Payroll Compliance Vietnam 2025: New Regulations for Foreign Enterprises

25/06/2025

Managing payroll compliance in Vietnam continues to challenge foreign-invested enterprises (FDIs). From adhering to constantly evolving tax laws and insurance requirements to submitting mandatory reports—one misstep can lead to penalties or reputational damage. Under Decree 70/2025/NĐ-CP, personal income tax (PIT) and electronic documentation standards have been updated as of June 2025, requiring businesses to promptly revise their payroll processes. In addition, regional minimum wages were raised starting July 2024. Amid tightening regulations, mastering payroll compliance in Vietnam 2025 is crucial for long-term operational stability.

Why is Payroll Compliance in Vietnam So Complex?

Vietnam’s labor regulations are heavily protective of employees, and differ significantly from international standards. For instance, fixed-term labor contracts may only be renewed twice before transitioning to indefinite contracts. Additionally, social insurance, tax, and union-related regulations change frequently, requiring constant updates to internal payroll systems.

Key Components of Payroll Compliance in Vietnam 2025

Personal Income Tax (PIT)

PIT is calculated using a progressive tax bracket system. Employers must deduct, declare, and pay tax monthly. In 2025, electronic tax withholding certificates must follow updated data formats.

Social & Health Insurance

The total contribution rate for social insurance, health insurance, and unemployment insurance is 32% of the employee’s salary—21.5% of which is borne by the employer. Expat employees may be exempt from unemployment insurance.

Trade Union Contributions

Regardless of whether employees are union members, employers must contribute 2% of total payroll to the Trade Union Fund.

Mandatory Reporting

FDIs are required to file numerous recurring reports, such as headcount updates, foreign employee declarations, and financial disclosures related to payroll operations.

Common Compliance Mistakes

Delayed employee tax code registration → triggers fines
Incorrect social insurance calculations due to outdated regional minimum wages
Missed reporting deadlines → impacts licensing or investment adjustments
Wrong contract classification → leads to labor disputes and benefit misalignments

Why Outsourcing Payroll Services Makes Sense

Outsourcing payroll compliance in Vietnam 2025 helps foreign companies:

Avoid legal risks
Reduce administrative costs
Stay compliant and up to date
Focus on core business growth

INT-HRAGENT is a trusted provider of end-to-end payroll services for FDI businesses, combining legal expertise with modern payroll platforms.

Conclusion & Call-to-Action

Payroll compliance in Vietnam 2025 is more than just meeting legal standards—it’s a key part of strategic risk management for any foreign business.

???? Connect with INT-HRAGENT today to build a compliant, efficient, and future-ready payroll framework for your operations in Vietnam.