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Salary and Wages in Vietnam

Vietnam’s business environment, free trade costs, and its ideal location as a China plus one destination make it favorable among foreign investors looking to relocate or diversify their operations.

However, as Vietnam’s economy continues to grow, increasing wages will be an unavoidable feature of doing business in the country and is increasingly important for companies to understand how to navigate. 

Vietnam increased the minimum wage by 6 percent starting in July 2024. This adjustment represents a compromise between the 6.48 to 7.3 percent requested by the Vietnam General Confederation of Labor and the 4.5 to 5 percent suggested by the Vietnam Chamber of Commerce and Industry. The hike came after a two-year hiatus in minimum wage adjustments despite rising inflation rates, which may necessitate further increases shortly.

What are the minimum wage rates in Vietnam?

There are two kinds of minimum wages in Vietnam.

The first type is the common minimum wage of VND 2,340,000 (US$93) which is used to calculate salaries for employees in state-owned organizations and enterprises, as well as to calculate the social contribution for all enterprises (i.e., the maximum social contribution is 20 times the common minimum wage).

The second type of minimum wage is the Regional Minimum Wage used for employees in all non-state enterprises based on zones as defined by the government.

 

Current (2022)

Change (6%)

New (2024)

Region

VND

US$

VND

US$

VND

US$

1

4,680,000

192.33

280,800

11.54

4,960,000

196

2

4,160,000

170.96

249,600

10.26

4,410,000

175

3

3,640,000

149.59

218,400

8.98

3,860,000

153

4

3,250,000

133.56

195,000

8.01

3,450,000

137

In addition, the labor code also ensures minimum hourly wage rates for the relevant regions. These are:

  • Region I – VND 23,800 (US$0.94)
  • Region II – VND 21,200 (US$0.84)
  • Region III – VND 18,600 (US$0.74)
  • Region IV – VND 16,600 (US$0.66)

Wages for employees who are paid daily or on a weekly basis must not be lower than the minimum wage when converted to monthly or hourly rates. 

Did You Know?
For Vietnamese employees who work in foreign companies in Vietnam, compensation is determined through negotiations between the two parties. However, the compensation should be no lower than the minimum monthly salary rates as stipulated by the government.

Who is eligible?

The wage increase applies to employees who work under labor contracts under the labor code, including businesses, organizations, cooperatives, households, and individuals who hire employees on labor contracts.

