Vietnam Payroll Guide for Foreign Employers: Taxes, Insurance and Deadlines (2026)
Running payroll in Vietnam means paying at least the regional minimum wage, withholding personal income tax (PIT), paying compulsory social, health and unemployment insurance, and filing on time every month. In 2026, employers pay about 21.5% of a Vietnamese employee's insurable salary in compulsory insurance (about 20.5% for eligible foreign employees), on top of gross pay. Residents are taxed on a new five-bracket PIT table from 5% to 35%, with a personal deduction of VND 15.5 million a month.
This guide explains each part of a Vietnam payroll, with worked examples, the main deadlines and the choice between running payroll in-house or outsourcing it.
Key Takeaways
Employers pay about 21.5% of a Vietnamese employee's insurable salary in compulsory insurance; employees pay about 10.5%. For eligible foreign employees the rates are about 20.5% and 9.5%, because they do not join unemployment insurance.
Social and health insurance are calculated on salary up to a cap of VND 46.8 million a month (20 times the statutory basic salary of VND 2.34 million).
From 2026, resident employment income is taxed at 5% to 35% across five brackets, after a VND 15.5 million personal deduction and VND 6.2 million per dependent.
Gross pay must meet the 2026 regional minimum wage, from VND 3.70 million to VND 5.31 million a month depending on location.
What a Vietnam Payroll Includes
Each monthly payroll cycle in Vietnam covers six items:
Gross salary and allowances under the employment contract, at or above the regional minimum wage.
Overtime and holiday pay: under Article 98 of the Labour Code, at least 150% of the normal wage on working days, 200% on weekly rest days and 300% on public holidays.
Compulsory insurance: social, health and unemployment insurance contributions by both employer and employee.
Personal income tax withheld from the employee's pay and filed with the tax authority.
Net pay transferred to the employee, with a payslip showing how it was calculated.
Filings and records: monthly or quarterly PIT returns, insurance payments and annual PIT finalisation.
Salaries are generally paid in Vietnamese dong. Employers must also tell employees how their pay is calculated each time they are paid, which in practice means issuing a payslip.
Minimum Wage in 2026
Gross pay for a full month of normal working hours cannot fall below the regional minimum wage for the place where the employee works. The 2026 monthly rates, effective 1 January 2026, are:
Region I: VND 5,310,000
Region II: VND 4,730,000
Region III: VND 4,140,000
Region IV: VND 3,700,000
Use the region of each workplace, not the head office. Our guide to the minimum wage in Vietnam in 2026 lists hourly rates and common mistakes. For market pay levels above the minimum, see average salary in Vietnam.
Social, Health and Unemployment Insurance
Compulsory insurance is the largest payroll cost on top of gross pay. For Vietnamese employees on contracts of one month or more, the usual contribution rates are:
Employer: about 21.5%, made up of 17.5% social insurance (including 0.5% for the occupational accident and disease fund), 3% health insurance and 1% unemployment insurance.
Employee: about 10.5%, made up of 8% social insurance, 1.5% health insurance and 1% unemployment insurance.
Foreign employees with a work permit or exemption and a contract of 12 months or more generally join social and health insurance but not unemployment insurance, so the rates are about 20.5% for the employer and 9.5% for the employee. Some groups, such as intra-company transferees and employees above retirement age, are treated differently, so check each foreign employee's status.
Two caps limit the salary used for contributions:
Social and health insurance: up to 20 times the statutory basic salary, or VND 46.8 million a month at the current VND 2.34 million basic salary.
Unemployment insurance: up to 20 times the regional minimum wage, for example VND 106.2 million a month in Region I.
Employers also pay a trade union fee of 2% of the social insurance salary fund. Our guide to the statutory basic salary in Vietnam explains how the caps work, and the latest changes are covered in our Vietnam social insurance news.
Personal Income Tax on Salaries in 2026
How much tax an employer withholds depends on whether the employee is a Vietnamese tax resident. Residents are generally those who spend 183 days or more in Vietnam in a calendar year or 12 consecutive months, or who have a permanent residence there.
Residents are taxed on employment income after deductions, using the five-bracket table that applies from the 2026 tax year:
Up to VND 10 million of monthly taxable income: 5%
Over VND 10 million to VND 30 million: 10%
Over VND 30 million to VND 60 million: 20%
Over VND 60 million to VND 100 million: 30%
Over VND 100 million: 35%
Before applying the rates, deduct the employee's compulsory insurance contributions, the personal deduction of VND 15.5 million a month and VND 6.2 million a month for each registered dependent.
Non-residents pay a flat 20% on Vietnam-sourced employment income, with no family deductions.
Our Vietnam personal income tax guide for foreigners covers residency, taxable benefits and double tax agreements in more detail.
Worked Examples
These simplified examples use 2026 rules for monthly salaries paid in Region I, with no taxable benefits other than salary.
Example 1: Vietnamese employee earning VND 30 million gross, one dependent
Employee insurance: 10.5% × 30,000,000 = VND 3,150,000.
Taxable income: 30,000,000 − 3,150,000 − 15,500,000 − 6,200,000 = VND 5,150,000.
PIT: 5% × 5,150,000 = VND 257,500.
Net pay: 30,000,000 − 3,150,000 − 257,500 = about VND 26.59 million.
