Employees’ rights in Vietnam will undergo several important changes from 2026. New regulations on probation periods, overtime pay, personal income tax exemptions, and unemployment benefits will directly affect both employers and employees. In this article, terra summarizes the 7 most important rules together with the specific fines employers face for violations, plus two major changes on the PIT exemption for overtime pay and on unemployment benefits, so you can proactively protect your legal rights.
| Question | Quick answer |
| How many times can an employer require probation? | Only once per job, lasting a maximum of 6 to 180 days depending on the nature of the work (Article 25, Labor Code 2019). |
| What is the minimum probation salary? | At least 85% of the salary of that job (Article 26, Labor Code 2019). |
| Is overtime pay subject to PIT? | Tax residents are fully exempt from the 2026 tax year (from 1 January 2026), non-residents from 1 July 2026, within the hour limits set by labor law. |
| If my company goes bankrupt, will my salary be paid? | Unpaid salary ranks second in payment priority, right after bankruptcy costs (Article 46, Law on Business Recovery and Bankruptcy 2025, effective 1 March 2026). |
| How are 2026 unemployment benefits calculated? | 60% of the average salary of the last 6 months of unemployment insurance contributions, capped at 5 times the regional minimum wage (Law on Employment 2025). |
7 rules protecting employee rights in Vietnam from 2026
All seven rules below are currently in force and carry specific fines under Decree 12/2022/ND-CP when employers violate them. Knowing each one is the most direct way to protect your employee rights from your very first day on the job.
Each job can only require probation once
Under Article 25 of the Labor Code 2019, the two parties may agree on the probation period based on the complexity of the position, but for the same job, an employer may require probation only once, and it must stay within the following caps:
| Type of work | Maximum probation period |
| Enterprise managers as defined by the Law on Enterprises 2020 | 180 days |
| Positions requiring college-level professional or technical qualifications or higher | 60 days |
| Positions requiring intermediate-level qualifications, technical workers, professional staff | 30 days |
| Other work | 06 working days |
An employer that requires probation more than once or beyond the prescribed period faces a fine of VND 4 to 10 million and must pay the employee 100% of the salary for the violating probation period, under Article 10 of Decree 12/2022/ND-CP.
The probation salary floor is 85% of the official salary
Article 26 of the Labor Code 2019 states that the probation salary is agreed between the two parties but must be at least 85% of the salary of that job. An employer paying below this level faces a fine of VND 4 to 10 million under Article 10 of Decree 12/2022/ND-CP.
A useful benchmark: from 1 January 2026, Decree 293/2025/ND-CP raises the regional minimum wage to VND 5,310,000 per month in Region 1. So if the official position pays exactly the Region 1 minimum wage, your probation salary cannot fall below VND 4,513,500 per month. In all cases, the agreed salary cannot be lower than the regional minimum wage applicable at the workplace.
Employees have the right to know their probation result
Clause 1, Article 27 of the Labor Code 2019 requires the employer to notify the employee of the result when the probation period ends. If the employee passes, the signed contract continues or an official labor contract is concluded; if not, the contract is terminated.
Note a common misunderstanding: the 3-day advance notice requirement came from Article 7 of Decree 05/2015/ND-CP, which has expired, and the replacing Decree 145/2020/ND-CP sets no similar deadline. The right to know the result remains recognized by law, but current regulations do not require the employer to give notice a specific number of days in advance.
Keeping employees’ original diplomas or identity papers is prohibited
Article 17 of the Labor Code 2019 lists three things an employer must not do when concluding and performing a labor contract: keep the originals of identity papers, diplomas, or certificates; require a deposit of money or assets; or force an employee to keep working to pay off a debt. Employers may only keep copies of documents when signing the contract.
Keeping original documents is punishable by a fine of VND 20 to 25 million, and the employer is forced to return the documents to the employee under Article 9 of Decree 12/2022/ND-CP. If your original diploma is being held, this is the direct legal basis to demand its return.
Working hour caps: 8 hours per day, 48 hours per week
The working hour cap is the most fundamental employee right. Under Article 105 of the Labor Code 2019, normal working hours may not exceed 8 hours per day and 48 hours per week. Where an employer applies a weekly working regime, hours may not exceed 10 per day and still no more than 48 per week; the law also encourages a 40-hour work week. For jobs involving hazardous or toxic factors, the employer must keep hours within national technical standards.
