Basic Facts

Vietnam is a Southeast Asian country known for its beaches, rivers, Buddhist pagodas, and bustling cities. It is bordered by China to the north, the South China Sea to the east and south, the Gulf of Thailand (Gulf of Siam) to the southwest, and Cambodia and Laos to the west. Vietnam’s economy is based on large state-owned industries such as textiles, food, furniture, plastics, and paper as well as tourism and telecommunications.


*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Vietnam.

Capital :
Currency :
Vietnamese dong (₫; VND)
Languages spoken :
Population :
98.17 million (2021 est.)
Minimum wage 2023 :
1.8 million VND
Cost of Living index :
$$ (89 of 139 countries)
Payroll Frequency :
VAT - standard rate :
GDP - real growth rate :
2.6% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2024.

Holiday Name
Extra Information
January 1
New Year's Day
February 9-15
April 18
Hung Kings Commemoration Day and Holiday
April 30
Reunification Day
May 1
Labor Day
September 2
National Day

Contract Sharing Time

The approximate time for sharing the contract with an employee in Vietnam is 6 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know

  • Annual leave duration increases by one day for every five years of employment with the same employer.
  • Illegal termination of employment by the employer attracts compensation costs for the employer.
  • The probationary salary is negotiated by both parties and it must not be lower than 85% of the offered salary.
  • The minimum wage varies as follows:
    • Zone 1: VND 4,680,000 per month
    • Zone 2: VND 4,160,000 per month
    • Zone 3: VND 3,640,000 per month
    • Zone VND 4: 3,250,000 per month

Labor Conditions

Working Hours

Normal working hours must not exceed eight hours per day or 48 hours per week. The State encourages employers to apply for 40-hour workweeks. An employee who works for at least six hours per day must be given a rest break of at least 30 consecutive minutes. In the case of night work, the rest break must be at least 45 consecutive minutes.



The total normal working hours plus overtime working hours must not exceed 12 hours in one day, and 40 hours in one month. The total overtime working hours must  not exceed 200 hours in one year.

An employee who works overtime must be paid an amount based on the piece rate or actual salary as follows:

  • On normal days: at least 150%;
  • On weekly days off: at least 200%;
  • On public holidays: at least 300%.
Probation Period

Only one probationary period is allowed for a job and the probation must not exceed:

  • 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;
  • 60 days for positions that require a junior college degree or above;
  • 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
  • Six working days for other jobs.


Termination Notice Period

Both the employer and the employee have the right to unilaterally terminate the employment contract, provided notification is made in advance of:

  • At least 45 days in case of an indefinite-term employment contract;
  • At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;
  • At least three working days in case of an employment contract with a fixed term of under 12 months.

Leave / Time Off

Annual Leave

Any employee who has been working for an employer for 12 months is entitled to fully-paid annual leave, which is stipulated in the employment contract as follows:

  • 12 working days for employees who work in normal working conditions;
  • 14 working days for employees that are minors, the disabled, employees who do laborious, toxic, or dangerous work;
  • 16 working days for employees who do highly laborious, toxic, or dangerous work.

Annual leave duration increases by one day for every five years of employment with the same employer.

Sick Leave

Employees who suffer from sickness or accident and have to be off work enjoy an allowance of 30 to 70 days depending on their social insurance contribution duration and working conditions.

Employees who have to look after a child under seven years old are entitled to enjoy a maximum of 15 to 20 days depending on the child’s age.

Parental Leave

When an employee takes leave to take care of a sick child aged under seven, have prenatal care check-up due to miscarriage, abortion, stillbirth, therapeutic abortion, implementation of contraceptive methods, or sterilization, the employee receives an allowance for the leave period from the social security system, for a maximum of 15 to 20 days depending on the child’s age.


Maternity Leave

A female employee is entitled to six months of prenatal and postnatal leave. The prenatal leave period must not exceed two months. In the case of multiple births, the leave is extended by one month for each child, counting from the second child.

