Vietnam – Employment Terms and Conditions

What are the standard working hours in Vietnam, and how is overtime regulated?

The Labour Code sets a ceiling of 8 hours per day and 48 hours per week for adult employees in standard working conditions. Working time may be arranged on either a daily or weekly basis — allowing up to 10 hours on any single day — provided the total does not surpass 48 hours in any given week. Many Vietnamese employers in the professional services sector operate on a de facto 40-hour week, bringing their practice closer to norms seen in a number of developed economies, even though the legal ceiling remains higher.

Full-time hours can be spread across five or six working days, but employees must receive a minimum of 24 consecutive hours of rest each week. Workers engaged in heavy, hazardous, or harmful roles face a stricter cap of 6 ordinary working hours per day. Sectors including healthcare, transport, manufacturing, and hospitality may also be subject to sector-specific scheduling requirements that deviate from the standard rules.

Overtime work requires the voluntary, written consent of the employee, except in cases of national emergency or other government-defined exceptional circumstances. Overtime may not exceed 12 hours on any single day, 40 hours in a month, or 200 hours over the course of a year. Industries with high seasonal demand — such as textiles and clothing, footwear, and electronics — are permitted a higher annual cap of 300 overtime hours.

Legal overtime pay rates are as follows: additional hours on a regular weekday attract 150% of the normal wage; overtime on weekends is compensated at 200%; and work performed on public holidays or paid leave days must be paid at 300%. Night-shift workers are entitled to a minimum of 130% of their standard hourly rate. Employees who work overtime at night receive a further 20% premium on top of standard overtime pay, calculated on the rate applicable to the type of day on which the overtime falls.

Employers who disregard working-hour legislation face administrative penalties that scale with the seriousness and extent of the breach. Authorities may additionally require the back-payment of outstanding wages and overtime, mandate corrections to working arrangements, and — in persistent or egregious cases — impose heavier sanctions such as operational suspensions or recruitment restrictions. Up-to-date official guidance is available from the Ministry of Labour, Invalids and Social Affairs (MOLISA).

What employment rights and benefits are workers entitled to in Vietnam?

Employees who have completed one year of service with an employer are entitled to a minimum of 12 days of paid annual leave under standard working conditions. Workers in hazardous or arduous roles receive additional leave, and entitlements generally grow with length of service. These statutory minimums apply equally to foreign nationals employed under a formal Vietnamese labour contract.

Since 1 February 2021, female employees experiencing their menstrual period have the right to 30 minutes off per day, covering at least three working days each month, with this time counted as working hours and paid at the full contractual salary. Maternity leave for mothers stands at 6 months under the Labour Code. Fathers are entitled to five days of paid paternity leave for a standard birth, rising to seven days when a child is delivered by caesarean section, and to between 10 and 14 days for multiple births. From 1 July 2025, the window within which male employees must take paternity leave was extended from 30 to 60 days following the birth.

Vietnam recognises a fixed number of public holidays each year, with employees entitled to fully paid time off on each. These include Calendar New Year on 1 January, five days for the Lunar New Year, and a range of other national observances, totalling around 11 public holidays annually. Employees and employers should confirm the current schedule with MOLISA or through the company’s internal labour regulations.

When an employer seeks to end a contract unilaterally, the notice period required depends on contract type: 45 days for employees on permanent contracts and 30 days for those on fixed-term contracts lasting between 12 months and three years. An employee whose contract is terminated after at least one year of service is entitled to a severance payment equal to half a month’s salary for each year worked with the organisation.

Employers may supplement the statutory minimums with additional benefits and allowances at their discretion. In practice, multinational companies operating in Vietnam frequently offer enhanced packages — covering private health insurance, housing support, and performance-linked bonuses — especially for senior expatriate or specialist positions.

What are the rules around minimum wage and pay in Vietnam?

Vietnam maintains two distinct categories of minimum wage. The first is a common minimum wage — set at VND 2,340,000 per month — used to calculate salaries for employees in state-owned organisations and enterprises, and also to determine the social insurance contribution base applicable to all enterprises. The second category is a zone-based regional minimum wage, which governs pay for employees in non-state enterprises across four government-defined geographic regions.

The regional minimum wage represents the lowest permissible wage level and forms the reference point from which businesses negotiate and set pay for workers. It applies to all individuals employed under labour contracts as defined by the Labour Code, including those working in enterprises, cooperatives, farms, households, and foreign organisations operating in Vietnam.

