Vietnam Salary Calculations
Quick guide
(Updated for salaries from 1 October 2022)
Employer
Costs and calculations
SALARY COST CALCULATION FOR THE EMPLOYER IS:
Gross Salary for Employee
Plus:
Social Insurance* @ 17.5%
Health Insurance* @ 3%
Unemployment Insurance* @ 1%
Trade Union* @ 2%
Equals: Total Salary Cost to Employer
Notes:
(1) *These Insurances are subject to caps on amounts
to be paid. See reverse side for details.
(2) From 1 January 2022, foreign employees are subject to
standard Social Insurance contributions. Prior to this date,
only reduced Social Insurance was required to be contributed.
(3) Foreign employees are not subject to Unemployment Insurance
(4) Certain one-off bonuses and specific allowances may
be excluded from insurance and/or tax calculations
(5) Overtime rates can apply ranging from 150% to 390%.
Copyright (C) 2017-2022 Acclime Vietnam. All Rights Reserved.
Employee Government
Costs and calculations Share
SALARY RECEIVED BY AN EMPLOYEE IS CALCULATED AS: CONTRIBUTIONS AND PAYMENTS TO
GOVERNMENT AUTHORITIES:
Gross Salary for Employee Amounts paid by the Employer and Employee
Less: Social Insurance of: 17.5% + 8% = 25.5%
Social Insurance* @ 8% Health Insurance of: 3% + 1.5% = 4.5%
Health Insurance* @ 1.5% Unemployment Insurance of: 1% + 1% = 2%
Unemployment Insurance* @ 1% Trade Union of: 2%
Equals: Taxable Income Plus:
Less: Personal Income Tax
Personal Income Tax deducted from Employee,
Equals: Total Net Income Received by the Employee
and based upon relevant progressive tax rate
Personal Income Tax (PIT) is based upon the progressive
Total contribution/withholdings to the
tax rate shown on the reverse side. The Personal Relief
Government are remitted by the Employer for
and any Dependent Reliefs are deducted from the
both Employer and Employee portions
Taxable Income before calculating the applicable PIT
Notes: Notes:
(1) *These Insurances are subject to caps on amounts (1) Where the company and its employees agree to establish
to be paid. See reverse side for details. Trade Union, the total contribution of employer’s portion and
(2) From 1 January 2022, foreign employees are subject to employee portion to Trade Union fund will be: 2% + 1% = 3%
standard Social Insurance contributions. Prior to this date, no
Social Insurance was required to be contributed by employees.
(3) Foreign employees are not subject to Unemployment Insurance.
(4) Certain one-off bonuses and specific allowances may
be excluded from insurance and/or tax calculations.
(5) Where the company and its employees agree to
establish Trade Union, employees will be required
to contribute 1% to Trade Union Fund.
vietnam.acclime.com
Vietnam Salary Calculations
Quick guide
(Updated for salaries from 1 October 2022)

Personal Income Tax (PIT) Social Insurance Trade Union

Social Insurance is levied on the Gross Salary of the Trade Union is levied on the Gross Salary of the
Maximum Tax in Employee as follows: Employee as follows:
Bracket
Monthly Taxable Employer 17.5% Employer 2.0%
Tax Rate (Cumulative Tax
Income (VND) Employee 8%
including current The maximum monthly salary that is subject to
Bracket) (VND) The maximum monthly salary that is subject to Trade Union is capped at 29,800,000 VND (being 20
5% up to 5,000,000 250,000 Social Insurance is capped at 29,800,000 VND times the Minimum Basic Wage, which is currently
(being 20 times the Minimum Basic Wage, which is 1,490,000 VND per month).
5,000,001 - 500,000 currently 1,490,000 VND per month).
10% Vietnamese employees will be subject to Trade
10,000,000 (750,000)
Union cost at 1% of their gross salary and the cost
10,000,001 - 1,200,000 Health Insurance is capped at 149,000 VND (10% of Minimum Basic
15%
18,000,000 (1,950,000) Wage) only when they participate Trade Union.
18,000,001 - 2,800,000 Health Insurance is levied on the Gross Salary of the
20% Employee as follows:
32,000,000 (4,750,000) Minimum Wages
32,000,001 - 5,000,000 Employer 3%
25% Employee 1.5%
52,000,000 (9,750,000)
The maximum monthly salary that is subject to Minimum Monthly Wage
52,000,001 - 8,400,000 Zone
30% Health Insurance is capped at 29,800,000 VND (VND)
80,000,000 (18,150,000) (being 20 times the Minimum Basic Wage, which is Zone 1 4,680,000
80,000,001 currently 1,490,000 VND per month).
35% Zone 2 4,160,000
and above
Unemployment Insurance Zone 3 3,630,000
Taxable Income for each employee, prior to calculating Zone 4 3,250,000
PIT, is further reduced by:
- Personal Relief of 11,000,000 VND per month, and Unemployment Insurance is levied on the Gross
Salary of the Employee as follows: Zones are designated by the Government. For
- Dependent Relief of an additional 4,400,000 VND example, Zone 1 covers areas including urban areas
per month for each registered dependent. Employer 1% of Hanoi, Ho Chi Minh City and Hai Phong, along
Employee 1% with certain industrial areas of Binh Duong and
The maximum monthly salary that is subject to Dong Nai.
Unemployment Insurance is capped at 20 times the
Minimum Monthly Wage of the Zone the Employer
is in. The Zone 1 minimum is 4,680,000 VND, which
Copyright (C) 2017-2022 Acclime Vietnam. All Rights Reserved.
equates to a cap of 93,600,000 VND per month.
(Prior to 1 October 2022, the employers 1% contribution
vietnam.acclime.com was subject to temporary reduction as a business
support measure)