What you need to know for employing in Vietnam

Employee contributions include Health Insurance, Unemployment Insurance, and Social Insurance. This list is non-exhaustive, please contact us for further information.

The typical work week in Vietnam consists of 8 hours per day or 48 hours per week. 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. Overtime laws in Vietnam are complex and can depend on the specific circumstances and the employee.

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.

Maternity: Vietnam’s maternity leave regulations include 6 months paid leave. Employee receives a monthly allowance of 100% of average salary used as the basis for payment of social insurance premiums in the preceding 6 months from the Social Insurance Authority (provided that the employer has paid social insurance premiums for the employee for at least 6 months in the year before childbirth or adoption). Monthly allowance capped at 20 times the basic monthly salary.

Paternity: 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.

Parental: Up to 20 days per year until the child reaches the age of 3 and up to 15 days per year if the child is between the ages of 4 and 7. The pay is at a rate of 75% of the salary of the month preceding the employee’s leave and paid by the Social Insurance Authority.

Employees are entitled to 12 days paid leave (over public holidays) and receive 1 additional day for every 5 years of service.

Severance allowance of 1/2 months’ worth of salary for each year of employment only if the employee’s length of service is at least one year and only payable in specific terminations dictated by the Labour Code.

Termination of employment is strictly regulated, complex and requires strict procedural requirements to be followed. A mutual termination agreement between the employer and the employee is often used.