With effect from January 2026, Vietnam’s regional minimum wages were revised under Decree 293/2025/ND-CP. The updated monthly rates are: Region I — VND 5,310,000; Region II — VND 4,730,000; Region III — VND 4,140,000; Region IV — VND 3,700,000. Region I covers the country’s most economically developed and densely urbanised areas, including Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang. Because these figures are reviewed on a regular basis, the most current rates should be confirmed with MOLISA or the Vietnam Social Security (VSS) authority.

Minimum wage revisions are recommended by the National Wage Council before being submitted to the government for approval. The 2026 update followed an increase that took effect on 1 July 2024. The 2026 adjustment added between VND 250,000 and VND 350,000 per month across the four regions, representing an average rise of 7.2 percent. These recurring upward revisions reflect the government’s commitment to keeping wages in step with the cost of living and national economic performance.

The corresponding minimum hourly rates from January 2026 are: Region I — VND 25,500; Region II — VND 22,700; Region III — VND 20,000; Region IV — VND 17,800. Vietnam does not operate an age-differentiated minimum wage structure; regional tiers apply uniformly regardless of worker age or industry sector, although collective bargaining agreements in specific industries may establish higher wage floors than the statutory minimum.

How does the employment contract system work in Vietnam?

Under the Labour Code 2019, a labour contract is defined as an agreement between an employee and an employer concerning paid work, including the wage to be paid, working conditions, and the rights and obligations of both parties within the employment relationship. Where an arrangement is given a different label but its substance — involving paid work, a wage, and oversight by one party — aligns with this definition, Vietnamese law will treat it as a labour contract regardless of its name.

Two principal types of labour contract exist in Vietnam: an indefinite-term contract, in which neither party specifies an end date, and a definite-term contract, in which both parties agree on a duration of no more than 36 months with a fixed termination date. Part-time arrangements are also recognised under the law, with part-time employees working fewer hours than the standard daily or weekly norm; their part-time status must be clearly reflected in the contract.

Every labour contract must include a defined set of provisions: the nature of the work, working hours and rest periods, remuneration, place of work, contract duration, occupational health and safety conditions, and social insurance arrangements. Contracts for foreign employees should ideally be prepared in both Vietnamese and the employee’s preferred language, though in the event of any disagreement, the Vietnamese text will ordinarily be the controlling version.

Once a probationary period has been successfully completed and the employee commences work, the employer is required to formalise the labour contract in writing. Two copies must be produced — one retained by the employer and one provided to the employee. Probationary periods are subject to legal limits depending on the seniority of the role: up to 60 days for specialist or managerial positions, and 30 days for other roles.

Unilateral termination by the employer must be grounded in legitimate cause — for example, failure to meet agreed performance standards — and cannot rest solely on personal preference. Notice requirements are 45 days for employees on permanent contracts and 30 days for those on fixed-term contracts between 12 months and three years. In certain circumstances — such as being incorrectly assigned to work, subjected to abuse, or experiencing workplace sexual harassment — an employee is entitled to terminate without providing notice.

How does the workplace pension system work in Vietnam?

Vietnam’s retirement savings framework is built around a state-administered, contributory social insurance (SI) system, which serves as the primary source of retirement income for most workers. In contrast to countries that operate workplace pension schemes through a range of competing private providers, Vietnam channels all retirement contributions through a single government-managed fund overseen by the Vietnam Social Security (VSS) authority.

The compulsory social insurance scheme provides coverage for sickness, maternity, occupational diseases, work-related accidents, retirement, and death. Participation is mandatory for both employers and employees on qualifying contracts. Employee contributions stand at 8% of the gross monthly salary used as the SI calculation base, while employers contribute 17.5% of the same base. Because the overall employer contribution is distributed across several sub-funds, figures cited in different sources may vary slightly; the current breakdown should always be confirmed with VSS or MOLISA.

The earnings base subject to SI contributions encompasses salary, certain allowances, and other regular payments, but is capped at 20 times the prevailing basic salary. This ceiling means that contributions by higher earners plateau beyond a certain income level — a concept broadly comparable to upper earnings limits applied in other national insurance systems, though the Vietnamese calculation methodology is distinct.

Significant changes took effect from 1 July 2025, including broader mandatory coverage requirements, pension reforms, tighter enforcement of contribution obligations, and a shift to a reference-level-based calculation method. From the same date, voluntary social insurance was expanded to incorporate maternity benefits and work accident insurance. Related social protection instruments — including the social pension, unemployment insurance, and supplementary pension insurance — are also classified within the broader social insurance framework. For the most current guidance, consult the Vietnam Social Security authority or the Ministry of Labour, Invalids and Social Affairs.

What types of pension arrangements are available to expats in Vietnam?