List of regional administrative units in Vietnam

Province/City Region I Region II Region III Region IV
Lao Cai   Cam Duong, Lao Cai, Coc San, Hop Thanh. Van Phu, Yen Bai, Nam Cuong, Au Lau, Phong Hai, Xuan Quang, Bao Thang, Tang Loong, Gia Phu, Muong Bo, Ban Ho, Ta Phin, Ta Van, Sa Pa. Remaining communes/wards.
Cao Bang   - Thuc Phan, Nung Tri Cao, Tan Giang. Remaining communes/wards.
Dien Bien   - Muong Phang, Dien Bien Phu, Muong Thanh. Remaining communes/wards.
Lai Chau   - Tan Phong, Doan Ket. Remaining communes/wards.
Son La   - To Hieu, Chieng An, Chieng Coi, Chieng Sinh. Remaining communes/wards.
Tuyen Quang   - My Lam, Minh Xuan, Nong Tien, An Truong, Binh Thuan, Ha Giang 1, Ha Giang 2, Ngoc Duong. Remaining communes/wards.
Lang Son   - Tam Thanh, Luong Van Tri, Hoang Van Thu, Dong Kinh. Remaining communes/wards.
Phu Tho   Hy Cuong, Yen Lac, Te Lo, Lien Chau, Tam Hong, Nguyet Duc, Binh Nguyen, Xuan Lang, Binh Xuyen, Binh Tuyen, Luong Son, Cao Duong, Lien Son, Thinh Minh and the wards of Viet Tri, Nong Trang, Thanh Mieu, Van Phu, Vinh Phuc, Vinh Yen, Phuc Yen, Xuan Hoa, Hoa Binh, Ky Son, Tan Hoa, Thong Nhat. Lam Thao, Xuan Lung, Phung Nguyen, Ban Nguyen, Phu Ninh, Dan Chu, Phu My, Tram Than, Binh Phu, Thanh Ba, Quang Yen, Hoang Cuong, Dong Thanh, Chi Thien, Lien Minh, Tam Nong, Tho Van, Van Xuan, Hien Quan, Tam Son, Song Lo, Hai Luu, Yen Lang, Lap Thach, Tien Lu, Thai Hoa, Lien Hoa, Hop Ly, Son Dong, Tam Dao, Dai Dinh, Dao Tru, Tam Duong, Hoi Thinh, Hoang An, Tam Duong Bac, Vinh Tuong, Tho Tang, Vinh Hung, Vinh An, Vinh Phu, Vinh Thanh, Phong Chau, Phu Tho, Au Co Remaining communes/wards.
Quang Ninh Remaining communes/wards. Mong Duong, Quang Hanh, Cam Pha, Cua Ong, Hai Hoa. Tien Yen, Dien Xa, Dong Ngu, Hai Lang, Quang Tan, Dam Ha, Quang Ha, Duong Hoa, Quang Duc, Van Don Special Zone. Luong Minh, Ky Thuong, Ba Che, Hoanh Mo, Luc Hon, Binh Lieu, Co To Special Zone.
Hai Phong City Remaining communes/wards. Bach Long Vi Special Zone, Chu Van An, Chi Linh, Tran Hung Dao, Nguyen Trai, Tran Nhan Tong, Le Dai Hanh, Kinh Mon, Nguyen Dai Nang, Tran Lieu, Bac An Phu, Pham Su Manh, Nhi Chieu, Nam An Phu, Nam Sach, Thai Tan, Hop Tien, Tran Phu, An Phu, Ha Nam, Cam Giang, Cam Giang, Tue Tinh, Mao Dien, Ke Sat, Binh Giang, Duong An, Thuong Hong, Gia Loc, Yet Kieu, Gia Phuc, Truong Tan, Tu Ky, Tan Ky, Dai Son, Chi Minh, Lac Phuong, Nguyen Giap, Phu Thai, Lai Khe, An Thanh, Kim Thanh. Thanh Ha, Ha Tay, Ha Bac, Ha Dong, Ninh Giang, Vinh Lai, Khuc Thua Du, Tan An, Hong Chau, Thanh Mien, Bac Thanh Mien, Hai Hung, Nguyen Luong Bang, Nam Thanh Mien.  
Hung Yen   Pho Hien, Son Nam, Hong Chau, My Hao, Duong Hao, Phuong Hong, Thai Binh, Tran Lam, Tran Hung Dao, Tra Ly, Vu Phuc, Tan Hung, Yen My, Viet Yen, Hoan Long, Nguyen Van Linh, Nhu Quynh, Lac Dao, Dai Dong, Nghia Tru, Phung Cong, Van Giang, Me So. Hoang Hoa Tham, Tien Lu, Tien Hoa, Quang Hung, Doan Dao, Tien Tien, Tong Tran, Luong Bang, Nghia Dan, Hiep Cuong, Duc Hop, An Thi, Xuan Truc, Pham Ngu Lao, Nguyen Trai, Hong Quang, Khoai Chau, Trieu Viet Vuong, Viet Tien, Chi Minh, Chau Ninh, Thai Thuy, Dong Thuy Anh, Bac Thuy Anh, Thuy Anh, Nam Thuy Anh, Bac Thai Binh, Thai Ninh, Dong Thai Ninh, Nam Thai Ninh, Tay Thai Ninh, Tay Thuy Anh, Tien Hai, Tay Tien Hai, Ai Quoc, Dong Chau, Dong Tien Hai, Nam Cuong, Hung Phu, Nam Tien Hai. Remaining communes/wards.
