This glossary defines, in plain English, the Vietnamese HR, payroll, tax and immigration terms a foreign company meets when it hires in Vietnam — whether through an employer of record or its own entity. Terms are grouped by theme and listed alphabetically within each group; every row gives the English and Vietnamese term, a one-line definition and a link to the full, sourced guide. Figures are current as of October 2026.
Reference · Vietnam HR & payroll
Vietnam HR and employment glossary
A plain-English glossary of the Vietnamese HR, payroll, tax and immigration terms a foreign company meets when hiring in Vietnam — EOR, PEO, BHXH, PIT, TRC, ILR and the rest. Each entry gives the Vietnamese term, a short definition and a link to the full, sourced guide. Figures are as of October 2026.
EOR Vietnam fee
US$149
per employee per month, flat, for Vietnamese nationals. No setup or hidden fees.
Get a quote
Not advice
This is general information, not legal, tax or payroll advice. Figures are sourced and dated, and several Vietnamese rules changed in mid-2026; confirm the current position on the linked guide before you act.
EOR, PEO and workforce-structure terms
The labels and routes for engaging someone in Vietnam without your own payroll. “EOR” and “PEO” are commercial terms, not categories in Vietnamese law; what matters is the structure a provider uses.
| Term (English) | Vietnamese | What it means | Full guide |
|---|---|---|---|
| Co-employment | — (not codified) | Where both provider and client act as employer. Not codified in Vietnam; liabilities could be argued to attach to both. | Is co-employment legal? |
| Employer of Record (EOR) | — (no statutory term) | Becomes the legal employer of your worker — contract, payroll, insurance — while you direct the work. A commercial label, not a Vietnamese legal category. | What is an EOR in Vietnam |
| Independent contractor | Hợp đồng dịch vụ (service contract) | A genuine self-employed provider engaged under a civil service contract, outside the Labour Code. If the work is really directed and paid like a job, the Code's substance test can reclassify it as employment.1 | Hiring & paying contractors |
| Labour sub-leasing (dispatch) | Cho thuê lại lao động | A licensed company employs a worker and places them under a client's direction for up to 12 months, for 20 listed occupations.12 | Labour outsourcing & dispatch |
| Permanent establishment (PE) | Cơ sở thường trú | A taxable presence a foreign company can create in Vietnam. An EOR does not by itself remove the risk; it turns on the tax treaty. | Permanent establishment risk |
| Professional Employer Organisation (PEO) | — (no statutory term) | A co-employment model from other markets. Vietnam has no co-employment statute, so a “PEO” here usually operates as an EOR. | What a PEO really is |
Payroll and contribution terms
The terms on every Vietnamese payslip. The three insurance funds plus the trade-union fee make the employer's on-cost about 23.5% above gross salary, with 10.5% withheld from the employee.3
| Term (English) | Vietnamese | What it means | Full guide |
|---|---|---|---|
| 13th-month salary (Tet bonus) | Lương tháng 13 | A customary extra month's pay before Lunar New Year. Not required by law unless promised in writing.1 | 13th-month salary & Tet bonus |
| Base salary | Lương cơ sở | The statutory reference figure, ₫2,530,000/month from 1 July 2026. The social- and health-insurance ceiling is 20 times it.4 | Social insurance in Vietnam |
| Contribution cap | Mức trần đóng | The ceiling above which a fund is not charged: ₫50,600,000/month for social and health, ₫106,200,000 (Region I) for unemployment.45 | Vietnam payroll & employer costs |
| Health insurance (BHYT) | Bảo hiểm y tế | Compulsory medical insurance. Employer 3%, employee 1.5%, under the same ceiling as social insurance.3 | Social insurance in Vietnam |
| Overtime pay | Làm thêm giờ | Work beyond normal hours, by agreement and capped at 40 hours a month and 200 hours a year (300 in listed sectors). Paid at least 150% of the hourly wage on a working day, 200% on a rest day and 300% on a public holiday.1 | Working hours & overtime |
| Reference level | Mức tham chiếu | The 2024 Social Insurance Law's name for the figure the ceiling is pegged to; it equals the base salary.3 | Social insurance in Vietnam |
