Total social insurance burden hits 32% of gross salary in Vietnam—you pay 21.5% as the employer, employees contribute 10.5%—under the 2024 Social Insurance Law (Law 41/2024/QH15) and implementing regulations effective January 2026. For FDI companies planning 2026 budgets, the Region I minimum contribution base jumps to VND 5,310,000 (~USD 210) starting January 1, requiring payroll system recalibration before year-end per Decree 293/2025/NĐ-CP.
Vietnam maintains only a single bilateral social insurance agreement, so most expats with 12+ month contracts face compulsory social and health insurance participation. VSS audits increasingly target FDI enterprises with back-payment demands covering both employer and employee portions plus 0.03% daily late-payment interest under Law 41/2024/QH15—setup errors at company registration compound into six-figure VND liabilities within 12–18 months.
This guide covers 2026 SHUI rates, contribution floors and ceilings, and the payment deadlines that trigger most FDI compliance gaps. For the full picture of employer obligations beyond SHUI, see Vietnam employment law and HR compliance for FDI companies.
What Is Social Insurance in Vietnam?
Vietnam operates a mandatory Social/Health/Unemployment Insurance (“SHUI”) system in which most employers must participate in social insurance, health insurance, and, for eligible Vietnamese employees, unemployment insurance.
- Social Insurance funds retirement pensions, maternity leave, and occupational injury compensation.
- Health Insurance grants access to public healthcare at registered facilities.
- Unemployment Insurance provides job‑loss benefits mainly for Vietnamese employees; qualifying foreign workers typically participate in SI and HI but are generally not subject to UI under current rules.
Most employers with employees are required to contribute to SHUI regardless of company size, industry, or foreign ownership, and small businesses or startups are not automatically exempt. SHUI is one component of broader employment obligations—for the full scope including contracts, work permits, and termination rules, see Vietnam employment law and HR compliance for FDI companies.
2026 SHUI Rates: What You Actually Pay
You shoulder 21.5% of the contribution base across three mandatory programs, while your employees contribute 10.5%, per the rate structure under Law 41/2024/QH15 and its implementing guidance.
| Program | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Social Insurance | 17.5% | 8% | 25.5% |
| Health Insurance | 3% | 1.5% | 4.5% |
| Unemployment Insurance | 1% | 1% | 2% |
| Combined Total | 21.5% | 10.5% | 32% |
Non-Salaried Managers
Enterprise managers who don’t receive regular salaries—board members and legal representatives earning dividends rather than salary—face different contribution arrangements with higher employer-side rates and no corresponding employee portion, per the applicable regulations under Law 41/2024/QH15.
The contribution base covers gross salary plus fixed and regular allowances: housing, transportation, meals, and recurring bonuses recorded in the labor contract. VSS auditors scrutinize any exclusions from this base during inspections.
Employment contracts must itemize gross salary separately from allowances—lump-sum compensation without breakdown gets challenged during audits. You also need signed salary adjustment notices when pay increases occur, timesheets for overtime calculations, and allowance payment records with recipient signatures.
The documentation gap that catches most FDI companies: using net salary contracts without clearly specifying the gross amount. When employees file for benefits or you face an audit, VSS requires gross salary proof, forcing retroactive gross-up calculations that typically result in higher contribution bases than you originally planned.
Regional Minimum Wage: Your SHUI Contribution Floor
Vietnam’s regional minimum wages increase across all four regions from January 1, 2026, under Decree 293/2025/NĐ-CP, setting the floor for SHUI contribution bases.
| Region | Monthly Minimum (2026) | USD Equivalent | Min. Employer SHUI (21.5%) |
|---|---|---|---|
| Region I (Hanoi, HCMC) | VND 5,310,000 | ~USD 210 | VND 1,141,650 |
| Region II | VND 4,710,000 | ~USD 186 | VND 1,012,650 |
| Region III | VND 4,120,000 | ~USD 163 | VND 885,800 |
| Region IV | VND 3,690,000 | ~USD 146 | VND 793,350 |
Paying below regional minimums during inspections triggers administrative penalties under the applicable sanctioning decree, and VSS recalculates contributions using the regional floor retroactively.
For an FDI company in Ho Chi Minh City, the minimum salary and SHUI contribution base for each eligible employee is at least VND 5,310,000 (~USD 210) from January 1, 2026.
The 2026 regional minimum wage increase affects more than SHUI floors—see Vietnam’s 2026 minimum wage rates and employer compliance impact for full regional breakdowns and overtime multiplier changes.
For detailed gross-to-net salary calculations and true total employment costs including PIT withholding, see employer payroll costs and gross-to-net calculation guide.
The Reference Level Ceiling That Caps High Earners
The “Reference Level” is a government-determined benchmark—not the minimum wage, not the poverty line—used to calculate both social insurance contribution ceilings and benefit payments. It’s adjusted periodically based on consumer price index and economic growth.
The Reference Level sits at VND 2,340,000 (~USD 92) per month in 2026 under the State’s base salary regulations. Contributions for social and health insurance are calculated up to a ceiling of 20 times this amount: VND 46,800,000 (~USD 1,850) per month.
Unemployment insurance uses a separate cap tied to 20 times the relevant regional minimum wage—Region I: VND 106,200,000 (~USD 4,200) per month.
