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Vietnam payroll: from gross to net, with 2026 figures

Published · 11 min read

Person reviewing a spreadsheet on a laptop next to a calculator and paperwork
Photo: Microsoft 365, Unsplash

On every 100 of gross salary in Vietnam, the employer pays 21.5 more in contributions and withholds 10.5 from the employee, before income tax. With a gross salary of EUR 1,100 a month, the company spends EUR 1,336.50 and the employee takes home EUR 956.50. Each figure comes with its legal source and effective date.

Data and conventions

The rules are those in force on 2026-10-01, the date of consultation. The example starts from a gross salary of EUR 1,100 a month, equal to VND 32,010,000 (Vietnamese dong).

The ECB does not publish a EUR/VND rate. This article uses a cross rate: 1.1355 USD per EUR (ECB, 2026-09-30) times 25,627 VND per USD (State Bank of Vietnam central rate, 2026-09-30). The result is 29,099.46 VND per EUR, rounded to 29,100.

VND amounts are exact. EUR amounts are rounded to the cent, and every line adds up with no difference. The article does not cover expatriates, stock options or benefits in kind.

Social insurance contributions

Contributions are mandatory payments into three schemes: social insurance, health insurance and unemployment insurance. The contribution base is the monthly salary to which each percentage applies. The contribution cap is the highest salary used as that base.

Table 1. Social insurance contributions in Vietnam (in force on 2026-10-01)

Scheme Employer Employee Contribution base Contribution cap Rule and effective date
Social insurance: pension and survivors 14% 8% Monthly salary VND 50,600,000 Law 41/2024/QH15, art. 34 (employer) and art. 33 (employee). In force since 2025-07-01
Social insurance: sickness and maternity 3% 0% Monthly salary VND 50,600,000 Law 41/2024/QH15, art. 34. In force since 2025-07-01
Social insurance: work accident and occupational disease 0.5% 0% Monthly salary VND 50,600,000 Decree 58/2020/ND-CP (2020-05-27). In force since 2020-07-15. Can fall to 0.3% if the employer meets set conditions
Health insurance 3% 1.5% Social insurance salary base VND 50,600,000 Decree 188/2025/ND-CP (2025-07-01): 4.5% in total, two thirds paid by the employer. In force since 2025-07-01
Unemployment insurance 1% 1% Monthly salary VND 106,200,000 Decree 374/2025/ND-CP, art. 4 (2025-12-31), and Employment Law 74/2025/QH15. In force since 2026-01-01
Total 21.5% 10.5% Not applicable Not applicable Sum of the rows above

Contribution caps

The cap for social and health insurance is 20 times the reference level (Law 41/2024/QH15, art. 31 and art. 141, clause 13). While the statutory base salary exists, the reference level equals it.

Since 2026-07-01 the base salary is VND 2,530,000 (Decree 161/2026/ND-CP). The cap therefore rises from VND 46,800,000 to VND 50,600,000 (EUR 1,738.83).

The unemployment insurance cap is 20 times the regional minimum wage: VND 106,200,000 in Region I (EUR 3,649.48).

Trade union fee

On top of contributions, the employer pays a 2% trade union fee on the payroll that is subject to social insurance. It is set by Law on Trade Unions 50/2024/QH15, art. 29, in force since 2025-07-01.

In the example it is VND 640,200 (EUR 22.00). Table 3 leaves it out so that the 21.5% matches Table 1.

Personal income tax

Personal income tax (PIT, called TNCN in Vietnam) is progressive: each slice of income pays its own rate. Law 109/2025/QH15, passed on 2025-12-10, takes effect on 2026-07-01. For employment income it applies from the 2026 tax period, that is, from 2026-01-01.

Until 2025 there were seven brackets, from 5% to 35%. From 2026 there are five.

