Employment Cost Calculator for Vietnam
Calculate your complete hiring costs for Vietnam employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate (Employer) | Base |
|---|---|---|
| Social Insurance | 17.5% | Monthly Salary (capped at 20x common minimum wage) |
| Health Insurance | 3% | Monthly Salary (capped at 20x common minimum wage) |
| Unemployment Insurance | 1% | Monthly Salary (capped at 20x regional minimum wage) |
| Trade Union Fee | 2% | Total Payroll (capped at 20x national minimum wage) |
Filing & Compliance
- Monthly tax declarations and payments: Due by the 20th day of the following month.
- Annual Personal Income Tax (PIT) finalization for employers: Due by the last day of the 3rd month of the following tax year.
- Monthly social insurance contributions: Due by the last day of the month.
In Vietnam, employees are subject to various tax deductions and contributions from their salaries, primarily focusing on Personal Income Tax (PIT) and social insurance contributions.
Personal Income Tax (PIT)
PIT is calculated on an employee's assessable income, which is the total taxable income after deductions. A progressive tax system is applied, ranging from 5% to 35% based on income brackets. Tax residency determines the scope of income subject to PIT. Residents are taxed on worldwide income, while non-residents are taxed only on Vietnam-sourced income. As of 2025, the following deductions apply:
- Personal Allowance: VND 11 million per month.
- Dependent Allowance: VND 4.4 million per month for each qualifying dependent (children under 18, disabled children over 18 unable to work, spouses or parents unable to work or with income not exceeding VND 1 million). Supporting documentation is needed to claim this allowance.
Social, Health, and Unemployment Insurance (SHUI)
These are mandatory contributions deducted directly from the employee's salary. The 2024 rates are:
- Social Insurance: 8% (capped at 20 times the base salary of VND 1,600,000 or VND 32,000,000 and subject to change for 2025)
- Health Insurance: 1.5% (capped at 20 times the base salary)
- Unemployment Insurance: 1% (capped at 20 times the base salary)
Other Deductions and Allowances
- Charitable Contributions: Donations to approved charities are deductible.
- Foreign Employee Benefits: Certain benefits for foreign employees, such as relocation allowances, annual home leave airfare, and children's education expenses (preschool to high school), may be tax-exempt. Specific requirements and documentation apply.
- Business Travel Expenses: Deductions for business travel expenses require proper documentation, including assignment decisions, invoices, and boarding passes. Different scenarios exist depending on how tickets are purchased.
Tax on Other Income
Income from sources other than employment (e.g., subcontracting) exceeding VND 2 million may be subject to a 10% withholding tax. This requires the individual to have a tax registration and code.
General Information
Employers are responsible for calculating, deducting, and remitting employee taxes and social insurance contributions to the relevant authorities. It is crucial to maintain accurate records and comply with all reporting deadlines and procedural requirements to avoid penalties. Specific regulations and rates are subject to change, so staying updated with current tax laws and consulting with tax professionals is advisable. Note that the base salary used for calculating social insurance contribution caps might differ in 2025. The information provided here is based on the latest available data as of February 5, 2025, and may be subject to updates.
