Employer of Record in Vietnam: what one employee really costs

Questions people ask before booking a demo

How much do employer contributions add to a salary in Vietnam?

23.5% of pay up to the ceiling: 17.5% social insurance, 3% health insurance, 1% unemployment insurance and 2% trade union funding. At this page's example of US$20,000 — about VND 43.5 million a month — that is roughly US$392 a month, or US$4,700 a year, on top of US$1,667 of salary. The rate only starts falling above a salary of about US$23,300 a year, where the social-insurance ceiling stops the three largest lines from growing.

What is the 2% trade union charge in Vietnam?

It is union funding, and it is a genuine employer cost that many quotes omit. The Trade Union Law in force since 1 July 2025 requires employers to pay 2% of the payroll used as the basis for compulsory social insurance, and it is owed whether or not the workplace has a union. It is separate from union dues, which are 1% of pay and come out of a member's own wages. Because it rides on the social-insurance payroll, it stops at the same VND 50,600,000 monthly ceiling. A quote that shows 21.5% has left this out.

Where do Vietnamese employer contributions stop rising?

At two different ceilings, which is the detail most cost models miss. Social insurance, health insurance and union funding are all charged on a monthly base capped at VND 50,600,000 — twenty times the reference level of VND 2,530,000 in force since 1 July 2026 — which is about US$1,940 a month of pay. Unemployment insurance has its own, higher cap of twenty times the regional minimum wage, VND 106,200,000 a month in Region I. So at twice this page's example salary the all-in employer rate is about 14% rather than 23.5%.

Is a 13th-month or Tet bonus mandatory in Vietnam?

Not by law. The Labour Code makes a bonus discretionary — money or benefits awarded on business results and performance — and it becomes binding only once the contract, the collective agreement or the company's bonus rules promise it. In practice a Tet bonus of about a month's pay is close to universal and is usually written into the offer, so treat it as a negotiated cost of roughly 8% of salary rather than as a statutory charge, and check whether a part-year hire gets a pro-rated one.

What does an employer of record in Vietnam charge on top of contributions?

Its own fee. At US$20,000 the statutory charges are about US$392 a month while published EOR fees start around US$599 a month, so the all-in monthly cost is roughly US$1,667 of salary plus US$392 of contributions plus the fee. Compare the totals in the table above, which already add both. Two things to put in writing: whether the quote includes the 2% union funding, and whether a Tet bonus is budgeted, since together they are worth more than a month of salary a year.