In Vietnam’s fast-evolving industrial landscape, salary alone is no longer enough to gain a competitive advantage. As common practice in Vietnam, the top five benefits that matter the most to Vietnamese factory workers in 2025 include
Overtime payment and fair shift scheduling
Support for food, housing and transportation
Health coverage and safe working conditions
Tet (Lunar New Year) bonus
Additional Child Support for workers
In this article, Manpower will provide a guide on designing the most attractive benefits package to recruit and retain Vietnamese factory workers.
What are the essential benefits for Vietnamese factory workers in Vietnam?
Employee benefits refer to all non-wage compensations provided to workers in addition to their base salary. For factory workers in Vietnam, these benefits typically fall into two categories: mandatory benefits required by law and voluntary benefits offered by employers to stay competitive.
Mandatory benefits
Under Vietnam’s Labor Code, employers are legally required to provide a set of core benefits to all eligible workers. These mandatory benefits ensure minimum protection and welfare across all factory roles. According to Labor Code No. 45/2019/QH14, employers are required to provide the following mandatory benefits:
Working hours in Vietnam
Employees may work up to 8 hours/day and 48 hours/week under normal conditions.
Overtime work must not exceed 50% of the regular working hours in a day.
Hazardous conditions :For roles classified as heavy, hazardous, or toxic, employees are limited to 6 hours/day and 36 hours/week.
*Note: Currently, the Vietnamese Labor Code does not define heavy, hazardous, or toxic work conditions due to the complexity and variety of cases. To ensure your company complies with legal requirements, consult HR experts from Manpower Vietnam for professional advice.
Leave benefits for employees in Vietnam
Leave Type | Entitlement | Not |
Annual Leave | 12 paid working days/year | Increases with seniority (+1 day every 5 years) |
Public Holidays | 11 days/year | Includes full Tet (Lunar New Year) week |
Sick Leave | Up to 30 days/year | Paid by social insurance; longer for serious illness |
Maternity Leave (Paternity leave) | 24 weeks of paid leave | An additional 30 days per child for those carrying 2 or more children |
Paternity leave | 5-14 days of paid leave |
|
Insurance
Insurance is a mandatory obligation under Labor Code 2019 (Law No. 45/2019/QH14), consisting of three primary types: Social Insurance, Health Insurance, and Unemployment Insurance.
Contribution Basis: Insurance contributions are calculated based on the employee’s monthly base salary, capped at 20 times the minimum wage, currently VND 46,800,000/month (as of April 2024).
The table below classifies and lists out contribution percentages for each type of insurance
Category | SI - Retirement & Death | SI - Sickness & Maternity | SI - Occupational | UI | HI | Total Contribution |
Paid by Employees | 8% | 0% | 0% | 1% | 1.5% | 10.5% |
Paid by Employers | 14% | 3% | 0.5% | 1% | 3% | 21.5% |
*Note: SI stands for Social Insurance, UI stands for Unemployment Insurance and HI stands for Health Insurance
>>> See our full A-Z HR compliance guide to avoid missing any compulsory employee benefits.
Voluntary benefits:
Voluntary benefits are additional perks to enhance employee satisfaction and retention. These benefits go beyond the mandatory benefits and can vary widely depending on the employers.
Although voluntary benefits are not legally required, employees have high expectations for them. These play a crucial role in attracting and retaining Vietnamese factory workers. Common voluntary benefits include Tet bonus, meal vouchers, transportation allowance, company transportation, ...
Top 5 in-demand benefits for Vietnamese factory workers
In Vietnam’s industrial workforce, salary alone is no longer a sufficient retention tool. Workers today expect stability, care, and career development. Below are the five benefits that matter most to Vietnamese factory workers, along with employer strategies to deliver each effectively while maintaining cost-efficiency.
1. Overtime payment & fair scheduling
Transparent overtime policies and fair scheduling improve trust and reduce burnout. The Vietnamese labor code requires employers to pay 150% - 300% of the base salary for overtime work. The bonus rate varies based on the type of day workers perform overtime, as detailed in the table below:
Overtime hours | Overtime rate |
Working overtime on weekdays at day time | 150% |
Working overtime on weekdays at night time | 200% |
Working overtime on weekend at day time | 200% |
Working overtime on weekend at night time | 270% |
Working overtime on Tet or other public holiday at day time | 300% |
Working overtime on Tet or other public holiday at night time | 390% |
In addition to monetary bonuses, workers also want transparent overtime rules, advance notice of shift changes, and fair distribution of overtime opportunities.