Employer cost: 30,000,000 + 21.5% insurance (VND 6,450,000) + 2% trade union fee (VND 600,000) = about VND 37.05 million.
Example 2: resident foreign manager with a work permit and a 2-year contract, earning VND 80 million gross, no dependents
Insurance base is capped at VND 46.8 million, so employee insurance is 9.5% × 46,800,000 = VND 4,446,000.
Taxable income: 80,000,000 − 4,446,000 − 15,500,000 = VND 60,054,000.
PIT: 5% of the first 10 million (500,000) + 10% of the next 20 million (2,000,000) + 20% of the next 30 million (6,000,000) + 30% of the remaining 54,000 (16,200) = VND 8,516,200.
Net pay: 80,000,000 − 4,446,000 − 8,516,200 = about VND 67.04 million.
Employer insurance: 20.5% × 46,800,000 = VND 9,594,000, plus a 2% trade union fee on the capped base (VND 936,000), so total employer cost is about VND 90.53 million.
Real payrolls also need to handle allowances, benefits in kind, overtime and mid-month joiners, so treat these figures as illustrations.
Monthly and Annual Payroll Deadlines
A Vietnam payroll runs on a fixed cycle:
Each pay date: pay net salary in full and on time, and give each employee a payslip.
Every month: pay compulsory social, health and unemployment insurance contributions by the deadline in Article 34 of the Law on Social Insurance 2024.
Every month or quarter: declare and pay the PIT withheld. The Law on Tax Administration 2025 took effect on 1 July 2026, and its guidance changed declaration periods, so confirm whether your company now files monthly or quarterly and the exact due dates.
After year-end: complete the employer's annual PIT finalisation and, where authorised, finalise on behalf of employees.
Late insurance payments and late tax filings both attract interest and penalties, so build these dates into your payroll calendar. Our guides to Vietnam tax compliance in 2026 and Decree 252 and PIT finalisation for foreign employees explain the details. Around Tet, plan payroll early; see our Vietnam public holidays 2027 guide.
Common Payroll Mistakes Foreign Employers Make
Wrong insurance base: leaving fixed allowances out of the insurable salary, or calculating social and health insurance above the VND 46.8 million cap.
Missing foreign employees: not registering eligible foreign staff for social and health insurance.
Using the old PIT table or deductions after the 2026 changes.
Wrong regional minimum wage for branches and factories outside the head office region.
Late filing of PIT returns or insurance payments, which leads to late-payment interest and penalties.
No payslips or unclear salary components, which causes disputes and makes audits harder.
Run Payroll In-House or Outsource It?
Foreign companies usually choose one of three models:
In-house payroll: suits companies with a local finance team and payroll software that is updated for each rule change.
Outsourced payroll: a provider calculates pay, insurance and PIT, prepares payslips and filings, while your company remains the employer. See our guide to HR outsourcing in Vietnam.
Employer of record (EOR): a provider employs staff on your behalf before you have your own entity. Our guide to employer of record in Vietnam explains when this works and its limits.
Frequently Asked Questions
How much does an employer pay in social insurance in Vietnam?
For Vietnamese employees, employers pay about 21.5% of the insurable salary (17.5% social insurance, 3% health insurance and 1% unemployment insurance). For eligible foreign employees the employer rate is about 20.5%, because they do not join unemployment insurance. Social and health insurance are capped at VND 46.8 million a month.
What are the personal income tax rates in Vietnam in 2026?
Residents are taxed on employment income at 5%, 10%, 20%, 30% and 35% across five brackets, after a VND 15.5 million monthly personal deduction and VND 6.2 million per dependent. Non-residents pay a flat 20% on Vietnam-sourced employment income.
Do foreign employees pay social insurance in Vietnam?
Generally yes, if they hold a work permit or exemption and have a labour contract of 12 months or more. They contribute about 9.5% (social and health insurance) and their employer about 20.5%. Some groups, such as intra-company transferees, are treated differently.
What is the minimum wage in Vietnam in 2026?
From 1 January 2026, the monthly regional minimum wage is VND 5.31 million in Region I, VND 4.73 million in Region II, VND 4.14 million in Region III and VND 3.70 million in Region IV.
Is a 13th-month salary mandatory in Vietnam?
No. The Labour Code does not require a 13th-month salary or Tet bonus; under Article 104, bonuses follow the employer's bonus policy. A 13th-month payment becomes binding if the employment contract, collective agreement or internal policy promises it, and bonuses are taxable employment income.
Our Services
Get Your Vietnam Payroll Right With VINEX
Payroll rules in Vietnam changed in 2026, with a new PIT table, higher family deductions and updated tax administration. VINEX runs payroll, insurance registration, PIT filings and year-end finalisation for foreign-invested companies, so your team is paid correctly and on time.
Contact VINEX for a free consultation on your Vietnam payroll.
This article is general information as of 6 November 2026, not tax or legal advice. Rates and deadlines can change; confirm them for your company before running payroll.
Sources
Labour Code No. 45/2019/QH14; Law on Social Insurance No. 41/2024/QH15; Law on Personal Income Tax No. 109/2025/QH15.
Government News: National Assembly approves the amended Law on Personal Income Tax, December 2025.
Law on Tax Administration No. 108/2025/QH15, effective 1 July 2026.
VietnamNet: millions set to benefit from personal income tax reduction from 2026.
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