An employer scheduling normal working hours beyond these limits faces a fine of VND 20 to 25 million under Clause 3, Article 18 of Decree 12/2022/ND-CP.
Overtime pay rates run from 150% to 300%
Article 98 of the Labor Code 2019 requires overtime pay to be calculated on the unit wage or actual salary paid, with the following minimum rates:
| When overtime is worked | Minimum rate | Note |
| Normal working days | 150% | Based on the actual hourly wage paid |
| Weekly rest days | 200% | Excluding the rest-day salary for monthly-paid employees |
| Public holidays, Tet, paid leave days | 300% | Excluding the holiday salary for daily-paid employees |
| Night work (10pm to 6am) | additional 30% | On the hourly wage of a normal working day |
| Overtime at night | additional 20% | On the daytime hourly wage of the corresponding day |
Adding these together, a monthly-paid employee working daytime overtime on a public holiday receives at least 400% of a day’s wage (300% overtime pay plus 100% paid holiday salary); overtime at night on a public holiday earns at least 490%. In practice, this is the group of employee rights most often underpaid, especially the 30% night premium and the 20% night overtime add-on. See terra’s detailed guide on how to calculate overtime pay with worked examples.
Deducting salary or imposing fines instead of formal discipline is a violation
When handling labor discipline, Article 127 of the Labor Code 2019 draws three hard lines: an employer must not harm an employee’s health, honor, life, reputation, or dignity; must not use fines or salary cuts in place of disciplinary measures; and must not discipline conduct that is not stated in the internal labor regulations, the labor contract, or the law.
An employer that deliberately deducts salary in place of formal labor discipline can be fined up to VND 80 million under Clause 3, Article 19 of Decree 12/2022/ND-CP. If a deduction labeled “fine for violating internal rules” appears on your payslip, that is a red flag to question immediately.
Summary of fines for violating employee rights
| Violation | Fine | Legal basis (Decree 12/2022/ND-CP) |
| Requiring probation more than once or beyond the time limit | VND 4 to 10 million, plus 100% salary repayment | Article 10 |
| Paying probation salary below 85% | VND 4 to 10 million | Article 10 |
| Keeping original identity papers or diplomas | VND 20 to 25 million, documents must be returned | Article 9 |
| Scheduling working hours beyond legal limits | VND 20 to 25 million | Clause 3, Article 18 |
| Fines or salary cuts in place of discipline | Up to VND 80 million | Clause 3, Article 19 |
From when is overtime pay fully exempt from PIT?
From 2026, all overtime pay and night-work pay is exempt from Personal Income Tax (PIT) as long as it stays within the conditions and hour limits of labor law, under Article 26 of Decree 253/2026/ND-CP guiding the Law on Personal Income Tax 2025. This is a major shift from the old mechanism, which only exempted the portion paid above the normal hourly wage, and it is the most valuable employee gain in this round of tax reform.
The point many people miss is that the effective date splits into two milestones under Article 29 of the Law on Personal Income Tax 2025: the law takes general effect from 1 July 2026, but the rules on salary and wage income of tax residents apply from the 2026 tax year, meaning the calendar year starting 1 January 2026.
| Taxpayer | Full PIT exemption on overtime pay applies from |
| Tax residents | 1 January 2026 (per the 2026 tax year) |
| Non-residents | 1 July 2026 (per the law’s general effective date) |
Two conditions come attached. First, overtime pay for hours beyond what labor law allows (50% of normal daily hours, 200 or 300 hours per year) still counts as taxable income. Second, the income payer must prepare a schedule clearly showing the time and amounts of night work and overtime, keep it on file, and present it when the tax authority requests; without a separate schedule, the exemption must be proven through payroll sheets, timesheets, and labor contracts. Employees should cross-check their own timesheets to secure this right at tax finalization. terra tracks all salary-related tax changes in its payroll knowledge hub.
Company bankruptcy: what payments do employees receive?
