Decree No. 161/2026/ND-CP regulates the Statutory Basic Salary at VND 2.53 million , effective July 1, 2026, marking an approximate 8% rise. The policy also adjusts insurance contribution caps, setting the maximum monthly salary for social insurance, health insurance and trade union fee at VND 50.6 million, the old level of VND 46.8 million.
Although the statutory basic salary primarily applies to state-sector employees, including officials, civil servants, public employees, and armed forces personnel, the increase also has important implications for private-sector businesses. The statutory pay rate serves as the benchmark for calculating caps and contribution thresholds under Vietnam’s mandatory labor contribution system. Under Vietnam’s labor regulations, the maximum salary used for calculating compulsory social insurance and health insurance contributions is capped at 20 times the statutory basic salary.
Following the new decree, the new capped salary level for contribution purposes will rise accordingly: from VND 46.8million to 50.6million. Employees whose salaries exceed the new threshold may also see higher payroll deductions for mandatory insurance contributions.
VIETNAM MANUAL TEAM, JUL2026