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Payroll in VnVietnam.






Country Capital



Vietnamese đồng (₫) (VND)

Expanding into Vietnam is a great way to push the global boundaries of your company and create new partnerships that can improve your bottom line. However, you need to consider many payroll factors when expanding, such as how to set up your Vietnam payroll and all of the different payroll options.

G-P can change how you do business in Vietnam through our Employer of Record solution. Instead of spending weeks or months establishing a subsidiary, you can trust us to help you get started in a few days using our established Vietnam subsidiary. We’ll manage payroll and ensure that you stay compliant.

Taxation rules in Vietnam

As an employer, you need to worry about both corporate taxes and understanding what your employees owe. Vietnam has a statutory social insurance policy, which has the function of organizing social security benefits, health benefits, and unemployment benefits, that applies to entities, enterprises, and organizations with employees under indefinite-term labor contracts or definite-term contracts. Employers contribute around 21.5% of their payroll to social and health insurance, while employees contribute 10.5%.

Vietnam payroll options for companies

You have 3 different Vietnam payroll options to choose from depending on your company’s size, goals, and more:

  • Internal: Running an internal payroll is a great solution for large companies committed to having a long-term presence in Vietnam. However, if you select this option, you’ll need a larger budget to hire an HR team.
  • Vietnam payroll processing company: You can also choose to work with a Vietnam payroll processing company located in the country. While doing so will take care of outsourcing your payroll, you’ll still be held compliant for all payroll items.
  • G-P : The easiest way to run payroll in Vietnam and stay compliant is partnering with an Employer of Record like G-P. With us, you can rest assured that all of your team members will be paid on time, freeing you to focus on other important aspects of your business.

How to set up a payroll in Vietnam

Before you decide to set up your Vietnam payroll, you need to establish a subsidiary in the country. Without a subsidiary, you can’t operate legally in Vietnam, which means you can’t hire employees, offer benefits, or pay any workers.

Entitlement/termination terms

Before you hire employees and add them to your payroll, you should draft a strong written employment contract that includes entitlement and termination terms. Probation periods are common in Vietnam, but they can’t exceed 60 days for work that requires specialized or highly technical skills, 30 days for work that requires intermediate level of skills, or 6 working days for other jobs. Terminating an employee is a complicated process, and you’ll need sufficient legal grounds to terminate a contract.

Streamline global payroll management with G-P.

G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.

Contact us to learn more about how we can support you.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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