Your Simple Guide to Payroll in Vietnam: Compensation, Benefits, and Bonuses

Managing payroll in Vietnam can be daunting both for regulations & recruitment. Here’s our quick guide to compensation, benefits & bonuses.

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Setting up your business expansion in Vietnam includes setting up your local workforce which entails following regulations for payroll regulations. It is vital for foreign entrepreneurs to be up to date with the payroll system as well as the constant legal updates to the national labor code. The country’s HR setup and payroll procedures can be complex with many things to consider and rules and regulations to follow. Foreign investors need to be aware of the circumstances involved with the benefits to ensure staff wages are issued correctly, benefits are addressed and bonuses are given within cultural and legal norms.

Need Help With Your Vietnam Team? See our Payroll Processing Services

This article entails information surrounding the factors involved with setting up your payroll processes, specifically in terms of Compensation, Benefits, and Bonuses for your employees, in Vietnam, and how outsourcing payroll could be the best decision for your business.


Regarding compensation, there are many factors to consider based on the work rate of the team. For Vietnamese citizens who work in a foreign company, compensation is established based on the agreement between the company and the workers within the labor policy of that company.

With many requirements within this sector, it is advised that business owners are aware of the circumstances. It is important to note that when in a position of owing compensation, the rate shouldn’t go lower than the minimum monthly salary. The proportion, however, differs depending on the district/ region they are working in.

Employees who have worked extra hours also have a specific rate that needs to be compensated. Depending on the times and dates extra hours were fulfilled, they are paid extra in accordance with the regulations. In other terms, an employee would receive more compensation if they had worked on a public holiday in comparison to working in the daytime on a weekday.

TET (Lunar New Year) Compensation

As Lunar New Year is the most important national holiday in Vietnam and sacred within Vietnamese culture and traditions, it is required that if your employees work over Lunar New Year they are compensated 3X their normal salary. This is especially relevant for those in the hospitality and tourism industry.

Did you know? Minimum wage in Vietnam received an increase in July 2022.


Employees can also be entitled to further benefits in addition to the compensation and bonuses awarded. In Vietnam, the benefits could either be taxable or tax-free.

Those that are taxable are listed below:

  • Housing rent
  • Utility payments
  • Private fitness club memberships
  • Life insurance

Those factors that are involved with tax-free benefits include:

  • Childcare
  • Transportation
  • Meal allowance
  • Entertainment


Bonuses depend on the company’s performance, which drives the employees as a whole to achieve their targets and goals. One of the main bonuses to consider is the ‘lunar new year’ bonus.

It is expected that employees are typically paid a bonus before their leave for the Tet holiday. This is, of course, subject to deliberation as it is usually based on the performance of the company and the employees, but bonuses are decided by the company management, and not by labor laws. As well as this, employees can be granted smaller bonuses for other public holidays, which include international labor day for example.

How We can Assist through Payroll Outsourcing Service in Vietnam

With laws constantly changing, it can be difficult for companies who have just entered the Vietnamese market to keep up with the drastic changes. With the help of our services, it is one less thing to worry about.

Outsourcing payroll in Vietnam ensures that elements that may cause confusion is already sorted. It eliminates any processing errors due to the professional team’s work and their specific knowledge within this department. Not only does it save costs, but it also saves time as it allows the team to focus on the core business activities.

Speak to our specialists today to ensure you are provided with the services you need for your business in Vietnam. Fill in the form below.

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Verified by:​

Hien Le

Hien is a Manager of the Human Resources Department at our office in Vietnam. She has more than 15 years of experience in all spectrums of Human Resources including Global Mobility and Office Management.