Thai Nguyen   Tan Cuong, Dai Phuc, Thanh Cong, Phan Dinh Phung, Linh Son, Tich Luong, Gia Sang, Quyet Thang, Quan Trieu, Pho Yen, Van Xuan, Trung Thanh, Phuc Thuan, Song Cong, Ba Xuyen, Bach Quang. Dai Tu, Duc Luong, Phu Thinh, La Bang, Phu Lac, An Khanh, Quan Chu, Van Phu, Phu Xuyen, Phu Binh, Tan Thanh, Diem Thuy, Kha Son, Tan Khanh, Dong Hy, Quang Son, Trai Cau, Nam Hoa, Van Han, Van Lang, Phu Luong, Vo Tranh, Yen Trach, Hop Thanh, Phong Quang, Duc Xuan, Bac Kan. Remaining communes/wards.
Bac Ninh   Remaining communes/wards. Lang Giang, My Thai, Kep, Tan Dinh, Tien Luc, Tan Yen, Ngoc Thien, Nha Nam, Phuc Hoa, Quang Trung, Hop Thinh, Hiep Hoa, Hoang Van, Xuan Cam. Dai Son, Son Dong, Tay Yen Tu, Duong Huu, Yen Dinh, An Lac, Van Son, Bien Dong, Luc Ngan, Deo Gia, Son Hai, Tan Son, Bien Son, Xa Ly, Nam Duong, Kien Lao, Luc Son, Truong Son, Cam Ly, Dong Phu, Nghia Phuong, Luc Nam, Bac Lung, Yen The, Bo Ha, Dong Ky, Xuan Luong, Tam Tien, Chu, Phuong Son.
Hanoi City Remaining communes/wards. Phuong Duc, Chuyen My, Dai Xuyen, Van Dinh, Ung Thien, Hoa Xa, Ung Hoa, My Duc, Hong Son, Phuc Son, Huong Son, Minh Chau, Quang Oai, Vat Lai, Co Do, Bat Bat, Suoi Hai, Ba Vi, Yen Bai, Phuc Tho, Phuc Loc, Hat Mon, Dan Phuong.    
Ninh Binh   Tay Hoa Lu, Hoa Lu, Nam Hoa Lu, Dong Hoa Lu, Nam Dinh, Thien Truong, Dong A, Vi Khe, Thanh Nam, Truong Thi, Hong Quang, My Loc. Gia Vien, Dai Hoang, Gia Hung, Gia Phong, Gia Van, Gia Tran, Yen Khanh, Khanh Nhac, Khanh Thien, Khanh Hoi, Khanh Trung, Nam Truc, Nam Minh, Nam Dong, Na Ninh, Nam Hong, Minh Than, Hien Khanh, Vu Ban, Lien Minh, Y Yen, Yen Dong, Yen Cuong, Van Thang, Vu Duong, Tan Minh, Phong Doanh, Co Le, Ninh Giang, Cat Thanh, Truc Ninh, Quang Hung, Minh Thai, Ninh Cuong, Xuan Truong, Xuan Hung, Xuan Giang, Xuan Hong, Hai Hau, Hai Anh, Hai Tien, Hui Hung, Hai An, Hai Quang, Hai Xuan, Hai Thinh, Giao Minh, Giao Hoa, Giao Thuy, Giao Phuc, Giao Hung, Giao Binh, Giao Ninh, Dong Thinh, Nghia Hung, Nghia Son, Hong Phong, Quy Nhat, Nghia Lam, Rang Dong and the wards of Tam Diep, Yen Son, Trung Son, Yen Thang, Ha Nam, Phu Ly, Phu Van, Chau Son, Liem Tuyen, Duy Tien, Duy Tan, Dong Van, Duy Ha, Tien Son, Le Ho, Nguyen Uy, Ly Thuong Kiet, Kim Thanh, Tam Chuc, Kim Bang. Remaining communes/wards.
Thanh Hoa   Hac Thanh, Quang Phu, Dong Quan, Dong Son, Dong Tien, Ham Rong, Nguyet Vien, Sam Son, Quang Trung, Ngoc Son, Tan Dan, Hai Linh, Tinh Gia, Dao Duy Tu, Hai Binh, Truc Lam, Nghi Son, Truong Lam, Cac Son, Dinh Tan, Dong Tien, Phu Le, Pu Luong. Nam Sam Son, Bim Son, Ha Trung, Tong Son, Ha Long, Hoat Giang, Linh Toai, Trieu Loc, Dong Thanh, Hau Loc, Hoa Loc, Van Loc, Nga Son, Nga An, Ho Vuong, Tan Tien, Nga An, Ba Dinh, Hoang Hoa, Hoang Tien, Hoang Thanh, Hoang Loc, Hoang Chau, Hoang Son, Hoang Phu, Hoang Giang, Luu Ve, Quang Yen, Quang Ngoc, Quang Ninh, Quang Binh, Tien Trang, Quang Chinh, Nong Cong, Thang Loi, Trung Chinh, Truong Van, Thang Binh, Tuong Linh, Cong Chinh, Thieu Hoa, Thieu Quang, Thieu Tien, Thieu Toan, Thieu Trung, Yen Dinh, Yen Truong, Yen Phu, Quy Loc, Yen Ninh, Dinh Hoa, Tho Xuan, Tho Long, Xuan Hoa, Sao Vang, Lam Son, Tho Lap, Xuan Tin, Xuan Lap, Vinh Loc, Tay Do, Nguoc Thuong, Trieu Son, Tho Binh, Tho Ngoc, Tho Phu, Hop Tien, An Nong, Tan Ninh, Thang Loc. Remaining communes/wards.
