Vietnam: Common Minimum Wage Update – 1 July 2026

On 15 May 2026, the Government of Vietnam issued Decree No. 161/2026/ND-CP, raising the base salary (mức lương cơ sở), which also serves as the social-insurance reference level (mức tham chiếu), from VND 2,340,000 to VND 2,530,000 per month, effective 1 July 2026.

The contribution base for compulsory Social Insurance (BHXH) and Health Insurance (BHYT) is capped at 20 times this reference level. As a result, the maximum monthly contribution base rises from VND 46,800,000 to VND 50,600,000 with effect from 1 July 2026.

This is a ceiling change only. Contribution rates are unchanged, and the new cap affects only employees whose monthly salary exceeds the current ceiling.

Impact

• Who is affected: only employees whose monthly salary exceeds VND 46,800,000. For them, both employee and employer SI and HI contributions increase from 1 July 2026. Employees earning below the ceiling are unaffected.
• Employee cost: for an employee earning at or above the new ceiling, the maximum monthly employee SI + HI contribution rises by VND 361,000 (9.5% of the VND 3,800,000 increase in the cap).
• Employer cost: the maximum monthly employer SI + HI contribution rises by VND 779,000 (20.5% of the VND 3,800,000 increase).
• Trade union: Employer trade union funding (kinh phí công đoàn, 2%) is levied on the social-insurance contribution base, so it rises with the ceiling — the maximum monthly employer contribution per employee increases from VND 936,000 to VND 1,012,000 (2% of the cap). The union member-fee cap for members (đoàn phí, 10% of the base salary) rises in parallel from VND 234,000 to VND 253,000 per month.
• Rates unchanged: Employee SI 8% and HI 1.5%; employer SI 17.5% and HI 3%. Only the ceiling on the contribution base changes.
• Unemployment Insurance not affected: The BHTN base is capped at 20 times the regional minimum wage (VND 106,200,000 in Region I), which was updated on 1 January 2026 and does not change in July.

Implementation timeline

What employers should do

Review payroll configuration for employees earning above the current ceiling and ensure the new SI and HI contribution base of VND 50,600,000 per month is applied from the July 2026 payroll cycle. We recommend that all relevant parties become familiar with the new limit ahead of the effective date. Please contact your Mercans services delivery team for any additional information regarding the implications of this change.

Legal basis: Decree No. 161/2026/ND-CP (base salary effective 1 July 2026); Law on Social Insurance No. 41/2024/QH15, Article 31 (contribution base capped at 20× the reference level); Law on Health Insurance No. 25/2008/QH12, as amended by Law No. 51/2024/QH15.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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Vietnam Payroll Update: Minimum Wage Change from 1 July 2026

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