Easily hire employees in Vietnam

ATA PEO Services simplifies the process of hiring employees in Vietnam for your business, alleviating concerns related to navigating local regulations, intricate tax structures, and overseeing global payroll. With ATA’s comprehensive support, your international hiring needs are expertly managed.

Vietnamese Dong (VND)


Official Language

Payroll Cycle
Monthly or Bi-Monthly

You can hire employees in Vietnam without the need for an entity.

Typically, to hire employees in Vietnam, your business must have an entity, which involves establishing a local office, registering an address as a subsidiary, and opening an account with a local bank. Managing regional benefits, payroll, tax, and HR laws throughout this process can take several months.

Vietnam has separate regulations for contractors compared to full-time employees, making it crucial to avoid misclassification to avoid potential penalties. ATA streamlines the process of hiring employees in Vietnam, ensuring speed, simplicity, and compliance. Additionally, our platform automates tasks such as tax document collection, payroll, benefits, and more.

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Our quickstart guide to hiring in Vietnam

Navigate the tabs below to learn everything you need to know about hiring an employee in Vietnam

Minimum Wage Requirements
Minimum Wages in Vietnam averaged 3036.88 VND Thousand/Month from 2008 until 2023.
Individual Income Tax
The range of individual income tax varies from 5% to 35% and is calculated using progressive rates.
Type of leave Time period
Annual leave/Earned Leave 12 days
Sick Leave 30 days
Maternity Leave 24 weeks
Termination Process

The termination process typically involves a reasonable notice period given by either party to the termination. In some cases, such as enterprise operation cessation, a filing may not be necessary. Additional requirements for dismissal may depend on the reason for termination, as outlined below.

Reason for Termination On the last day of employment
Expiry of the labour contract No notice needed
Lawful unilateral termination by the employee 30 days for (definite contract) or 45 days (indefinite contract)
Notice Period

Employees in Vietnam who are still in their probationary period are required to give a notice period of up to 30 days upon terminating their contract. Those who have completed their probationary period, on the other hand, must observe a notice period of up to 45 days.

Severance Pay

The severance pay is calculated as half of a month’s salary for every year of service.

According to employment law in Vietnam, employees are entitled to certain statutory benefits. These benefits consist of health insurance, which all employers must provide for their employees. The labor law also prescribes three major types of insurance: unemployment insurance, social insurance, and health insurance. Additionally, employers in Vietnam must contribute to retirement benefits, including pensions, through the state pension scheme called social and private life insurance, which is administered by the Social Insurance Agency (SIA). Furthermore, in Vietnam, it is customary to pay a 13th-month salary at the Lunar New Year or the end of the year.

After the client signs the SOW, the onboarding process typically requires two-three business days.

Employee contract
In Vietnam, employment contracts must be drafted in either Vietnamese or in dual language (Vietnamese and preferably English). The contract must include comprehensive information about the employer, as well as the terms and conditions of employment, benefits, leaves, and allowances.
Probation period
According to the current Labour Code, the duration of probation cannot exceed the statutory limits and these limits cannot be extended. For the position of enterprise manager, the limit is 180 days as per the Vietnam Law of Enterprise, while for positions requiring a degree or above, the limit is 60 days.
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