Vietnam Payroll Update: New Social & Health Insurance Contribution Ceiling from 1 July 2026

From 1 July 2026, Vietnam will implement an increase to its statutory base salary (mức lương cơ sở), resulting in a higher maximum salary cap used to calculate mandatory Social Insurance (SI) and Health Insurance (HI) contributions.

While the statutory contribution rates remain unchanged, employers and employees with higher monthly salaries will be affected by the increase in the contribution ceiling. HR, payroll, and finance teams should review their payroll systems and workforce cost projections to ensure compliance from the effective date.

What Is Changing?

Under Decree No. 161/2026/ND-CP, issued on 15 May 2026, the Vietnamese Government has increased the statutory base salary from VND 2,340,000 to VND 2,530,000 per month, effective 1 July 2026.

Under the Law on Social Insurance No. 41/2024/QH15, the monthly salary used to calculate compulsory Social Insurance contributions is subject to a maximum contribution base equal to 20 times the statutory base salary. The same statutory ceiling also applies to compulsory Health Insurance contribution calculations.

As a result, the maximum monthly contribution ceiling will increase as follows:

• Previous contribution ceiling: VND 46,800,000 per month (20 × VND 2,340,000)
• New contribution ceiling (effective 1 July 2026): VND 50,600,000 per month (20 × VND 2,530,000)

The statutory contribution rates remain unchanged. This update only increases the maximum salary on which mandatory Social Insurance and Health Insurance contributions are calculated.

Who Will Be Affected?

The revised contribution ceiling primarily affects employees whose monthly salary exceeds the previous ceiling of VND 46,800,000.

The practical impact is as follows:

• Employees earning VND 46,800,000 or below per month: No change to the contribution calculation.
• Employees earning between VND 46,800,001 and VND 50,599,999 per month: Contributions will now be calculated based on the employee’s actual monthly salary, resulting in higher statutory contributions than under the previous ceiling.
• Employees earning VND 50,600,000 or more per month: Both employer and employee Social Insurance and Health Insurance contributions will be calculated using the new maximum contribution base of VND 50,600,000.

For employers with higher-paid employees, this change will increase mandatory payroll contribution costs from 1 July 2026.

What Employers Should Do

To prepare for the upcoming changes, employers should:

• Review payroll records to identify employees earning more than VND 46,800,000 per month.
• Update payroll systems to apply the new contribution ceiling of VND 50,600,000 from 1 July 2026.
• Recalculate projected employer Social Insurance and Health Insurance costs for affected employees.
• Review workforce budgets for the second half of 2026 to account for the increased statutory contribution base.
• Communicate any changes in employee statutory deductions where applicable.

Employers should ensure payroll systems are updated before the effective date to avoid payroll inaccuracies and maintain compliance with Vietnam’s statutory social insurance requirements.

Why This Matters

Although the statutory contribution rates remain unchanged, the higher contribution ceiling will increase mandatory Social Insurance and Health Insurance obligations for employers and employees with salaries above the previous threshold.

Businesses operating in Vietnam should ensure their payroll systems, budgeting, and HR processes are updated to reflect the new statutory contribution ceiling from 1 July 2026.

How Link Compliance Can Help

Whether you are hiring your first employee in Vietnam or managing an existing workforce, Link Compliance helps businesses remain compliant with local employment legislation through our Employer of Record (EOR), Payroll, and HR Outsourcing solutions.

Our local expertise enables businesses to hire, manage, and support employees in Vietnam while ensuring compliance with changing employment laws and statutory obligations.

More information: www.linkcompliance.com | Email: info@linkcompliance.com 

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Official Government Sources:

• Government of Vietnam – Decree No. 161/2026/ND-CP, dated 15 May 2026, increasing the statutory base salary to VND 2,530,000 effective 1 July 2026.

• National Assembly of Vietnam – Law on Social Insurance No. 41/2024/QH15, governing compulsory social insurance, including the statutory contribution ceiling based on the base salary.

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Disclaimer: The information provided herein is based on publicly available sources and is intended for general guidance only. It should not be relied upon as a substitute for professional tax or legal advice. Readers are encouraged to seek independent advice specific to their circumstances.

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