Vietnam Minimum Wage and Social Insurance Caps Explained | 2026 Edition

To properly manage payroll and social insurance in Vietnam, the minimum wage and the cap on social insurance contributions are extremely important benchmarks.
In particular, the minimum wage may be revised every year, directly affecting salary structures and social insurance calculations.

In this article, we clearly explain the minimum wage system and social insurance caps in Vietnam as of 2026, specifically for Japanese companies.

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What Is the Minimum Wage in Vietnam?

Vietnam’s minimum wage is defined as a region-based minimum wage system.
Companies are legally required to pay employees at least the minimum wage applicable to their region.

It is important to note that the minimum wage is used not only for salary determination, but also as the lower limit for social insurance calculations.

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Regional Minimum Wages in 2026 (Reference)

The minimum wage is set by region (Region I to IV).
※ Actual figures may change depending on government announcements, so please always check the latest official information.

Region	Main Applicable Areas	Minimum Wage (Monthly)	Minimum Wage (Hourly)
Region I	Central Ho Chi Minh City, central Hanoi, etc.	5,310,000 VND	25,500 VND
Region II	Suburban areas of Ho Chi Minh City and Hanoi, etc.	4,730,000 VND	22,700 VND
Region III	Major provincial cities	4,140,000 VND	20,000 VND
Region IV	Rural and less-developed areas	3,700,000 VND	17,800 VND

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Key Areas Affected by the Minimum Wage

• Lower limit for base salary
• Lower limit for social insurance calculations
• Overtime pay and allowance design
• Salary clauses in labor contracts

👉 For an overview of salary structure, please also refer to “ Basic Rules of Payroll Calculation in Vietnam ”.

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What Is the Social Insurance Contribution Cap?

Vietnam’s social insurance system (SI / HI) includes a maximum contribution cap.
This means that even if an employee’s salary is high, only income up to a certain limit is used for contribution calculations.

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How the Social Insurance Cap Works

Item	Cap
Social Insurance (SI)	Minimum wage × 20
Health Insurance (HI)	Minimum wage × 20

※ The cap amount changes in line with minimum wage revisions.

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Key Points When the Minimum Wage Is Revised (2026)

• Confirm that base salaries do not fall below the minimum wage
• Recalculate social insurance minimums and caps
• Update payroll calculation logic
• Review labor contracts and internal regulations

👉 For detailed social insurance calculations, please see “ Social Insurance Eligibility and Contribution Calculation ”.

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Common Mistakes Made by Japanese Companies

• Judging minimum wage compliance based on total pay instead of base salary
• Failing to update social insurance caps after minimum wage revisions
• Misidentifying regional classifications

For real-world examples, please also refer to “ Common Payroll Pitfalls for Japanese Companies in Vietnam ”.

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Managing Minimum Wage and Social Insurance Correctly

The minimum wage and social insurance caps affect:

• Payroll calculation
• Deductions (SI / HI / UI / PIT)
• Labor contracts
• Compliance with legal revisions

They are critical elements affecting all HR and payroll operations.
With EST, companies can centralize payroll management and adapt smoothly to minimum wage revisions and social insurance cap changes.

👉 We also recommend reviewing “ How Payroll Deductions Work (SI / HI / UI / PIT) ”.