Payroll Services in Ho Chi Minh City for Teams With Both Vietnamese Staff and Expatriates

Payroll services in Ho Chi Minh City can run a single payroll for both Vietnamese and foreign employees, but the two groups are treated differently in four places: personal income tax (PIT) residence, social insurance, unemployment insurance and work permits. In 2026 the rules moved on several of these points. The Law on Personal Income Tax No. 109/2025/QH15 applies to employment income from the 2026 tax period, the insurance base cap rose on 1 July 2026, and a new decree on foreign workers takes effect on 5 December 2026.

This guide sets out where the two groups differ, the rates and deadlines that drive a monthly payroll, and the payroll mistakes to avoid, whether you run payroll in-house or use payroll services in Ho Chi Minh City. It reflects the law as of 25 October 2026.

[Ảnh trong bài: chèn bảng so sánh nhân viên Việt Nam và người nước ngoài dạng infographic ngay dưới đoạn mở đầu. Alt text: Payroll services in Ho Chi Minh City for Vietnamese and expat staff in 2026]

Where Vietnamese and foreign employees differ

Payroll item	Vietnamese employees	Foreign employees	Legal basis
PIT status	Usually residents	Resident or non-resident, depending on days present and place of residence	Clauses 2 and 3, Article 2, Law on PIT No. 109/2025/QH15
PIT on employment income	Progressive rates of 5% to 35% after family deductions	Residents: as for Vietnamese employees, on worldwide income. Non-residents: 20% of Vietnam-related employment income, wherever paid	Articles 2, 9, 10 and 21, Law on PIT
Compulsory social insurance	Yes, under a labour contract	Yes, if the labour contract is 12 months or longer, with three exceptions	Clauses 1 and 2, Article 2, Law on Social Insurance No. 41/2024/QH15
Unemployment insurance	Yes	No: the Law on Employment covers Vietnamese citizens	Clause 1, Article 1 and Article 31, Law on Employment No. 74/2025/QH15
Work permit	Not needed	Work permit or confirmation of exemption	Articles 151 and 154, Labour Code No. 45/2019/QH14; Decree No. 219/2025/ND-CP, replaced by Decree No. 393/2026/ND-CP from 5 Dec 2026

 

The three exceptions for foreign employees under Clause 2, Article 2 of the Law on Social Insurance are: intra-company transferees, employees who had reached retirement age under Clause 2, Article 169 of the Labour Code when the contract was signed, and cases where a treaty to which Vietnam is a party provides otherwise.

Personal income tax: start with residence

Under Clause 2, Article 2 of the Law on PIT, an individual is a tax resident if they meet either of two conditions:

• They are present in Vietnam for 183 days or more in a calendar year, or in 12 consecutive months from the first day of presence.
• They have a regular place of residence in Vietnam, which includes a registered permanent residence or a house rented to live in under a fixed-term lease.

Anyone who meets neither condition is a non-resident (Clause 3). Residents are taxed on taxable income arising in and outside Vietnam (Clause 1). For employment income, residents pay progressive rates under Article 9 after family deductions under Article 10. Non-residents pay 20% of the employment income received for work in Vietnam, wherever it is paid (Article 21).

Bracket	Taxable income per month (VND million)	Rate
1	Up to 10	5%
2	Over 10 to 30	10%
3	Over 30 to 60	20%
4	Over 60 to 100	30%
5	Over 100	35%

 

Under Clause 1, Article 10, the family deduction is VND 15.5 million a month for the taxpayer and VND 6.2 million a month for each dependant. Under Clause 2, Article 29, the provisions on residents’ employment income apply from the 2026 tax period, although the Law as a whole took effect on 1 July 2026.

Hypothetical example: a Japanese manager arrives in Ho Chi Minh City on 1 August 2026 for a two-year assignment and signs a one-year lease for an apartment. Under point b, Clause 2, Article 2, a house rented under a fixed-term lease counts as a regular place of residence, so the payroll should treat her as a resident, subject to any conditions the implementing rules set for the lease.

As a resident she is taxed on worldwide employment income, so any salary her Japanese employer pays in Japan for the Vietnam assignment must be added to the Vietnam payroll figures. Vietnam has double taxation agreements with both Japan and Korea, and relief under them depends on the facts of each case.

