According to Velocity Global's employment agreement template, when is the salary due in Vietnam?

In Vietnam, according to the employment agreement template, salary is due on the last working day of the month.

What date does the law specify salary must be paid in Vietnam?

In Vietnam, the law specifies the salary payment timing based on the type of salary the employee receives:

• For those receiving an hourly, daily, or weekly salary, payment occurs after each hour, day, or week, respectively. Alternatively, both parties can agree to a payment within not more than 15 days.
• An employee receiving a monthly or bi-weekly salary is paid after each month or every two weeks. The specific payment time is periodic and should be agreed upon by both parties.
• For employees earning a piece rate or a fixed amount, payment occurs as agreed between both parties. If a task cannot be completed within a month, the employee receives a monthly advance payment based on the work completed during that month.

How is salary calculated and what components does it consist of in Vietnam?

Salary in Vietnam consists of the following components:

• Basic pay
• Fixed recurring allowances (if any)

How many salary payments are made per year in Vietnam?

There are 12 salary payments made per year in Vietnam.

Is salary payment monthly and is payment standard at the end of the month in Vietnam?

Yes, in Vietnam, salary payments are made monthly and are typically processed at the end of the month.

Should the employment agreement specify salary in monthly or annual amounts in Vietnam?

Our employment agreement template for Vietnam specifies the salary in monthly amounts.

What tax and social security obligations do employees have in Vietnam?

In Vietnam, salary and wages are subject to progressive personal income tax rates ranging from 5% to 35%.

What are the details of the customary bonuses, including the 13th-month salary, and when are these payments typically made in Vietnam?

In Vietnam, there is no legal requirement for employers to provide bonuses to employees. However, it is common for companies to offer voluntary incentive bonuses based on their earnings. Additionally, an extra month's pay, commonly referred to as the 13th-month bonus, is frequently provided as an annual bonus. Before the Lunar New Year holiday, known as Tet, a Tet bonus is often given to employees.

What is the minimum wage information in Vietnam?

In Vietnam, the regional minimum wage (RMW) for employees working under employment agreements is regulated according to Decree 74/2024/ND-CP. The RMW is structured according to regions as follows:

• Region 1: VND 4,960,000 (approximately USD 216) per month or VND 23,800 (approximately USD 1.03) per hour.
• Region 2: VND 4,410,000 (approximately USD 192) per month or VND 21,200 (approximately USD 0.92) per hour.
• Region 3: VND 3,860,000 (approximately USD 168) per month or VND 18,600 (approximately USD 0.81) per hour.
• Region 4: VND 3,450,000 (approximately USD 150) per month or VND 16,600 (approximately USD 0.68) per hour.