Vietnam Base Salary from July 1, 2026

Jul 22, 2026

HR & Payroll

Vietnam Base Salary from July 1, 2026

From July 1, 2026, Vietnam’s statutory base salary is VND 2,530,000 per month, pursuant to Decree No. 161/2026/ND-CP dated May 15, 2026 of the Government.

The base salary is used as a reference for calculating salaries, allowances, statutory contributions, and certain benefits under Vietnamese law. This adjustment mainly applies to officials, civil servants, public employees, and other groups whose salaries or allowances are calculated based on the statutory base salary. However, employers in the private sector should also review whether the change affects their labor costs.

Table of Contents

Are employers required to increase employees’ salaries?

Under the 2019 Labor Code of Vietnam, salary is the amount paid by an employer to an employee based on the agreement in the labor contract. Employers are entitled to establish their own salary scales, payroll tables, and salary policies in compliance with the law.

Therefore, the increase in the statutory base salary from VND 2.34 million to VND 2.53 million per month does not mean that all employers are required to increase salaries for all employees.

Employers are not required to adjust salaries if they pay employees according to labor contracts, ordinary salary scales, or payroll policies that are not linked to the statutory base salary.

However, if an employer’s salary, allowance, or internal benefit policies are calculated based on the statutory base salary, the employer should review and make adjustments in accordance with the applicable agreements or internal regulations.

When may employer costs increase?

Some employers calculate certain allowances, subsidies, or internal bonuses based on a formula such as “x times the statutory base salary”.

If these items are stated in the labor contract, collective bargaining agreement, salary regulations, financial regulations, or internal policies, an increase in the statutory base salary may lead to a corresponding increase in employer costs. HR departments should therefore review all current policies to identify which items may be affected and to avoid unexpected costs or labor disputes.

Social insurance contribution cap increases to VND 50.6 million per month

Under the 2024 Law on Social Insurance, the maximum monthly salary used as the basis for compulsory social insurance contributions is 20 times the reference level. Until the statutory base salary is abolished, the reference level is determined based on the statutory base salary.

From July 1, 2026, the maximum monthly salary for compulsory social insurance contributions is calculated as follows: VND

Accordingly, the compulsory social insurance contribution cap is VND 50,600,000 per month.

This change mainly affects employers with high-income employees, such as experts, senior managers, or highly skilled employees. Employers should review employees whose social insurance contribution salary is currently at the cap and update the contribution basis where necessary.

Will trade union fees increase?

Under the 2024 Trade Union Law, as amended in 2025, employers are required to pay trade union fees equal to 2% of the salary fund used as the basis for compulsory social insurance contributions for employees.

Therefore, an increase in the statutory base salary does not automatically increase trade union fees in all cases. Trade union fees may increase only if the salary fund used for compulsory social insurance contributions increases, for example due to the higher social insurance cap or adjustments to salaries or allowances subject to social insurance contributions.

If employees’ social insurance contribution salaries remain unchanged, trade union fees will not increase solely because the statutory base salary has increased.

What should employers do?

Before the new statutory base salary takes effect, employers should:

Review labor contracts and contract appendices;
Check salary scales, payroll tables, and salary regulations;
Review allowances, subsidies, and bonuses calculated based on the statutory base salary;
Update the compulsory social insurance contribution cap to VND 50,600,000 per month;
Assess the impact on trade union fees and the overall HR budget.

Conclusion

From July 1, 2026, Vietnam’s statutory base salary increases to VND 2,530,000 per month. Employers are not automatically required to raise salaries for all employees. However, they should review any policies linked to the statutory base salary, especially allowances, internal benefits, the social insurance contribution cap, and trade union fees, to ensure legal compliance and effective HR cost management.

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