Hello everyone! As an overseas employer, if you're considering hiring employees in Vietnam, then payroll payments are one of the important things you need to know and prepare. In this guide, I'll give you some important information about compensation payments in Vietnam to help you better understand Vietnam's compensation system and regulations.
1. Salary level and structure.
First, let's take a look at the salary level and structure in Vietnam. The salary level in Vietnam is relatively low, but with the rapid development of the economy, the salary level in Vietnam is gradually rising. In Vietnam, compensation is usually paid in the form of a monthly salary, and it is usually in Vietnamese dong.
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2. Taxation and social insurance.
In Vietnam, employers are required to pay personal income tax and social insurance to employees. The rate of personal income tax is based on the employee's income level, while social insurance costs are shared between the employer and the employee. In addition, employers are required to contribute a certain percentage of social insurance** to the state cashier's office.
3. Contracts and legal provisions.
In Vietnam, an employment contract needs to be signed between the employer and the employee, which needs to contain the rights and obligations of both parties, the method of payment of wages, working hours, etc. In addition, Vietnam's labor law also has specific provisions on overtime pay, annual leave, sick leave, etc., and employers need to comply with relevant laws and regulations.
4. Cross-border payments and remittances.
If you're an overseas employer, cross-border payments and remittances may be involved when paying employees in Vietnam. When making cross-border payments, you need to understand the relevant exchange control regulations and remittance procedures to ensure that the funds reach your employees safely and in a timely manner.
5. Employment risk and compliance.
The final issue to be aware of is employment risk and compliance. Hiring employees in Vietnam requires compliance with local employment regulations and labor laws, and employers need to understand and comply with the relevant regulations to avoid employment risks and legal disputes.
Hopefully, this guide will give you a better understanding of what to expect when it comes to paying in Vietnam and help you hire employees overseas. If you have any further questions about compensation payments in Vietnam, please feel free to contact us and we will be happy to answer them. Good luck hiring employees overseas!