Global Employment Solutions & PEO in Vietnam

How Do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Vietnam. Traditional methods of establishing global employment and subsidiaries in Vietnam typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Vietnam in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

• Your company conducts the hiring and candidate selection process in Vietnam.
• Omnipresent hires the selected candidate through our local professional employment organisation in Vietnam.
• We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Vietnam.
• The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Payroll & Taxes in Vietnam

Employee Income Taxes:

• 5%: 0-60 million VND
• 10%: 60-120 million VND
• 15%: 120-216 million VND
• 20%: 216-384 million VND
• 25%: 384-624 million VND
• 30%: 624-960 million VND
• 35%: 960 million VND and above

Payroll Cycle:

Monthly

Employer Costs in Vietnam

Employer Contributions:

• 17.5% - Social Insurance
• 3% - Health Insurance
• 1% - Unemployment Insurance
• 2% - Trade Union Fund* (Corporate employers only)
  

Employee Contributions:

• 8% - Social Insurance
• 1.5% - Health Insurance
• 1% - Unemployment Insurance

Working Hours in Vietnam

Typical Working Hours per Week:

The typical work week in Vietnam consists of 8 hours per day or 48 hours per week. 

Overtime Laws:

An employee in Vietnam can’t work more than 12 hours a day, 30 hours overtime per month, and 200 hours overtime per year. Overtime pay is at least 150% of the actual hourly wage on a normal work day. If an employee works on a weekly day off the pay is at least 200% of hourly wage. If an employee works on a public holiday or paid day off they receive at least 300% of their hourly wage. 

Overtime laws in Vietnam are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.

Public Holidays & Vacation Time in Vietnam

Standard Public Holidays in Vietnam

• New Year’s Day
• Vietnamese New Year’s Eve
• Lunar New Year
• Tết
• Hùng Kings' Festival
• Reunification Day
• Labour Day
• Independence Day

Vacation Time in Vietnam

Employees in Vietnam are entitled to 12 working days of paid leave in addition to public holidays. They receive one additional working day of leave for every five years of service.

Types of Leave in Vietnam

Sick Leave:

Sick leave in Vietnam calls for employees to receive a monthly allowance paid by a Social Insurance Fund. A medical certificate from a health establishment must be provided by the employee. Time off is measured by how long an employee has contributed to the Social Insurance Fund. An employee receives 30 sick days a year if they contributed for less than 15 years, 40 sick days per year if they contributed 15-30 years, and 60 days per year if they contributed for more than 30 years. 

Maternity Leave:

Vietnam’s maternity leave regulations include 6 months paid leave, paid by the Vietnamese Social Security Authority. 

Paternity Leave:

A male employee paying social insurance premiums is entitled to paternity leave of between 5 and 14 working days. 

Paternity leave pay is 100% of the salary of the month preceding the leave, paid by the Social Insurance Authority. 

Unpaid Childcare Leave:

Employees are entitled to 20 days parental leave per year  for a child until they are age 3 and up to 15 days per year if the child is between the ages of 4 and 7. 

Other Types of Leave:

• Marriage
• Children’s Marriage
• Personal
• Adoption

Health Insurance & Supplementary Benefits in Vietnam

We believe that remote employees should be able to access their local, as well as a high standard international benefits anywhere they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.

Termination & Severance in Vietnam

Severance:

Severance is typically required in Vietnam, unless in case of redundancy. However, other payments may be required in certain specific circumstances. Please contact us with any questions.

Notice of Termination:

No notice of termination is required if the labour contract has expired, tasks stated in the contract have been completed, both parties have agreed to terminate the contract, the employee is sentenced to serve time in prison, or the employee dies. 

If there is a definite term labour contract, an employer must give 3 or 30 working days notice depending on the reason for termination. If the labour contract is indefinite, then notice must be given 45 working days prior to termination. 

Unprotected and Protected Termination:

Vietnam law protects employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in Vietnam to reach out to us directly with questions.

Protected Classes of Employees:

Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination are highly complex and there can be a number of situation-specific variables. If you have questions in this area, please reach out to us directly to discuss.