What does this mean in practice? Take a local executive at your FDI company in HCMC earning VND 150,000,000 (~USD 5,950) monthly:
| Item | Employer | Employee |
|---|---|---|
| SI/HI base (capped at VND 46,800,000) | 20.5% = VND 9,594,000 | 9.5% = VND 4,446,000 |
| UI base (capped at VND 106,200,000) | 1% = VND 1,062,000 | 1% = VND 1,062,000 |
| Total monthly SHUI | VND 10,656,000 (~USD 422) | VND 5,508,000 (~USD 218) |
Although the executive earns VND 150 million, both parties only pay SI/HI on the capped base of VND 46.8 million and UI on VND 106.2 million per month.
⚠️ COMPLIANCE ALERT: The Reference Level sets the ceiling for contribution calculations. Regional minimum wage sets the floor. Using regional minimums as the ceiling instead of 20× the Reference Level causes underpayment and exposes you to VSS audit penalties.
SHUI Payment Deadlines and Budget Planning
SHUI contributions must be remitted by the last day of the month following the salary payment period, per VSS implementing instructions under Law 41/2024/QH15. VSS enforcement has tightened—late payments of even 2–3 days now trigger a 0.03% daily late-payment interest on the overdue amount under the Law. For VND 50 million (~USD 1,980) in monthly SHUI obligations, a 10-day delay costs VND 150,000 in penalties. Systematic delays across 12 months generate VND 1.8 million (~USD 71) in unnecessary expenses.
The payment process requires three steps: employee registration with VSS, monthly contribution declaration via the VSS portal, and bank transfer to designated accounts. First-time registration must happen within 30 days of employment start—miss this deadline and you owe contributions from the original start date. VSS doesn’t care when you discovered the gap; the obligation runs from day one of the employment relationship.
For budget planning, calculate your total annual SHUI obligation as: (average gross salary per employee × 32% × headcount × 12 months). A 20-person team at VND 15 million (~USD 594) average gross salary generates VND 1,152,000,000 (~USD 45,600) in annual SHUI costs. Build this into your financial projections before hiring—many FDI companies underestimate total employment cost by 25-30% when they budget on net salary alone.
Contract type and duration affect both registration deadlines and contribution scope—review Vietnam labor contract types, probation rules, and hiring compliance to align SHUI setup with contract structure.
Common Contribution Base Errors That Trigger VSS Audits
VSS audits increasingly target FDI enterprises, and back-payment demands include both employer and employee portions for the entire underpayment period. VSS treats your failure to withhold employee contributions as your liability.
Late-payment interest runs at 0.03% per day on the overdue amount under Law 41/2024/QH15, counting from the day after the official deadline. A VND 50 million (~USD 1,980) underpayment over six months generates VND 2,700,000 (~USD 107) in late fees alone. Administrative fines for incorrect contribution base calculations apply on top of back-payment and late-payment interest.
The most common violations VSS catches during FDI audits: using net salary instead of gross as the contribution base, excluding regular allowances that should be included, applying the wrong regional minimum, and failing to update bases when salaries increase. Audit indicators include sudden headcount changes, expat-heavy payrolls with inconsistent SHUI patterns, and discrepancies between your PIT filings and SHUI declarations.
Here’s the math on a real scenario. A 20-employee company underpaying by using VND 8 million as the contribution base instead of the correct VND 10 million faces: VND 600,000 monthly shortfall per employee [(VND 10M − VND 8M) × 30%].
Over six months, total underpayment hits VND 72,000,000 (~USD 2,850). Late fees at 0.03% daily for 180 days add VND 3,888,000 (~USD 154).
Total liability: VND 75,888,000 (~USD 3,004) in back-payment and penalties—before administrative fines.
Beyond SHUI, the contribution base also determines trade union fee obligations calculated on the social insurance salary base—documentation gaps in one program typically trigger reviews across all mandatory contributions. Headcount changes from improper terminations compound audit exposure—see employee termination legal grounds and severance calculation procedures for compliant separation processes.
Expat SHUI: What Most FDI Companies Get Wrong
Most FDI companies assume bilateral agreements exempt their expats from Vietnamese social insurance. Every expat holding a work permit with a contract of 12 months or longer must participate in compulsory social and health insurance at the same rates and contribution base rules as Vietnamese employees, while remaining outside unemployment insurance under current implementing rules.
For an expat earning VND 80 million (~USD 3,170) monthly, the capped contribution base means you pay VND 9,594,000 (~USD 380) in employer SI/HI—VND 168,480,000 (~USD 6,670) annually per expat position.
Since work permit status directly determines SHUI participation scope, confirm permit classification against Vietnam work permit requirements and FDI compliance procedures before setting contribution levels. Expats departing Vietnam must also coordinate SI refund timing with personal income tax finalization under the 183-day residency rules.
When Professional SHUI Administration Makes Sense
If your FDI company employs more than 5 expats, operates across multiple regions, or lacks dedicated HR compliance staff, outsourcing SHUI administration reduces audit exposure. The compliance gap that triggers most VSS audits—incorrect contribution base setup at company registration—gets eliminated when specialists handle initial configuration and monthly reconciliation.
For a 50-person team at VND 30 million (~USD 1,190) average gross salary, your annual SHUI obligations reach approximately VND 3.87 billion (~USD 153,000). At this scale, professional payroll services cost a fraction of what a single back-payment incident typically runs.
Need SHUI compliance support? We walk FDI companies through 2026 rate implementation, expat contribution setup, and VSS audit defense daily. Contact our HR advisory team at [email protected] to review your current setup and identify compliance gaps.
Legal Disclaimer: This article provides general information about Vietnam SHUI regulations current as of January 2026. Specific circumstances require professional tax and legal advice tailored to your company structure and employee mix. Regulations change frequently—verify current requirements with qualified advisors before making payroll decisions.