Table 2. PIT brackets for residents (monthly income)

Monthly taxable income bracket (VND) Rate Approximate equivalent in EUR (at 29,100)
Up to 10,000,000 5% Up to 343.64
10,000,001 to 30,000,000 10% 343.64 to 1,030.93
30,000,001 to 60,000,000 20% 1,030.93 to 2,061.86
60,000,001 to 100,000,000 30% 2,061.86 to 3,436.43
Over 100,000,000 35% Over 3,436.43

Personal and family deductions

Taxable income is what remains after subtracting the employee's contributions and the deductions. The personal deduction is VND 15,500,000 a month (EUR 532.65). The deduction for each dependant is VND 6,200,000 a month (EUR 213.06).

Both apply from 2026-01-01 (Resolution 110/2025/UBTVQH15). They were VND 11,000,000 and VND 4,400,000 before.

Resident and non-resident

A tax resident spends at least 183 days in Vietnam in a calendar year or in 12 consecutive months from arrival. So does anyone with a habitual residence there.

Residents use the brackets in Table 2 and the deductions. Non-residents pay a flat 20% on employment income earned in Vietnam and get no personal deduction.

Someone who falls short of 183 days in the calendar year but reaches them over 12 consecutive months is treated as a resident. Their tax return is due by the last day of the fourth month after those 12 months (Decree 252/2026/ND-CP, art. 10).

Payroll for a mid-level profile, from gross to net

The profile has a gross salary of EUR 1,100, no dependants and no allowances. The whole gross salary is below the caps, so each percentage applies to the full amount.

Table 3, part A. From gross salary to the employee's net pay

Line VND EUR
Agreed gross salary 32,010,000 1,100.00
Less employee social insurance (8%) 2,560,800 88.00
Less employee health insurance (1.5%) 480,150 16.50
Less employee unemployment insurance (1%) 320,100 11.00
Equals gross minus contributions (10.5%) 28,648,950 984.50
Less personal deduction 15,500,000 532.65
Less family deduction (0 dependants) 0 0.00
Equals taxable income 13,148,950 451.85
Tax: VND 10,000,000 at 5% 500,000 17.18
Tax: VND 3,148,950 at 10% 314,895 10.82
Total personal income tax 814,895 28.00
Net pay received (28,648,950 minus 814,895) 27,834,055 956.50

Table 3, part B. From gross salary to the employer's cost

Line VND EUR
Agreed gross salary 32,010,000 1,100.00
Plus social insurance, pension and survivors (14%) 4,481,400 154.00
Plus social insurance, sickness and maternity (3%) 960,300 33.00
Plus social insurance, work accident and occupational disease (0.5%) 160,050 5.50
Plus health insurance (3%) 960,300 33.00
Plus unemployment insurance (1%) 320,100 11.00
Total employer contributions (21.5%) 6,882,150 236.50
Cost to the employer 38,892,150 1,336.50

On every 100 of gross salary, the employee bears 10.50 in contributions and 2.55 in tax, and receives 86.95. The employer pays 21.50 on top. The percentages in this paragraph are rounded to two decimals.

With one dependant, total deductions rise to VND 21,700,000 and taxable income falls to VND 6,948,950. The tax is VND 347,448 (EUR 11.94; 347,447.5 rounded to the dong) and net pay is VND 28,301,502 (EUR 972.56). The employer's cost does not change.

Two stacked bars of the monthly employer cost of a EUR 1,100 gross salary, total VND 38,892,150 (EUR 1,336.50). No dependants: net pay VND 27,834,055 (71.6%), employee contributions 3,361,050 (8.6%), tax 814,895 (2.1%), employer contributions 6,882,150 (17.7%). With 1 dependant: net pay 28,301,502 (72.8%), tax 347,448 (0.9%); the rest is unchanged.

Regional minimum wage

The regional minimum wage is the lowest monthly pay the law allows for an employee on a contract in each zone. There are four regions because living costs differ between zones (Labour Code 45/2019/QH14, art. 91). Since 2026-01-01, Decree 293/2025/ND-CP sets these amounts:

  • Region I: VND 5,310,000 (EUR 182.47).
  • Region II: VND 4,730,000 (EUR 162.54).
  • Region III: VND 4,140,000 (EUR 142.27).
  • Region IV: VND 3,700,000 (EUR 127.15).