Foreign employees working in Vietnam under a labour contract with a duration of 12 months or more are required to participate in the compulsory social insurance scheme. As a result, most expatriates on standard employment contracts will be automatically enrolled in — and contribute to — the state SI system alongside their Vietnamese colleagues, gaining access to broadly equivalent social protections.

A foreign worker may be exempt from Vietnamese SI obligations if they have been dispatched to Vietnam by an overseas employer and continue to receive their salary from the foreign payroll, or if their home country has a bilateral social security agreement with Vietnam and they are already contributing to SI abroad. Vietnam has concluded only a limited number of such bilateral agreements, so expatriates should verify whether their country of origin has a relevant arrangement in place — this is especially important for workers seeking to avoid paying double contributions.

Foreign employees are excluded from the unemployment insurance component of the Vietnamese SI system, which means their total contribution rate is 2 percentage points lower than that of Vietnamese employees. If an expatriate departs Vietnam before satisfying the conditions for a monthly pension, they may be entitled to claim a lump-sum withdrawal of their accumulated contributions. To receive this one-off payment, eligible foreign employees must submit a request to the Vietnam Social Insurance Authority no later than 30 days before their contract or work permit expires.

Expatriates who arrive in Vietnam mid-career with pension entitlements accumulated elsewhere — for instance under Australia’s superannuation scheme or a European statutory pension — should obtain professional advice on how those rights interact with Vietnamese SI contributions. Unlike Australian superannuation, which is portable and accessible upon leaving, the Vietnamese state SI fund operates under different rules and does not integrate directly with offshore private pension arrangements. Employees should retain complete records of their salary and SI contributions to support any future claims for retirement, sickness, maternity, or survivorship benefits. Expats relying on international private pension plans should discuss their situation with a qualified financial adviser and the relevant overseas pension authority.

What is the retirement age in Vietnam, and how does the pension eligibility system work?

Vietnam is currently implementing a phased increase in the statutory retirement age, with the target thresholds set at 62 for men and 60 for women. This gradual transition, introduced under the Labour Code 2019, is intended to ease long-term sustainability pressures on the social insurance fund arising from demographic change. Workers whose capacity has been reduced by workplace injuries, those engaged in physically demanding, toxic, or hazardous work, or those employed in particularly disadvantaged areas are permitted to retire up to five years before the applicable standard age.

From 1 July 2025, the minimum social insurance contribution period required to qualify for a monthly pension was reduced from 20 years to 15 years — a meaningful improvement for workers who enter the Vietnamese SI system partway through their careers. For male employees, the baseline pension amounts to 45% of average insured earnings after 20 years of contributions, with an additional 2% credited for each subsequent year, subject to a ceiling of 75%. For female employees, the 45% base rate is reached after 15 years of contributions, with the same 2% annual increment and the same 75% maximum.

Under the 2025 social insurance reforms, the state will provide a monthly social pension to elderly individuals who have no occupational pension and do not qualify for social insurance benefits, provided they satisfy the specified eligibility criteria. The same reforms lowered the qualifying age for this social pension from 80 to 75 years.

With effect from 1 July 2025, monthly pensions, social allowances, and regular allowances paid to retirees and pensioners will be increased by 15%. Given that the rules and thresholds in this area are subject to frequent legislative revision, readers are strongly encouraged to verify the current position with the Vietnam Social Security (VSS) authority or a qualified legal or financial professional with expertise in Vietnamese employment law.

What taxes and social contributions are deducted from wages in Vietnam?

Vietnam levies personal income tax (PIT) on a progressive scale for tax residents, with the system administered by the General Department of Taxation (GDT). Individuals who spend 183 days or more in Vietnam within a calendar year, or who maintain a registered place of residence in the country, are generally classified as tax residents and are taxed on their worldwide income using graduated rates. Non-residents are typically subject to a flat withholding rate applied to income sourced within Vietnam. Expatriates should confirm their tax residency classification with the GDT or a qualified tax adviser before assuming which regime applies to them.

Alongside income tax, the principal mandatory deductions from an employee’s gross pay cover social insurance, health insurance, and unemployment insurance — though foreign employees are not required to contribute to unemployment insurance, resulting in a total contribution rate that is 2 percentage points lower than that of Vietnamese nationals. In 2025, the compulsory social insurance contribution for employees is primarily set at 8% of the salary base used for SI calculation, directed into the retirement and death benefit fund.

