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Vietnam is Southeast Asia's fastest-growing tech talent market. Rippling manages SHUI contributions, trade union fund payments, Tết bonus planning, and TNCN withholding for Vietnamese employees.
Vietnam is one of Southeast Asia's fastest-growing payroll markets for international companies, with Ho Chi Minh City and Hanoi as primary tech hubs. The SHUI contribution system (21.5% employer + 10.5% employee), mandatory 2% trade union fund, and culturally essential Tết bonus are the defining payroll characteristics. TNCN (income tax) is withheld monthly with an annual reconciliation. The Vietnamese Labour Code 2019 governs all employment relationships.
Vietnamese FDI company (Công ty TNHH or Công ty Cổ phần) requires National Business Registration, Department of Planning and Investment registration, BHXH enrollment, and DOLISA labor notification (4–8 weeks). Trade union fund contributions to VGCL are mandatory from the first month of payroll. TNCN (personal income tax) withheld monthly by employer and remitted to the General Department of Taxation (GDT) by the 20th.
Rippling runs Vietnamese payroll through a local FDI entity. Configuration essentials: SHUI enrollment (BHXH, BHYT, BHTN) with VSS; trade union fund 2% quarterly remittance; TNCN monthly withholding; Tết bonus planning (1–3 months per employee); and Vietnamese-language employment contract. Lead time: 2–3 weeks. Tết date varies by lunar calendar — plan payroll well in advance.
BHXH: 17.5% of salary; BHYT: 3%; BHTN: 1%. Total SHUI employer: 21.5% (capped at 20× national base salary). Trade union fund: 2% of total payroll (remitted quarterly to VGCL). Total employer on-cost: approximately 23.5% of salary (SHUI + trade union). Tết bonus provision (1–3 months' salary) is an additional effective annual cost.
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BHXH (social insurance): 8% of salary (capped at 20× national base salary — VND 36,000,000/month from July 2024). BHYT (health insurance): 1.5% of salary. BHTN (unemployment insurance): 1%. Total SHUI employee: approximately 10.5% up to the ceiling. TNCN (personal income tax): progressive monthly rates 5% up to VND 5M; 10% VND 5–10M; 15% VND 10–18M; 20% VND 18–32M; 25% VND 32–52M; 30% VND 52–80M; 35% above VND 80M.
Vietnamese TNCN (personal income tax) progressive monthly rates: 5% up to VND 5M; 10% VND 5–10M; 15% VND 10–18M; 20% VND 18–32M; 25% VND 32–52M; 30% VND 52–80M; 35% above VND 80M. Personal deduction: VND 11,000,000/month. Dependent deduction: VND 4,400,000/month per registered dependent. Annual PIT return (quyết toán thuế) by March 31. Rippling manages monthly TNCN withholding and GDT remittances.
Annual leave: 12 working days/year minimum (after 12 months). Sick leave: BHXH pays from day 1. Maternity: 6 months (BHXH-funded at 100%). Paternity: 5–14 working days (BHXH-funded). Public holidays: approximately 11 national + Tet holidays (5 days). Long-service leave: 1 month every 6 years.
Labour Code 2019: employer can terminate with notice for specified reasons (employee repeatedly fails to complete work; prolonged illness; disaster forcing downsizing; organizational restructuring). Notice: 45 days (indefinite contract); 30 days (12–36 month fixed-term); 3 working days (under 12 months). Severance (trợ cấp thôi việc): 0.5 month's salary per year worked before January 1, 2009. BHTN covers post-2009 years. Illegal termination: reinstatement or 2 months' salary + notice pay.
Annual TNCN reconciliation (quyết toán thuế TNCN): employer files employee income summary by March 31. Monthly TNCN reporting forms archived. SHUI annual employer declaration. Rippling generates all year-end Vietnamese payroll filings.
Statutory: SHUI contributions — BHXH (social insurance, employer 17.5%); BHYT (health insurance, employer 3%); BHTN (unemployment insurance, employer 1%); trade union fund (2% of total payroll — mandatory employer contribution to VGCL). Market standard: supplemental health insurance (BHSK — private top-up plan, common for professional employees), Tết bonus (thưởng Tết — culturally mandatory, typically 1–3 months' salary; paid 1–2 weeks before Lunar New Year), performance bonus, internet and equipment allowances.
SHUI (Bảo hiểm Xã hội, Bảo hiểm Y tế, Bảo hiểm Thất nghiệp) covers social insurance (BHXH — employer 17.5%), health insurance (BHYT — employer 3%), and unemployment insurance (BHTN — employer 1%). Contributions are capped at 20× the national base salary. All mandatory from the first day of employment. Rippling manages all SHUI registrations and monthly remittances to Vietnam Social Security (VSS).
The Tết bonus (thưởng Tết — Lunar New Year bonus) is not legally mandatory but is culturally essential and effectively a retention requirement. Most Vietnamese employees expect a minimum of 1 month's salary as Tết bonus, with senior roles receiving 2–3 months. Employees who do not receive an adequate Tết bonus often resign shortly after the holiday. The bonus is typically paid 1–2 weeks before Lunar New Year. Rippling manages Tết bonus planning and payment timing.
Vietnam requires employers to contribute 2% of their total payroll to the Vietnam General Confederation of Labour (VGCL) trade union fund, regardless of whether employees are union members or a trade union exists at the company. This is remitted quarterly and is separate from SHUI contributions. Many foreign companies are unaware of this obligation. Rippling includes trade union fund contributions in all Vietnamese payroll calculations.
Vietnam's regional minimum wages (UMP) are set by four regions: Region I (Ho Chi Minh City, Hanoi) — VND 4,960,000/month from July 2024; Region II — VND 4,410,000/month; Region III — VND 3,860,000/month; Region IV — VND 3,450,000/month. The correct rate depends on the employee's work location. Rippling applies the applicable regional minimum wage.
