Expanding or hiring in Vietnam can be an exciting growth move, but for many companies, the challenge starts after onboarding. Once you bring talent on board, keeping up with statutory contributions becomes one of the most complex parts of managing payroll.
Employers in Vietnam generally contribute 21.5% of an eligible Vietnamese employee’s contribution salary toward social insurance, health insurance and unemployment insurance. Employees contribute another 10.5%, bringing the combined compulsory insurance rate to 32%.
Different rules apply to foreign employees. Eligible foreign workers generally contribute 9.5%, while their employers contribute 20.5%, because unemployment insurance does not apply.
The amount payable is also affected by contribution salary definitions and statutory ceilings. From 1 July 2026, the maximum salary used to calculate social and health insurance is VND 50.6 million per month. Unemployment insurance uses a separate ceiling based on the regional minimum wage.
This guide explains the 2026 rates, salary ceilings, foreign employee rules and employer responsibilities when managing payroll in Vietnam.
Regional Minimum Wage 2026 (Updated)
Vietnam’s minimum wage is adjusted every 1 to 2 years to reflect cost-of-living changes and support fair compensation across its regions.
1. Common Minimum Wage
The common minimum wage (also known as the base salary) is used primarily to determine salary-based contributions for public sector employees and for calculating certain allowances or insurance caps.
As of July 2024, the Vietnamese government has set the common minimum wage at VND 2,340,000 million (approximately $93) per month. While this rate does not directly apply to private-sector employees, it serves as a reference point for social insurance and benefit calculations.
2. Regional Minimum Wage
For the private sector, Vietnam applies four regional minimum wage levels, depending on the economic development of each area. These wages set the minimum amount employers must pay employees working under labour contracts.
Effective 1 January 2026, the updated regional minimum wages are as follows:
| Region | Monthly minimum wage | Hourly minimum wage |
|---|---|---|
| Region I | VND 5,310,000 | VND 25,500 |
| Region II | VND 4,730,000 | VND 22,700 |
| Region III | VND 4,140,000 | VND 20,000 |
| Region IV | VND 3,700,000 | VND 17,800 |
These wage levels form the basis for calculating social insurance, health insurance, and unemployment insurance contributions, especially for employees earning lower salaries. For higher-paid employees, SI and HI contributions are capped at 20 times the common minimum wage (VND 46,800,000 per month), while UI contributions are capped at 20 times the regional minimum wage (VND 99,200,000 per month).
Key Statutory Contribution in Vietnam
In Vietnam, both employers and employees are required to contribute to mandatory social insurance programs. These contributions cover employees’ social security, health, and unemployment benefits. The total contribution rate typically amounts to around 32% of the employee’s gross salary, divided between the employer and the employee.
1. Social Insurance (SI)
Social Insurance (SI) covers benefits related to sickness, maternity, occupational accidents, retirement, and death. Employers are required to contribute 17.5% of the employee’s salary, while employees contribute 8%.
The contribution is calculated based on the employee’s monthly salary but capped at 20 times the statutory minimum wage, equivalent to VND 46.8 million per month as of 2025, though this figure may change with future government updates. Contribution Rate:
- Employer: 17.5%
- Employee: 8%
2. Health Insurance (HI)
Health Insurance (HI) helps employees and their dependents access Vietnam’s public healthcare system, covering a range of medical expenses. Employers contribute 3%, while employees contribute 1.5% of their monthly salary.
This mandatory insurance provides financial protection against healthcare costs and ensures access to necessary medical services across both public and approved private hospitals. The coverage includes medical care, medication, technical services and medical materials, inpatient bed expenses, and treatment for critical diseases.
Contribution Rate:
- Employer: 3%
- Employee: 1.5%
3. Unemployment Insurance (UI)
Unemployment Insurance (UI) provides temporary income support and job-seeking assistance when employees lose their jobs. Both employers and employees contribute 1% each. This contribution applies to Vietnamese employees with valid labour contracts, while foreign employees are generally exempt.
Contribution Rate:
- Employer: 1%
- Employee: 1%
4. Trade Union
Trade Union (TU) contributions are designed to support labour unions in representing and protecting employees’ rights. Employers are required to contribute 2% of the total payroll to the trade union fund, regardless of whether a union is established at the company. For employees, contributing to the trade union is optional.
Contribution Rate:
- Employer: 2%
- Employee: Optional
Make Statutory Contributions in Vietnam Effortless with Glints TalentHub
Managing payroll and statutory contributions in Vietnam can be time-consuming, especially when you’re juggling multiple regulations, deadlines, and employee types. A small error in calculation or delayed remittance can lead to compliance issues and unnecessary costs.
With Glints TalentHub, you can simplify it all. Our Employer of Record (EOR) and payroll management solutions handle every step of the process, from calculating social, health, and unemployment insurance to submitting reports and payments accurately on time.
That means your team stays fully compliant, your employees receive their rightful benefits, and your business can focus on what truly matters, growth and performance.
Talk to our experts today to see how Glints TalentHub can help you hire, pay, and manage teams in Vietnam seamlessly.
FAQ about Statutory Contribution in Vietnam
What is the employer contribution rate in Vietnam in 2026?
Employers generally contribute 21.5% for eligible Vietnamese employees. This consists of 17.5% for social insurance, 3% for health insurance and 1% for unemployment insurance. Trade union funding may add another 2%.
How much do employees contribute in Vietnam?
Eligible Vietnamese employees generally contribute 10.5%, consisting of 8% for social insurance, 1.5% for health insurance and 1% for unemployment insurance.
Do foreign employees pay social insurance in Vietnam?
Eligible foreign employees generally contribute 8% to social insurance and 1.5% to health insurance. Unemployment insurance normally does not apply to foreign employees.
What is the maximum social insurance salary in Vietnam in 2026?
From 1 July 2026, the maximum monthly salary used to calculate social and health insurance is VND 50.6 million.
Are statutory contributions calculated from gross salary?
Not necessarily. Contributions are calculated using the applicable contribution salary, which can include salary and certain regular allowances, subject to statutory inclusions, exclusions and ceilings.
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