Social, health and unemployment insurance

Contribution	Vietnamese employee (employer / employee)	Foreign employee in compulsory SI (employer / employee)	Legal basis
Retirement and survivorship	14% / 8%	14% / 8%	Articles 33 and 34, Law on Social Insurance No. 41/2024/QH15
Sickness and maternity	3% / none	3% / none	Articles 33 and 34, Law on Social Insurance
Occupational accident and disease	0.5% / none	0.5% / none	Law on Occupational Safety and Hygiene No. 84/2015/QH13 and its guiding decree
Health insurance	3% / 1.5%	3% / 1.5%	Article 3, Decree No. 188/2025/ND-CP (4.5%, employer two thirds, employee one third)
Unemployment insurance	1% / 1%	Not applicable	Article 31 and Clause 1, Article 33, Law on Employment No. 74/2025/QH15
Total	21.5% / 10.5%	20.5% / 9.5%	Sum of the rows above

 

Contributions are calculated on the monthly salary, including the salary allowances and other regular supplements agreed in the labour contract (Clause 1, Article 31 of the Law on Social Insurance, detailed in Decree No. 158/2025/ND-CP). The base is capped at 20 times the reference level. From 1 July 2026 the reference level is VND 2.53 million, which puts the cap at VND 50.6 million a month. For many expatriate salaries the cap, not the actual salary, sets the contribution.

Where the labour contract states and pays the salary in a foreign currency, the insurance base is converted to VND at the average transfer buying rate published by four state-owned commercial banks at the end of 2 January for the first half of the year and 1 July for the second half (Decree No. 158/2025/ND-CP). Health insurance is 4.5% of the same base, split two thirds to the employer and one third to the employee (Decree No. 188/2025/ND-CP, effective 15 August 2025).

Unemployment insurance applies only to Vietnamese employees, because the Law on Employment No. 74/2025/QH15 defines an employee as a Vietnamese citizen (Clause 1, Article 1). Unemployment insurance is paid at the same time as social insurance and no later than the last day of the month after the contribution cycle (Clauses 2 and 3, Article 33).

Work permits and the payroll

Foreign employees need a work permit or a confirmation that they are exempt (Articles 151 and 154 of the Labour Code). Until 4 December 2026, Decree No. 219/2025/ND-CP applies. Decree No. 393/2026/ND-CP, issued on 20 October 2026, replaces it from 5 December 2026. Under the new decree:

• A work permit lasts up to two years (Article 22), and an extension also lasts up to two years (Article 30).
• The employer files the application at least 10 working days and no more than 60 days before the planned start date, and the authority decides within 10 working days of a complete dossier (Article 23).
• The provincial People’s Committee issues, extends and revokes work permits, and may delegate this power (Article 5).
• Exempt cases include owners and members of a limited liability company with a capital contribution of VND 3 billion or more (Article 8).

For the payroll team, or for the provider of payroll services in Ho Chi Minh City, the permit expiry date matters as much as the salary. Under Clause 2, Article 151 of the Labour Code, the labour contract of a foreign employee cannot run beyond the work permit. Keep expiry dates in the payroll calendar and start renewals early.

The payroll calendar

When	Task	Legal basis
Each pay run	Calculate gross-to-net; withhold PIT and the employee share of insurance	Law on PIT; Law on Social Insurance
By the 20th of the following month (monthly filers), or the last day of the first month of the next quarter (quarterly filers)	File the PIT withholding return	Clauses 2 and 3, Article 10, Decree No. 252/2026/ND-CP
By the last day of the following month	Pay social, health and unemployment insurance for the month	Clauses 2 and 3, Article 33, Law on Employment
1 January and 1 July	Update the VND value of foreign-currency salaries used as the insurance base	Decree No. 158/2025/ND-CP
Before a work permit expires	Extend or apply again; the labour contract cannot run beyond the permit	Clause 2, Article 151, Labour Code; Articles 22, 23 and 30, Decree No. 393/2026/ND-CP from 5 Dec 2026
By the last day of the third month after year-end	Annual PIT finalisation for employees who authorise the employer	Point a, Clause 5, Article 10, Decree No. 252/2026/ND-CP

 

The PIT filing deadlines come from Clauses 2 and 3, Article 10 of Decree No. 252/2026/ND-CP. Whether a company files monthly or quarterly depends on the criteria in the tax administration rules; payroll services in Ho Chi Minh City should confirm the filing frequency when they take on a new client.