| Regional minimum wage | Lương tối thiểu vùng | The pay floor, set across four regions by the employer's location. From 2026, ₫3,700,000 (Region IV) to ₫5,310,000 (Region I).5 | Minimum wage by region |
| SHUI | BHXH + BHYT + BHTN | The three compulsory insurance funds together: 21.5% employer, 10.5% employee. Add the 2% union fee and the employer on-cost is 23.5%.3 | Social insurance in Vietnam |
| Social insurance (BHXH) | Bảo hiểm xã hội | The largest fund — pensions, sickness, maternity, work-accident. Employer 17.5%, employee 8%, up to the cap.3 | Social insurance in Vietnam |
| Trade-union fee | Kinh phí công đoàn | A 2% charge on the social-insurance salary fund, paid by every employer whether or not it has a union.6 | The 2% trade-union fee |
| Unemployment insurance (BHTN) | Bảo hiểm thất nghiệp | Jobseeker benefits, for Vietnamese nationals only. Employer 1%, employee 1%. Foreign employees are exempt.3 | Social insurance for foreigners |
Tax terms
Personal income tax is withheld by the employer. The resident scale and family deductions changed for 2026; from 1 July 2026 the declaration is quarterly for all employers.78
| Term (English) | Vietnamese | What it means | Full guide |
|---|---|---|---|
| Double tax treaty (DTA) | Hiệp định tránh đánh thuế hai lần | A bilateral treaty that stops income being taxed twice and sets which country may tax it. Relevant to cross-border pay. | Double tax treaties |
| Family-circumstance deduction | Giảm trừ gia cảnh | Subtracted before resident PIT: ₫15,500,000/month for the taxpayer and ₫6,200,000 per qualifying dependant, for 2026.7 | Personal income tax 2026 |
| Non-resident flat rate | Cá nhân không cư trú | Non-residents pay a flat 20% on Vietnam-source employment income, with no deductions — often more than the resident outcome.7 | Tax residency & the 183-day rule |
| Personal income tax (PIT) | Thuế thu nhập cá nhân (TNCN) | Tax on employment income. Residents pay a five-band 5%–35% scale for 2026; non-residents a flat rate. Withheld by the employer.7 | Personal income tax 2026 |
| Quarterly PIT withholding | Khai thuế TNCN theo quý | From 1 July 2026 PIT is withheld each payment but declared quarterly (30 Apr, 31 Jul, 31 Oct, 31 Jan), finalised by 31 March.8 | HR compliance calendar |
| Tax residency / 183-day rule | Cá nhân cư trú | You are a tax resident at 183+ days a year (or any rolling 12 months from arrival), or with a qualifying home in Vietnam. It decides what income is taxed.7 | Tax residency & the 183-day rule |
| Tax-free allowances | Phụ cấp miễn thuế | Allowances exempt within limits. From July 2026 the cash meal allowance is exempt up to ₫1,200,000/month; in-kind meals fully.8 | Tax-free allowances |
Not sure which term applies to your hire?
Tell us the role, city and nationality and we will explain which contributions, taxes and permits apply, and what we would charge. Send us the details.
Contract and lifecycle terms
The terms governing the relationship from contract and probation through to notice and severance — mostly in the Labour Code 2019, with insurance-funded leave updated by the 2024 Social Insurance Law.13
| Term (English) | Vietnamese | What it means | Full guide |
|---|---|---|---|
| Annual leave | Nghỉ phép năm | 12 paid days a year (14 or 16 for protected or hazardous-work staff), plus one per five years' service. Pro-rated in year one.1 | Annual leave |
| Electronic labour contract | Hợp đồng lao động điện tử | A data-message contract, equal to a written one. From 1 July 2026 it must run through a national platform (Decree 337/2025). Paper stays valid.12 | Electronic labour contracts |
| Employment contract (fixed / indefinite-term) | Hợp đồng lao động (HĐLĐ) | Two types only: indefinite-term and fixed-term (max 36 months). A fixed term renews once, then must become indefinite.1 | Labour law & contracts |
| Internal labour regulations (ILR) | Nội quy lao động | The written workplace rulebook. Employers with 10+ staff must have it and register it; it underpins lawful discipline.1 | Internal labour regulations |
| Job-loss (redundancy) allowance | Trợ cấp mất việc làm | For a job ending through restructuring, technology, economic reasons or merger: one month's wage per year, minimum two months.1 | Severance pay |
| Labour discipline | Kỷ luật lao động | Four measures only — reprimand, deferred pay rise, demotion, dismissal. Fines and wage-docking as punishment are banned.1 | Labour discipline |
