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Remuneration structure in Vietnam

Cheryl

Hello everyone,

Understanding the remuneration structure when living and working in Vietnam will help you better navigate professional life. In order to help other expats and soon-to-be expats grasp everything from gross pay to net pay, we invite you to share your experience.

How is your remuneration structured in Vietnam: basic salary, commissions, 13th month, etc.?

What are the common or mandatory allowances included such as transports, health insurance, pension contributions…?

What are the taxes and social contributions to be considered, especially if deduction is made at source?

What is the regular salary payment frequency in Vietnam: monthly, bi-montlhy, weekly…?

Is it acceptable or common to negotiate salary or benefits?

Are there any specific differences in remuneration structure between expats and locals?

Share your insights and experience.

Thank you for your contribution.

Cheryl
Expat.com Team

See also

Job offers in VietnamWorking in VietnamSetting up a business in VietnamWorking in HanoiWorking in Ho Chi Minh CityRecruitment Agencies in VietnamHead Hunters in Vietnam
secedit

@Cheryl

It’s best if you can get your salary paid into your home country.  For non US expats, this is 100% tax free!

OceanBeach92107

@Cheryl
It’s best if you can get your salary paid into your home country. For non US expats, this is 100% tax free! - @secedit

On the surface that sounds like a great deal. However, let's assume that the person working here needs to live off of their income. If their income is sent out of the country before they ever see it, they are going to be subject to at least 3 fees; possibly 4 or 5 (or essential charges) In order to get the money back to spend it for everyday living expenses here:


1. They will need to do some sort of international transfer. Let's assume they don't have a huge bank balance that allows them to do free wire transfers. So there's the international wire transfer fee.


2. All banks here charge a transaction fee for incoming wire transfers. So that's your second fee.


3. All banks here also charge a separate foreign exchange (FOREX) fee in order to turn the foreign currency into Việt Nam đồng.


4. Unless you withdraw all of the money that you wire into the country as cash, you will be subject to an ATM fee every time you withdraw.


5. It's also possible that their home bank will charge a transaction fee and a FOREX charge In order to send the deposit there.


IN ADDITION, The relative currency strength in a foreigner's home nation should influence their decision about where to have their check deposited.


Here are a few examples of nations where the currency is actually TRENDING weaker than the Việt Nam đồng. People thinking about sending their money "home" should be aware that they will be losing capital value as opposed to holding their funds here and actually gaining value against their home currency:


Japanese Yen (JPY), Argentine Peso (ARS), Turkish Lira (TRY), Indonesian Rupiah (IDR), Philippine Peso (PHP) and the Korean Won (KRW) are all currently trending downward against the VNĐ.


So this definitely becomes much more of an individual proposition.