Maximum wage for Social, Health, and Unemployment Insurance
Vietnam is set to implement a 6 percent increase in the minimum wage starting from July 2024, following a unanimous decision by the National Wage Council. This adjustment represents a compromise between the 6.48 to 7.3 percent requested by the Vietnam General Confederation of Labor and the 4.5 to 5 percent suggested by the Vietnam Chamber of Commerce and Industry.
There are two kinds of minimum wages in Vietnam.
- The first type is the common minimum wage of VND 1,800,000 (US$76.6) which is used to calculate salaries for employees in state-owned organizations and enterprises, as well as to calculate the social contribution for all enterprises (i.e., the maximum social contribution is 20 times the common minimum wage).
- The second type of minimum wage is the Regional Minimum Wage used for employees in all non-state enterprises based on zones as defined by the government.
The new minumum wage in Vietnam from 01/07/2023 is 1,800,000/month. This new minumum wage is used as a basis for calculating wages, allowances, and other benefits according to the regulations of the law.
The new minimum regional wage in Vietnam applicable from 01/07/2024 is as follows:
| Current (2022) | Change (6%) | New (2024) | ||||
| Region | VND | US$ | VND | US$ | VND | US$ |
| 1 | 4,680,000 | 192.33 | 280,000 | 11.54 | 4,960,000 | 203.87 |
| 2 | 4,160,000 | 170.96 | 250,000 | 10.26 | 4,410,000 | 181.22 |
| 3 | 3,640,000 | 149.59 | 220,000 | 8.98 | 3,860,400 | 158.57 |
| 4 | 3,250,000 | 133.56 | 200,000 | 8.01 | 3,450,000 | 141.58 |
The regional minimum wage is used as a basis for calculating unimployment insurance. (i.e., the maximum unimployment contribution is 20 times the minimum regional wage)
The maximum social, health, and unemployment insurance contribution:
| Maximum insurance contribution | For Employee | For Enterprise |
| Social | 8% * 20 * 1,800,000 = VND 2,880,000 or US$123 | 17.5% * 20 * 1,800,000 = VND 6.300.000 or US$252.35 |
| Health | 1% * 20 * 1,800,000 = VND 360,000 or US$15.5. | 3% * 20 * 1,800,000 = VND 1.080.000 or US$43.26 |
| Unemployment - Region I | 1% * 20 * 4,960,000 = VND 992,000 or US$42.7. | |
| Unemployment - Region II | 1% * 20 * 4,410,000 = VND 882,000 or US$38.1. | |
| Unemployment - Region III | 1% * 20 * VND 3,860,400 = VND 772,080 or US$33.4. | |
| Unemployment - Region IV | 1% * 20 * 3,450,000 = VND 690,000 US$42.7. | |