EOR payroll Vietnam is the monthly process that turns an approved salary into net pay, SHUI contributions, PIT withholding, payslips, and authority remittances. For Dutch and EU companies hiring in Vietnam through an Employer of Record (EOR), this article explains what your team approves and what your EOR handles each month.
TL;DR
- EOR payroll Vietnam usually has one recurring client task: payroll approval before the monthly cut-off. Your EOR calculates gross-to-net pay, remits SHUI and PIT, pays employees, and sends payslips.
- SHUI for Vietnamese employees is generally 21.5% employer contribution and 10.5% employee contribution, subject to salary ceilings. Foreign employees usually do not pay unemployment insurance.
- PIT withholding Vietnam changed for the 2026 tax period. Resident employees use five progressive brackets from 5% to 35%, while non-residents pay 20% on Vietnam-sourced employment income.
What is EOR payroll Vietnam?
“EOR payroll Vietnam is the payroll process run by an Employer of Record for employees in Vietnam. It covers salary calculation, SHUI contribution handling, PIT withholding, payslip distribution, net salary payment, and monthly reporting to the client company.”
EOR payroll Vietnam is different from running payroll through your own Vietnamese entity. The EOR is the local legal employer, so payroll is processed through the EOR’s Vietnam employment structure.
For your finance team, the question is practical: who calculates the deductions, who pays the employee, and who remits tax and insurance? Under a standard EOR payroll Vietnam process, your team approves salary inputs. Your EOR runs the payroll.
How EOR payroll Vietnam works each month
EOR payroll Vietnam should run on a fixed monthly rhythm. The cut-off date matters because it protects salary accuracy and keeps payment on time.
| Step | What happens | Owner |
|---|---|---|
| 1 | Salary inputs are confirmed before the monthly cut-off, usually 5 to 7 business days before payment. | Client |
| 2 | Gross salary, SHUI deductions, PIT withholding, and net pay are calculated. | EOR |
| 3 | Net salary is transferred to each employee’s bank account on the agreed date. | EOR |
| 4 | SHUI is remitted to Vietnam Social Insurance and PIT is remitted to the tax authority. | EOR |
| 5 | Payslips and a consolidated payroll report are issued after payroll closes. | EOR |
This is where EOR payroll Vietnam removes the admin layer for your team. You still control salary decisions. Your EOR controls the statutory payroll process.
Payroll on time, every month, depends on clean inputs before cut-off. If your team confirms a bonus or exit payment after cut-off, that change may move to the next payroll cycle unless your service agreement allows an exception.
SHUI Vietnam employer contribution and employee deduction
SHUI Vietnam employer contribution is split across Social Insurance, Health Insurance, and Unemployment Insurance. For Vietnamese employees, the standard combined SHUI contribution is generally 21.5% from the employer and 10.5% from the employee.
PwC’s Vietnam tax summary lists Social Insurance at 17.5% employer and 8% employee, Health Insurance at 3% employer and 1.5% employee, and Unemployment Insurance at 1% each for employer and employee. PwC also notes that Unemployment Insurance applies to Vietnamese individuals only.
| Fund | Employer rate | Employee rate | What it covers |
|---|---|---|---|
| Social Insurance (BHXH) | 17.5% | 8% | Sick pay, maternity, paternity, retirement pension, work injury, occupational disease |
| Health Insurance (BHYT) | 3% | 1.5% | State healthcare coverage and approved medical treatment costs |
| Unemployment Insurance (BHTN) | 1% | 1% | Unemployment benefit support for eligible Vietnamese employees |
| Total for Vietnamese employees | 21.5% | 10.5% | Statutory SHUI contributions, subject to contribution ceilings |
The ceiling is where EOR payroll Vietnam often changes the real cost. Social Insurance and Health Insurance are capped at 20 times the reference level, according to PwC’s Vietnam tax summary. Unemployment Insurance uses a separate cap of 20 times the regional minimum salary.
From 1 July 2026, Decree 161/2026/ND-CP increases the statutory base salary from VND 2,340,000 to VND 2,530,000 per month, which raises the SI and HI ceiling from VND 46,800,000 to VND 50,600,000 per month.
For a foreign employee in Vietnam, your EOR should calculate SHUI differently because Unemployment Insurance does not usually apply. That means the foreign employee SHUI total is usually lower than the Vietnamese employee total.
