Switch Language
Expanding or hiring in Vietnam can be an exciting growth move, but for many companies, the challenge starts after onboarding. Once you bring talent on board, keeping up with statutory contributions becomes one of the most complex parts of managing payroll.
Vietnam’s labour regulations require employers to make monthly contributions for social insurance, health insurance, and unemployment insurance. For growing companies or those hiring cross-border teams, managing these obligations manually often leads to confusion: Which rates apply to local vs. foreign employees? What’s the right contribution cap? How often do these rules change?
This guide breaks down everything you need to know about statutory contributions in Vietnam, what they cover, how much to contribute, and how to stay compliant without slowing down your hiring plans.
By the end, you’ll have a clear picture of how to handle compliance confidently, or how to simplify it with the right local partner.
Vietnam’s minimum wage is adjusted every 1 to 2 years to reflect cost-of-living changes and support fair compensation across its regions.
The common minimum wage (also known as the base salary) is used primarily to determine salary-based contributions for public sector employees and for calculating certain allowances or insurance caps.
As of July 2024, the Vietnamese government has set the common minimum wage at VND 2,340,000 million (approximately $93) per month. While this rate does not directly apply to private-sector employees, it serves as a reference point for social insurance and benefit calculations.
For the private sector, Vietnam applies four regional minimum wage levels, depending on the economic development of each area. These wages set the minimum amount employers must pay employees working under labour contracts.
Effective January 2024, the updated regional minimum wages are as follows:
| Region | Monthly Minimum Wage (VND) |
| Region I | 4960000 ($195) |
| Region II | 4430000 ($173) |
| Region III | 3860000 ($151) |
| Region IV | 3450000 ($135) |
These wage levels form the basis for calculating social insurance, health insurance, and unemployment insurance contributions, especially for employees earning lower salaries. For higher-paid employees, SI and HI contributions are capped at 20 times the common minimum wage (VND 46,800,000 per month), while UI contributions are capped at 20 times the regional minimum wage (VND 99,200,000 per month).
In Vietnam, both employers and employees are required to contribute to mandatory social insurance programs. These contributions cover employees’ social security, health, and unemployment benefits. The total contribution rate typically amounts to around 32% of the employee’s gross salary, divided between the employer and the employee.
Social Insurance (SI) covers benefits related to sickness, maternity, occupational accidents, retirement, and death. Employers are required to contribute 17.5% of the employee’s salary, while employees contribute 8%.
The contribution is calculated based on the employee’s monthly salary but capped at 20 times the statutory minimum wage, equivalent to VND 46.8 million per month as of 2025, though this figure may change with future government updates. Contribution Rate:
Health Insurance (HI) helps employees and their dependents access Vietnam’s public healthcare system, covering a range of medical expenses. Employers contribute 3%, while employees contribute 1.5% of their monthly salary.
This mandatory insurance provides financial protection against healthcare costs and ensures access to necessary medical services across both public and approved private hospitals. The coverage includes medical care, medication, technical services and medical materials, inpatient bed expenses, and treatment for critical diseases.
Contribution Rate:
Unemployment Insurance (UI) provides temporary income support and job-seeking assistance when employees lose their jobs. Both employers and employees contribute 1% each. This contribution applies to Vietnamese employees with valid labour contracts, while foreign employees are generally exempt.
Contribution Rate:
Trade Union (TU) contributions are designed to support labour unions in representing and protecting employees’ rights. Employers are required to contribute 2% of the total payroll to the trade union fund, regardless of whether a union is established at the company. For employees, contributing to the trade union is optional.
Contribution Rate:
Managing payroll and statutory contributions in Vietnam can be time-consuming, especially when you’re juggling multiple regulations, deadlines, and employee types. A small error in calculation or delayed remittance can lead to compliance issues and unnecessary costs.
With Glints TalentHub, you can simplify it all. Our Employer of Record (EOR) and payroll management solutions handle every step of the process, from calculating social, health, and unemployment insurance to submitting reports and payments accurately on time.
That means your team stays fully compliant, your employees receive their rightful benefits, and your business can focus on what truly matters, growth and performance.
Talk to our experts today to see how Glints TalentHub can help you hire, pay, and manage teams in Vietnam seamlessly.
Never miss a beat! Follow our social media channels for specially curated insights, knowledge and best practices to help you hire, retain and improve on your human capital.