Nghe An   Hung Nguyen, Yen Trung, Hung Nguyen Nam, Lam Thanh, Nghi Loc, Phuc Loc, Dong Loc, Trung Loc, Than Linh, Hai Loc, Van Kieu, Truong Vinh, Thanh Vinh, Vinh Hung, Vinh Phu, Vinh Loc, Cua Lo. Dien Chau, Duc Chau, Quang Chau, Hai Chau, Tan Chau, An Chau, Minh Chau, Hung Chau, Do Luong, Bach Ngoc, Van Hien, Bach Ha, Thuan Trung, Luong Son, Van An, Nam Dan, Dai Hue, Thien Nhan, Kim Lien, Nghia Dan, Nghia Thua, Nghia Lam, Nghia Mai, Nghia Hung, Nghia Khanh, Nghia Loc, Quynh Luu, Quynh Van, Quynh Anh, Quynh Tam, Quynh Phu, Quynh Son, Quynh Thang, Dong Hieu, Yen Thanh Quan Thanh, Hop Minh, Van Tu, Van Du, Quang Dong, Gia Lac, Binh Minh, Dong Thanh, Hoang Mai, Tan Mai, Quynh Mai, Thai Hoa, Tay Hieu. Remaining communes/wards.
Ha Tinh     Song Tri, Hai Ninh, Hoanh Son, Vung Ang, Thanh Sen, Tran Phu, Ha Huy Tap and the communes of Thach Lac, Dong Tien, Thach Khe, Cam Binh. Remaining communes/wards.
Quang Tri   Dong Hoi, Dong Thuan, Dong Son. Nam Gianh, Nam Ba Don, Tan Gianh, Trung Thuan, Quang Trach, Hoa Trach, Phu Trach, Thuong Trach, Phong Nha, Bac Trach, Dong Trach, Hoan Lao, Bo Trach, Nam Trach, Quang Ninh, Ninh Chau, Truong Ninh, Truong Son, Le Thuy, Tam Hong, Sen Ngu, Tan My, Truong Phu, Le Ninh, Kim Ngan, Dong Ha, Nam Dong Ha, Ba Don, Bac Gianh. Remaining communes/wards.
Hue City   Thuan An, Hoa Chau, My Thuong, Vy Da, Thuan Hoa, An Cuu, Thuy Xuan, Kim Long, Huong An, Phu Xuan. Remaining communes/wards. A Luoi 1, A Luoi 2, A Luoi 3, A Luoi 4, A Luoi 5.
Da Nang City   Hai Chau, Hoa Cuong, Thanh Khe, An Khe, An Hai, Son Tra, Ngu Hanh Son, Hoa Khanh, Hai Van, Lien Chieu, Cam Le, Hoa Xuan, Tam Ky, Quang Phu, Huong Tra, Ban Thach, Hoi An, Hoi An Dong, Hoi An Tay and the communes of Hoa Vang, Hoa Tien, Ba Na, Hoang Sa Special Zone, Tan Hiep. Dien Ban, Ban Dong, An Thang, Dien Ban Bac and the communes of Nui Thanh, Tam My, Tam Anh, Duc Phu, Tam Xuan, Tam Hai, Tay Ho, Chien Dan, Phu Ninh, Thang Binh, Thang An, Thang Truong, Thang Dien, Thang Phu, Dong Duong, Que Son Trung, Que Son, Xuan Phu, Nong Son, Que Phuoc, Duy Nghia, Nam Phuoc, Duy Xuyen, Thu Bon, Dien Ban Tay, Go, Dai Loc, Ha Nha, Thuong Duc, Vu Gia, Phu Thuan. Remaining communes/wards.
Quang Ngai     Tinh Khe, An Phu, Binh Minh, Binh Chuong, Binh Son, Van Tuong, Dong Son, Truong Giang, Ba Gia, Son Tinh, Tho Phong, Ngok Bay, Ia Chim, Dak Ro Wa, Dak Pxi, Dak Mar, Dak Ui, ​​​​Ngok Reo, Truong Quang Trong, Cam Thanh, Nghia Lo, Kon Tum, Dak Cam, Dak Bla. Remaining communes/wards.
Dak Lak     Hoa Phu, Xuan Tho, Xuan Canh, Xuan Loc, Hoa Xuan, Buon Ma Thuot, Tan An, Tan Lap, Xuan Dai, Song Cau, Thanh Nhat, Ea Kao, Tuy Hoa, Phu Yen, Binh Kien, Dong Hoa, Hoa Hiep. Remaining communes/wards.
