Change the Base minimum wage from 1 July 2026
Dear Valued Client,
By Decree No.161/2026/ND-CP, dated May 15th, 2026 “The new Common Minimum wage will be changed to 2,530,000 VND/month from July 1, 2026 (current value is 2,340,000 VND/month). Relating to the change of the Common Minimum wage, the maximum salary to Statutory Social Insurance (SI), Statutory Medical Insurance (MI), and Trade Union (TU) will be increased from 46,800,000 VND/month to 50,600,000 VND/month, as detailed below:
Item | Current common minimum wage (Up to June 30th 2026) (Unit: VND) | New common minimum wage (From July 01st 2026) (Unit: VND) | Increase (Unit: VND) | Increase (Unit: %) |
Common minimum wage | 2,340,000 | 2,530,000 | 190,000 | 8.00% |
Salary cap for SI (20 times the statutory pay rate) | 46,800,000 | 50,600,000 | 3,800,000 | 8.00% |
Effect to EMPLOYER
– Increased salary cost for Social Insurance (SI), Medical Insurance (MI) & Trade Union (TU) contributions for employers who have salaries larger than the current salary cap as below:
Item | Current maximum contribution (Up to June 30 2026) (Unit: VND) | New maximum contribution (From July 01 2026) (Unit: VND) | Increase (Unit: VND) | Increase (Unit: %) |
SI contribution | 8,190,000 | 8,855,000 | 665,000 | 8.00% |
MI contribution | 1,404,000 | 1,518,000 | 114,000 | 8.00% |
TU contribution | 936,000 | 1,0120,000 | 76,000 | 8.00% |
Effect to EMPLOYEE
– Increased deduction for Social Insurance (SI), Medical Insurance (MI) for employees & Trade Union (TU) contribution who have salaries larger than the current salary cap as below:
Item | Current maximum contribution (Up to June 30 2026) (Unit: VND) | New maximum contribution (From July 01 2026) (Unit: VND) | Increase (Unit: VND) | Increase (Unit: %) |
SI contribution | 3,744,000 | 4,048,000 | 304,000 | 8.00% |
MI contribution | 702,000 | 759,000 | 57,000 | 8.00% |
TU contribution | 234,000 | 253,000 | 19,000 | 8.00% |
HR professional checklist
– List of employees who need to adjust the cap of Social Insurance, Medical Insurance contributions and Trade Union contributions.
– Plan the increase of budget for salary, Social – Medical insurance – Trade Union accordingly.
– Communicate the change to your affected staff.
– Adjust the Salary cap of Social Insurance, Health Insurance & Trade Union from July 01, 2026, and make sure the payroll is updated with the new salary cap.
What do you need to do?
If you are a customer of HR2B, we are ready to help you with any query concerning this matter. Moreover, we could assist you to check your all employees who have a salary wage under the new regional minimum wage and inform you of your next action to make sure everything is done correctly and in accordance with law.
Not yet an HR2B’s client?
If you are not a client of HR2B, please call us to know what HR2B can help you with and regularly update the latest changes of the regime of the law of Vietnam.
![[HR2B Event] Payroll Outsourcing: A Costly Expense or a Long-Term Optimization Solution?](https://www.hr2b.com/wp-content/uploads/2026/03/DSC01040-scaled.jpg "[HR2B Event] Payroll Outsourcing: A Costly Expense or a Long-Term Optimization Solution?")
People have always been the most valuable asset of every organization. However, managing people effectively, transparently, and while optimizing resources...
In the context of an increasingly scarce market for high-level personnel, headhunter services have become the optimal solution for businesses...
Managing payroll services in Vietnam has become increasingly complex in 2026 due to shifting labor regulations and digital tax requirements....
Establishing a compliant payroll system is a critical requirement for businesses navigating the country’s complex labor and tax regulations in...
Many businesses face challenges in managing human resources, such as complex labor law compliance, and the difficulty of recruiting specialized...