Changes to the minimum wage have a knock-on effect on several related calculations that are anchored to the statutory pay rate, including social insurance, health insurance, trade union fees, and unemployment insurance premiums, as well as the value of certain social insurance benefits. These deductions are ordinarily withheld at source by the employer, who then remits the relevant amounts to VSS and the tax authority. Employees therefore receive a net salary after all applicable deductions have been applied.

Expatriates working in Vietnam may benefit from specific deductions and exemptions — for example, certain employer-paid housing and relocation allowances can receive favourable treatment for PIT purposes. Vietnam has concluded tax treaties with a number of countries, and these may reduce or eliminate double taxation for foreign workers. For current PIT rates, filing obligations, and applicable treaty provisions, consult the General Department of Taxation.

What are the rules around trade unions and collective bargaining in Vietnam?

Labour organisation in Vietnam operates through the Vietnam General Confederation of Labour (VGCL), the country’s sole national trade union federation, which functions within a state-defined framework. Unlike the pluralistic systems found in many European countries — where multiple competing unions may represent workers in the same sector — Vietnam does not permit independent union federations, although enterprise-level collective bargaining is formally recognised under the Labour Code.

Collective labour agreements (CLAs) can be negotiated at the level of individual enterprises and may establish working conditions — including wages, hours, and leave — that exceed the statutory minimums. CLAs may introduce more flexible scheduling arrangements, such as compressed working weeks, but cannot legally raise the 48-hour weekly ceiling set by statute. In practice, CLAs are most prevalent in large manufacturing enterprises and companies with significant foreign investment.

Since July 2025, foreign workers employed on contracts of 12 months or longer have been permitted to join trade unions. Before this change, union membership was largely restricted to Vietnamese nationals. Expatriates working in sectors where union activity is more pronounced — particularly manufacturing, logistics, and public services — should familiarise themselves with any collective agreements in force at their workplace, as these may affect their individual terms and conditions of employment.

Are there any particular employment protections or challenges that expats should be aware of in Vietnam?

Foreign nationals must hold a valid work permit to be legally employed in Vietnam. Several visa categories permit employment in the country, but the most widely used is the standard work permit issued under the LD visa category. This permit has a validity of two years and is linked to a specific employer, meaning that switching jobs before the permit expires requires the submission of a fresh work permit application. Expatriates should plan job transitions carefully to avoid any gap in their authorisation to work.

Employment contracts and workplace documentation in Vietnam are typically produced in Vietnamese. While no legal obligation requires employers to provide translations, most multinational companies operating in the country do issue bilingual documents as standard practice. Expatriates should always obtain a professionally translated copy of any contract before signing, and should verify that all commitments made during the recruitment process are accurately captured in the written text — since the Vietnamese version will generally prevail in any legal or administrative dispute.

The recognition of overseas professional qualifications is assessed on a profession-by-profession basis and is not automatic. In regulated fields such as medicine, law, engineering, and education, foreign credentials may need to undergo a formal verification process or be supplemented by local licensing or registration requirements before the holder can practise. All foreign nationals intending to work in Vietnam must obtain either a work permit or a formal work permit exemption from the Department of Labour before commencing employment. Work permit applications require applicants to demonstrate relevant qualifications and experience, and the documentation requirements are both specific and time-sensitive.

Compulsory social insurance contributions are currently required of foreign individuals working in Vietnam who hold a work permit and are employed under a Vietnamese labour contract of indefinite duration or a fixed term of one year or more. Certain categories of foreign employee — including those internally transferred within a corporate group who have reached the statutory retirement age, or those covered by the provisions of an applicable international treaty — are exempt from mandatory SI participation. Expatriates on short-term assignments of less than 12 months may therefore fall outside the compulsory SI system, with consequences for both retirement savings accumulation and access to health benefits under the state scheme.

Challenges frequently cited by expatriates in Vietnam include: the speed at which legislation changes, particularly in the areas of social insurance and taxation; discrepancies between what is agreed verbally during hiring negotiations and what ultimately appears in the written contract; and the difficulty of managing bureaucratic processes without proficiency in Vietnamese. Consulting a reputable local employment lawyer or HR advisory firm before entering into any employment agreement is strongly recommended.

How do I apply for work authorisation as an expat in Vietnam?