From 1 March 2026, the Law on Business Recovery and Bankruptcy 2025 (No. 142/2025/QH15) replaces the Bankruptcy Law 2014. Under Article 46 of the new law, when a judge declares an enterprise bankrupt, its assets are distributed in order of priority, with unpaid employee salaries ranking second, right after bankruptcy costs:
| Priority | Payment |
| 1 | Bankruptcy costs |
| 2 | Unpaid salaries owed to employees |
| 3 | Unpaid compulsory Social Insurance, unemployment insurance, health insurance, and occupational accident and disease insurance |
| 4 | Severance allowance and other benefits under the collective labor agreement and labor contracts |
| 5 | Debts incurred to restore business operations |
| 6 | Financial obligations to the State |
| 7 | Unsecured debts and secured debts not yet fully paid |
A practical note: the priority order only matters while the enterprise still has assets; if liquidation proceeds only cover bankruptcy costs, unpaid salaries risk going unpaid. The new law also gives the Social Insurance agency the right to file for bankruptcy proceedings against enterprises that evade insurance contributions for a prolonged period, adding one more layer of protection for employees compared with the old law.
Beyond the priority order, bankruptcy is a lawful ground for terminating labor contracts, so employees are also entitled to three groups of benefits under the Labor Code 2019:
Payment of salary for days already worked
Full payment for days worked is an employee right with a clear statutory deadline. Under Clause 1, Article 48 of the Labor Code 2019, within 14 working days from contract termination, both parties must settle all amounts related to each other’s entitlements; in bankruptcy cases the deadline may be extended, but not beyond 30 days.
Severance allowance
Under Article 46 of the Labor Code 2019, an employee who has worked regularly for 12 months or more receives a severance allowance of half a month’s salary for each year of work, except where they have reached retirement age. The qualifying period is total actual working time minus the time covered by unemployment insurance and any period already compensated; the salary base is the average of the 6 consecutive contract months before leaving. From the 2026 tax year, any severance allowance paid above the statutory level is no longer subject to PIT on the excess, under Point h, Clause 3, Article 8 of Decree 253/2026/ND-CP.
Unemployment benefits under the Law on Employment 2025
This is the big change from 1 January 2026 that many older articles have not caught up with: the Law on Employment 2025 (No. 74/2025/QH15) replaces the Law on Employment 2013. The monthly benefit remains 60% of the average monthly salary of the last 6 months of unemployment insurance contributions, but a new cap applies: no more than 5 times the regional minimum wage of the final contribution month, equivalent to a maximum of VND 26,550,000 per month in Region 1 under the new minimum wage. Employees still file their claim within 3 months of contract termination, and benefits now start from the 11th working day after a complete filing, instead of the 16th day as before, under Clause 3, Article 39 of the Law on Employment 2025. Conditions are also relaxed for contracts under 12 months: 12 full months of unemployment insurance contributions within the 36 months before leaving.
terra BPaaS Payroll: protecting employee rights on every payslip
Most disputes over employee rights start with a miscalculated payslip: a missing night premium, the wrong overtime rate, or tax exemption rules not yet updated. For employers, each of those errors is both a fine risk under Decree 12/2022/ND-CP and a slow erosion of employee trust.
terra Payroll, delivered under the BPaaS model, helps businesses:
- Apply the correct 150%, 200%, and 300% overtime rates and night premiums under Article 98 of the Labor Code 2019, with overtime schedules prepared to the standard of Article 26 of Decree 253/2026/ND-CP so employees capture the full tax exemption.
- Stay automatically updated with the 2026 legal changes: the new regional minimum wage, the 5-bracket PIT table, and the VND 15.5 million personal deduction.
- Deliver transparent payslips to every employee through the terra platform, reducing disputes and repetitive questions for HR teams.
Contact terra for a payroll solution fully compliant with the 2026 regulations!
Conclusion
2026 brings three consecutive effective dates that shape employee rights in Vietnam: the Law on Employment 2025 from 1 January, the Law on Business Recovery and Bankruptcy 2025 from 1 March, and the Law on Personal Income Tax 2025 together with Decree 253/2026/ND-CP from 1 July. Knowing the 7 core rules on probation, working hours, overtime pay, and labor discipline, plus the two major changes on the overtime tax exemption and unemployment benefits, is the most proactive way to protect yourself at every stage of the employment relationship.
