The Recruiment Salary Guide For Offshore Tech Talent Hire In Vietnam

The Recruitment Salary Guide For Offshore Developer In Vietnam

There is no denying that Covid-19 has forever changed our recruitment landscape, forcing companies to rethink their hiring strategy and overcome the odds.

Thus, setting an offshore tech team in Vietnam has become a popular method for startups and small businesses to further their tech capabilities.  

As we step into a new year, Tech JDI is eager to continue to provide a bridge to those looking at opportunities to experience this exciting market first-hand.

Starting with how to calculate the true salary rate for hiring offshore developers in Vietnam.

Disclaimer: This will be a series where we provide the needed information to help you understand the recruitment process and its structure in Vietnam.


How To Calculate Salary For Your Offshore Developer In Vietnam

In Vietnam, local staff traditionally receive their wages on a monthly basis in Vietnamese Dong (VND). Moreover, they expect a Net salary offer when considering working for a company. 

Thus, it is crucial for Singapore Startups to be able to identify the difference between Gross and Net salaries and how they are calculated in Vietnam. 

Calculate Salary For Your Offshore Developer

Look simple enough right? The gross salary should be easy to calculate. However, this is only the salary for the employee. As an employer, you will need to figure out the actual cost if you want to hire them.

This means paying the required TUF and mandatory insurance for the employer: 

Calculate Total Salary For Your Offshore Developer

In short, when dealing with Vietnamese developer recruitment, there are 3 things that you need to pay close attention:

Salary Calculation Disclaimer

Real Case Study 

Let just say we want to hire a developer for $2000 in gross. However, the candidate only wants to be paid in net. So we want to consider the total hiring cost in both gross and net salary to see if we can raise the offer to meet the candidate demand.

How Much Should I Pay For My Offshore Developer In Vietnam

The Employee’s salary for calculation of social insurance, health insurance is capped at 20 x 1,490,000 VND (in 2020) = 29,800,000 VND (~ $1300 ). With this example, we will get $1300 multiple with 8% and 1% to get the result of $102.32 and $19.18 respectively as social insurance & health insurance contributions.

On the other hand, unemployment insurance is capped at 20 x 4,420,000 VND ( depend on specific region) = 88.400.000 VND ( ~ $3830). With this example, we will get $2000 or $2,469.52 multiple with 1% to get the result of $20.00 or $24.70 respectively as unemployment insurance contribution.

As a result, the total hiring cost that employer has to pay is:

Employer Pay

Meaning the difference in cost is huge when it comes to what type of salary you are applying. 

For a gross salary of $2,000, you are paying $2,282.19 to hire the candidate. 

However, if it is a net salary of $2000, then the employer will have to pay $2,756.40. 

That is at least 17% higher!



If you would like to find out more about IT salaries and recruitment trends in Vietnam, please download our employer handbook digital version. It contains full details and important insights on how to hire offshore tech talent in Vietnam. 

Our report is based on the analysis of permanent, interim, and contract placements made across each of our clients and recruitment disciplines during 2020, and our predictions for the year ahead.

Download the guide

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