Effective 1 July 2026, Vietnam’s monthly minimum basic salary will increase to VND2,530,000, while the monthly regional minimum salary increased to between VND3,700,000 to VND5,310,000, depending on the applicable region, from 1 January 2026. Together, these changes are expected to increase mandatory Social, Health, and Unemployment insurance contribution obligations for both employers and employees.
Minimum basic and regional salary
The salary base for Social Insurance, Health Insurance, and Unemployment Insurance (SI/HI/UI) contributions is the salary stated in the labour contract. However, this salary base is subject to a statutory cap of 20 times the minimum basic salary for SI and HI contributions, and 20 times the regional minimum salary for UI contributions.
At present, the contribution cap based on the minimum basic salary is VND2,340,000 per month (approximately USD90 per month), while prior to 1 January 2026, the contribution cap based on the regional minimum salary ranged from VND3,450,000 to VND4,960,000 per month, depending on the applicable region (approximately USD133 to USD191 per month).
Minimum basic salary
With effect from 1 July 2026, the contribution cap based on the minimum basic salary for SI and HI purposes will increase to VND50,600,000 (i.e., VND2,530,000 x 20) per month (approximately USD1,946 per month).
Minimum regional salary
With effect from 1 January 2026, the contribution cap based on the regional minimum salary for UI purposes ranges from VND74,000,000 to VND106,200,000 per month, depending on the applicable region (approximately USD2,846 to USD4,085 per month).
These changes are likely to have an immediate payroll cost impact for employers, particularly where employees’ contractual salary is already at or near the statutory contribution cap. Employees may also experience a reduction in net take-home pay because of higher mandatory insurance deductions.
From July 2026, employers may wish to reassess payroll budgets, cost projections, and employee communication plans to reflect the higher contribution thresholds. While current statutory employer contributions should not give rise to a taxable benefit for employees, employee contributions should remain deductible for Personal Income Tax purposes.
We would be pleased to assist in assessing the impact of these changes on your payroll costs and employee remuneration arrangements, as well as reviewing the related Personal Income Tax implications.
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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