In 2026 two changes bear directly on an enterprise's insurance costs: the 2025 Employment Law takes effect on 01/01/2026 (adjusting unemployment insurance), and the base salary rises to VND 2,530,000 per month from 01/07/2026 under Decree 161/2026/NĐ-CP. These two changes affect the ceiling on salary used for insurance contributions. Below is a summary table for your review.
Common compulsory insurance contribution rates in 2026
| Type of insurance | Employer | Employee | Total |
|---|---|---|---|
| Social insurance: retirement and survivorship | 14% | 8% | 22% |
| Social insurance: sickness and maternity | 3% | 0% | 3% |
| Occupational accident and disease | 0,5% | 0% | 0,5% |
| Health insurance | 3% | 1,5% | 4,5% |
| Unemployment insurance | 1% | 1% | 2% |
| Total | 21,5% | 10,5% | 32% |
The 14% + 3% (social insurance) for the employer and 8% for the employee are set out in Articles 33 and 34 of the 2024 Social Insurance Law. For health insurance, the law sets a maximum of 6% (employer two-thirds, employee one-third); the rate actually collected is 4.5% under current guidance; see also the Health Insurance Law. The contribution rate for the occupational accident and disease fund may be adjusted under Government policy from time to time.
Salary used as the contribution basis: what does it include?
Under Article 31 of the 2024 Social Insurance Law, for employees whose pay is decided by the enterprise, the salary used for compulsory social insurance is the monthly salary comprising:
- The wage level for the job or title;
- Wage allowances;
- Other supplementary amounts agreed to be paid regularly and steadily in each pay period.
This is a change from the understanding before 2025 and affects how contracts are drafted. How to word allowances in the contract so the insurable salary is determined correctly will be analyzed separately in a following article.
Ceiling on salary for social and health insurance contributions from 01/07/2026
The 2024 Social Insurance Law sets the ceiling at 20 times the reference level at the time of contribution. Under Decree 158/2025/NĐ-CP, while the base salary still exists, the reference level equals the base salary.
| Time | Base salary / reference level | Contribution ceiling (20 times) |
|---|---|---|
| Before 01/07/2026 | 2.340.000 | 46.800.000 |
| From 01/07/2026 | 2.530.000 | 50.600.000 |
This means an employee whose insurable salary exceeds VND 50.6 million per month pays social and health insurance only on 50.6 million. For unemployment insurance, the 2025 Employment Law unifies the highest monthly salary used as the contribution basis at 20 times the regional monthly minimum wage, not calculated on the base salary.
Worked example: an employee with a salary of VND 20,000,000 per month
| Item | Business closed | Workers pay |
|---|---|---|
| Social insurance (17% / 8%) | 3.400.000 | 1.600.000 |
| Occupational accident and disease (0.5%) | 100.000 | 0 |
| Health insurance (3% / 1.5%) | 600.000 | 300.000 |
| Unemployment insurance (1% / 1%) | 200.000 | 200.000 |
| Total | 4.300.000 | 2.100.000 |
So the enterprise bears an additional VND 4.3 million and VND 2.1 million is deducted from the employee. Adding the 2% trade union fee (VND 400,000), the enterprise's insurance and union cost is VND 4.7 million per month. See the total cost analysis in the article on the total cost of hiring one employee.
Special situations to remember
- Unpaid leave of 14 working days or more in a month: the employee and the enterprise do not pay social insurance for that month, unless the parties agree to pay.
- In the first month of work, or the first month back, with sick leave of 14 working days or more, insurance must still be paid.
- An employee whose work is suspended but who is still paid an amount equal to or higher than the lowest contribution level contributes on the pay actually received.
- Pay that changes during the year: the enterprise must report increases and decreases promptly to avoid back-payment.
What should an enterprise review right now?
- Compare the current month's payroll against the new ceiling of VND 50.6 million.
- Check whether contracts and addenda state clearly which allowances count toward the insurable salary.
- Update the payroll software to the new reference level if it has not been adjusted since 01/07/2026.
- Keep explanatory records if any insurable salary is lower than the actual pay.
If an enterprise wants to hand over all payroll, insurance and filing work, Nhân Kiệt's outsourced payroll service will update the rates at each point in time.
Frequently asked questions
What is the total insurance rate an employer pays in 2026? The usual figure is 21.5% (social insurance 17%, occupational accident 0.5%, health insurance 3%, unemployment insurance 1%), not including the 2% trade union fee.
What is the current ceiling for social insurance contributions? 20 times the reference level. With a base salary of VND 2,530,000 from 01/07/2026, the ceiling is VND 50,600,000 per month.
Is the unemployment insurance ceiling the same as the social insurance ceiling? No. Under the 2025 Employment Law, the unemployment insurance ceiling equals 20 times the regional monthly minimum wage.
Must an employee on a full month of unpaid leave pay social insurance? If the unpaid leave is 14 working days or more in the month, social insurance is not payable for that month, unless the parties agree to pay.
The rates and ceilings above were correct at the time of writing (10/2026). Enterprises should check the latest notices from the insurance authority before filing.