Understanding and offering competitive employee benefits in Vietnam is no longer optional — it’s essential for attracting and retaining talent in one of Asia’s fastest-growing economies.
This comprehensive guide explains Vietnam’s compulsory benefits, common allowances, and competitive perks based on current labor laws, HR practices, and tax regulations as of 2025.
I. Compulsory Employee Benefits in Vietnam
These are the mandatory entitlements under Vietnamese labor law that every employer must provide.
1. Social Security Contributions
Employers and employees are required to contribute to Vietnam’s national social insurance system, which covers social, health, and unemployment insurance.
| Type of Insurance | Employer | Employee |
| Social Insurance (SI) | 17.5% | 8% |
| Health Insurance (HI) | 3% | 1.5% |
| Unemployment Insurance (UI) | 1% | 1% |
| Occupational Accident & Disease | 0.5% | – |
| Total (approx.) | 22% | 10.5% |
Note: Some companies also contribute a 2% union fee as part of Vietnam’s social welfare system.
2. Annual Leave
Employees with 12 months of service are entitled to at least 12 paid annual leave days.
After every five years of continuous work with the same employer, one extra day of leave is added.
Employers must ensure leave schedules and payments comply with the Vietnam Labor Code 2019.
3. Public Holidays in Vietnam
Employees are entitled to fully paid leave on official holidays, including:
- New Year’s Day (January 1)
- Lunar New Year (Tết) – typically 5–9 days
- Hung Kings’ Commemoration (March 10, lunar)
- Reunification Day (April 30)
- International Labor Day (May 1)
- National Day (September 2)
If an employee works on these public holidays, they are entitled to at least 300% of their regular wage for the hours worked. Adhering to these regulations not only ensures compliance with labor laws but also contributes to a positive and respectful workplace environment.
4. Annual Health Check-Ups
While required only for certain industries (e.g., manufacturing, hazardous work), many employers voluntarily offer annual medical check-ups for all staff as part of health and safety programs.
These costs are tax-deductible for employers and non-taxable for employees.
II. Common Employee Allowances and Benefits in Vietnam
In today’s competitive talent market, offering attractive benefits is no longer just about legal compliance — it’s a key part of how employers in Vietnam attract, motivate, and retain top talent.
Below are some of the most common types of employee allowances and perks that have become standard practice among leading companies.
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13th-Month Salary
The 13th-month salary is one of the most recognized employee benefits in Vietnam.
Although not legally required, it has become a common way for companies to reward performance and loyalty — typically paid before the Lunar New Year (Tết).
This bonus is viewed as an important part of employee satisfaction and retention strategies.
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Meal Allowance
Supporting employees’ daily meals is a simple but meaningful benefit.
Companies usually provide either in-house meals or a lunch allowance.
Meals provided in company canteens are often exempt from personal income tax, while cash allowances are treated according to tax regulations.
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Transportation Allowance
Transportation support helps employees cover commuting expenses, especially in major cities where travel costs can be significant.
This allowance also demonstrates care for employees’ work-life balance and daily convenience.
To stay compliant, companies should clearly document these benefits in labor contracts or internal policies.
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Phone Allowance
For roles that require frequent communication — such as sales, customer service, or management — a phone allowance ensures employees can stay connected while performing their duties effectively.
This benefit is generally exempt from personal income tax if it’s for business use and properly documented.
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Travel Allowance
When employees travel for work or attend business meetings outside the office, companies often provide travel allowances to cover related expenses.
Depending on company policy, this can take the form of a daily allowance, fixed trip amount, or reimbursement based on actual costs.
Well-defined travel policies not only ensure compliance but also reflect professional HR practices.
III. Good-to-Have Employee Benefits
Many modern companies in Vietnam go beyond the basics by offering additional “good-to-have” benefits that promote engagement and well-being.
- Uniform Allowance: Providing or supporting work uniforms helps employees maintain a professional image, especially in manufacturing, hospitality, and retail. This benefit can be offered in-kind or as a cash allowance within allowable tax limits.
- Internet Allowance: As remote and hybrid work become more common, many companies provide an internet allowance to maintain reliable connectivity and seamless collaboration. This benefit enhances productivity and supports flexible work arrangements.
- Holiday Wellness Programs: Companies are increasingly investing in wellness initiatives to support employees’ physical and mental health. Holiday wellness programs may include spa vouchers, health check-ups, or team-building trips that help boost morale and strengthen company culture.
When provided as company-organized activities, these programs are often non-taxable and highly appreciated by staff.
IV. Competitive Edge Benefits
Forward-thinking employers are taking their benefits strategy a step further by offering high-value perks such as:
- Company trips that strengthen team spirit and reward performance.
- Private health insurance that covers extended medical needs.
- Project or performance bonuses to motivate outstanding contributions.
- Work equipment support, such as laptops or ergonomic office setups, to enhance productivity.
V. Creating a Competitive and Compliant Benefits Package
Designing an effective compensation and benefits (C&B) plan is about finding the right balance between compliance, competitiveness, and company culture.
Beyond meeting legal requirements, a thoughtful benefits package helps strengthen employer branding, improve retention, and attract top performers in Vietnam’s growing labor market.
At Metasource, we provide comprehensive HR support—from recruitment, HR management, contract/document drafting to customized C&B consulting—tailored to your company’s capacity, business model, and industry practices in Vietnam. Our team understands the nuances of local labor law and international expectations, ensuring your benefits framework is both compliant and competitive.
If you’re preparing to design or revise your company’s C&B package, contact Metasource today for a free consultation with our expert consultants. We’re here to help international businesses navigate Vietnam’s complex HR and compliance landscape — from Employer of Record (EOR) and recruitment to C&B consulting, payroll, and business registration.
📩 Get in touch for a consultation on designing or localizing your employee benefits strategy in Vietnam.