1. Secure a job offer: Obtain a formal employment offer from a Vietnam-registered employer. The employer typically initiates the work permit process on your behalf.
2. Gather documentation: Prepare certified copies of your passport, academic qualifications, professional certifications, criminal record check (apostilled or legalised), and health certificate. Requirements vary by role and sector.
3. Employer applies for work permit: Your employer submits an application to the provincial Department of Labour, Invalids and Social Affairs (DOLISA). Processing typically takes around 10 working days once a complete application is received.
4. Obtain the work permit: Once approved, you receive your work permit (valid for up to 2 years). Keep this document safe — it is required for social insurance registration and other administrative processes.
5. Register for social insurance: Registration for foreign employees is possible by presenting a completed Vietnam social insurance registration form, their employment contract, and their work permit or professional licence.
6. Register for personal income tax: Obtain a tax code from the General Department of Taxation. Your employer will typically assist with this as part of the onboarding process.
7. Renew as required: Work permits are tied to your employer and must be renewed if your contract is extended or if you change employers. Begin the renewal process well in advance of expiry.

Frequently asked questions

Are my overseas professional qualifications recognised in Vietnam?

Foreign qualifications are evaluated on a profession-by-profession basis and recognition is not guaranteed. In regulated fields such as medicine, law, and engineering, you may be required to have your credentials formally verified or to satisfy Vietnamese licensing conditions before practising. For roles in unregulated sectors, overseas qualifications are generally sufficient for the purposes of a work permit application but should be officially translated and notarised. Always contact the relevant Vietnamese regulatory body for your profession to confirm what is required before assuming your qualifications will be accepted.

Can I claim back my social insurance contributions if I leave Vietnam?

Employees who have met the conditions for pension entitlement but no longer reside in Vietnam may be eligible for a lump-sum payout of their accumulated contributions. To receive this one-off payment, eligible foreign employees must submit a request to the Vietnam Social Insurance Authority no later than 30 days before their contract or work permit expires. If you intend to leave Vietnam, begin this process in advance and ensure you have retained complete records of all contributions made. Eligibility conditions may change, so confirm the current rules with VSS or a qualified adviser.

What happens to my employment rights if I change employer and need a new work permit?

Statutory employment entitlements under the Labour Code flow from your employment contract rather than your visa or permit status. However, moving to a new employer requires a fresh work permit application, and you are not permitted to begin work with the new employer until that permit has been granted. A gap between leaving one employer and being legally authorised to start with another is common, so transitions should be planned with care. Ensure your new employer begins the work permit application process before your existing contract comes to an end.

Do expats pay the same income tax rates as Vietnamese nationals?

Tax residents of Vietnam — broadly, those present in the country for 183 days or more in a calendar year — are taxed on their worldwide income at the same progressive PIT rates regardless of nationality. Non-residents face a flat withholding rate on income sourced within Vietnam. Given the length of stay typically involved in an expatriate assignment, many foreign workers qualify as tax residents. Vietnam has tax treaties with a number of countries that may mitigate double taxation; check whether your home country has a relevant agreement in place and seek advice from the General Department of Taxation or a qualified tax professional.

Are employment contracts in Vietnam always written in Vietnamese?

Vietnamese law does not require contracts to be produced exclusively in Vietnamese, and many multinational employers routinely provide bilingual versions. However, if a dispute arises, the Vietnamese text will generally take precedence before local courts and administrative bodies. Before signing any contract, always request a professionally translated version in a language you fully understand, and ensure that every commitment made during negotiations is reflected in the written document.

Is there a minimum probationary period, and what rights do I have during probation?

Vietnamese law caps the length of probationary periods rather than setting a minimum: the maximum is typically 60 days for specialist or managerial roles and 30 days for other positions. During probation, employees are entitled to receive at least 85% of the agreed contract salary. Once probation is successfully completed, the employer must confirm the employment arrangement in a written contract. If the employer decides not to continue the engagement, prior notice is required; terminating during probation without notice — unless the employee has committed a serious breach of the probationary terms — is not permitted.

Can expats join a trade union in Vietnam?

From July 2025, foreign workers employed on contracts of 12 months or more became eligible to join trade unions — a right that had previously been confined largely to Vietnamese nationals. Union membership is voluntary in the majority of workplaces, though unions tend to be more active in larger manufacturing and industrial enterprises where collective agreements can directly influence employment terms. Check whether your workplace operates under a collective labour agreement, as its provisions may offer protections that go beyond the statutory minimums.

What should I do if I believe my employer has breached my employment contract?

If you consider that your employer has violated the terms of your labour contract — for instance by withholding wages, failing to remit social insurance contributions, or dismissing you without proper notice — your options include raising the matter through your workplace’s internal grievance process, requesting mediation through the District Labour Mediation Council, or submitting a formal complaint to the provincial Department of Labour, Invalids and Social Affairs (DOLISA). More serious disputes can ultimately be referred to the People’s Court. Given the procedural complexity and language challenges involved, engaging a Vietnamese employment lawyer at the earliest opportunity is strongly advisable.