Paying social insurance is a mandatory obligation for both employers and employees in Vietnam. Understanding the contribution rates for social insurance, health insurance, unemployment insurance, and the salary base used for insurance contributions helps businesses plan HR budgets, calculate total labor costs, and ensure compliance with applicable regulations.
This article provides an update on Vietnam social insurance contribution rates in 2026, clarifies the responsibilities of employers and employees under current regulations, and outlines key considerations for businesses when calculating monthly insurance costs for different employee groups.
2026 Social Insurance Contribution Rates for Vietnamese Employees
For Vietnamese employees working under employment contracts and subject to compulsory insurance participation, the 2026 insurance contribution rates are allocated as follows:
| Insurance Category | Employer Contribution | Employee Contribution | Total |
|---|---|---|---|
| Social Insurance — SI | 17.50% | 8% | 25.50% |
| Retirement and Survivorship Fund | 14% | 8% | 22% |
| Sickness and Maternity Fund | 3% | – | 3% |
| Occupational Accident and Disease Insurance | 0.50% | – | 0.50% |
| Unemployment Insurance — UI | 1% | 1% | 2% |
| Health Insurance — HI | 3% | 1.50% | 4.50% |
| Total | 21.50% | 10.50% | 32% |
Accordingly, for Vietnamese employees, the total compulsory insurance contribution rate is 32% of the salary used as the insurance contribution base. Of this amount, the employer contributes 21.5% and the employee contributes 10.5%.
2026 Social Insurance Contribution Rates for Foreign Employees
For foreign employees working in Vietnam who are subject to compulsory insurance participation, the applicable insurance contribution rates are as follows:
| Insurance Category | Employer Contribution | Employee Contribution | Total |
|---|---|---|---|
| Social Insurance — SI | 17.50% | 8% | 25.50% |
| Retirement and Survivorship Fund | 14% | 8% | 22% |
| Sickness and Maternity Fund | 3% | – | 3% |
| Occupational Accident and Disease Insurance | 0.50% | – | 0.50% |
| Health Insurance — HI | 3% | 1.50% | 4.50% |
| Total | 20.50% | 9.50% | 30% |
For foreign employees, the total insurance contribution rate is 30%, of which the employer contributes 20.5% and the employee contributes 9.5%. Unlike Vietnamese employees, foreign employees are not subject to unemployment insurance contributions.
Monthly Salary Used as the Insurance Contribution Base
The monthly salary used as the insurance contribution base includes:
- Salary based on the job or position;
- Salary allowances;
- Other regular additional payments agreed to be paid in each salary period.
This salary base is essential for determining the monthly insurance contributions payable by both employers and employees.
Minimum Salary Base for Insurance Contributions
The lowest salary used as the insurance contribution base must not be lower than the applicable regional minimum wage.
From January 1, 2026, Vietnam adjusts the regional minimum wages upward by an average of 7.2%.
The updated monthly regional minimum wages are as follows:
| Region | Monthly Minimum Wage |
|---|---|
| Region I | VND 5,310,000/month |
| Region II | VND 4,730,000/month |
| Region III | VND 4,140,000/month |
| Region IV | VND 3,700,000/month |
The salary used as the insurance contribution base must be at least equal to the regional minimum wage applicable to the employer’s workplace location.
Click to read more: Social Insurance in Probation period
Maximum Salary Base for Insurance Contributions
For Social Insurance and Health Insurance
The salary used as the contribution base for Social Insurance and Health Insurance is capped at 20 times the reference level.
After the base salary increases to VND 2,530,000 from July 1, 2026, this cap will increase to:
This means the maximum salary base for Social Insurance and Health Insurance contributions is VND 50,600,000/month.
For Unemployment Insurance
The salary used as the contribution base for Unemployment Insurance is capped at 20 times the regional minimum wage.
For example, for employers located in Region I, the Unemployment Insurance contribution cap is:
This means the maximum contribution base is VND 106,200,000/month for employees working in Region I.
Any portion of salary exceeding the applicable caps is excluded from insurance contribution calculations. This is an important point for businesses budgeting insurance costs in Vietnam, especially for senior managers, foreign experts, or employees with high compensation packages.
Try our Employer Cost Calculator to estimate the real Vietnam insurance cost of hiring in 2026.
Key Considerations for Employers
When planning HR budgets and calculating insurance costs in 2026, businesses should take note of the following:
- Correctly identify employees subject to compulsory Social Insurance, Health Insurance, and Unemployment Insurance.
- Distinguish between contribution rates applicable to Vietnamese employees and foreign employees.
- Check the regional minimum wage applicable to the workplace location.
- Accurately determine which income items are included in the salary used as the insurance contribution base.
- Apply the correct contribution caps for Social Insurance, Health Insurance, and Unemployment Insurance.
- Stay updated on changes to regional minimum wages, reference levels, and relevant legal regulations.
- For high-income employees, calculate the salary amount exceeding the cap separately to ensure accurate cost forecasting.
Incorrect contribution rates or salary bases may result in back payments, administrative penalties, or labor disputes. Therefore, businesses should establish a clear payroll process and regularly review salary data, employment contracts, allowances, and other additional payments.
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