Running payroll in Vietnam is more complex than most foreign-invested companies expect. Between four regional minimum wage zones, mandatory social insurance across multiple funds, personal income tax withholding, and a new Social Insurance Law taking effect mid-2026, the compliance surface is wide, frequently updated, and strictly enforced by the General Department of Taxation and the Vietnam Social Security authority (VSS — Bảo hiểm Xã hội Việt Nam, abbreviated BHXH).
This guide covers everything an FDI employer needs to know to run payroll correctly in Vietnam in 2026 — minimum wage rates, social insurance contribution rates, PIT withholding, key deadlines, and a worked gross-to-net example.
|
7.2% Min. wage increase 2026 |
23.5% Employer SI burden |
10.5% Employee SI deduction |
Last day Quarterly PIT deadline |
5 New PIT brackets 2026 |
How Vietnam payroll works — the monthly cycle
Every payroll cycle involves three parallel obligations: calculating and disbursing net salaries, withholding and remitting personal income tax (PIT), and paying contributions to the social insurance system (SI/HI/UI). Each has its own calculation base, salary cap, and filing deadline.
Calculate gross salary
Confirm the contractual gross meets the regional minimum wage floor. Apply the +7% vocational training uplift if the employee holds a certified qualification.
Deduct employee social insurance contributions
Withhold 8% SI + 1.5% HI + 1% UI from the employee’s gross (subject to salary caps). Foreign employees contribute 8% SI + 1.5% HI only — UI is exempt.
Calculate PIT withholding
Subtract personal deductions (VNĐ 15.5M/month + VNĐ 6.2M per registered dependent) from gross, then apply the 5-bracket progressive schedule. Non-residents pay a flat 20%.
Disburse net salary and issue payslip
Net = Gross − Employee SI/HI/UI − PIT. Issue a payslip (bilingual Vietnamese/English is strongly recommended for expat staff). Electronic payslips are accepted.
Remit PIT and SI contributions by deadline
PIT: by the last day of the first month of the following quarter (quarterly filers). SI/HI/UI: by the last day of the month to VSS (BHXH).
Regional minimum wages 2026 — Decree 293/2025/ND-CP
Vietnam uses a four-region system based on where the employer operates — not where the employee lives. Decree 293, effective 1 January 2026, raised all regional rates by an average of 7.2% compared to 2025.
| Region | Key areas | Monthly (VNĐ) | Hourly (VNĐ) | With vocational +7% |
|---|---|---|---|---|
| Region I | Hanoi, HCMC, Hai Phong, Da Nang (urban districts) | 5,310,000 | 25,500 | 5,681,700 |
| Region II | Provincial cities, suburban Hanoi/HCMC districts | 4,730,000 | 22,700 | 5,061,100 |
| Region III | Remaining provincial towns and districts | 4,140,000 | 19,900 | 4,429,800 |
| Region IV | Rural and mountainous areas | 3,700,000 | 17,800 | 3,959,000 |
Social insurance contribution rates 2026
Vietnam’s social insurance system (managed by VSS/BHXH) covers retirement, disability, sickness, maternity, work injury, and health insurance. Contributions are split between employer and employee, calculated on the contractual salary — capped at 20× the basic salary (VNĐ 46,800,000/month) for SI and HI, and 20× the regional minimum wage for UI.
Foreign employees — what changes
| Contribution | Vietnamese employees | Foreign employees |
|---|---|---|
| SI employer / employee | 17.5% / 8.0% | 17.5% / 8.0% |
| HI employer / employee | 3.0% / 1.5% | 3.0% / 1.5% |
| UI employer / employee | 1.0% / 1.0% | Exempt / Exempt |
| Trade Union fee (employer) | 2.0% | 2.0% |
PIT withholding in 2026 — quick reference
Full detail is in our PIT guide for expats and foreign employees. Key figures for quarterly payroll processing:
| Item | 2025 | 2026 (updated) |
|---|---|---|
| PIT brackets | 7 brackets | 5 brackets |
| Personal deduction | VNĐ 11,000,000/month | VNĐ 15,500,000/month |
| Dependent deduction | VNĐ 4,400,000/person | VNĐ 6,200,000/person |
| Top bracket threshold | Above VNĐ 80M/month | Above VNĐ 100M/month |
| Non-resident rate | Flat 20% | Flat 20% (unchanged) |
Payroll deadlines — Vietnam 2026 compliance calendar
Gross-to-net salary example — Region I Vietnamese employee, 2026
How a VNĐ 30,000,000 gross salary for a Vietnamese employee in Hanoi breaks down — no dependents, monthly filer:
| Item | Calculation | Amount (VNĐ) |
|---|---|---|
| Gross salary | — | 30,000,000 |
| Employee SI (8%) | 30,000,000 × 8% | − 2,400,000 |
| Employee HI (1.5%) | 30,000,000 × 1.5% | − 450,000 |
| Employee UI (1%) | 30,000,000 × 1% | − 300,000 |
| Pre-tax income | 30,000,000 − 3,150,000 | 26,850,000 |
| Personal deduction | — | − 15,500,000 |
| Taxable income | 26,850,000 − 15,500,000 | 11,350,000 |
| PIT (5% on first 10M + 10% on 1.35M) | 500,000 + 135,000 | − 635,000 |
| Net salary received | 26,215,000 |
The employer’s total cost for the same employee is VNĐ 37,050,000 — the gross salary plus 23.5% in SI/HI/UI and trade union contributions (7,050,000). That is a 23.5% employer premium on top of what the employee receives as gross.
Common payroll compliance mistakes for FDI employers
| Mistake | Why it happens | Penalty exposure |
|---|---|---|
| Wrong regional minimum wage | Applying the wrong region for branch location | VNĐ 30–75M fine |
| Missing vocational training uplift | Not verifying employee qualifications | Back-payment + interest |
| SI base excludes allowances | Only contributing on base salary, not total package | Back SI + fine up to VNĐ 150M |
| Foreign employees not enrolled in SI | Incorrect assumption that foreigners are exempt | Back contributions + penalties |
| PIT using old 2025 deduction rates | Payroll software not updated for Law 109/2025 | Over-withholding, refund liability |
| Missing semi-annual labor report | Overlooked deadline (June 5 / December 5) | Administrative fine |
| No payslip issued | Informal cash salary practice | Cannot evidence compliance on audit |
Running payroll for an FDI company in Vietnam?
At TrustlineAX Advisory, we manage end-to-end payroll compliance for foreign-invested companies — monthly salary calculations, PIT withholding, SI/HI/UI contributions, annual PIT finalization, and DOLISA labor reporting. We ensure your payroll is accurate, on time, and audit-ready under the latest 2026 regulations. Contact us for a free consultation.
This guide reflects Vietnam payroll regulations as of June 2026, including Decree 293/2025/ND-CP (minimum wages), Law 109/2025/QH15 (PIT), and the Social Insurance Law 2024 (Decree 158/2026/ND-CP). Regulations change frequently; please consult a qualified advisor for your specific situation.
Need end-to-end payroll management for your FDI company in Vietnam? TrustlineAX Advisory provides dedicated Payroll Services in Vietnam for foreign-invested companies — contact us for a free 30-minute consultation.