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Partial: some charges not included, see notes
Mandatory employer contributions in Vietnam
| Contribution | Employer rate | Monthly cap |
|---|---|---|
| Social insurance | 17.5% | none stated |
| Health insurance | 3.0% | none stated |
| Unemployment insurance (Vietnamese staff) | 1.0% | none stated |
Employer cost at three salary levels
| Annual salary | Employer contributions | On-cost % | Total cost | Total in USD |
|---|---|---|---|---|
| 126,000,000 VND | 27,090,000 VND | 21.5% | 153,090,000 VND | $6,335 |
| 253,000,000 VND | 54,395,000 VND | 21.5% | 307,395,000 VND | $12,721 |
| 506,000,000 VND | 108,790,000 VND | 21.5% | 614,790,000 VND | $25,441 |
The examples use 1×, 2× and 4× Vietnam’s 2025 GDP per person in local currency (126,454,306 VND, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.
Worked example
For a salary of 253,000,000 VND a year, the employer adds about 54,395,000 VND (21.5%) in mandatory contributions, for a total of 307,395,000 VND, about $12,721 at the 2024 average exchange rate. The rate is roughly flat across salaries (21.5% to 21.5%), so on-costs scale with pay.
What is not included
- Insurable income is capped at 20 times the reference level (and 20 regional minimum wages for UI); caps are not modelled, so high salaries are overstated. Foreign staff pay SI only with a work permit and 1+ year contract, and no UI.
How to budget a hire in Vietnam
- Start from the gross salary you plan to offer in VND.
- Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
- Add benefits customary in Vietnam (health cover, bonuses, extra month salaries) as a percentage in the calculator.
- If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
- Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2024 average.
Compare Vietnam with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.
Source: PwC Worldwide Tax Summaries: Vietnam, other taxes, last reviewed 23 September 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2024, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.
Frequently asked questions
How much does it cost to employ someone in Vietnam?
On a salary of 253,000,000 VND, mandatory employer contributions add about 21.5%, for a total of roughly 307,395,000 VND a year before benefits (PwC, reviewed 23 September 2026).
What are employer social security contributions in Vietnam?
Social insurance 17.5%, Health insurance 3.0%, Unemployment insurance (Vietnamese staff) 1.0%.
Is the Vietnam data verified?
Partly. The rates shown are cited, but some employer charges are not included; they are listed under "What is not included".