What is EOR (Employer of Record)?
EOR is a model in which a licensed unit in Vietnam — such as Nhân Kiệt — acts as the legal employer on behalf of a foreign enterprise that has not (or does not want to) establish a legal entity here. Enterprises still have full authority to assign tasks and manage daily human resource performance; Nhân Kiệt is in charge of labor contracts, social insurance - health insurance - unemployment insurance, personal income tax (PIT) and other legal obligations.
This is a popular choice for companies that are in the market survey stage, opening a representative office, or want to hire personnel in Vietnam without setting up a company.
What does EOR cost (EOR cost / EOR fees / EOR pricing) include?
Many foreign businesses search for "EOR cost in Vietnam" or "EOR fees in Vietnam" but the actual cost component is unclear. Basically, EOR costs in Vietnam include 5 groups:
- EOR service fee — calculated per person/month, depending on location, number of employees and document complexity.
- Gross salary & allowances — according to the agreement between the business and the employee, Nhân Kiệt pays and checks monthly.
- Social insurance – Health insurance – Unemployment insurance — compulsory contribution rate according to State regulations, calculated on the salary fund.
- PIT — deducted according to the current progressive tax schedule, declared and settled by Nhân Kiệt.
- Work permit (if any) — applicable to foreign experts/managers, usually quoted separately according to documents.
Since items 2-4 depend directly on salary and headcount, actual "EOR pricing" will vary from business to business — there is no universally applicable fixed fee. The most accurate way is to send a quote request based on specific location and size.
Compare EOR with establishing a subsidiary
| Criteria | EOR | Establish a company |
|---|---|---|
| Deployment time | 3-7 business days | 1-3 months |
| Legal capital/investment license | No need | Need |
| Initial cost | Low | High |
| Stage appropriate | Market survey, small scale | Long-term, large-scale operation |
Frequently asked questions
Is EOR legal in Vietnam? Yes. Nhân Kiệt is a legal entity licensed to operate employment/labor subleasing services, fulfilling all obligations under the Labor Code.
Should small businesses use EOR? Very suitable — especially when only needing to hire 1-20 initial employees, EOR provides significant savings compared to the cost of operating a full legal entity.
How to receive an accurate EOR quote? Send location information, expected salary and number of employees via contact page or call hotline 0901 557 456, Nhân Kiệt will respond within 24 working hours.