Your first hire in Vietnam sets the pattern for everyone who follows. Getting the basics right from day one — contract, probation, pay, insurance — is much cheaper than fixing them when the team has grown to thirty. Here is the checklist we use with clients, based on the 2019 Labor Code and the rules in force in 2026.
1. A written labor contract
- Two types: indefinite-term, or fixed-term of up to 36 months.
- The contract should be in Vietnamese; a bilingual Vietnamese–English (or –Japanese) version is common.
- State the job, workplace, salary and allowances, working hours, leave, insurance and training terms clearly.
2. Probation — keep within the legal limits
- Up to 180 days for enterprise managers.
- Up to 60 days for roles requiring a college degree or higher.
- Up to 30 days for intermediate-level, technical-worker and professional-staff roles.
- Up to 6 working days for other jobs.
- Probation pay must be at least 85% of the job's salary, and probation can be applied only once per job.
3. Minimum wage (from 1 January 2026)
Decree 293/2025/ND-CP sets four regional minimum monthly wages: Region I – VND 5,310,000, Region II – VND 4,730,000, Region III – VND 4,140,000, Region IV – VND 3,700,000. The region depends on where your business operates. In practice, salaries for office and engineering roles are far above the minimum, but the minimum still matters for insurance and for some allowances. A new decree for 2027 is in preparation, so check the rate each January.
4. Compulsory insurance
For Vietnamese employees, the employer contributes about 21.5% of the insured salary (social insurance 17.5%, health insurance 3%, unemployment insurance 1%) and the employee about 10.5% (8%, 1.5% and 1%), under the 2024 Social Insurance Law in force since 1 July 2025. Rates for foreign employees are different. Budget for the employer share when you set salaries.
5. Working time and leave
- Normal hours: up to 8 hours a day and 48 hours a week.
- At least 12 days of paid annual leave for a full year of work, plus public holidays.
- Overtime is paid at a minimum of 150% on normal days, 200% on weekly days off and 300% on public holidays.
6. Payroll and tax
The employer withholds personal income tax and pays insurance monthly. Many companies also pay a “13th-month” bonus at Tết — it is a market practice rather than a legal requirement, but candidates expect it, so decide your policy before the first offer.
7. Internal labor regulations
Once you have 10 or more employees, you need written internal labor regulations registered with the provincial labor authority. It is easier to draft them early than to retrofit them later.
First-hire checklist
- Bilingual labor contract template
- Probation terms within legal limits
- Salary benchmarked against the market and above the regional minimum
- Insurance registration and payroll process
- Leave, overtime and bonus policy
- Plan for internal labor regulations before employee No. 10
NEXORA acts as your HR team in Vietnam from employee No. 1 — contracts, payroll coordination, recruitment and compliance. See HR Solutions in Vietnam or book a free consultation.
This article is general information as of November 2026, not legal advice. Rules change — confirm the latest requirements with the authorities or a licensed professional before acting.