| Maternity & paternity leave | Nghỉ thai sản | Six months' maternity leave at 100% of the insured salary (+30 days per extra child); fathers get 5–14 days, within 60 days of birth. Paid by social insurance.3 | Maternity & paternity leave |
| Non-compete agreement | Thỏa thuận không cạnh tranh | A post-employment restraint. No statute makes these directly enforceable, but a 2023 precedent (No. 69/2023/AL) lets arbitration treat them as civil agreements — enforceability is case-specific, as of October 2026. | Non-compete agreements |
| Notice period | Thời hạn báo trước | At least 45 days (indefinite-term), 30 days (12–36-month fixed term) or 3 working days (sub-12-month) to end a contract.1 | Terminating employees |
| Probation | Thử việc | A trial period capped by role — 180, 60 or 30 days, or 6 working days. Pay is at least 85% of the full salary.1 | Probation period |
| Public holidays | Nghỉ lễ, Tết | 11 paid days under the Labour Code plus Vietnam Culture Day on 24 November — 12 paid public holidays a year from 2026.113 | Public holidays 2026 & 2027 |
| Severance allowance | Trợ cấp thôi việc | Half a month's wage per year of service, but excluding time covered by unemployment insurance (compulsory since 2009), so often small.12 | Severance pay |
| Sick leave | Nghỉ ốm đau | Paid by social insurance at 75% of the contribution salary, for 30 to 60 days a year by length of contribution (more for hazardous work).3 | Sick leave |
Immigration and data terms
The terms for hiring a foreign national or moving employee data abroad. Work permits and residence sit in Decree 219/2025/ND-CP; HR data in the PDPL and Decree 356/2025/ND-CP.911
| Term (English) | Vietnamese | What it means | Full guide |
|---|---|---|---|
| Labour visa (LĐ) | Thị thực lao động (LĐ) | The entry visa sponsored for a work-permit holder (or exempt foreigner) so they can enter and work for the employer.10 | Work visa & residence card |
| Personal Data Protection Law (PDPL) | Luật Bảo vệ dữ liệu cá nhân | Vietnam's data-protection law (91/2025) with Decree 356/2025, in force since 2026. Governs employee data and transfers abroad, with a personnel-management exemption.11 | PDPL & HR data |
| Temporary Residence Card (TRC) | Thẻ tạm trú | Lets a foreign employee reside without re-applying for a visa each entry. Up to two years, never beyond the work permit.10 | Work visa & residence card |
| Work permit | Giấy phép lao động (GPLĐ) | What a foreign employee needs to work in Vietnam (Decree 219/2025). Valid up to two years, matching the contract, extendable once.9 | Vietnam work permits |
| Work-permit exemption | Miễn giấy phép lao động | One of 15 categories needing no permit — e.g. a manager under 90 days a year. The employer still notifies three working days ahead.9 | Work-permit exemptions |
How EOR Vietnam handles these
EOR Vietnam turns the terms above into a single monthly arrangement. We employ your worker through a Vietnam-registered entity and run the whole stack: the labour contract and probation, BHXH, BHYT and BHTN, PIT, the 2% trade-union fee, the payslip, and — for foreign hires — the work permit, labour visa and TRC. You direct the work; we are the legal employer that files and pays.
Our service fee is a flat US$149 per employee per month for a Vietnamese national — the same fee whatever the salary, role, location or headcount, as of October 2026. It is not a percentage of payroll. Foreign nationals who need a work permit are quoted separately. There are no setup, onboarding, offboarding or hidden fees. Everything else — gross salary, the roughly 23.5% statutory employer contributions3 and any statutory or agreed payments — is passed through at cost, and a refundable deposit of two months' employment cost is held for the engagement and returned at the end, less any unpaid amounts. See what an EOR actually costs in Vietnam, browse every term's guide from the Vietnam employer guides hub, or request a costed quote.
Questions people ask
What does BHXH mean in Vietnam?
BHXH stands for bảo hiểm xã hội — social insurance, the largest of the three compulsory insurance funds, covering pensions, sickness, maternity and work accidents. The employer pays 17.5% and the employee 8%, both up to the ₫50,600,000-a-month ceiling (as of October 2026). See social insurance in Vietnam.
