Payroll Outsourcing in Vietnam.

No — the 13th-month salary is not legally required under the Labor Code. It is common practice and widely expected by employees, but whether to pay it, and the amount, is at the employer's discretion and typically tied to company performance. If a 13th-month commitment is written into the employment contract, it becomes contractually binding.

Under the Labor Code, employees are entitled to:

• Annual leave: 12 days per year (14 days for hazardous roles); increases by 1 day per 5 years of service with the same employer
• Public holidays: 11 days per year including Tết
• Personal paid leave: 3 days for own marriage; 1 day for child's marriage; 3 days for death of parent, spouse, or child
• Maternity leave: 6 months for female employees (up to 2 months before birth)
• Paternity leave: 5–14 working days depending on birth circumstances

Forra tracks leave entitlements and integrates leave data into monthly payroll calculations as part of the HR compliance module.

Vietnam's PIT system uses a family circumstance deduction to reduce taxable income before applying progressive rates:

• Personal deduction: VND 15,500,000 per month
• Dependent deduction: VND 6,200,000 per month per registered dependent

Employees must formally register dependants with the tax authority to claim the deduction. Forra verifies each employee's registered dependent status during onboarding and applies the correct deduction monthly. Changes during the year are updated promptly.

Each year, employees' actual PIT liability is reconciled against provisional monthly withholding. The annual finalisation deadline is 30 April of the following year. Employees who earn income from only one employer and authorise the company to finalise on their behalf can have Forra handle the full process — including identifying refunds, preparing returns, and lodging with the tax authority.

Employees with income from multiple sources must handle their own PIT finalisation directly with the tax authority. Forra advises on this distinction and provides individual PIT finalisation certificates to employees.

Notice requirements under the Labor Code:

• Employee resigning, indefinite-term contract: Minimum 45 days' notice
• Employee resigning, fixed-term contract (under 36 months): Minimum 30 days' notice
• Employer terminating for redundancy or restructuring: Minimum 30–45 days' notice plus statutory severance obligations

Forra advises on the correct process and calculates severance entitlements as part of the HR compliance module. Incorrect termination handling is one of the most common sources of labor disputes in Vietnam.

Yes. Forra handles payroll for companies with both Vietnamese and foreign national employees. Key differences for foreign employees:

• Tax residency: Determines whether progressive rates (tax resident) or the flat 20% rate (non-tax resident) applies — we assess and document residency status for each foreign employee
• Social insurance: Foreign nationals with a valid work permit are generally subject to compulsory SI/HI/UI at the same rates as Vietnamese employees; work permit exemption holders may have different obligations
• Currency: Salaries can be structured and reported in VND, USD, or EUR — we handle multi-currency payslips and calculations

The registered company is responsible for withholding the employee's share of insurance and PIT from salary, and for remitting both employer and employee contributions to the authorities by the statutory deadlines: PIT by the 20th of the following month, and insurance by the last day of the month. Forra handles all calculations, declarations, and (optionally) payment uploads — the company retains final payment authority via its own banking credentials.