The Vietnamese Government to raise the minimum regional salary from approximately 7% to 9% across 4 Regions, starting 1 January 2027. Effectively, this will increase the mandatory Unemployment Insurance contributions for both employer and employee.
On 02 November 2026, the Government issued Decree 399/2026/ND-CP on minimum regional salary level. The salary subject to unemployment insurance (“UI”) contributions is the salary stated in the employment contract, but this is capped at 20 times the minimum regional salary. Detailed changes as follows:
| Effective date | Region I | Region II | Region III | Region IV |
| 01 January 2026 | 5,310,000 | 4,730,000 | 4,140,000 | 3,700,000 |
| 01 January 2027 | 5,700,000 | 5,080,000 | 4,450,000 | 4,040,000 |
With the increase by an average of 7% to 9%, ranging from 310,000 dong (US$12.4) to 390,000 dong (US$15.6) per month, it would be the highest minimum salary increase in Vietnam’s history. The new capped salary for UI contributions will range from VND80,800,000 per month to VND114,000,000 per month (approximately USD3,232 – USD4,560 per month), depending on each region.
For employers and employees, the higher insurance contribution limits in 2027 may mean higher payroll costs and lower take-home pay for those affected. Employers’ mandatory contributions are not treated as taxable benefits for employees. Employees who are tax residents can continue to deduct their own mandatory contributions when calculating their personal income tax.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Brittany Chong
Partner
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