Vietnam Payroll Process & Labor Law: 2025 Employer Guide
Managing payroll in Vietnam isn’t just about paying salaries—it’s about staying on top of tax registration, social insurance rules, filing deadlines, minimum wage updates, and labor law limits. To help HR and finance teams stay compliant, we’ve summarized the latest 2025 updates and practical payroll requirements for employers in Vietnam.
Key 2024–2025 Updates
Regional minimum wage +6% (effective 1 Jul 2024) → impacts salaries & UI caps .
Base salary increased to VND 2.34m (1 Jul 2024) → raises SI/HI contribution caps .
New tax code regulation (Circular 86/2024, effective 2025) → Citizen ID replaces personal tax codes.
PIT annual finalization due 31 Mar 2025 (companies); 5 May 2025 (individuals).
Registration & Onboarding
Register tax code within 10 working days of business registration.
Employers must register PIT codes for employees and dependents (if not already issued).
Enroll staff in Social Insurance (SI), Health Insurance (HI), Unemployment Insurance (UI) as applicable.
Foreign employees: SI/HI apply if conditions met; UI not applicable .
Filing & Payment Deadlines
PIT withholding : file monthly (by the 20th ) or quarterly (last day of following month).
Annual PIT finalization : Mar 31 (employer); early May for individuals.
SHUI contributions : filed & paid monthly; due by end of each relevant month.
Contribution Rates (2025)
Contributor
SI
HI
UI
Total Caps
Employer (VN employees)
17.5%
3%
1%
21.5% SI/HI: 20× base salary (VND 2.34m); UI: 20× regional MW
Employee (VN employees)
8%
1.5%
1%
10.5% same caps
Foreign employees
17.5% (ER) / 8% (EE)
3% (ER) / 1.5% (EE)
N/A
ER 20.5% / EE 9.5% UI not applicable
Wages, Payslips & Banking
Itemised payslips required each pay period (electronic OK).
Employers must pay all bank fees for wage transfers.
Wages must be paid in VND , unless specific exceptions apply.
Working Hours & Leave
Standard hours: 8/day, 48/week .
Overtime: max 12/day, 40/month, 200/year (up to 300/year with approval).
Annual leave: 12 days/year , plus 1 day every 5 years of service.
Public holidays: 11 per year, plus extra day for foreign workers’ national holiday.
Penalties at a Glance
Late PIT filing: fines + 0.03% per day late-payment interest.
Underpaying minimum wage: subject to fines under Labor Code 2019.
Failure to issue payslips or pay wages correctly: administrative penalties apply.
Employer Compliance Checklist
Register tax code & employee PIT codes within 10 working days
Enroll staff in SI/HI/UI and apply updated salary caps
Withhold & file PIT by 20th (monthly) or last day after quarter (quarterly)
Finalize annual PIT by 31 Mar (company); employees by early May
Issue itemised payslip each payday
Cover all wage bank fees
Monitor overtime limits (12/day, 40/month, 200–300/year)
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