In Vietnam, social security contributions provide essential protection to employees, covering areas such as health, unemployment, and retirement. These contributions, based on an employee's gross income, are crucial for ensuring financial security in various situations, including illness, accidents, and retirement.
Important Update: July 2026 Changes to Contribution Ceiling
Effective 1 July 2026, significant changes to Vietnam's social insurance regulations will take effect under Decree No. 161/2026/NĐ-CP dated 15 May 2026.
Currently, according to Decree No. 73/2024/NĐ-CP, the maximum salary used for social insurance and health insurance contribution calculations is VND 46,800,000 per month. This amount is calculated as 20 times the statutory base salary of VND 2,340,000.
From 1 July 2026, the statutory base salary will increase from VND 2,340,000 to VND 2,530,000 per month, representing an increase of approximately 8.12%. Consequently, the maximum salary cap for social insurance and health insurance contributions will increase from VND 46,800,000 to VND 50,600,000 per month.
Impact: Employees whose monthly salary exceeds the current contribution ceiling will be subject to higher social insurance and health insurance contributions from 1 July 2026. This change will affect both employee and employer contributions.
Contribution Comparison Example
Below is an example showing the contribution changes for an employee earning above the ceiling:
Staff | At the present | From 1st July 2026 |
Employees |
|
|
Employee (10.5%) |
|
|
Social Insurance (1) | 46,800,000 × 8% = 3,744,000 VND | 50,600,000 × 8% = 4,048,000 VND |
Health Insurance (2) | 46,800,000 × 1.5% = 702,000 VND | 50,600,000 × 1.5% = 759,000 VND |
Unemployment Insurance (3)* | 106,200,000 × 1% = 1,062,000 VND | 106,200,000 × 1% = 1,062,000 VND |
TOTAL (1)+(2)+(3) | 5,508,000 VND | 5,869,000 VND |
Employer (21.5%) |
|
|
Social Insurance (4) | 46,800,000 × 17.5% = 8,190,000 VND | 50,600,000 × 17.5% = 8,855,000 VND |
Health Insurance (5) | 46,800,000 × 3% = 1,404,000 VND | 50,600,000 × 3% = 1,518,000 VND |
Unemployment Insurance (6)* | 106,200,000 × 1% = 1,062,000 VND | 106,200,000 × 1% = 1,062,000 VND |
TOTAL (4)+(5)+(6) | 10,656,000 VND | 11,435,000 VND |
* Unemployment Insurance (3) and (6) only apply to Vietnamese employees.
This adjustment will be reflected in payroll starting from July 2026. Employers should notify affected employees and update payroll systems accordingly.
Social Security Schemes and Contribution Rates
Social Insurance (SI)
Contribution Rate: 17.5% of gross income.
Maximum Salary Basis for Calculation: VND 50,600,000/month (effective 1 July 2026; previously VND 46,800,000).
Coverage: Pension, sickness, maternity, and work-related accidents.
Health Insurance (HI)
Contribution Rate: 3% of gross income.
Maximum Salary Basis for Calculation: VND 50,600,000/month (effective 1 July 2026; previously VND 46,800,000).
Coverage: Medical expenses and access to public healthcare services.
Unemployment Insurance (UI)
Contribution Rate: 1% of gross income.
Maximum Salary Basis for Calculation: VND106,200,000/month.
Coverage: Provides financial support to employees during periods of unemployment.
Trade Union Fees
Contribution Rate: 3% of gross income.
Maximum Salary Basis for Calculation: VND 50,600,000/month (effective 1 July 2026; previously VND 46,800,000).
Purpose: Supports employee benefits during national holidays and other key events.
Contribution Management and Responsibility
Calculation Basis: All contributions are calculated based on the employee's gross income, ensuring proportional deductions according to earnings.
Payment Responsibility: Employers are responsible for deducting these contributions from employees’ pay and remitting them to the relevant authorities.
These contributions serve to protect employees by offering financial support in critical situations such as unemployment, retirement, illness, or accidents. Employers must ensure that contributions are accurately calculated and paid on time to remain compliant with Vietnamese regulations and to safeguard their employees' welfare.