Starting Work: Pay, Tax & Labor Basics
What every student should understand before signing a first job/internship offer in Vietnam: contracts, probation, how salary is taxed, and what gets deducted. Pairs with Career Preparation and Career Paths.
Figures and rules here are simplified and approximate, based on Vietnam's Labor Code 2019, the Law on Social Insurance and the Personal Income Tax law. Rates, thresholds and minimum wages change — always confirm the current numbers with an official source, your HR department, or a professional. Treat this as orientation, then verify.
Before you sign​
- Contract types — fixed-term (≤ 36 months) or indefinite-term. Get it in writing; verbal-only arrangements are risky.
- Probation (thỠviệc) — usually paid at ≥ 85% of the full-job salary. Maximum length depends on the role:
| Role type | Max probation |
|---|---|
| Enterprise managers | 180 days |
| Needs a college/university degree | 60 days |
| Needs intermediate/vocational training | 30 days |
| Other (simple) jobs | 6 working days |
Ask three things explicitly: (1) is the number gross or net, (2) what the probation pay and length are, and (3) whether mandatory insurance is paid from day one. Get answers in writing.
Gross vs. Net — the #1 confusion​
- Gross = total salary before deductions (what the contract usually states).
- Net = what actually lands in your bank account, after insurance and income tax.
Net = Gross − employee insurance (10.5%) − personal income tax (PIT)
A "20 million" offer can mean very different take-home depending on which one it is. Always ask.
What's deducted from your gross​
1. Compulsory insurance — employee share ≈ 10.5%:
| Insurance | Employee | (Employer also pays) |
|---|---|---|
| Social insurance (BHXH) | 8% | 17.5% |
| Health insurance (BHYT) | 1.5% | 3% |
| Unemployment insurance (BHTN) | 1% | 1% |
| Total | 10.5% | ≈ 21.5% |
The employer's ~21.5% is on top of your salary — not taken from you.
2. Personal income tax (thuế TNCN) — see below.
Personal income tax (PIT)​
For a tax resident, PIT is progressive on taxable income:
Taxable income = Gross − insurance (10.5%) − deductions
Deductions ≈ 11,000,000 / month (self) + 4,400,000 / month per dependent
| Monthly taxable income (VND) | Rate |
|---|---|
| ≤ 5 M | 5% |
| 5 – 10 M | 10% |
| 10 – 18 M | 15% |
| 18 – 32 M | 20% |
| 32 – 52 M | 25% |
| 52 – 80 M | 30% |
| > 80 M | 35% |
- Tax code (mã số thuế) — register one; you can also register dependents to claim the 4.4 M deduction each.
- Tax finalization (quyết toán thuế) happens annually — you may get a refund or owe a top-up.
- Non-residents are generally taxed at a flat 20% on Vietnam-sourced income (different rules).
The 11 M / 4.4 M personal deductions are the figures in force at the time of writing and have been adjusted before. Check the current level when you calculate.
Rough worked example (illustrative only)​
For a 20,000,000 VND/month gross, single, no dependents:
- Insurance: 20 M × 10.5% = 2.1 M
- Pre-tax income: 20 − 2.1 = 17.9 M
- Deduction (self): 11 M → taxable = 17.9 − 11 = 6.9 M
- PIT (progressive): 5% on first 5 M (0.25 M) + 10% on next 1.9 M (0.19 M) ≈ 0.44 M
- Net ≈ 20 − 2.1 − 0.44 = ~17.46 M
Numbers rounded for illustration. Use a current online PIT calculator or your HR for the exact figure.
What the insurance buys you​
- BHXH (social): sickness, maternity, work-accident, and retirement pension later.
- BHYT (health): subsidized medical treatment at registered facilities.
- BHTN (unemployment): support and training if you lose your job.
- Contribution bases are capped (e.g. BHXH/BHYT at 20× the base salary; BHTN at 20× the regional minimum wage).
Hours, leave & overtime (basics)​
- Standard hours: ≤ 8 h/day and ≤ 48 h/week.
- Annual leave: typically 12 paid days/year (more with seniority and for hard conditions), plus public holidays.
- Overtime pay: ≥ 150% on normal days, ≥ 200% on weekly rest days, ≥ 300% on public holidays — with legal caps on total overtime.
Checklist before day one​
- Offer states gross or net clearly (in writing)
- Probation pay and length agreed in the contract
- Confirm insurance is paid and from when
- Register your tax code and any dependents
- Keep your payslips and contract copies
- Sanity-check your first net pay against an online calculator
References​
- Labor Code 2019 (Bá»™ luáºt Lao Ä‘á»™ng) — contracts, probation, hours, leave, overtime.
- Law on Social Insurance and Law on Personal Income Tax — contributions and PIT.
- Official portals (e.g. the General Department of Taxation) and your employer's HR for current rates.