Stay compliant with local laws and automate HR tasks in one platform with HR Forte
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Personal Income Tax (PIT)
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Social, Health, and Unemployment Insurance SI/HI/UI contributions
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Labor law compliance (contracts, probation, leave, severance)
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Employee Self-Service for payslips, leave, and claims
What Employers Need to Know About Payroll in Vietnam
Payroll compliance in Vietnam requires strict adherence to regulations issued by the Ministry of Labour, Invalids and Social Affairs (MOLISA), the General Department of Taxation (GDT), and the Vietnam Social Security Authority. Employers must manage multiple statutory contributions and region-based minimum wages.
Vietnam payroll calculations are highly sensitive to salary structure, insurance caps, and employee classification.
Key Payroll Components
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Personal Income Tax (PIT)
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Social Insurance (SI)
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Health Insurance (HI)
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Unemployment Insurance (UI)
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Region-based minimum wages
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Common Payroll Challenges
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Incorrect insurance salary caps
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Misclassification of taxable vs non-taxable income
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Errors in annual PIT reconciliation
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Payroll Filings & Reporting
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Monthly or quarterly PIT declarations
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Monthly insurance contribution submissions
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Annual PIT finalisation and employee tax statements
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How HR Forte Supports Vietnam Payroll
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Automated SI, HI, UI calculations with statutory caps
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Built-in regional minimum wage logic
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Accurate PIT calculation and year-end tax reconciliation
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Have Questions?
What statutory contributions apply to payroll in Vietnam?
Employers in Vietnam must manage three statutory insurance contributions: Social Insurance (SI) at 17% employer and 8% employee; Health Insurance (HI) at 3% employer and 1.5% employee; and Unemployment Insurance (UI) at 1% employer and 1% employee. Contributions are calculated on the employee's contractual salary (subject to government-set ceilings) and submitted monthly to the Vietnam Social Insurance Agency (VSS). Employers with 10 or more employees must submit monthly e-declarations to the VSS portal.
Is income tax deducted monthly in Vietnam?
Yes. Employers must withhold Personal Income Tax (PIT) monthly from employee salaries and remit it to the General Department of Taxation (GDT) by the 20th of the following month. PIT is calculated on taxable income after deductions—the personal deduction is VND 15.5 million per month for the taxpayer and VND 6.2 million per month per registered dependent. Progressive PIT rates range from 5% to 35%. Annual PIT finalisation must be completed by 31 March of the following year for income-paying organisations, or by 30 April for individuals filing directly.
Do payroll rules in Vietnam change frequently?
Yes. Social Insurance contribution rates, salary ceilings, and PIT deduction thresholds are reviewed by the government and may be updated periodically. The regional minimum wage (set for 4 regions) is reviewed annually by the National Wage Council. Employers must monitor circulars from the Ministry of Labour (MOLISA), the Vietnam Social Insurance Agency, and the General Department of Taxation for regulatory changes.
Can payroll errors lead to penalties in Vietnam?
Yes. Late Social Insurance contributions attract a penalty of 0.03% per day on the outstanding amount under Decree 274/2025/ND-CP. Incorrect or late PIT withholding and filing results in tiered administrative fines ranging from VND 2 million to VND 25 million under Decree 125/2020/ND-CP depending on the duration of the delay, alongside a 0.03% daily late payment interest on unpaid taxes. Repeated or intentional non-compliance may lead to tax authority investigation and criminal prosecution under the Law on Tax Administration.
How can employers reduce payroll compliance risk in Vietnam?
Employers can reduce payroll compliance risk in Vietnam by using a payroll system that automates Social Insurance, Health Insurance, and Unemployment Insurance contribution calculations, applies correct PIT progressive rates after statutory deductions, manages monthly tax submissions to the GDT by the 20th deadline, tracks regional minimum wage updates, and maintains complete payroll records for VSS and GDT compliance audits.
Why HR Forte in Vietnam?
Vietnam’s labor and tax regulations are complex and frequently updated. HR Forte ensures automatic compliance with contributions, filings, and entitlements — saving HR teams hours of manual work.