Benefits and Compensations in Vietnam

Employment Law

Payroll & Tax

Compensation & Benefits

Table of Contents

Mandatory Employee Benefits in Vietnam

Non-Mandatory Employee Benefits in Vietnam

Mandatory Employee Benefits in Vietnam

Employees' Provident Fund (EPF)

In Vietnam, employers are required to contribute to the Social Insurance Fund (SI) on behalf of their employees. This covers retirement, illness, maternity, occupational accidents, and diseases. Contributions are made by both the employer and employee.

For most employees, the employer contributes 17.5% of the employee’s monthly salary to the Social Insurance Fund, while employees contribute 8%. The contribution must be made monthly, ensuring compliance with Vietnamese labor law and supporting employees' long-term security.

Health insurance

Vietnam's healthcare system includes a compulsory public health insurance scheme, where employers and employees both contribute to ensure coverage for medical treatment.

Employers contribute 3% of the salary towards health insurance, while employees contribute 1.5%. This ensures that employees have access to public healthcare, with the option of additional private insurance provided by the employer as part of their compensation package for higher-level or foreign employees.

Unemployment Insurance

In Vietnam, unemployment insurance is a mandatory benefit provided by the government. Both employers and employees must contribute monthly to ensure support in case of job loss.

The employer contributes 1% of the employee’s monthly salary, while the employee also contributes 1%. The contribution guarantees that employees are covered for unemployment benefits.

Non-Mandatory Employee Benefits in Vietnam

The most common non-mandatory benefits in Vietnam.

Health insurance

While the public health insurance system is extensive, many companies in Vietnam offer private health insurance as a competitive benefit for managerial or higher-income employees. This insurance typically covers additional medical treatments and hospitalization that public insurance may not fully cover. Companies may also offer a health allowance for employees to choose their private insurance coverage.

Per diem

Many companies in Vietnam provide employees with a daily travel allowance to cover the expenses incurred during work-related trips. This allowance may vary based on the destination or region of travel.

Additional holiday

Vietnamese labor law provides for 12 days of annual leave, but many companies offer additional days beyond this. The additional annual leave can range from 15 to 20 days, depending on the employee's seniority and the company's policy.

Bonus

It is common for companies in Vietnam to offer bonuses, either discretionary or contractual. The most common forms are year-end bonuses or performance bonuses, which can amount to up to three months’ salary depending on individual and company performance.

Work Permit

For foreign employees, many multinational companies in Vietnam provide visa sponsorship as a key benefit. This includes covering costs related to securing work permits and ensuring the employee can legally work in the country.

Visa sponsorship

For multinational companies in Malaysia hiring foreign talent, visa sponsorship is a common non-mandatory benefit. This support helps foreign employees secure the required permits to work legally in the country.

Flexible working arrangements are becoming more common in Vietnam, particularly in tech and multinational companies. Employers may allow options for remote working or flexible working hours, depending on the nature of the role.

Life Insurance

Some companies provide life insurance as part of their executive compensation package, recognizing the importance of financial security for higher-level employees. Employers may also offer allowances for employees to purchase their own life insurance.

Hardware

Many companies, especially in the tech industry, provide employees with the necessary IT equipment such as laptops or other tools required for the job. This ensures that employees have the right tools to work efficiently.

Career Development

Vietnamese companies are placing an increasing emphasis on employee development. Many provide training programs, workshops, and sponsorships for professional development. These opportunities help employees stay updated with industry trends and ensure continuous career growth.

Conclusion

Ensure your compensation and benefits packages in Vietnam are competitive, compliant, and aligned with local expectations. With Glints as your partner, you gain access to regional expertise that keeps your offerings attractive to top talent while adhering to Vietnam’s employment regulations.

Book a call with our team to explore how we can support your compensation and benefits strategy for a stronger, more compliant workforce in Vietnam.

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