Vietnam minimum wage 2026 (Decree 293/2025)
| Region | VND / month | ≈ USD / month |
|---|
| Region I | 5,310,000 ₫ | $205 |
| Region II | 4,730,000 ₫ | $182 |
| Region III | 4,140,000 ₫ | $160 |
| Region IV | 3,700,000 ₫ | $143 |
Urban Hanoi, Ho Chi Minh City and Hai Phong are Region I; most provincial
industrial hubs (Bac Ninh, Da Nang, Can Tho…) fall under Region II. Always
verify your exact commune in the annex of Decree 293/2025/NĐ-CP.
What exactly does the employer pay on top?
On top of gross salary, a Vietnamese employer contributes 17.5% social
insurance (incl. occupational accident fund), 3% health insurance,
1% unemployment insurance and 2% trade union fund —
23.5% in total. Two caps apply: social/health contributions are capped at a
base of 50,600,000 ₫ (20 × reference level, from 1 Jul 2026), and unemployment
insurance at 20 × the regional minimum wage. The union fund is often forgotten in
budgets — it applies whether or not your staff join the union.
13th-month salary
A 13th-month salary is not legally mandatory but is a near-universal market practice,
usually paid before Tet (Lunar New Year). It is subject to personal income tax but
exempt from social insurance contributions — which is why the annual
figure above adds one plain gross salary, not one full monthly cost.
Probation & other budget notes
- Probation pay must be at least 85% of the agreed salary (Labor Code 2019, Art. 26).
- Personal income tax uses a new 5-bracket schedule from 2026 (5% – 35%), with a personal deduction of 15,500,000 ₫/month.
- Foreign employees are exempt from unemployment insurance; their social insurance treatment differs from local staff.
- Separate from the employer's 2% union fund: union members pay personal dues of 0.5% of their insurance salary (cut from 1% since Jul 2025, cap 253,000 ₫) — deducted from wages. Many payrolls still deduct the outdated 1%; worth auditing.
- Employees with registered dependents (6,200,000 ₫/month each) take home more — the net shown here assumes none.
Vietnam labor cost at a glance (2026 rules, Region I)
What an employee actually costs your company each month, and what they take home, at common salary levels. Calculated with current 2026 social insurance and income tax parameters, including the 23.5% employer charges.
Region I (urban Hanoi, HCMC, Hai Phong), employee with no registered dependents. At higher salaries the percentage falls because social insurance contributions are capped (base ceiling 50,600,000 ₫). Annual budgets should add the near-universal 13th-month salary — roughly one extra month of gross.
Vietnam payroll & employment cost FAQ
How much does an employee really cost in Vietnam?
Roughly 123.5% of gross salary. On top of gross, the employer pays 17.5% social insurance (including the occupational accident fund), 3% health insurance, 1% unemployment insurance and a 2% trade union fund — all subject to caps. Budget one extra month of gross salary per year for the customary 13th-month payment.
What is the minimum wage in Vietnam for 2026?
From 1 January 2026 under Decree 293/2025/NĐ-CP: Region I 5,310,000 ₫, Region II 4,730,000 ₫, Region III 4,140,000 ₫, Region IV 3,700,000 ₫ per month — an average increase of 7.2%. Urban Hanoi, Ho Chi Minh City and Hai Phong are Region I.
Is the 2% trade union fund really mandatory?
Yes. Employers pay 2% of the total social-insurance salary base as the trade union fund (kinh phí công đoàn), whether or not employees join a union and whether or not a union exists at the company. It is the single most commonly missed line in foreign employers’ budgets.
Are there caps on social insurance contributions?
Two caps apply, and they use different bases — a frequent source of errors. Social and health insurance are capped at 20 × the reference level (mức tham chiếu), i.e. 50,600,000 ₫ nationwide. Unemployment insurance is capped at 20 × the regional minimum wage instead, so it differs by region: 106,200,000 ₫ in Region I down to 74,000,000 ₫ in Region IV.
What changed in Vietnamese personal income tax for 2026?
The progressive schedule was cut from 7 brackets to 5 (5%, 10%, 20%, 30%, 35%), and deductions rose to 15,500,000 ₫/month for the taxpayer and 6,200,000 ₫/month per dependent. Employer cost is unchanged, but employees take home more from the same gross — which lowers your real cost on net-salary contracts.
Is the 13th-month salary mandatory?
Not legally required, but a near-universal market practice, usually paid before Tet (Lunar New Year). It is subject to personal income tax but exempt from social insurance — so the annual budget adds one plain gross salary rather than one full monthly cost.
What are the rules on probation pay?
Probation pay must be at least 85% of the salary for the role (Labour Code 2019, Article 26) and never below the regional minimum wage. Probation contracts of one month or longer still require compulsory social insurance.
Do foreign employees pay Vietnamese social insurance?
Foreign employees contribute to social and health insurance but are exempt from unemployment insurance, so their contribution structure differs from local staff. For income tax, residents (generally 183+ days in Vietnam in a tax year) use the progressive brackets, while non-residents pay a flat 20% on Vietnam-sourced employment income.
How much is deducted from the employee side?
10.5% in compulsory insurance (8% social + 1.5% health + 1% unemployment), then progressive income tax. Union members additionally pay personal dues of 0.5% of their insurance salary — cut from 1% in July 2025, capped at 253,000 ₫/month. These personal dues are separate from the employer’s 2% union fund.
Will the minimum wage rise in 2027?
The National Wage Council agreed in July 2026 to propose an average 7.8% increase effective 1 January 2027 (Region I 5,700,000 ₫, Region II 5,080,000 ₫, Region III 4,450,000 ₫, Region IV 4,040,000 ₫). The decree has not been issued yet. The draft also reassigns some communes in five provinces to higher regions, so affected sites would face both the general increase and a zone change.