Social insurance reform Vietnam 2026 update

Starting July 1st, the adjustment to increase the base salary to 2.53 million VND/month will create changes to both the contribution and benefit levels of social insurance (BHXH) and health insurance (BHYT) for millions of workers. This will not only directly affect monthly income but also bring good news regarding long-term welfare benefits.

1. Social Insurance Contribution Rates in 2026 for Businesses and Employees

The Government issued Decree No. 161/2026 dated May 15th, stipulating the base salary and bonus regime for cadres, civil servants, public employees, and the armed forces. Accordingly, the current base salary of 2,340,000 VND/month will increase to 2,530,000 VND/month from July 1st, 2026.

Article 32 of the Social Insurance Law 2024 stipulates the new employee insurance rules Vietnam contribution rates for 2026 as follows:

The mandatory social insurance contribution rate includes:

• a) 3% of the salary used as the basis for social insurance contributions to the sickness and maternity fund;
• b) 22% of the salary used as the basis for social insurance contributions to the retirement and death benefit fund.

The voluntary social insurance contribution rate is 22% of the income used as the basis for social insurance contributions to the retirement and death benefit fund.

Based on Articles 32, 33, and 34 of the 2024 Social Insurance Law, Article 4 of Decree 58/2020/ND-CP, and Decision 595/QD-BHXH of 2017, the social insurance contribution rates for businesses and employees in 2026 are as follows:
 

New employee insurance rules Vietnam

1.1 For Vietnamese Workers

Thus, the social insurance contribution rate for Vietnamese workers in 2026 is 32%.

Including:

• Employers contribute 21.5%: Including 14% for retirement benefits, 3% for sickness and maternity benefits, 0.5% for occupational accidents and diseases; 1% for unemployment insurance and 3% for health insurance.
• Employees contribute 10.5%: Including 8% for the retirement fund; 1% for unemployment insurance and 1.5% for health insurance.

1.2 For foreign workers

Thus, the social insurance audit changes Vietnam contribution rate for foreign workers in 2026 is 30%.

2. What is the social insurance contribution rate for Vietnamese workers in 2026?

According to item (1), the mandatory Vietnam pension contribution changes employers for Vietnamese workers in 2026 is 10.5%. Therefore, the formula for calculating the mandatory social insurance contribution rate for Vietnamese workers in 2026 is determined as follows:

Social insurance contribution rate in 2026 = 10.5% x Monthly salary for mandatory social insurance contribution

In which, point b, clause 1, Article 31 of the Social Insurance Law 2024 stipulates:

• Monthly salary for mandatory social insurance contribution: Is the monthly salary, including the salary according to the job or position, salary allowances and many other supplementary amounts agreed upon and paid in each salary payment period.
• In cases where an employee stops working but continues to receive a monthly salary equal to or higher than the lowest salary used as the basis for mandatory social insurance contributions: Contributions will be based on the salary received during the period of work stoppage.

Vietnam pension contribution changes employers

3. Social insurance reform Vietnam 2026 update

Although monthly insurance premiums may fluctuate, workers are being adequately compensated by a series of significantly improved welfare benefits. The most notable and eagerly awaited benefit is the maternity allowance for female workers giving birth or those adopting children under six months old. Under the new regulations, this one-time allowance will be twice the basic salary at the time of birth or adoption, equivalent to approximately 5.06 million VND.

This is a practical financial support, providing encouragement for families during the period of welcoming a new member. Furthermore, benefits related to occupational risks are also being carefully adjusted by the government. Postpartum recovery allowances, work accident allowances, and occupational disease allowances are all closely linked to the basic salary. The salary increase will automatically trigger higher payments for these benefits, ensuring maximum benefits and providing a solid financial foundation for workers in case of health difficulties.

Another important point in this adjustment relates to long-term social security policies, especially the benefits of retirees. According to the 2024 Social Insurance Law, the reference level for calculating current benefits is directly determined by the base salary. Therefore, when the base salary officially increases from July 1st, the funeral allowance for relatives of deceased pensioners will also increase to 25.3 million VND, equivalent to 10 times the reference level in the month of death.

The above is an update from Faro Vietnam regarding the mandatory benefits reform Vietnam FDI Contribution Rates for businesses and employees in 2026. Please contact us if you have any questions

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