The EOR cost formula for Vietnam
An Employer of Record (EOR) is a company that legally employs a worker on your behalf, so you can hire in Vietnam without opening an entity. The cost of employing someone through an EOR in Vietnam is:
Monthly EOR cost = gross salary + employer contributions + EOR fee
- Gross salary is the salary written in the labour contract, before the employee's insurance and personal income tax are deducted. It must be at least the regional minimum wage, 5,310,000 VND a month in Region I from 1 January 2026.
- Employer contributions are the social insurance, health insurance, unemployment insurance and trade union fee the employer must pay by law. They are the same whether you hire through an EOR or your own entity.
- The EOR fee is what the provider charges for being the legal employer and running payroll, compliance and HR administration.
Personal income tax and the employee's own 10.5% insurance contribution are withheld from the employee's salary, so they do not add to the employer's cost, unless you promise a net salary.
Employer contributions in Vietnam in 2026
Statutory contributions are the largest cost on top of salary. Rates from 1 July 2026:
| Contribution | Employer | Employee | Monthly cap on the salary used |
|---|---|---|---|
| Social insurance | 17.5% | 8% | 50,600,000 VND (20 × base salary) |
| Health insurance | 3% | 1.5% | 50,600,000 VND |
| Unemployment insurance | 1% (Vietnamese staff only) | 1% | 106,200,000 VND in Region I (20 × minimum wage) |
| Trade union fee | 2% | None | Calculated on the social insurance salary |
| Total | 23.5% (22.5% for foreign staff) | 10.5% (9.5% for foreign staff) |
The base salary rose to 2,530,000 VND on 1 July 2026, which set the social and health insurance cap at 50,600,000 VND a month. Above that salary, employer contributions stop growing with pay. Under the Law on Social Insurance 2024, foreign employees with labour contracts of 12 months or more join compulsory social insurance; intra-company transferees and employees above retirement age are exempt. For any salary, our Vietnam employer cost calculator applies these rates and caps for you.
EOR fees in Vietnam
EOR providers charge a fixed fee per employee per month. Public price lists of global EOR platforms for Vietnam commonly range from about USD 199 to USD 699 per employee per month, and local providers often quote less. When comparing EOR fees, check:
- What the fee covers. The labour contract, payroll in VND, insurance filings, personal income tax withholding, payslips and HR support should all be included.
- What costs extra. Work permit and residence card sponsorship, private health insurance, equipment and termination support are often charged separately.
- How statutory costs are billed. Contributions should be passed through at cost and shown line by line, not bundled into a percentage mark-up.
- Deposits and currency. Many providers ask for a deposit of one to two months of employment cost, and invoice in USD at their own exchange rate.
Nhân Kiệt employs staff in Vietnam through its own legal entity, so there is no partner margin in between. We quote one monthly fee per employee, in writing, before you make an offer. See how our Employer of Record service in Vietnam works.
EOR cost in Vietnam: worked examples
Salary and statutory contributions in Region I at rates from 1 July 2026, before the EOR fee. The annual figure adds a customary 13th-month salary.
| Gross salary / month | Employee | Employer contributions | Monthly cost | Annual cost with 13th month |
|---|---|---|---|---|
| 15,000,000 ₫ | Vietnamese | 3,525,000 ₫ | 18,525,000 ₫ | 237,300,000 ₫ |
| 30,000,000 ₫ | Vietnamese | 7,050,000 ₫ | 37,050,000 ₫ | 474,600,000 ₫ |
| 60,000,000 ₫ | Vietnamese | 11,985,000 ₫ | 71,985,000 ₫ | 923,820,000 ₫ |
| 80,000,000 ₫ | Foreign | 11,385,000 ₫ | 91,385,000 ₫ | 1,176,620,000 ₫ |
For a Vietnamese employee earning 30,000,000 VND a month, the employer pays 7,050,000 ₫ in contributions, so salary and contributions come to 37,050,000 ₫ a month. Add the EOR fee to get the total monthly EOR cost. At 80,000,000 VND, the cap means contributions are about 14.2% of salary rather than 22.5%.
Other costs to budget when hiring through an EOR
- 13th-month salary. Not required by the Labour Code 2019, but customary and expected by most employees, usually paid before Tết.
- Severance allowance. When an employment contract ends, an employee who worked at least 12 months is generally entitled to half a month's salary for each year of work not covered by unemployment insurance. For foreign employees, who are not covered by unemployment insurance, this accrues over the whole period of employment.
- Work permits for foreign hires. Government fees, health checks, and legalising and translating degrees and police records add cost and time; the authority decides a complete file within 10 working days under Decree 219/2025/ND-CP. See the Vietnam work permit guide.
- Net salary offers. If you promise a take-home amount, the employer bears the employee's insurance and personal income tax on top, which raises the gross cost significantly for senior roles.
- Benefits. Private health insurance, meal and travel allowances and equipment are common in competitive offers. Some allowances also count towards the social insurance salary.
EOR cost vs opening your own entity in Vietnam
| Own entity | Employer of Record | |
|---|---|---|
| Setup | Investment and enterprise registration, bank account, tax registration, office address | None |
| Time to first hire | Usually several months | As soon as the contract is signed |
| Ongoing overhead | Accounting, audit, tax filings, HR and payroll staff or software | One monthly fee per employee |
| Statutory contributions | 23.5% / 22.5%, capped | The same, passed through at cost |
| Suited to | Large, long-term teams and licensed business activities | First hires, small teams and testing the market |
Many companies start with an EOR and move employees to their own entity once the team grows. If you already have an entity, our payroll outsourcing service runs payroll and insurance for you instead. For the wider rules on contracts, leave and probation, read our guide to hiring in Vietnam.
What we see in practice
- Budgets miss the trade union fee. The 2% fee is paid by the employer even where the company has no trade union, and it is the line most often left out of first estimates.
- Mid-year rate changes move the cap. The 1 July 2026 base salary increase raised the cap from 46,800,000 VND to 50,600,000 VND, so contributions for every employee above the old cap went up from July.
- Foreign hires cost more in the first two months. Work permit, visa and residence card work happens before the first payroll, so budget for it in the offer stage, not the first invoice.
Sources
- Labour Code 2019, Articles 25 (probation), 46 (severance allowance), 90 (salary) and 151 to 157 (foreign workers)
- Law on Social Insurance 2024 (Law 41/2024/QH15), in force from 1 July 2025
- Decree 161/2026/ND-CP on the base salary of 2,530,000 VND from 1 July 2026
- Decree 293/2025/ND-CP on regional minimum wages from 1 January 2026
- Law on Trade Unions 2024, on the 2% trade union fee
General information, checked in October 2026. EOR fee ranges are taken from providers' public price lists and vary by provider and headcount. It is not legal or tax advice. Ask our team for a quote for your specific hire.