Khanh Hoa   Vinh Hiep, Vinh Thai, Vinh Thanh, Vinh Trung, Vinh Ngoc, Vinh Luong, Vinh Phuong, Phuoc Dong, Cam Thanh Nam, Cam Phuoc Dong, Cam Thinh Tay, Cam Thinh Dong, Cam Lap, Cam Binh, Ninh An, Ninh Binh, Ninh Dong, Ninh Hung, Ninh Ich, Ninh Loc, Ninh Phu, Ninh Phung, Ninh Phuoc, Ninh Quang, Ninh Sim, Ninh Son, Ninh Tan, Ninh Tay, Ninh Than, Ninh Tho, Ninh Thuong, Ninh Trung, Ninh Xuan, Ngoc Hiep, Phuong Sai, Vinh Hoa, Vinh Hai, Vinh Phuoc, Vinh Tho, Van Thanh, Loc Tho, Tan Tien, Phuoc Hoa, Phuoc Hai, Phuoc Long, Vinh Truong, Vinh Uyen, Cam Nghia, Cam Phuc Bac, Cam Phuc Nam, Cam Phu, Cam Thuan, Cam Linh, Cam Loi, Cam Loc, Ba Ngoi. Dai Lanh, Van Phuoc, Van Long, Van Binh, Van Tho, Van Khanh, Van Phu, Van Luong, Van Thang, Van Thanh, Xuan Son, Van Hung, Dien An, Binh Loc, Dien Phu, Dien Hoa, Suoi Hiep, Dien Tho, Dien Thanh, Dien Dien, Dien Toan, Dien Tan, Suoi Tien, Dien Lac, Dien Phuoc, Dien Son, Dien Lam, Xuan Dong, Suoi Cat, Suoi Tan, Cam Hoa, Cam Hai Tay, Cam Hai Dong, Cam Phuoc Tay, Cam Thanh Bac, Cam Tan, Cam Hiep Nam, Cam An Bac, Cam An Nam, Son Tan, Cam Hiep Bac, Thanh Hai, Phuoc Son, Phuoc Thai, Phuoc Hau, Phuoc Thuan, Phuoc Huu, Phuoc Hai, Phuoc Vinh, An Hai, Vinh Hai, Phuong Hai, Tan Hai, Xuan Hai, Ho Hai, Tri Hai, Nhon Hai, Thanh Hai, Phuoc Chien, Cong Hai, Phuoc Khang, Loi Hai, Bac Son, Bac Phong, Van Gia, Dien Khanh, Cam Duc, Phuoc Dan, Khanh Hai, Do Vinh, Phuoc My, Bao An, Phu Ha, Kinh Dinh, Dao Long, Dai Son, Dong Hai, My Dong, Van Hai, My Hai, My Binh. Remaining communes/wards.
Gia Lai     Bien Ho, Giao, Quy Nhon, Quy Nhon Dong, Quy Nhon Tay, Quy Nhon Nam, Quy Nhon Bac, Pleiku, Hoi Phu Thong Nhat, Dien Hong, An Phu. Remaining communes/wards.
Lam Dong   Tuyen Quang, Xuan Huong-Da Lat, Cam Ly-Da Lat, Lam Vien-Da Lat, Xuan Truong-Da Lat, Langbiang-Da Lat, 1 Bao Loc, 2 Bao Loc, 3 Bao Loc, B'Lao, Ham Thang, Binh Thuan, Mui Ne, Phu Thuy, Phan Thiet, Tien Thanh. Hiep Thanh, Duc Trong, Tan Hoi, Ta Hine, Ta Nang, Dinh Nang- Lam Ha, Di Linh, Hoa Ninh, Hoa Bac, Dinh Trang Thuong, Bao Thuan, Son Dien, Gia Hiep, Tan Hai, Dong Giang, La Da, Ham Thuan Bac, Ham Thuan, Hong Son, Ham Liem, Ham Thanh, Ham Kiem, Tan Thanh, Ham Thuan Nam, Tan Lap and the wards of La Gi, Phuoc Hoi, Bac Gia Nghia, Nam Giam Nghia, Dong Gia Nghia. Remaining communes/wards.
Ho Chi Minh City Remaining communes and wards. Binh Khanh, An Thoi Dong, Can Gio, Phuoc Thang, Ba Ria, Long Huong, Tam Long. Ngai Giao, Binh Gia, Kim Long, Chau Duc, Xuan Son, Nghia Thanh, Ho Tram, Xuyen Moc, Hoa Hoi, Bau Lam, Phuoc Hai, Long Hai, Dat Do, Long Dien, Con Dao special zone.  
Dong Nai Bien Hoa, Tran Bien, Tam Hiep, Long Binh, Trang Dai, Ho Nai, Long Hung, Binh Loc, Bao Vinh, Xuan Lap, Long Khanh, Hang Gon, Tan Trieu and the communes of Dai Phuoc, Nhon Trach, Phuoc An, Phuoc Thai, Long Phuoc, Binh An, Long Thanh, An Phuoc, An Vien, Binh Minh, Trang Bom, Bau Ham, Hung Thinh, Dau Giay, Gia Kiem, Thong Nhat, Xuan Duong, Xuan Dong, Xuan Dinh, Xuan Phu, Xuan Loc, Xuan Hoa, Xuan Thanh, Xuan Bac, Tri An, Tan An. Minh Hung, Chon Thanh, Dong Xoai, Binh Phuoc, Xuan Que, Cam My, Song Ray, La Nga, Dinh Quan, Phu Vinh, Phu Hoa, Ta Lai, Nam Cat Tien, Tan Phu, Phu Lam, Nha Bich, Tan Quan, Thuan Loi, Dong Tam, Tan Loi, Dong Phu. Remaining communes/wards. Thien Hung, Hung Phuoc, Phu Nghia, Da Kia, Phuoc Son, Nghia Trung, Bu Dang, Tho Son, Dak Nhau, Bom Bo.
