Outsource payroll vietnam for foreign businesses
Salary and bonus are key factors in building a business’s human resources environment, so foreign businesses, which are not familiar with the new environment, should find a reputable company – vietnam payroll service provider in the host country to optimize efficiency and costs.
I) Overview of payroll packages
Outsource payroll vietnam companies often have enough information and are willing to improve the system to apply to many different customers. Our diverse Payroll packages provide flexible payroll management services according to the size and needs of the business, from the overall payroll package to individual modules.
- Payroll calculation and provision of payroll reports, internal management reports
- Personal income tax (PIT) management
- Payroll reports, customized internal management reports
- Compliance consulting
- Compliance management
- Additional services: Time and attendance management, Electronic leave management, Electronic overtime management, system integration (input and output data)
Vietnam payroll services – Payroll Services For Businesses in Vietnam
II) What is the Salary Structure for Foreigners in Vietnam?
1. Gross salary
The gross salary is the basic amount agreed upon in the employment contract between the foreign employee and the employer. When negotiating the salary, foreigners need to consider factors such as professional qualifications, work experience and the cost of living in Vietnam.
2. Personal income tax
Vietnam’s personal income tax (PIT) system has tax rates ranging from 5% to 35% (progressive) or 20% of total taxable income from salaries and wages, depending on tax residency status. In recent years, the Vietnamese government has made significant changes to regulations for recruiting and managing foreign workers, as well as requiring compulsory insurance and other mandatory contributions, which directly impact allowable deductions, potentially reducing the taxable income and net income of foreigners.
Specifically, foreigners can now deduct certain expenses related to housing, education and charitable contributions. These deductions can significantly affect the total personal income tax liability of foreigners in Vietnam. Therefore, it is essential to stay updated with the latest changes and work closely with qualified tax professionals to optimize tax strategies.
3. Social insurance
Foreigners working in Vietnam under labor contracts with a term of 12 months or more are required to contribute to the country’s social security system, to ensure benefits for illness, maternity leave, work accidents, retirement and death. The social insurance regime for foreigners working in Vietnam is stipulated in the Social Insurance Law 2024 and Decree No. 158/2025/ND-CP. From July 1, 2025, the contribution rate of foreign employees is 9.5% of the monthly salary used as the basis for social insurance payment, and employers must contribute a total of 20.5% on the same salary.
TOP 10 Vietnam Payroll Outsourcing Companies Recommended In 2025
4. Health and Unemployment Insurance
In addition to Social Insurance contributions, foreigners working in Vietnam under labor contracts with a term of 12 months or more will also participate in compulsory Health Insurance. The employee’s contribution rate for health insurance is 1.5% of total salary, while the employer must contribute 3%. Regarding Unemployment Insurance, foreign workers are not subject to Unemployment Insurance.
III) Below are three reasons why foreign businesses hire payroll management service vietnam and should choose local companies.
1. Ensure a clear understanding of laws and regulations
The legal system and tax regulations of each country are different and can change according to the market context. This requires the service provider (Certified payroll specialist) to always update and monitor to understand local laws and regulations, thereby having a better way to handle all payroll issues. This strength from the local service side helps foreign businesses reduce the burden of work, limit errors and legal risks that businesses may encounter.
2. Flexible handling of payroll issues
Some foreign businesses, no matter which market they work in, only choose the services of one company, usually a large, global enterprise. This is completely reasonable, however, the systems of these partners often have trouble adjusting to suit each locality because they do not clearly understand the regulations in that locality and the large system is also rigid and difficult to change.
On the contrary, employee payroll vietnam often have enough information and are ready to improve the system to apply to many different customers, helping the working process to be quick and flexible. It is best for foreign enterprises to choose a local company that both understands the domestic market and operates according to international standards. For example, Talentnet human resources company – a pioneering company operating according to the guiding principle of local understanding combined with international methods, providing “tailor-made” vietnam hr payroll service for each enterprise.
3. Maximum cost savings for businesses
In order to gain a competitive advantage, local suppliers tend to set service prices more “affordably” than large suppliers, although the commitment to service quality is not much different. Even the costs incurred during the working process are lower than those of global suppliers, creating conditions for businesses to better manage their payroll funds, avoiding exceeding the original plan. In the long run, businesses have more time to invest in core business activities, instead of burdened with paperwork and human resource procedures.By choosing S4B Vietnam as your payroll partner, you gain the advantage of affordable, reliable, and efficient service, tailored to local business needs without compromising quality.
S4B Vietnam
- Address: Unit 701B – 701C, Tower A, Handi Resco Towers, 521 Kim Ma Street, Giang Vo Ward, Hanoi, Vietnam
- Tel: +84 24 3974 4181
- Email: service@s4b.com.vn
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