Don’t risk non-compliance with local employment, social insurance, and tax regulations.
Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Vietnam. Traditional methods of establishing global employment and subsidiaries in Vietnam typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Vietnam in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
Employer costs include Health Insurance, Unemployment Insurance, and Social Insurance. Use the OmniCalculator to estimate costs, or contact us for further information.
The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 5% - 35%.
The typical work week in Vietnam consists of 8 hours per day or 48 hours per week. An employee in Vietnam can’t work more than 12 hours a day, 30 hours overtime per month, and 200 hours overtime per year. Overtime pay is at least 150% of the actual hourly wage on a normal work day. Overtime laws in Vietnam are complex and can depend on the specific circumstances and the employee.
Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.
Sick leave in Vietnam calls for employees to receive a monthly allowance paid by a Social Insurance Fund. A medical certificate from a health establishment must be provided by the employee. Time off is measured by how long an employee has contributed to the Social Insurance Fund.
Maternity: Vietnam’s maternity leave regulations include 6 months paid leave. Employee receives a monthly allowance of 100% of average salary used as the basis for payment of social insurance premiums in the preceding 6 months from the Social Insurance Authority (provided that the employer has paid social insurance premiums for the employee for at least 6 months in the year before childbirth or adoption). Monthly allowance capped at 20 times the basic monthly salary.
Paternity: A male employee paying social insurance premiums is entitled to paternity leave of between 5 and 14 working days. Paternity leave pay is 100% of the salary of the month preceding the leave, paid by the Social Insurance Authority.
Parental: Up to 20 days per year until the child reaches the age of 3 and up to 15 days per year if the child is between the ages of 4 and 7. The pay is at a rate of 75% of the salary of the month preceding the employee’s leave and paid by the Social Insurance Authority.
Employees are entitled to 12 days paid leave (over public holidays) and receive 1 additional day for every 5 years of service.
Severance allowance of 1/2 months’ worth of salary for each year of employment only if the employee’s length of service is at least one year and only payable in specific terminations dictated by the Labour Code.
Termination of employment is strictly regulated, complex and requires strict procedural requirements to be followed. A mutual termination agreement between the employer and the employee is often used.
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The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Vietnam are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.
Omnipresent makes it easy to hire, pay, and support your international team with our top-notch services including our global EOR & PEO services. Book a call with us to start building your global team today. Book a call with us to start building your global team today.
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