Tay Ninh Long An, Tan An, Khanh Hau, An Ninh, Hiep Hoa, Hau Nghia, Hoa Khanh, Duc Lap, My Hanh, Duc Hoa, Thanh Loi, Binh Duc, Luong Hoa, Ben Luc, My Yen, Phuoc Ly, My Loc, Can Giuoc, Phuoc Vinh Tay, Tan Lap. Kien Tuong, Tan Ninh, Binh Minh, Ninh Thanh, Long Hoa, Hoa Thanh, Thanh Dien, Trang Bang, An Tinh, Go Dau, Gia Loc and the communes of Tuyen Thanh, Binh Hiep, Thu Thua, My An, My Thanh, Tan Long, Long Cang, Rach Kien, My Le, Tan Lan, Can Duoc, Long Huu, Hung Thuan, Phuoc Chi, Thanh Duc, Phuoc Thanh, Truong Mit. Remaining communes/wards. Hung Dien, Vinh Thanh, Tan Hung, Vinh Chau, Tuyen Binh, Vinh Hung, Khanh Hung, Binh Hoa, Moc Hoa, Hau Thanh, Nhon Hoa Lap, Nhon Ninh, Tan Thanh.
An Giang   My Hoa Hung, Tien Hai and the wards of Long Xuyen, Binh Duc, My Thoi, Chau Doc, Vinh Te, Vinh Thong, Rach Gia, Ha Tien, To Chau, the special zones of Phu Quoc and Tho Chau. Tan An, Chau Phong, Vinh Xuong, Chau Phu, My Duc, Vinh Thanh Trung, Binh My, Thanh My Tay, An Chau, Binh Hoa, Can Dang, Vinh Hanh, Vinh An, Thoai Son, Oc Eo, Dinh My, Phu Hoa, Vinh Trach, Tay Phu, Thanh Loc, Chau Thanh, Binh An, Hoa Dien, Kien Luong, Son Hai, Hon Nghe, Tan Chau, Long Phu, Kien Hai special zone. Remaining communes/wards.
Dong Thap   My Tho, Dao Thanh, My Phong, Thoi Son, Trung An, Tan Huong, Chau Thanh, Long Hung, Long Dinh, Vinh Kim, Kim Son, Binh Trung. Go Cong, Long Thuan, Son Qui, Binh Xuan, My Phuoc Tay, Thanh Hoa, Cai Lay, Nhi Quy, An Binh, Hong Ngu, Thuong Lac, Cao Lanh, My Ngai, My Tra, Sa Dec and the communes of Tan Phu, Tan Phuoc 1, Tan Phuoc 2, Tan Phuoc 3, Hung Thanh, My Tinh An, Luong Hoa Lac, Tan Thuan Binh, Cho Gao, An Thanh Thuy, Binh Ninh, Thuong Phuoc, Long Khanh, Long Phu Thuan, Tan Duong. Remaining communes/wards.
Vinh Long   Thanh Duc, Long Chau, Phuoc Hau, Tan Hanh, Tan Ngai, Binh Minh, Cai Von, Dong Thanh. Cai Nhum, Tan Long Hoi, Nhon Phu, Binh Phuoc, An Binh, Long Ho, Phu Quoi. Remaining communes/wards.
Can Tho City   Ninh Kieu, Cai Khe, Tan An, An Binh, Thoi An Dong, Binh Thuy, Long Tuyen, Cai Rang, Hung Phu, O Mon, Thoi Long, Phuoc Thoi, Trung Nhut, Thot Not, Thuan Hung, Tan Loc, Soc Trang. Phong Dien, Nhon Ai, Truong Long, Thoi Lai, Dong Thuan, Truong Xuan, Truong Thanh, Co Do, Dong Hiep, Thanh Phu, Thoi Hung, Trung Hung, Vinh Thanh, Vinh Trinh, Thanh An, Thanh Quoi, Hoa Luu, Dong Phuoc, Thanh Xuan, Tan Hoa, Truong Long Tay, Chau Thanh, Phu Huu, Vinh Hai, Lai Hoa and the wards of Vi Thanh, Vi Tan, Dai Thanh, Nga Bay, Phu Loi, Vinh Phuoc, Vinh Chau, Khanh Hoa, Nga Nam, My Quoi. Remaining communes/wards.
Ca Mau   Vinh Thach, Hiep Thanh, Vinh Trach Dong, An Xuyen, Ly Van Lam, Tan Thanh, Hoa Thanh, Ward 1, Ward 2, Ward 3, Ward 5, Ward 7, Ward 8, Nha Mat. U Minh, Nguyen Phic, Khanh Lam, Khanh An, Khanh Binh, Da Bac, Khanh Hung, Song Doc, Tran Van Thoi, Dat Moi, Nam Can, Tam Giang, Luong The Tan, Hung My, Cai Nuoc. Remaining communes/wards.