Recommendations for employers:
Transparency on work hours: Establish clear shift policies and rotate overtime evenly to avoid fatigue or favoritism.
Ensure compliance with labor code on compensation, such as at least 150% of base wage for overtime work.
Reward reliability with punctuality or attendance bonuses to reinforce fairness.
2. Food, housing & transportation support
For many factory workers in Vietnam, basic living costs such as meals, rent, and commuting consume a large portion of their income. Employers support in these areas helps reduce daily financial pressure and improves employee morale, attendance, and productivity.
Recommendations for employers:
Offer accommodation support such as dormitories, free meals, or shuttle buses to reduce worker expenses.
Use allowances to boost employee satisfaction. Even a small meal or fuel voucher improves loyalty.
Bundle multiple supports, such as free lunch plus a bus pass, to create meaningful perceived value.
3. Health coverage & safe working conditions
Since the COVID-19 pandemic, health and safety have become top priorities for factory workers in Vietnam. Workers are more likely to stay with companies that actively invest in their physical well-being to create a secure, hygienic workplace environment.
Recommendations for employers:
Maintain high standards for workplace hygiene, and emergency preparedness
Conduct annual health checkups for all employees as a standard benefit
Offer additional support such as private medical insurance or accident coverage
Create clear safety protocols and encourage employee feedback through regular training and anonymous reporting systems
4. Lunar New Year (Tet) bonus
Tet bonuses, typically equal to one month's pay, are culturally expected and emotionally valued. Offering this bonus before the Lunar New Year helps improve retention and employer branding. Foreign employers looking to build a long-term plan in Vietnam should treat this as a standard retention tool, not just a perk.
Recommendations for employers:
Be transparent. Include the Tet bonus in employment contracts or internal policies to build trust.
Schedule payouts in advance. Communicate the bonus payout timeline ahead of the Lunar New Year break to build goodwill.
5. Child support for Vietnamese factory workers
To further assist workers, additional child support will be provided. Workers who are employed will receive financial assistance to cover childcare costs, such as kindergarten fees, while they are at work.
In Vietnam, many employers pay approximately 100,000 VND per child per month, typically for employees with children aged 0 to 6 years.
Recommendations for employers:
Childcare facilities: Provide on-site daycare centers or partner with local childcare providers to offer discounted rates for employees.
Flexible working hours: Implement flexible working hours or remote work options to help employees manage childcare responsibilities.
Childcare subsidies: Offer additional childcare subsidies or vouchers to further reduce the financial burden on employees.
How to design an attractive employee benefits package
Building the right benefits package is no longer optional; it’s a critical strategy for employee retention and workplace productivity. In Vietnam’s competitive labor market, factory workers are looking beyond mandatory benefits. Here are the key considerations when building an appealing benefit package to attract and develop Vietnamese factory workers.
Step 1: Understand what the worker needs. Conduct regular surveys or feedback sessions to understand what matters most, whether it’s meal support, shift flexibility, or health coverage.
Step 2: Benchmarking with industry competitors.Study leading employers in your sector or in your area to compare the whole benefits package offered, not just salary levels.
Step 3: Mix mandatory and voluntary benefits. Go beyond legal requirements by offering practical, high-impact perks like annual health checks, transport stipends, or clear promotion paths.
Step 4: Customize by role or seniority. Entry-level workers may prioritize basic living support, while long-term staff may value career development or insurance upgrades.
Step 5: Ensure transparency and consistency. Clearly communicate benefit policies to build trust and avoid misunderstandings.
Balancing employee benefits and cost-efficiency: The employer’s dilemma
Designing the perfect benefit package isn’t easy. While generous benefits help you attract and retain talent, they can also strain your budget, especially during peak production or economic downturns. If your business needs expert advice on employee benefits management, let HR consultants from Manpower Vietnam help you resolve this issue
In a dynamic market, having HR consultants from Manpower Vietnam can transform your workforce management. With 75+ years of global operations and 17+ years of recruitment experience in Vietnam, Manpower Vietnam offers data-proof and award-winning HR consulting services like Outplacement, HR Policy Consulting, Reference Check and so on. Contact Manpower Vietnam today by filling out the below form and addressing your challenge, and we will get back to you in 15 minutes during working hours.