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Increase of Statutory Base Salary in Vietnam (effective from 1 July 2026)
- ASEAN Newsflash - Q3 2026
- Increase in base salary
- Higher social, health insurance and trade union contribution caps
- Impact on employers
Vietnam's statutory base salary will increase to VND 2.53 million from 1 July 2026, resulting in higher contribution ceilings for social insurance, health insurance, and trade union fees.
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Increase in base salary
Pursuant to Decree No. 161/2026/NĐ-CP and Circular No. 13/2026/TT-BNV dated 29 May 2026, the statutory base salary in Vietnam will be increased from VND 2.34 million to VND 2.53 million per month, effective from 1 July 2026.
Higher Social, Health Insurance and Trade Union Contribution Caps
The statutory base salary serves as the basis for calculating various salary-related entitlements, allowances, and social insurance obligations. As a result of this adjustment, the maximum monthly salary subject to compulsory social insurance and health insurance contributions will increase from VND 46.8 million to VND 50.6 million, equivalent to 20 times the new statutory base salary.
Impact on Employers
For employers, this change may lead to higher costs due to increased social insurance, health insurance, and trade union contributions for employees whose salaries exceed the contribution ceiling. In addition, certain social insurance benefits and statutory payments that are calculated based on the statutory base salary may also increase accordingly.
No change to unemployment insurance cap
It should be noted that the unemployment insurance contribution ceiling remains based on the regional minimum wage and is therefore not affected by this increase.
Review Payroll Calculations
Employers are recommended to review their payroll systems and update social insurance contribution calculations to ensure compliance with the new regulations effective from July 2026.