How are minimum wage rates applied?

All contracts must use the minimum wage rates as the lowest amount of compensation for any commercial arrangement between an employer and an employee. Companies should ensure that the correct wage rate is applied, especially in certain special circumstances, including:

  • If the company has any branches or affiliate companies in a different subregion, the region-based minimum wage will be applied to all employees of those offices.
  • For companies located in an industrial park or the export processing zone that spans two or more, the highest minimum wage rate will apply.

Salary components

In general, an employee’s typical monthly salary package includes their gross salary and mandatory insurance contributions. Personal income taxes (PIT) will be levied on the balance after mandatory insurance contributions have been deducted.

In some cases, the gross salary may also include overtime pay, allowances, and bonuses, as well as additional benefits.

Further, Vietnamese employees must receive compensation in Vietnamese Dong, even if they work for foreign companies. Foreign employers can only base salary rates in either Vietnamese Dong or foreign currencies for foreign employees, but salaries that are based in foreign currencies must be converted into Vietnamese Dong for compulsory social insurance, personal income tax, and trade union pay. The exchange rate is based on the Vietnamese governments' foreign exchange.

Are employees eligible for overtime pay in Vietnam?

Employee consent must be obtained if the employer plans overtime work regarding the terms, locations, and overtime work. Employees who work extra hours are also paid for those extra hours based on their current hourly wages, as outlined above.

In cases where an employee works overtime hours at night, they are paid extra according to the applicable regulations. Further, employees who are given time off in compensation for working extra hours should be paid the difference between their wages during normal working hours and overtime work. Finally, employees who work night shifts should be paid at least 30 percent higher than normal.

In general, an employee’s typical monthly salary package includes their gross salary and mandatory insurance contributions. Personal income taxes (PIT) will be levied on the balance after mandatory insurance contributions have been deducted.

Overtime compensation

If a company triggers overtime, they will be obligated to compensate employees beyond the wages that are outlined in their contract. This is applicable to all employees regardless of the wages that are offered. The following are the percentages in excess of the standard that are to be applied in the event that certain work-related thresholds are crossed. 

There are limitations on the number of overtime hours an employee is allowed to work. As per the labor code, overtime hours cannot exceed 40 hours per month. The code also supplements cases where employers are permitted to organize overtime work for up to 300 hours per year; these include manufacturing and exporting electrical and electronic products as well as work requiring high technical qualifications.

If the employer and employee agree on an overtime deal, employers are permitted to assign their employees to work overtime for over 200 hours but not exceeding 300 hours per year, except in the following cases:

  • Employees aged between 15 and under 18;
  • Employees having mild disabilities with work capacity reduction of at least 51% or employees with severe disabilities or extremely severe disabilities;
  • Employees doing arduous, hazardous, dangerous or extremely arduous, hazardous or dangerous work;
  • Female employees in their 7th month of pregnancy onward (or the 6th month of pregnancy onward in case they work in the highlands, remote areas, bordering areas, or islands);
  • Female employees nursing children aged under 12 months.