The central urban areas of Ha Noi and Ho Chi Minh are in Region I. Some outlying wards and communes in both cities are in Region II or III. The decree's appendix lists each one.

Tết bonus

The Tết bonus is not required by law. The Labour Code 45/2019/QH14, art. 104, leaves bonuses to the employer's discretion, based on results and performance. It becomes binding if the contract, the collective agreement or the bonus policy promises it in writing.

One month's salary is the usual market level (TalentNet). That is a practice, not a rule.

It is taxed as employment income and withheld in the month it is paid. With the example profile, a bonus of VND 32,010,000 (EUR 1,100.00) raises the tax from VND 814,895 to VND 5,531,790. The net bonus is VND 27,293,105 (EUR 937.91), an effective rate of 14.74%.

Calendar

  • Payroll: once or twice a month, on a fixed date set in the contract (Labour Code 45/2019/QH14, art. 97).
  • Contributions: by the last day of the following month (Law 41/2024/QH15, art. 34).
  • PIT: the employer withholds on every payroll. Since 2026-07-01 it files each quarter, by the last day of the month after the quarter (Decree 252/2026/ND-CP, art. 10, and Circular 89/2026/TT-BTC). Before that it filed every month.

Anyone who settles their annual income on their own account has until 30 April of the following year (Decree 252/2026/ND-CP, art. 10).

Foreign employer without a Vietnamese entity

Without an entity in Vietnam, a foreign employer cannot pay contributions or withhold tax there: hiring has to go through a local entity.

Changes with a future date

The consultation on 2026-10-01 found no approved percentages or caps with a later effective date. A draft law amending Law 41/2024/QH15 was published on 2026-06-17 by the Ministry of Home Affairs. It is not approved and does not apply.

When the base salary is abolished, the reference level cannot be lower than it (Law 41/2024/QH15, art. 141, clause 13).

FAQ

How much does it really cost to hire someone on EUR 1,100 gross?

With contributions, EUR 1,336.50 a month (VND 38,892,150). With the 2% trade union fee, EUR 1,358.50 (VND 39,532,350). The Tết bonus, private insurance and equipment are not included.

Is there a maximum contribution for high salaries?

Yes. Above VND 50,600,000, social and health insurance stop rising: the employer pays at most VND 10,373,000 (20.5%) and the employee VND 4,807,000 (9.5%). Unemployment insurance continues up to VND 106,200,000, with a maximum of VND 1,062,000 for each side.

Who pays the tax, the company or the employee?

The employee owes the PIT and the employer withholds it from every payroll. If the contract agrees a net salary, the gross figure is worked out backwards and the company's cost goes up.

Does net pay change if the employee has children?

Yes, because of the VND 6,200,000 monthly deduction for each registered dependant. With one dependant, net pay in the example goes from EUR 956.50 to EUR 972.56. The employer's cost stays at EUR 1,336.50.

Disclaimer

This is general information, not tax or employment advice. Rules change, and each case should be reviewed with a professional who knows Vietnamese law before hiring or setting a salary.

Next step

Copy Table 3 into your spreadsheet, change the gross salary and the number of dependants, and check that the cost matches your model. Then send the sheet to Vantu and we will review it with an adviser who knows Vietnam.

Sources

Date of consultation: 2026-10-01. Exchange rate: VND 29,100 per EUR, a cross of EUR/USD 1.1355 (ECB, 2026-09-30) and VND 25,627 per USD (State Bank of Vietnam, central rate, 2026-09-30).

PENDING: check against the official text (vbpl.vn) the articles of Law 41/2024/QH15 and the rates in Decrees 58/2020/NĐ-CP, 188/2025/NĐ-CP and 374/2025/NĐ-CP, read on secondary legal portals; confirm the source of the 2% union fee and the tax treatment of the Tết bonus.