Vietnam Hiring Cost Calculator
What a hire in Vietnam actually costs you: the gross salary plus 21.5% employer insurance — and what the employee takes home after their own 10.5% insurance and progressive income tax. Enter a gross monthly salary to see both sides.
Employer cost
A VND 20,000,000 salary costs you VND 24,300,000 a month; the employee takes home VND 17,780,000.
| Gross salary | VND 20,000,000 |
|---|---|
| Social insurance (17.5%) | VND 3,500,000 |
| Health insurance (3%) | VND 600,000 |
| Unemployment insurance (1%) | VND 200,000 |
| Total employer cost / month | VND 24,300,000 |
| On-cost over gross | 21.5% |
Employee net take-home
| Employee insurance (10.5%) | VND 2,100,000 |
|---|---|
| Taxable income | VND 2,400,000 |
| Personal income tax | VND 120,000 |
| Net take-home / month | VND 17,780,000 |
Estimate only, not tax or legal advice. Uses 2026 reference rates: contribution caps of 50.6M VND (social/health) and 106.2M VND (unemployment), and the resident progressive PIT scale. Excludes 13th-month salary, bonuses, allowances, trade-union fees and foreign-worker specifics. Confirm current rates before budgeting.
How the cost of employment is built up
The headline salary is only part of what a hire costs. On top of the gross, an employer in Vietnam pays compulsory insurance:
- Social insurance (BHXH) = 17.5% of the base
- Health insurance (BHYT) = 3% of the base
- Unemployment insurance (BHTN) = 1% of the base
- Total employer cost = gross salary + 21.5% insurance
The employee separately has 10.5% withheld (8% social + 1.5% health + 1% unemployment), and pays progressive personal income tax on what remains after the 15.5M VND personal deduction and 6.2M VND per dependent. Social and health contributions are capped at a salary of 50.6M VND/month, so very high salaries carry proportionally less insurance.
Related
Frequently asked questions
How much does it cost to hire an employee in Vietnam?
Budget roughly 21.5% on top of the gross salary for compulsory employer insurance: 17.5% social insurance, 3% health insurance and 1% unemployment insurance. So a 20,000,000 VND/month salary costs the employer about 24,300,000 VND/month before any bonus, 13th-month pay or benefits.
What are the employer and employee insurance contribution rates?
The employer pays 21.5% of the contribution base (17.5% social + 3% health + 1% unemployment). The employee pays 10.5% (8% social + 1.5% health + 1% unemployment), deducted from their gross salary.
Is there a cap on social insurance contributions in Vietnam?
Yes. Social and health insurance are capped at 50.6M VND/month of salary (20× the base salary), and unemployment insurance at 106.2M VND/month (20× the Region I minimum wage). Salary above those caps is not charged that contribution.
How is personal income tax (PIT) calculated on a salary?
Residents get a personal deduction of 15.5M VND/month plus 6.2M VND per dependent, and their own insurance is deducted too. The remainder (taxable income) is taxed on a 5-band progressive scale: 5% up to 10M, 10% to 30M, 20% to 60M, 30% to 100M and 35% above.
What changed in Vietnam payroll tax and insurance in 2026?
Three things raised or lowered the numbers. The new Personal Income Tax Law (Law 109/2025/QH15) lifted the personal deduction from 11M to 15.5M VND/month and the dependent deduction from 4.4M to 6.2M, and cut the salary tax schedule from 7 bands to 5 — so most employees take home more. The regional minimum wage rose on 1 January 2026 (Region I 5.31M VND), lifting the unemployment-insurance cap to 106.2M; and the statutory base salary rose to 2.53M VND on 1 July 2026, lifting the social/health-insurance cap to 50.6M — so high earners cost employers slightly more.
Does this include 13th-month salary and bonuses?
No. This estimates the recurring monthly cost from base salary and compulsory insurance only. A 13th-month salary is customary (effectively +1/12 ≈ 8.3% of annual pay), and performance bonuses, allowances and benefits are on top. Add them to your annual budget separately.