In cases where an employee works extra hours at night, they are paid extra in accordance with the applicable regulations. Further, employees who are given time off in compensation for working extra hours will need to be paid the difference between their wages during normal working hours and overtime work. Finally, employees who work night shifts should be paid at least 30 percent higher than normal.

There are special situations which may trigger other regulations within the code for overtime:

  • Pregnant women: Women who are in their 7th month of pregnancy and women with babies under 12 months are not allowed to work overtime, work at night, or take long-distance business trips. Pregnant women who are performing heavy work must either be transferred to lighter work or decrease daily work time by an hour while maintaining the same total pay.
  • Minor employees:
    • Workers under the age of 18: Prohibited from working in dangerous conditions or with potential exposure to toxic substances. The Ministry of Labor, Invalids and Social Affairs (MoLISA) also establishes a limit on which industries and what kind of work minors can undertake.
    • Minor employees between the ages of 15 and 18: May work a maximum of eight hours a day and 40 hours a week. They are only permitted to do overtime and night work in certain industries, as specified by the Ministry.
    • Workers under the age of 15: Regulations establish a maximum of four hours a day and 20 a week, with no overtime or night work permitted. Working hours for those under 13 years of age are further reduced to one hour per day.

Performance and earnings-based bonuses for employees

Bonuses are given to employees based on company earnings and performance and as a way of boosting company morale and productivity. There are various kinds of bonuses that a company may grant its employees throughout the year.

All salaries and bonuses are subject to PIT in Vietnam.

13th-month salary

A 13th month’s salary is usually given as an “annual bonus” by both local and foreign companies in Vietnam to employees who have worked with the company for at least one year. Employees who have worked at a company for less than one year are typically given a bonus that is prorated and based on their actual employment period.

Lunar New Year or Tet bonus

A special bonus called the “Lunar New Year” bonus (or “Tet Bonus”) is often paid to employees prior to their leaving for the Lunar New Year holiday.

The amount of any Tet Bonus will be dependent on both company and employee performance but typically ranges from smaller amounts of money (up to an entire month’s salary) to larger amounts of money (up to an entire year’s salary) depending on the company's progress and goals.

Additional bonuses

Employees may also be given smaller bonuses for public holidays or other special days (e.g., International Labor Day or National Day). Senior management and other valued employees may be given bonuses during these days as well, including in the form of share certificates with a vesting period, for which the corresponding stock can be sold only after the employee has worked for the company for a certain amount of time.

Allowances and benefits

An employee may be entitled to several kinds of allowances and monetary or non-monetary benefits designed to retain staff.  Some of these benefits are non-taxable,  including: 

  • Payments for housing rent, power, water, and associated services for employees that amount to more than 15 percent of their total taxable income;
  • Life insurance and optional insurance;
  • Payment for a membership card, which does not include the user's name, of golf clubs, tennis courts, and other exclusive clubs;
  • Payment for a membership card, which does not include the user's name, of health care, entertainment, etc. services;
  • Telephone allowance;
  • Stationery allowance;
  • Uniform allowance in kind or in cash not exceeding 5 million VND;
  • Lunch allowance not exceeding 730,000 VND;
  • Funeral payment not exceeding any month's actual salary in the year;
  • Wedding payment not exceeding any month's actual salary in the year;
  • Transportation allowances;
  • Training allowances;
  • Employer support for fatal disease or illness;
  • Round-trip flight ticket to return home country once a year for foreign employees or Vietnamese employees working abroad;
  • Tuition fees for children of foreign workers working in Vietnam study in Vietnam, children of Vietnamese workers working abroad study overseas from kindergarten to high school;
  • Personal incomes received from any associations and organizations if the employees receiving the grant are members of these associations and organizations and these associations and organizations’ funding is used from the State budget or managed according to the State's regulations;
  • Payments paid by the employer for the deployment, rotating foreign workers to work in Vietnam according to regulations in the labor contract, and complying with the standard labor schedule according to the international practices of some industries such as oil and gas and mining.

Prefixed lump sum amounts (or “khoan chi” amounts) for telephone calls and services, stationery, uniforms, and per diem allowances are not subject to taxes if the amounts are within the levels set out under the relevant regulations. 

Foreigners who work in Vietnam are also exempted from PIT on various benefits such as relocation allowances for moving into the country, airfare to their home country, and education fees for their children.

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