PIT withholding Vietnam for residents and non-residents
PIT withholding Vietnam starts with tax residency. A resident employee is taxed through progressive PIT brackets. A non-resident employee is generally taxed at 20% on Vietnam-sourced employment income.
The new Personal Income Tax Law No. 109/2025/QH15 was enacted on 10 December 2025 and takes effect from 1 July 2026, with provisions for employment income of resident individuals applying to the 2026 tax year, according to KPMG.
For EOR payroll Vietnam, this matters when a Dutch company places a foreign national in Vietnam. The employee may begin as a non-resident and later become resident once the Vietnam presence threshold is met. Your EOR should confirm the expected residency position at onboarding and update withholding when the status changes.
| Monthly taxable income | PIT rate | Approx. EUR equivalent |
|---|---|---|
| Up to VND 10,000,000 | 5% | Up to around EUR 370 |
| Over VND 10,000,000 to VND 30,000,000 | 10% | Around EUR 370 to EUR 1,110 |
| Over VND 30,000,000 to VND 60,000,000 | 20% | Around EUR 1,110 to EUR 2,220 |
| Over VND 60,000,000 to VND 100,000,000 | 30% | Around EUR 2,220 to EUR 3,700 |
| Above VND 100,000,000 | 35% | Above around EUR 3,700 |
ADK Vietnam Lawyers summarises the 2026 PIT schedule as five monthly brackets, from 5% up to VND 10 million to 35% above VND 100 million. The same update states that the taxpayer deduction is VND 15.5 million per month and the dependent deduction is VND 6.2 million per month from the 2026 tax assessment period.
Taxable income is not a gross salary. In EOR payroll Vietnam, taxable income for resident employees is normally calculated after compulsory insurance deductions and registered family deductions.
Annual PIT finalization is the step that tends to appear in March, after everyone thought payroll was finished. Under Sunbytes EOR payroll Vietnam, annual PIT finalization is included in the standard scope. Monthly withholding and annual finalization stay with the same payroll owner.
Hiring in Vietnam and wanting payroll handled from gross salary to annual PIT finalization?
Sunbytes calculates SHUI and PIT for every employee each month, remits payments to the relevant Vietnamese authorities, and keeps payroll on time, every month. For Dutch and EU companies, EOR payroll Vietnam removes the local payroll admin layer while keeping salary approval with your finance team.
Payslip requirements in Vietnam
Vietnamese payroll should produce a payslip for each salary payment. In EOR payroll Vietnam, the payslip is where the employee sees gross salary, SHUI employee deductions, PIT withholding, and net salary paid.
For foreign companies, bilingual payslips are the safer operating standard. Vietnamese and English payslips help employees use salary documents for bank, tax, visa, and home-country administration.
Your EOR sends payslips to employees and gives your team a consolidated payroll report. Benefits such as annual leave, statutory holidays, and 13th-month bonus should be covered separately in statutory benefits provided through EOR once that guide is live. A bilingual payslip helps employees and overseas finance teams read the same payroll data.
What your EOR handles vs what you approve
EOR payroll Vietnam works when the ownership split is explicit. Your recurring task is approval. The EOR handles payroll execution.
| Task | EOR handles | Client approves or provides |
|---|---|---|
| SHUI registration for a new hire | Yes, registers the employee with Vietnam Social Insurance | Employee details and contract start date |
| Monthly SHUI calculation | Yes, calculates employer and employee shares | No recurring action after approval |
| Monthly SHUI remittance | Yes, remits to Vietnam Social Insurance | No recurring action after approval |
| PIT withholding Vietnam | Yes, calculates and withholds PIT from gross salary | No recurring action after approval |
| PIT remittance | Yes, remits PIT to the tax authority | No recurring action after approval |
| Annual PIT finalization | Yes, included in Sunbytes EOR payroll Vietnam scope | Employee data confirmation when needed |
| Payslip generation | Yes, issues bilingual payslips | Reviews payroll report |
| Monthly payroll report | Yes, sends consolidated report | Reviews and archives |
| Salary and bonus amounts | No | Approves before cut-off |
| New hire or exit notification | No | Notifies EOR before cut-off |
| SHUI deregistration for exits | Yes, within 24 hours of confirmed exit date | Confirms exit date and final payments |
This ownership split protects your finance team from having to operate a local payroll function. It also protects the employee experience because payroll questions have a named owner.
