insurance regime: Employees in Vietnam benefit from compulsory social insurance, compulsory health insurance, unemployment insurance, and are entitled to the benefits in accordance with the social insurance and health insurance laws.

Annual Health check: Employees benefit from having periodical health check-ups once per year.

1. Female employees are entitled to a six-month leave before and after childbirth. For a female employee who gives birth to twins or more infants, she is entitled to an additional leave of one month for each infant from the second.

The maternity leave period before childbirth must not exceed two months.

2. Male employees currently paying social insurance premiums whose wives give birth to children are entitled to a maternity leave of:
3. 5 working days;
4. 7 working days, in case their wives undergo a surgical birth or give birth to children before 32 weeks of pregnancy;
5. 10 working days, in case their wives give birth to twins; or additional three working days for each infant from the second;
6. 14 working days, in case their wives give birth to twins or more infants and undertake childbirth operation.

The maternity leave period specified in this clause must be within the first 30 days after the date of childbirth.

1. An employee may unilaterally terminate the employment contract: An employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employer in advance:
2. a) at least 45 days in case of an indefinite-term employment contract;
3. b) at least 30 days in case of an employment contract with a fixed term less than 36 months;
4. c) The notice period in certain fields and jobs shall be specified by the government.
5. An employer may unilaterally terminate the employment contract: An employer shall have the right to unilaterally terminate an employment contract in one of the following circumstances:
6. a) The employee repeatedly fails to perform his/her work according to the criteria for assessment of employees’ fulfilment of duties established by the employer.
7. b) The employee is sick or has an accident and remains unable to work after having received treatment for a period of 12 consecutive months in the case of an indefinite-term employment contract, for six consecutive months or more than half the duration of the contract in the case of an employment contract with a fixed term less than 36 months.
8. c) Due to a natural disaster, fire, dangerous epidemic, enemy sabotage or relocation or reduction of production and business at the request of a competent state agency, the employer has sought all remedial measures recovery but still forced to reduce the workplace;
9. d) The employee is not present at the workplace after the time limit;
10. e) The employee is at full retirement age, unless otherwise agreed;
11. f) The employee voluntarily quit his job without having a plausible reason for five consecutive working days or more;

g) The employee provides untruthful information when entering into a labour contract, affecting the recruitment of the employee.

We always use locally compliant software system, with cloud-based functionalities and a secure focused approach.

There is no salary tax per se, but there is personal income tax, social insurance, and other taxes. Generally, the company pays for it on behalf of the employee. When the employee has revenue from other sources, except the salary, he/she needs to undertake the tax finalisation directly with the tax authorities; the company can’t automatically do this on their behalf, as they are not related to the other revenue’s taxes.

Social insurance to be shouldered by the employer is at 17.5% of the gross salary, while 8% is to be paid by the employee.

The Personal Income Tax (PIT) in Vietnam will be based upon an individual’s tax residency status. Employment income is generally subject to varying progressive rates, with other income subject to fixed tax rates. Depending on an individual’s monthly taxable income bracket, the PIT rate can range from 5% to 35% if you are a tax resident. The PIT rate for a non-tax resident is at 20%.