During maternity leave, the female employee is entitled to maternity benefits as prescribed by social insurance laws. After the maternity leave expires, if so demanded, the female employee may be granted an additional unpaid leave under terms agreed upon with the employer.


Paternity Leave

Within the first 30 days of childbirth, male employees are entitled to paternity leave ranging from five to 14 working days based on childbirth circumstances and the number of children born.


Adoption Leave

Employees adopting an under six-month-old child are entitled to maternity leave until the child is six months. In case both parents are covered by social insurance and fully satisfy the conditions for enjoying the maternity regime, either the father or the mother can be entitled to maternity leave.

Employees adopting an under-six-month child are entitled to a lump-sum allowance equaling two times the basic salary.

Other Types of Paid Leave

Injury Leave

Employees whose health has not yet recovered after taking treatment for occupational diseases or injuries caused by labor accidents are entitled to a leave of between five days to 10 days for convalescence and health rehabilitation.

The per-diem allowance is equivalent to 25% of the basic salary if convalescence and health rehabilitation takes place at home, or equivalent to 40% of the basic salary, if convalescence and health rehabilitation takes place at a health establishment. 

Unpaid Leave

An employee is entitled to take a fully paid personal leave in the following circumstances, as long as it is notified to the employer in advance:

Type of Personal Leave Duration
Marriage 3 days
Marriage of a biological child or adopted child 1 day
Death of a biological or adoptive parent; death of a spouse’s biological or adoptive parent; death of spouse, biological or adopted child 3 days


Statutory Benefits

The Vietnam Social Security (VSS) is a government-attached agency and has the function of organizing the following benefits:

  • Sickness Benefits
  • Work Injury and Occupational Disease Benefits
  • Old-Age Benefits
  • Health Insurance
  • Survivor Benefits
  • Maternity Benefits

An overview of employer contributions toward social security is presented below.


Employer Contribution

Employee Contribution

Monthly Salary Cap (VND)

Sickness and Maternity



Occupational Diseases and Accidents



Retirement and Death




Health Insurance




Unemployment Insurance




Trade Union






Health Insurance

Compulsory Health Insurance (HI) contributions apply to both Vietnamese and foreign individuals that are employed under Vietnamese labor contracts. HI contribution rates are 4.5% of the income with 3% contributed by the employer and 1.5% by the employee.

The insured are provided with healthcare services, blood transfusion, and medical supplies based on medical diagnosis and treatment. 

Other Insurances

Accident Insurance

Employers pay 0.5% towards the accident insurance.

Companies operating in industries with a high risk of occupational diseases and accidents, meeting certain conditions, can apply for a lower employer’s contribution rate for occupational diseases and accidents of 0.3% instead of the current regulated rate of 0.5% on salary subject to social insurance contribution (including both Vietnamese and foreign employees).

Unemployment Insurance

Compulsory Unemployment Insurance (UI) contributions are applicable to Vietnamese individuals only. The employer and employee contributions are 1% each on the income subject to UI contribution.

Employees having paid unemployment insurance for at least 12 months in 24 months before being unemployed and unable to find a job 15 days after registration at job centers are permitted to enjoy unemployment benefits.

Public Pension

Employers contribute 14% towards retirement pensions and death benefits.

Employees are entitled to enjoy monthly retirement pensions if they reach the age of 55 for women and 60 for men, and have paid social insurance premiums for at least 20 years (in which the age of pension entitlement for those who have worked 15 years in hazardous and dangerous occupations are deducted five years).

Other Statutory Benefits

Sickness and Maternity Benefit

Employers contribute 3% of the monthly wage towards sickness and maternity benefits.

The maximum number of paid sick leave days afforded to employees is based on the number of years of the Social Insurance Premiums Paid. Female employees who are pregnant, give birth, or adopt a baby under six months of age, surrogate mothers, and male employees whose wives give birth are entitled to get maternity benefits.

Survivor’s Benefit

Employees who pay social insurance premiums are entitled to a funeral allowance of 10 months of the basic minimum wage when they die.

The monthly death gratuity for each dependent of the deceased employees is equivalent to 50% of the basic wage.


The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.