Statutory and legislative payroll changes in Vietnam, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Regional minimum wages rise about 7.2% under Decree 293/2025
Effective 1 Jan 2026
Decree No. 293/2025/ND-CP, effective 1 January 2026, sets monthly regional minimum wages at VND 5.31 million (Region I), 4.73 million (Region II), 4.14 million (Region III) and 3.7 million (Region IV), an increase of approximately 7.2%.
For the employer
- Adjust contracts and pay to at least the new regional minimum.
- Review unemployment insurance contributions, whose salary cap is 20 times the regional minimum wage.
For the employee
- Minimum monthly pay rises in all four regions.
In practice: Region I unemployment insurance salary cap: 20 x VND 5.31 million = VND 106.2 million.
Source: Baker McKenzie - Vietnam: Change to the regional minimum wage in 2026 · Last verified 1 October 2026
Resident employment income taxed in five brackets (5% to 35%) for 2026
2026 tax year
For 2026 Vietnam taxes resident employment income at five progressive rates: 5% up to VND 120 million a year, 10% from 120 to 360 million, 20% from 360 to 720 million, 30% from 720 to 1,200 million and 35% above 1,200 million.
For the employer
- Update PIT withholding tables to the five-bracket schedule.
For the employee
- Annual brackets equate to monthly bands of VND 10, 30, 60 and 100 million.
In practice: VND 120 million / 12 = VND 10 million per month at the 5% top of the first band.
Source: PwC Worldwide Tax Summaries - Vietnam, Individual, Taxes on personal income · Last verified 1 October 2026
Personal deduction VND 15.5 million and dependant deduction VND 6.2 million a month
2026 tax year
Resident individuals get an automatic personal deduction of VND 15.5 million per month, and VND 6.2 million per registered dependant per month.
For the employer
- Apply VND 15.5 million personal deduction in monthly withholding.
- Apply VND 6.2 million per dependant where the employee has registered qualifying dependants with documentation.
For the employee
- Register dependants with supporting documents to claim the deduction.
In practice: An employee with two registered dependants: 15.5 + 2 x 6.2 = VND 27.9 million of deductions per month.
Source: PwC Worldwide Tax Summaries - Vietnam, Individual, Deductions · Last verified 1 October 2026