Understanding Vietnam's Employer Tax Obligations

As an international HR professional, navigating Vietnam's tax landscape requires careful attention to mandatory contributions. Employers in Vietnam must comply with several statutory payments that form part of the country's social security system.

Total Employer Contribution Rate: 23.5%

Social Insurance: 17.5%
Health Insurance: 3%
Unemployment Insurance: 1%
Trade Union Fees: 2%

Social Insurance Framework

Vietnam's social insurance system operates on a shared contribution model between employers and employees. The employer's 17.5% contribution supports three distinct funds with specific purposes.

For example, a multinational technology company expanding to Ho Chi Minh City must calculate contributions based on employee monthly salaries, capped at 20 times the regional minimum wage (currently 46.8 million VND monthly).

Sickness and Maternity Fund (3%): Covers medical expenses and maternity benefits
Occupational Diseases and Accidents Fund (0.5%): Provides rehabilitation and compensation for workplace injuries
Retirement and Death Allowance Fund (14%): Supports pension payments and survivor benefits

Notably, from July 2025, the minimum contribution period for pension eligibility decreases from 20 to 15 years. Foreign workers require the same employer contributions except for unemployment insurance.

Health Insurance Provisions

The 3% health insurance contribution provides comprehensive medical coverage, including outpatient care, hospitalization, prescription drugs, and chronic disease management. This applies equally to Vietnamese and foreign employees.

Unemployment Insurance Considerations

At 1% of salary, unemployment insurance offers temporary financial support during job transitions. Foreign workers are exempt from this requirement under current regulations.

Trade Union Fee Requirements

Employers must contribute 2% of the social insurance wage base (capped at 36 million VND monthly) to trade union funds, payable monthly.

Voluntary Benefits Strategy

While not mandatory, competitive employers often supplement statutory benefits with private health insurance, retirement plans, performance bonuses, and flexible work arrangements to attract top talent.

Employee Tax Responsibilities in Vietnam

Employees share responsibility for social security contributions alongside personal income tax obligations.

Employee Contribution Range: 15.5% - 45.5%

Social Insurance: 8%
Health Insurance: 1.5%
Unemployment Insurance: 1%
Personal Income Tax: 5%-35%

Personal Income Tax Structure

Vietnam employs a progressive tax system with seven brackets. Residents benefit from monthly deductions including 11 million VND personal allowance and 4.4 million VND per dependent.

Annual Taxable Income (VND)	Monthly Taxable Income (VND)	Tax Rate (%)
0 - 60,000,000	0 - 5,000,000	5
60,000,001 - 120,000,000	5,000,001 - 10,000,000	10
120,000,001 - 216,000,000	10,000,001 - 18,000,000	15
216,000,001 - 384,000,000	18,000,001 - 32,000,000	20
384,000,001 - 624,000,000	32,000,001 - 52,000,000	25
624,000,001 - 960,000,000	52,000,001 - 80,000,000	30
960,000,001+	80,000,001+	35

Non-residents pay a flat 20% tax rate on Vietnam-sourced income. Taxable benefits include housing allowances, company vehicles, and education support, while relocation expenses and certain insurance premiums typically remain exempt.

Compliance Timeline

Employers must submit monthly or quarterly PIT declarations, with annual finalization due by March 31st of the following year. Individual taxpayers have until April 30th for personal submissions.

Expert Support for Compliance

Navigating Vietnam's evolving tax regulations requires specialized expertise. SailGlobal's HR specialists provide comprehensive support for social insurance registration, tax compliance, and benefits administration, ensuring seamless operations for international businesses.

Vietnam Employer Tax Guide 2024: Social Insurance & Compliance Requirements