When you decide to expand, you need a roster of talent ready to fill open positions. However, you also have to make sure you’re meeting Vietnam compensation laws and providing supplemental benefits that will keep employees happy. Globalization Partners can take the hassle out of sourcing compensation and benefits through our outsourcing services. We’ll help you find the right employees, add them to a compliant payroll, and ensure you have a Vietnam benefit management plan that works.
Vietnam Compensation Laws
The minimum wage stipulated by Vietnam’s compensation laws changes based on where you’re operating. The wage gets adjusted to account for depreciation and socioeconomic conditions for both workers and their families. Major cities have the highest minimum wage, at 4.42 million Vietnamese dong a month, while rural areas typically see a minimum wage of 3.92 million Vietnamese dong (2021). As the economy improves, so does the minimum wage, so it’s crucial to evaluate any changes.
Guaranteed Benefits for All Employees in Vietnam
Part of your Vietnam benefit management plan is including all statutory benefits required by law. The list includes time off for holidays and vacations. Vietnamese employees are entitled to time off for the country’s nine public holidays. The Tet Lunar New Year is a week-long celebration, so employees get the entire week off.
These public holidays are in addition to minimum vacation requirements that depend on how long an employee has worked for your company. For example, employees who have completed 12 months of service get 12 days of paid annual leave. They get one additional paid vacation day for every five years they work after that.
Vietnam Benefit Management Plan
Another important aspect of sourcing benefits is including any supplemental benefits that could make a difference in your retention rates. Although these benefits aren’t required by law, some employees may expect your company to include them. For example, employers typically give employees who have worked for a company for more than a year a 13th-month bonus. You should typically pay this bonus before the Lunar New Year Holiday and give employees anywhere from one month to a year’s salary.
While Vietnam provides basic health insurance through a national system, many employers will choose to provide supplementary health and life insurance. If you run a smaller company, you can always provide an allowance instead of arranging a health insurance plan.
Restrictions for Vietnam Benefits and Compensation
The biggest restriction for Vietnam benefits and compensation is that you have to establish a subsidiary before you can pay employees or offer benefits. Fortunately, Globalization Partners can help with our Vietnam benefit and compensation outsourcing services. Instead of setting up a subsidiary that could take weeks or months, you can use our established Vietnam subsidiary to hire employees, run payroll, and offer compensation and benefits. We’ll take on the compliance so that you can focus on running your company.
Work With Globalization Partners Today
Globalization Partners will truly partner with you through Vietnam compensation outsourcing. Contact us today to learn more.