For the legal layer behind payroll, contracts, data handling, and statutory filings, link this section to EOR compliance obligations in Vietnam once that guide is published.
The payroll SLA and cut-off dates
Payroll on time means the employee receives salary in their bank account on the contractual payment date. Not near month-end. Not once the internal approval chain finishes.
In most EOR payroll Vietnam service agreements, the client approval cut-off sits 5 to 7 business days before the payment date. Your team confirms salary, bonus, exit payments, and new joiners before that point.
Once payroll is approved, your EOR processes net salary, remits SHUI and PIT, and sends the report package. If an employee queries a payment, the EOR should provide a named contact and a response SLA.
Offboarding within 24 hours needs the same clarity. When an employee exits, SHUI deregistration should be handled within 24 hours of the confirmed exit date, with final salary and deductions processed through the agreed payroll cycle.
How Sunbytes helps companies run EOR payroll Vietnam
Most Dutch companies focus on monthly salary payment when they compare EOR providers. The gap usually appears later, when annual PIT finalization, SHUI ceilings, foreign employee insurance treatment, and exit deregistration all need to be handled correctly.
Sunbytes runs EOR payroll Vietnam through Accelerate Workforce Solutions. Your team approves the numbers. Sunbytes handles SHUI registration, monthly SHUI remittance, PIT withholding, bilingual payslips, payroll reporting, annual PIT finalization, and 24-hour offboarding administration.
This is part of the broader employment infrastructure we build for international companies entering or scaling in Vietnam. Through Employer of Record (EOR), Staffing, Contractor of Record, and Payroll Services, Sunbytes keeps employment, payroll, and workforce administration under one operating rhythm.
Why Sunbytes?
Founded in the Netherlands in 2011, Sunbytes has delivered more than 300 client projects across 20+ countries. Our delivery hub in Ho Chi Minh City gives us direct knowledge of Vietnam’s labor market, payroll process, and regulatory environment.
Our three service pillars support EOR payroll Vietnam at every stage:
- Payroll is approved by you and processed locally: Through Accelerate Workforce Solutions, Sunbytes handles EOR payroll Vietnam from SHUI registration to net salary payment. Payroll on time, every month.
- Payroll data is protected before it moves across borders: Through CyberSecurity Solutions, Sunbytes supports controlled access, ISO 27001 certified operations, and GDPR Article 28 DPA handling before engagement.
- Technical teams can scale without payroll becoming the bottleneck: Through Digital Transformation Solutions, Sunbytes supports companies building Vietnam-based delivery teams while Accelerate keeps employment and payroll administration controlled.
FAQs
An EOR handles payroll in Vietnam by calculating gross salary, SHUI deductions, PIT withholding, and net salary for each employee. The EOR also remits SHUI to Vietnam Social Insurance, remits PIT to the tax authority, sends payslips, and gives the client a monthly payroll report.
EOR payroll Vietnam usually includes salary calculation, SHUI registration and remittance, PIT withholding, net salary payment, payslip distribution, payroll reporting, and annual PIT finalization. The client still approves salary inputs, bonuses, new hire data, exit dates, and any one-off payroll changes before the monthly cut-off.
For Vietnamese employees, SHUI is generally 21.5% employer contribution and 10.5% employee contribution, subject to salary ceilings. This includes Social Insurance, Health Insurance, and Unemployment Insurance. Foreign employees usually do not contribute to Unemployment Insurance, so the EOR should calculate foreign employee payroll separately.
PIT withholding Vietnam depends on whether the employee is a resident or non-resident taxpayer. Resident employees use progressive tax brackets, which changed to five brackets from the 2026 tax period. Non-residents generally pay 20% of Vietnam-sourced employment income.
A complete EOR payroll Vietnam service should handle annual PIT finalization, not only monthly withholding. Sunbytes includes annual PIT finalization in its standard EOR payroll scope. This keeps March tax finalization inside the same payroll process your employee already uses each month.
A Vietnamese payslip should show gross salary, SHUI employee deductions, PIT withheld, and net salary paid. For foreign company employees, bilingual payslips are standard practice because employees may need them for banking, visa, tax, or home-country administration.
The client approves salary amounts, bonuses, one-off payments, new hire data, exit dates, and final payments before the payroll cut-off. The EOR then calculates deductions, processes net pay, remits SHUI and PIT, and issues the monthly payroll report.
Let’s start with Sunbytes
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