Probation Period Vietnam: 6 Rules Employers Often Get Wrong

Most countries treat probation as a flexible trial window. Vietnam does not. The Labour Code 2019 sets hard caps on how long probation can last, how little you can pay, and how many times you can use it. Since 10 September 2026, breaches are penalised under a new decree, Decree 283/2026/ND-CP, which replaced Decree 12/2022/ND-CP.

If you are a foreign company making your first hires in Vietnam, probation is where many compliance problems start, because habits imported from home (a standard 90-day or six-month probation, a lower "trial" salary, an informal extension) do not fit Vietnamese law. Here is what the rules require and where employers most often slip.

The legal framework in brief

Probation is governed by Articles 24–27 of the Labour Code 2019 (Law 45/2019/QH14):

• Article 24 – the parties may put probation terms inside the employment contract or sign a separate probation contract. No probation is allowed for employment contracts shorter than one month.
• Article 25 – probation length is agreed by the parties, capped by job type, and an employee may be put on probation only once per job.
• Article 26 – probation salary is agreed by the parties but must be at least 85% of the salary for that job.
• Article 27 – at the end of probation the employer must notify the employee of the result. During probation, either party may cancel the probation or employment contract without advance notice and without compensation.

Maximum probation periods

Type of role	Maximum probation
Enterprise manager (as defined in the Law on Enterprises)	180 days
Roles requiring a college degree or higher	60 days
Roles requiring intermediate vocational or technical qualifications	30 days
Other jobs	6 working days

Note the first row: 180 days applies to enterprise managers within the meaning of the Law on Enterprises, not to every senior hire. A "Head of Engineering" or "Senior Product Manager" who is not a legal enterprise manager falls into the 60-day bracket if the role requires a degree.

Six mistakes employers often make

1. Copying a 90-day or six-month probation from head office

A global template with a three- or six-month probation will exceed the 60-day cap for most professional roles. Under Decree 283/2026, keeping an employee on probation beyond the legal limits is fined at VND 2–5 million for individuals, doubled for organisations, and the employer must pay the employee the full salary for that job.

2. Paying less than 85% during probation

The 85% floor is calculated against the salary for the job, not against the regional minimum wage. Paying 80% "because it is only a trial" is a breach carrying the same fine band.

3. Extending probation or running a second one

If a manager is unsure after 60 days, the law does not allow a second probation for the same job, and an extension beyond the statutory cap is also a breach. Decide within the window: confirm the employee, or end the probation.

4. Forgetting to notify the result

The employer must tell the employee whether they passed. Failing to notify is fined at VND 500,000–1,000,000 for individuals (doubled for organisations). In practice, a short written confirmation at the end of probation protects both sides.

5. Not signing the employment contract after a successful separate probation

If you used a separate probation contract and the employee passed, you must sign an employment contract. Failure to do so is fined at VND 2–5 million (individual level) and the employer can be ordered to sign the contract.

6. Getting social insurance wrong

How you structure probation affects insurance. According to guidance on Decree 158/2025/ND-CP (which implements the Social Insurance Law 2024, in effect since 1 July 2025), employees on a separate probation contract are not subject to compulsory social insurance. Where probation is written into an employment contract of one month or longer, compulsory social, health and unemployment insurance generally applies from the start, calculated on the probation salary. Pick one structure deliberately and make sure payroll follows it.

Worked example: what an 80% probation salary costs

A company hires a software engineer in Ho Chi Minh City on a salary of VND 30,000,000/month, with a 60-day probation paid at 80%.

Item	Amount (VND)
Legal minimum probation salary (85%)	25,500,000 / month
Salary actually paid (80%)	24,000,000 / month
Shortfall vs. 85% floor over 2 months	3,000,000
Remedy: pay full job salary (100%) for 2 months – difference owed	12,000,000
Administrative fine for an organisation (2 × VND 2–5m)	4,000,000 – 10,000,000

Paying 80% instead of 85% "saves" VND 3 million. Because the remedy requires topping up to the full job salary, that saving can turn into VND 12 million in back pay plus a fine of up to VND 10 million.

If probation sits inside a one-month-plus employment contract, statutory employer contributions also apply. At 85% (VND 25,500,000), employer social, health and unemployment insurance (21.5%) comes to VND 5,482,500 per month, or VND 5,992,500 including the 2% trade union fee.

Key takeaways

• Most professional roles in Vietnam have a 60-day probation cap; 180 days is only for legal enterprise managers.
• Probation pay must be at least 85% of the job's salary.
• One probation per job: no second round and no extension past the cap.
• Notify the result in writing and, after a separate probation contract, sign the employment contract.
• Choose between a probation clause and a separate probation contract deliberately; it changes insurance treatment.
• Penalties now sit under Decree 283/2026/ND-CP, in effect from 10 September 2026, with organisations fined at twice the individual level.

How HR4U can help

If you employ in Vietnam through an Employer of Record, the probation terms, salary floor and insurance set-up are built into a compliant bilingual contract from day one. HR4U's EOR Vietnam service starts from USD 109 per employee per month, with statutory costs passed through at cost and offer-to-signed-contract in 5–7 days. Learn more about EOR in Vietnam or talk to our team.

This article is for general information and reflects rules in effect as of October 2026. It is not legal or tax advice.