Payroll Outsourcing
in Vietnam.
Accurate, on-time payroll every month — with PIT, social insurance, and Labor Code compliance fully built in. Forra runs your Vietnam payroll end-to-end so your team can focus on the business, not the admin.
Vietnam payroll is more complex than it looks.
Running payroll in Vietnam involves more than calculating salaries. Every month, you need to withhold personal income tax at the correct progressive rate, calculate and file three separate insurance contributions (social, health, and unemployment), manage allowances and non-taxable income, and meet statutory filing deadlines — with penalties for late or incorrect submissions.
For most small and mid-sized companies, building this capability in-house isn't cost-effective. Outsourcing to Forra removes the workload and the compliance risk that comes with handling it internally.
Everything included in Forra's payroll service.
Our payroll service is structured in four modules — available as a combined package, or individually depending on what your current setup already covers.
Initial Setup & Payroll Onboarding
ONE-OFF · New clients and newly registered companies
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Initial Setup & Payroll Onboarding
Before the first payroll run, we configure your payroll from scratch — ensuring salary structures, contribution rules, and reporting templates are correct from day one.
- Collect and verify HR and payroll data for all existing employees
- Review or draft standard employment contract template against current Labor Code requirements
- Configure payroll template to your compensation structure (gross, net, allowances, benefits)
- Design payslip and reporting formats for client approval
- Set up employee records in the payroll system
- Confirm social insurance registration status for all employees
- Establish payroll approval and communication workflow with your team
Monthly Payroll Calculation & Processing
MONTHLY · Core recurring service
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Monthly Payroll Calculation & Processing
Each month we process the full payroll cycle — from timesheet collection to salary disbursement. You approve; we execute.
- Calculate monthly gross salaries, allowances, and deductions based on approved timesheets and notified changes
- Calculate employee and employer social (SI), health (HI), and unemployment (UI) insurance contributions
- Calculate PIT for each employee applying correct progressive rates, dependent deductions, and non-taxable thresholds
- Prepare gross-to-net breakdown per employee
- Prepare complete monthly payroll report and paysheet for client review and approval
- Upload approved salary, PIT, and insurance payment batches to your online banking system
- Payments processed on agreed dates each month — typically three runs: salary, PIT, and SI/HI/UI
- Payment confirmation provided to client after each run
- Complete paysheet with supporting detail per employee
- Bilingual payslips (Vietnamese/English) generated and distributed each month
- Quarterly HR summary: new hires, resignations, contract changes
Tax Compliance — PIT Declarations & Finalisation
MONTHLY · QUARTERLY · ANNUALLY
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Tax Compliance — PIT Declarations & Finalisation
Vietnam's PIT obligations extend beyond monthly withholding. We manage the full compliance cycle throughout the year.
- Calculate total taxable income for all employees under employment contract
- Prepare and lodge PIT declaration with the tax authority by the statutory deadline (20th of the following month for monthly declarants)
- Reconcile each employee's actual annual PIT liability against provisional monthly withholding
- Identify refunds and additional tax due
- Prepare and lodge the annual PIT finalisation return (deadline: 30 April)
- Issue individual PIT finalisation certificates to employees
HR Compliance & Contract Management
MONTHLY · ONGOING
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HR Compliance & Contract Management
Alongside payroll, we maintain the HR documentation underpinning every employment relationship — keeping records current and flagging upcoming contract expirations proactively.
- Record and process new hires and resignations as they occur
- Draft and manage employment contracts, appendices, and renewals on an agreed template
- Notify you 30 days before any contract expiry requiring a renewal decision
- Update payroll records for salary changes, promotions, and benefit amendments
- Maintain complete employee records including personal details, contract history, and leave entitlements
- Advise on termination procedures and calculate statutory severance when required
Better for your business. Better for your employees.
Outsourcing payroll to Forra reduces internal workload and compliance risk — and gives your employees a more transparent, reliable payroll experience.
Vietnam PIT rates and social insurance contributions.
Understanding your payroll cost requires knowing the applicable tax and insurance rates. We apply these accurately for every employee, every month.
Personal Income Tax — Tax Residents
Progressive rates apply from 1 January 2026 (PIT Law 2025). Family circumstance deductions: VND 15.5 million personal deduction + VND 6.2 million per registered dependent.
| Monthly Taxable Income (VND) | Annual Equivalent (VND) | PIT Rate |
|---|---|---|
| Up to 10,000,000 | Up to 120,000,000 | 5% |
| 10,000,001 – 30,000,000 | 120,000,001 – 360,000,000 | 10% |
| 30,000,001 – 60,000,000 | 360,000,001 – 720,000,000 | 20% |
| 60,000,001 – 100,000,000 | 720,000,001 – 1,200,000,000 | 30% |
| Over 100,000,000 | Over 1,200,000,000 | 35% |
Non-tax residents — foreign nationals who spend fewer than 183 days in Vietnam in a tax year — are taxed at a flat 20% on Vietnam-sourced employment income, regardless of income level. Residency status must be confirmed for each foreign employee. Rates effective from 1 January 2026 per PIT Law 2025 (Law No. 109/2025/QH15).
Social, Health & Unemployment Insurance
Contributions are calculated on the employee's contributory salary, subject to the statutory cap (20× the base salary for SI purposes).
Employer Contributions
Employee Contributions
Social insurance obligations for foreign nationals depend on their work permit status and applicable bilateral agreements. Forra advises on the correct rates per employee during onboarding.
Already using a payroll provider? Switching is straightforward.
Many companies stay with an underperforming payroll provider because switching feels disruptive. It doesn't have to be. Forra manages the full transition — you don't need to chase your current provider or manage the handover yourself.
Initial review
We review your current payroll setup, identify any gaps or compliance issues, and confirm the right scope for your engagement.
Data retrieval
We contact your current provider directly — or work with you — to retrieve employee records, payroll history, PIT declarations, and SI filing records needed for a clean handover.
Parallel verification
Before going live, we run a parallel check on your last payroll cycle to verify our calculations match historical records and catch any discrepancies.
Live from next cycle
From the agreed start date, Forra takes over your full payroll — one team, one invoice, one point of contact going forward.
What clients ask us about payroll in Vietnam.
Is the 13th-month salary mandatory 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.
What mandatory leave entitlements do employees have?
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.
How is PIT calculated for employees with dependants?
Vietnam's PIT system uses a family circumstance deduction to reduce taxable income before applying progressive rates:
- Personal deduction: VND 11,000,000 per month
- Dependent deduction: VND 4,400,000 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.
What happens at year-end PIT finalisation?
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.
What are the notice periods for termination?
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.
Can you run payroll for a mix of Vietnamese and foreign employees?
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
Who is responsible for submitting PIT and social insurance payments?
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.
Ready to outsource your payroll?
Have these ready before your first Forra call — it lets us quote accurately and design the right payroll workflow for your team.
Take payroll off your plate — permanently.
Book a free 30-minute call with a Forra payroll advisor. We'll review your current setup and give you a clear, fixed-fee proposal within one business day.