What is SHUI in Vietnam?
SHUI is shorthand for Vietnam's three compulsory insurance funds: social (BHXH), health (BHYT) and unemployment (BHTN). They cost the employer 21.5% and the employee 10.5%. The separate 2% trade-union fee takes the employer's on-cost to about 23.5%; foreign staff skip unemployment insurance (as of October 2026).
What is the difference between EOR and PEO?
Both are commercial labels, not Vietnamese legal categories. An EOR becomes the legal employer; a PEO, in its home-market sense, co-employs while the client stays the legal employer. Vietnam has no co-employment statute, so a provider marketed as a PEO here normally operates as an EOR. Compare them in the EOR vs PEO guide.
What does TRC stand for in Vietnam?
TRC is a Temporary Residence Card (thẻ tạm trú), letting a foreign employee live in Vietnam without re-applying for a visa each entry. Sponsored with the labour visa once a work permit is granted, it is valid up to two years — never longer than the work permit. See the work visa and residence-card guide.
How many public holidays does Vietnam have?
Twelve paid public holidays a year from 2026: the 11 in the Labour Code — New Year's Day, Lunar New Year (Tết, five days), Hung Kings Commemoration, Reunification Day, International Labour Day and National Day (two days) — plus Vietnam Culture Day on 24 November, added by National Assembly Resolution 28/2026/QH16 (as of October 2026). See the public-holidays guide.
What is the difference between base salary and the minimum wage in Vietnam?
They are two different figures. The statutory base salary (lương cơ sở) is ₫2,530,000/month from 1 July 2026 and sets the social- and health-insurance ceiling (20 times it, ₫50,600,000). The regional minimum wage (lương tối thiểu vùng) is the pay floor, ₫3,700,000 to ₫5,310,000/month by region (as of October 2026). See social insurance and the minimum-wage guide.
Sources
- Labour Code 2019 — contracts, probation, working time and overtime, discipline, notice, severance, annual leave, public holidays, ILR and labour sub-leasing. Law 45/2019/QH14.
- Decree 145/2020/ND-CP — the 20 sub-leasing occupations and the severance-service offset. Decree 145/2020/ND-CP.
- Social Insurance Law 41/2024/QH15 and PwC Worldwide Tax Summaries — insurance rates, caps, foreign-worker coverage, insurance-funded leave. PwC — Vietnam.
- Decree 161/2026/ND-CP (1 July 2026) — base salary ₫2,530,000/month and the ₫50,600,000 insurance ceiling. Decree 161/2026/ND-CP.
- Decree 293/2025/ND-CP (1 January 2026) — the 2026 regional minimum wages and the unemployment cap. Decree 293/2025/ND-CP.
- Trade Union Law 50/2024/QH15 (1 July 2025) — the 2% employer trade-union fee and member dues. Law 50/2024/QH15.
- PIT Law 109/2025/QH15 with Resolution 110/2025/UBTVQH15 — the five-band scale, 20% non-resident rate, deductions and 183-day test. Law 109/2025/QH15.
- Law on Tax Administration 108/2025/QH15 with Decree 252/2026/ND-CP — quarterly PIT from 1 July 2026; the ₫1,200,000 meal exemption is in Decree 253/2026/ND-CP. LuatVietnam — quarterly PIT.
- Decree 219/2025/ND-CP (7 August 2025) — work permits, the 15 exemptions and under-90-day rule, foreign-worker insurance. Decree 219/2025/ND-CP.
- Law 47/2014/QH13 (as amended) — the labour (LĐ) visa and the Temporary Residence Card, capped by the work permit. Law 47/2014/QH13.
- PDPL 91/2025/QH15 and Decree 356/2025/ND-CP (1 January 2026) — HR-data handling, cross-border transfer and the personnel-management exemption. Law 91/2025/QH15.
- Decree 337/2025/ND-CP (platform from 1 July 2026) — electronic labour contracts and the national platform. Decree 337/2025/ND-CP.
- Resolution 28/2026/QH16 (effective 1 July 2026) — Vietnam Culture Day on 24 November, a 12th paid public holiday from 2026. Resolution 28/2026/QH16.
- Legislation accessed via the English gazette mirror on 2 October 2026 (Decree 337/2025/ND-CP on 3 October 2026); Resolution 28/2026/QH16 via the Government news portal on 3 October 2026.