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Payroll in Vietnam involves several moving parts. Between frequent regulatory updates, mandatory contributions, and strict filing deadlines, it’s easy for busy employers to feel stretched. When you’re managing a growing team or hiring regionally, missing even a small detail can affect trust, employee satisfaction, or compliance standing.
To help you stay organised, here’s a simple and practical checklist that walks you through the essentials of payroll compliance in Vietnam. You can use this as a guide to strengthen your internal processes or as a quick reference whenever you board new team members.
Payroll compliance refers to your responsibility as an employer to calculate salaries correctly, make mandatory contributions, deduct taxes, issue payslips, and submit filings on time. This also includes staying aligned with labour laws, minimum wage regulations, overtime rules, and statutory contribution in Vietnam.
To stay compliant with Vietnam’s employment and tax regulations, employers should ensure the following key points are covered:
You are required to pay employees at least once a month on an agreed schedule. Late payments may result in paying additional compensation. Employers must also provide detailed payslips that show base salary, allowances, overtime, deductions, and statutory contributions.
Vietnam has strict rules on working hours and rest periods. Standard working hours are capped at 8 hours per day and 48 hours per week. Any work beyond that qualifies as overtime and must be compensated according to prescribed rates, which vary depending on whether work is done on weekdays, weekends, or public holidays.
Employees who work overtime are entitled to additional pay calculated based on their current hourly rate, as outlined below:
| Overtime Type | Compensation Rate | Explanation |
| Weekday, daytime | 150% | Overtime on regular working days during daytime hours (outside 10PM–6AM). |
| Weekend, daytime | 200% | Overtime on weekly rest days during daytime hours. |
| Public Holidays / Paid Leave Days | 300% | Overtime on national holidays or paid public leave days. |
| Night time (10PM–6AM) | +30% extra | Standard working hours at night: Employees who work at night (not overtime) receive an additional 30% of their normal hourly wage. |
| Overtime at night time (weekday/weekend/holiday) | +20% extra on top of the daytime OT rate | Overtime at night: If overtime occurs at night, employees receive an extra 20% of the applicable daytime overtime rate (150%, 200%, or 300%). |
Vietnam requires employers and employees to contribute to three major funds:
You must calculate and remit these contributions correctly based on the employee’s salary, following specific contribution rates. Trade Union contributions are mandatory for employers, while employee contributions are optional.
You must withhold and declare employees’ Personal Income Tax monthly or quarterly depending on your business size. At the end of each year, you also need to finalise PIT and submit the annual settlement to tax authorities.
Ensuring payroll compliance in Vietnam becomes much simpler when you break it down into clear, manageable steps. Here’s a straightforward guide you can follow:
Start by knowing the basics: standard working hours, overtime rules, public holiday entitlements, probation terms, contract types, and minimum wage by region. These rules directly influence salary calculations, overtime rates, and benefits, so getting the foundation right helps you avoid mistakes later.
Vietnam payroll typically includes base salary, fixed allowances, variable allowances, bonuses, and deductions. Ensure each component aligns with Vietnamese labour law and is clearly stated in the employment contract. This prevents misunderstandings and supports accurate statutory contribution calculations.
You must calculate the mandatory contributions correctly for:
These contributions are based on the employee’s salary and must follow the prescribed rates and salary caps. Ensuring accuracy prevents penalties and delays in employee benefit claims.
Make sure PIT is calculated based on the employee’s taxable income after deducting allowable reductions. Depending on your company size, declarations may be monthly or quarterly. At year end, complete the PIT finalisation and provide certificates to help employees with their own filings.
If your company operates across borders, manages remote teams, or wants to reduce administrative load, you can tap into support from partners like Glints TalentHub. You get a compliant payroll process for Vietnam, accurate statutory submissions, and clear guidance that helps you focus more on business growth without worrying about errors.
Non-compliance may lead to fines, back payments, late interest, or restrictions during audits. The impact is not only financial. Employees may lose trust when payroll errors happen repeatedly, and this affects morale and retention.
If you ever feel unsure about a rule or want to simplify cross-border payroll, you can schedule a session with a Glints TalentHub expert. You get clearer guidance on Vietnam’s requirements and practical support to streamline your entire payroll workflow so your team stays protected.
As you grow your team in Vietnam, staying aligned with payroll rules under the Labor Code 2019 becomes even more important. The regulations cover everything from minimum wages and overtime to statutory contributions and tax obligations, and these requirements can add complexity when you are managing multiple employees or operating across markets.
If you want a smoother and more reliable way to stay compliant, Glints TalentHub helps you manage payroll with accuracy, timely statutory filings, and clear documentation. This gives you space to focus on your business while keeping your Vietnam workforce fully protected.
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