Social Insurance & Health Insurance Contributions to Increase with New Base Salary in Vietnam

From July 1, Vietnam officially increased the base salary to VND 2.53 million per month. This adjustment not only impacts public sector wages, but also affects a wide range of social welfare schemes, including social insurance (SI), health insurance (HI), and employee benefits.

For businesses and employees alike, understanding these updates is important to ensure accurate payroll planning and compliance with labor regulations in Vietnam.

I. Higher Household Health Insurance Contributions

Although the health insurance contribution rate remains unchanged at 4.5% of the base salary, the increase in the base salary means that the actual amount payable will also rise.

Under Vietnam’s household health insurance scheme, contribution levels are calculated progressively:

• The first household member pays 100% of the contribution rate
• The second member pays 70%
• The third member pays 60%
• The fourth member pays 50%
• The fifth member pays 40%

II. Updated Monthly Health Insurance Contributions

Students and pupils who receive 50% state support will also see their monthly contribution adjusted to VND 56,925.

Meanwhile, commune-level part-time workers will continue contributing 4.5% of the base salary, with employers covering two-thirds of the amount and employees paying the remaining one-third.

III. Vietnam May Increase Health Insurance Rates Further by 2032

Vietnam’s Ministry of Health is also proposing a gradual increase in the health insurance contribution rate from the current 4.5% to 6% by 2032.

The proposal aims to strengthen the healthcare budget and support the government’s long-term goal of expanding public healthcare coverage and reducing hospital fees nationwide.

IV. Maximum Social Insurance Contribution Salary Increased

According to Vietnam’s Social Insurance Law, the salary used for compulsory social insurance contributions cannot exceed 20 times the reference salary.

With the new base salary applied from July 1:

• Minimum salary used for SI contribution: VND 2.53 million/month
• Maximum salary used for SI contribution: VND 50.6 million/month

This adjustment applies to:

• Employees under labor contracts
• Business household owners
• Enterprise managers
• Representatives of state capital
• Overseas Vietnamese workers under contract

Companies should review payroll structures to ensure SI calculations remain compliant with updated regulations.

Social Insurance Benefits Also Increased

Several social insurance benefits linked to the base salary have also been revised upward.

1. One-Time Maternity Allowance

Female employees giving birth or adopting a child are entitled to a one-time allowance equal to two times the base salary.

• Before July 1: VND 4.68 million
• From July 1: VND 5.06 million

 2. Funeral Allowance

The funeral allowance is equal to 10 times the base salary.

• Before July 1: VND 23.4 million
• From July 1: VND 25.3 million

3.  Monthly Survivorship Allowance

Dependents of deceased employees are also entitled to higher monthly support:

• Standard allowance: increased from VND 1.17 million to VND 1.265 million/month
• For dependents without caregivers: increased up to VND 1.771 million/month

V. Vietnam Continues Expanding Social Insurance Coverage

Vietnam continues to strengthen its social welfare system as participation rates steadily grow.

By the end of 2025:

• Approximately 21.5 million people are expected to participate in social insurance
• Coverage is projected to reach 45% of the working-age labor force
• Health insurance coverage already accounts for around 95% of the population

Final Thoughts

The increase in Vietnam’s base salary will have a direct impact on payroll costs, employee contributions, and welfare entitlements across both public and private sectors.

For employers, this is a good time to review payroll systems, update insurance calculations, and ensure compliance with Vietnam’s latest labor and social insurance regulations.

For employees, understanding these changes can help improve financial planning and awareness of social welfare benefits available under Vietnamese law.

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