Before the first pay run: what payroll services in Ho Chi Minh City need from you

Most payroll corrections start with information that was missing at onboarding. Before the first pay run, payroll services in Ho Chi Minh City will usually ask for the following for each new employee:

• A signed labour contract stating the salary, the allowances and the currency of payment.
• The employee’s tax code, or the details needed to register one, and any dependants to be registered for the family deduction.
• For foreign employees: the passport, the work permit or exemption confirmation, the arrival date and the lease or residence details used for the residence test.
• Social insurance details for employees who are subject to compulsory contributions.
• Bank account details, and any part of the salary that the parent company pays abroad.

Collecting this at the start lets payroll services in Ho Chi Minh City avoid the most common later corrections: a wrong residence status, a dependant who was never registered, or an insurance base set without the allowances in the contract.

6 payroll mistakes to avoid

1. Treating a newly arrived expatriate as a non-resident without checking the 12-month test and the place-of-residence test.
2. Leaving out salary or bonuses paid by the parent company abroad for work done in Vietnam.
3. Excluding fixed allowances from the insurance base when the labour contract lists them as regular payments.
4. Enrolling foreign employees in unemployment insurance, or leaving foreign employees with contracts of 12 months or more out of social insurance.
5. Using an out-of-date exchange rate for foreign-currency salaries after 1 January or 1 July.
6. Letting a work permit lapse while salary payments continue.

When outsourcing to payroll services in Ho Chi Minh City makes sense

In our professional view, payroll services in Ho Chi Minh City are worth considering when a company has a small HR team, pays some salaries in foreign currency or offshore, or needs payslips and reports in English for head office. An in-house payroll works well when the team is stable and the HR lead already knows the Vietnamese rules. Either way, the company remains responsible for withholding and paying on time.

Frequently asked questions

Do expatriates pay social insurance in Vietnam? Yes, if they work under a labour contract of 12 months or longer, unless they are intra-company transferees, had reached retirement age when the contract was signed, or a treaty provides otherwise (Clause 2, Article 2, Law on Social Insurance).

Do foreign employees pay unemployment insurance? No. The Law on Employment No. 74/2025/QH15 covers Vietnamese citizens.

How is PIT calculated for a non-resident? At 20% of the total employment income received for work in Vietnam, wherever it is paid (Article 21, Law on PIT). The tax is calculated on the gross amount, without family deductions.

What family deduction applies in 2026? VND 15.5 million a month for the taxpayer and VND 6.2 million for each dependant (Clause 1, Article 10, Law on PIT), applied from the 2026 tax period.

What changes on 5 December 2026? Decree No. 393/2026/ND-CP replaces Decree No. 219/2025/ND-CP for work permits and exemptions. Check its transitional provisions for applications already in progress on that date.

What should payroll services in Ho Chi Minh City include? At least gross-to-net calculation, payslips, PIT withholding and returns, insurance calculations and year-end PIT finalisation. For mixed teams, also check that the provider tracks residence status, foreign-currency salaries and work permit expiry dates.

How are payroll services in Ho Chi Minh City priced? Fees usually depend on the number of employees, the share of expatriates, whether part of the salary is paid abroad, and the reports you need. Compare quotes only once the scope is written down in the same terms for each provider.

How Pham Consult provides payroll services in Ho Chi Minh City and Hanoi

Pham Consult’s payroll service covers the initial set-up of a payroll system for a newly registered company, monthly payroll calculation and payslips, salary summaries, and tracking of benefits, bonuses, labour contracts, timesheets and labour reports. On the tax side, the team handles employee tax codes, PIT calculation and withholding, PIT returns and year-end PIT finalisation, and advises on compensation structure.

Payroll links directly to accounting and tax consulting, so the figures in the payroll, the books and the tax returns match. Pham Consult works from Ho Chi Minh City (Trilimex Building, 487–489 Dien Bien Phu Street) and Hanoi (54 Lang Ha Street).

Request a payroll review to check residence status, insurance bases and permit dates for your current team.

Contact: +84 932 103 118

Email: info@phamconsult.com