目次
Payroll and Wage Management in Vietnam
In recent years, more foreign-affiliated companies have decided to establish corporations in Vietnam, and the amount of foreign direct investment (FDI) in Vietnam continues to increase. In order to do business in Vietnam, you need to focus on business rationality, acquire talented people and motivate them to contribute to the growth of the company over the next few years.
For that purpose, sufficient knowledge about Vietnam's salary system and wage system is indispensable.
Vietnam salary and wages
Minimum wage / minimum salary stipulated by the Vietnamese government
The salary of Vietnamese employees in foreign-affiliated companies in Vietnam is determined through negotiations between the employees and the hiring companies. Employers must not fall below the minimum monthly salary set by the Vietnamese government.
Vietnam's monthly minimum wage rates updated as of January 1, 2017 are as follows:
- Hanoi and Ho Chi Minh City (City Center): 3,750,000 dong (US $ 165.20) per month
- Suburbs of Hanoi and Ho Chi Minh City: 3,300,000 ND per month (US $ 145.37).
- Central Haiphong, Danang District Can Tho District, Halong City, Quang Ninh Province, Bien Hoa District, Dong Nai Province: 2,900,000 VND per month (US $ 127.75)
- Other than the above: 2,580,000 VND per month (US $ 113.66)
The minimum wage rate is only for Vietnamese employees who do the most basic work. Employees who have passed the probationary period are usually paid at least 7% higher than the above.
Overtime work in Vietnam ・ Extra wages
Employee overtime is paid by multiplying the regular hourly wage by the extra wage rate.
- Weekdays: 150%
- Weekend: at least 200%
- Holidays and paid leave dates: 300%
For overtime work at night, an additional salary will be paid according to the applicable rules. Also, shift-based night shifts are paid at least 30% higher than during the day.
For foreign-affiliated companies in Vietnam
The salary paid to Vietnamese staff working in foreign companies must be Vietnamese dong. Foreign employers can calculate salaries in either Vietnamese dong or US dollars, but salaries based on US dollars must be exchanged and paid to Vietnamese dong.
Generally, employee labor costs take into account salaries and compulsory social insurance.
Personal income tax is levied on the balance of salary minus compulsory insurance.
Vietnamese Accounting Standards (VAS)
Domestic and foreign companies operating in Vietnam must comply with Vietnam's Accounting Standards (VAS) for their financial statements. Foreign-affiliated companies can optionally prepare management accounting documents in conformity with VAS or the accounting system of the head office.
VAS requirements will be a difficult issue for foreign-affiliated SMEs who are not accustomed to Vietnam's accounting system. VAS requires accounting records to adhere to:
- Record in Vietnamese
- Vietnamese dong is used as the currency
- All records are based on Vietnam's chart of accounts
- Preparation of accounting reports required by VAS (monthly)
- The above documents require a company chop with the signature of the director.
Authorities concerned are relatively loose on implementing VAS compliance.
However, local tax authorities may ask for additional tax, value added tax (VAT) because they are not VAS compliant (violation).
Companies are advised to verify that they are not VAS compliant and reconfirm their accounting system.
Vietnam Bonuses / Bonuses
Bonuses and bonuses are given to employees by their employers to increase employee morale and productivity based on corporate profits and performance. The company can give employees different types of bonuses throughout the year. For example, the 13th month salary is usually paid by a domestic or foreign company in Vietnam as a kind of "annual bonus" to employees who have worked for the company for at least one year. Employees who have worked for the same company for a year will be given a bonus based on their actual employment period.
In addition, there is a special bonus called the "Lunar New Year Bonus (Tet Bonus)" that is paid to employees before the Chinese New Year holidays. The amount of this bonus is determined by company performance and employee performance, but is generally given for one month to one year of salary.
Employees may be paid additional bonuses on public holidays and special days (eg International Worker's Day and National Day). Senior managers and other important employees are typically paid bonuses in the form of stock certificates with a vesting period. It can sell the corresponding shares only after the employee has worked for the company for a certain period of time.
All salaries and bonuses are subject to Vietnam's personal income tax.
Other allowances / daily allowances / benefits in Vietnam
In addition to salaries and bonuses, employees are entitled to several types of benefits and monetary or non-monetary benefits designed to retain them.
Of the other allowances and benefits, the following items require careful handling depending on the payee, payment amount, etc., but they are relatively loose tax exemption limits.
- Housing rent
- Transportation allowance
- Life insurance premiums
- Health care service
- Entertainment fee
- Employee power, water, and related services
- Membership fees for golf clubs, tennis courts and luxury clubs
Foreigners working in Vietnam are also exempt from personal income tax on various allowances such as domestic migration allowances, airfares to their home countries and educational expenses for children.
Other allowances / daily allowances / allowance tax exempt items in Vietnam
Investment in Vietnam is Ho Chi Minh Suzuki Real Estate
We support rental and purchase of condominiums, offices and investment real estate, mainly in Ho Chi Minh, Vietnam.
Our strength is to provide buyers with accurate and accurate information in a timely manner.
This website introduces the latest news articles on real estate, economy, travel, and events related to Vietnam.
Based on my experience as a consultant in Hong Kong, the article also introduces real estate, management, accounting, tax, and labor affairs.
If you like, please take a look.
A real estate agent (with Level 1 bookkeeping qualification) who has been based in Ho Chi Minh City for six years.
Representative of Suzuki Property Vietnam.
To date, we have brokered over 1,000 rental transactions and over 200 sales transactions, primarily with Japanese clients.
We specialize in serviced apartments, condominiums, office brokerage, and real estate contract support for foreigners, and provide support in Japanese, English, and Chinese.
