Calculate the total cost to employ someone in Vietnam for the 2025-2026 tax year. See employer social insurance (17.5%), health insurance (3%), unemployment insurance (1%), PIT withholding, and full cost-to-company breakdown.
4.4M VND deduction per registered dependent
Enter a salary to see contributions
Enter a gross salary to see the full payroll cost breakdown
Better HR comes with fully localized payroll engines for Vietnam — handling tax, insurance, and contribution rules automatically.
Automatically calculates PIT in line with Vietnam tax laws:
Progressive tax rates based on taxable incomeFamily and dependent deductions applied correctlyHandles taxable and non-taxable income componentsMonthly withholding with annual tax finalization supportAccurate calculation of compulsory social insurance contributions:
Employee and employer contribution rates applied as regulatedSalary caps and contribution ceilings automatically enforcedIntegrated into payroll and reflected clearly in payslipsEnsures correct health insurance contribution calculations:
Statutory employee and employer contribution percentagesAutomatic calculation per payroll cycleTransparent breakdown for reporting and auditsSupports mandatory unemployment insurance calculations:
Employee and employer contributions calculated per regulationSalary thresholds and caps automatically appliedIncluded in payroll and statutory reportingAutomates trade union fee calculations for eligible employees:
Employee/employer contribution calculated according to statutory requirementsIntegrated into payroll and compliance reportsBetter HR automates payroll tax calculations for Vietnam and 8 other countries. Accurate, compliant, done in minutes.
Try Better HR FreeEmployers in Vietnam contribute 17.5% of the employee's gross salary to social insurance (SI). This covers sickness, maternity, occupational disease, retirement, and survivorship benefits. SI contributions are capped at a salary of 46.8 million VND per month (20 times the base salary of 2.34 million VND). The maximum monthly employer SI contribution is approximately 8.19 million VND.
In addition to social insurance, employers contribute 3% for health insurance (HI) and 1% for unemployment insurance (UI). HI is capped at the same 46.8 million VND salary ceiling as SI. UI has a separate cap of 106.2 million VND per month (20 times the regional minimum wage for Region 1). Combined with SI, the total employer contribution is 21.5% of gross salary.
Employees contribute 8% for social insurance, 1.5% for health insurance, and 1% for unemployment insurance, totaling 10.5% of gross salary. These are deducted from the employee's salary by the employer. Employee insurance contributions are deductible from taxable income when calculating PIT.
Employers withhold personal income tax (PIT) monthly using progressive rates from 5% to 35%. Taxable income is calculated after deducting the personal allowance (11 million VND per month), dependent deductions (4.4 million VND per dependent per month), and compulsory insurance contributions.
The total cost to employ someone in Vietnam is the gross salary plus employer contributions of 21.5% (17.5% SI + 3% HI + 1% UI). For example, an employee earning 20 million VND per month costs the employer 24.3 million VND per month: 3.5 million VND in SI, 600,000 VND in HI, and 200,000 VND in UI.
Employers contribute a total of 21.5% of the employee's gross salary: 17.5% for social insurance, 3% for health insurance, and 1% for unemployment insurance. These are mandatory costs on top of the gross salary.
The total cost is the employee's gross salary plus employer contributions of 21.5%. For example, an employee earning 30 million VND per month costs the employer 36.45 million VND per month, including 6.45 million VND in compulsory insurance contributions.
Social insurance and health insurance contributions are capped at a salary of 46.8 million VND per month (20 times the base salary). Unemployment insurance is capped at 106.2 million VND per month (20 times the regional minimum wage for Region 1). Employer contributions do not increase beyond these caps.
Employees contribute 10.5% of gross salary: 8% for social insurance, 1.5% for health insurance, and 1% for unemployment insurance. These amounts are deducted from the employee's salary and are tax-deductible for PIT purposes.
Employers withhold PIT at progressive rates on monthly taxable income: 5% on the first 10 million VND, 10% on 10-30 million VND, 20% on 30-60 million VND, 30% on 60-100 million VND, and 35% on income above 100 million VND. Taxable income is gross salary minus insurance contributions and personal/dependent deductions.
Foreign employees with work permits are subject to social insurance, health insurance, and unemployment insurance at the same rates. However, foreign employees on contracts shorter than 12 months or those transferred within multinational companies may have different obligations. Employers should verify each case with the local social insurance office.
Employers must remit both employer and employee portions of social insurance, health insurance, and unemployment insurance by the last day of the following month. PIT must also be remitted monthly. Late payments incur penalties of 0.03% per day on the outstanding amount.
The base salary (luong co so) is set by the government and used to calculate contribution caps. As of 2024, the base salary is 2.34 million VND per month, making the SI and HI cap 46.8 million VND (20 times base salary). This amount is updated periodically by government decree.
Better HR automatically calculates employer contributions (21.5%), employee deductions (10.5%), and PIT withholding using the latest rates and caps. It generates payslips with full cost-to-company breakdowns and produces reports for filing with the General Department of Taxation and social insurance authorities.
