Vietnam SHUI Contributions: What Employers Need to Know in 2026

Vietnam social insurance is becoming increasingly critical for business owners and employers to master as the economy continues to grow. This complexity is particularly evident in Vietnam’s employee insurance system, which includes various types of insurance collectively known as SHUI – including social insurance (SI), health insurance (HI), unemployment insurance (UI).

This guide explains Vietnam’s social insurance requirements in 2026, including contribution rates, employer obligations, coverage for foreign employees and key leave entitlements, so businesses can manage payroll and employee benefits more clearly.

Key Takeaways

• SHUI contributions are mandatory for both Vietnamese and eligible foreign employees, covering social, health, and unemployment insurance (UI only for locals). 

• Social insurance is a significant payroll obligation for employers. For Vietnamese employees, employer SHUI contributions can total 21.5% of the contribution salary, while trade union contributions may apply separately.

• Foreign employees meeting contract and permit conditions receive full social insurance benefits, including pensions, maternity leave, and accident compensation.

Payroll and Social Insurance Obligations in Vietnam

 Social Insurance Contributions 

Under the 2024 Law on Social Insurance, compulsory social insurance rules have applied since 1 July 2025. In 2026, employers need to account for the applicable social, health and unemployment insurance contribution rates when managing payroll.

*Unemployment insurance applies exclusively to local Vietnamese employees.
**The minimum/maximum cap refers to the lowest/highest amount on which the percentage will
be calculated.

Minimum Wage Requirements in Vietnam

From 1 January 2026, Vietnam’s regional minimum wages are governed by Decree 293/2025/NĐ-CP. The monthly minimum wage depends on the location where the employer operates, ranging from VND 5,310,000 in Region I to VND 3,700,000 in Region IV.

What does social insurance cover?

Social insurance provides employees with various benefits, such as sick leave, maternity leave, compensation for work-related injuries or occupational illnesses, retirement pensions, and death benefits. Health insurance enables employees to access medical check-ups and both inpatient and outpatient care at approved healthcare facilities.

Unemployment insurance, which replaces traditional severance pay, offers financial support based on the duration of contributions made by both the employee and their former employer. The monthly unemployment benefit equals 60% of the employee’s average salary during their final six months of work

Trade Union Funds

According to Article 23, Decision 1908/QĐ-TLĐ and the updated Trade Union Law 2024 effective July 1, 2025, the contributions to trade union funds are as follows:

• Employer Contribution: Companies are required to contribute 2% of the total payroll for both Vietnamese and foreign employees to the trade union fund. This contribution is fully paid by the employer.

• Employee Contribution: Employees who are trade union members generally contribute 0.5% of the salary used for compulsory social insurance contributions, subject to the applicable cap. This rate has applied since 1 July 2025 under Decision 61/QĐ-TLĐ.

The 2024 Trade Union Law also grants foreign employees with labor contracts of 12 months or longer the right to join grassroots trade unions, enhancing their participation in workplace representation.

Personal Income Tax

Under Vietnam’s Personal Income Tax Law No. 109/2025/QH15, employment income is taxed based on the individual’s tax residency status:

• Tax residents: progressive rates of 5%, 10%, 20%, 30% and 35%, depending on taxable income

• Non-tax residents: a flat 20% tax applies to employment income earned from work performed in Vietnam.

Social Insurance for Foreign Employees in Vietnam

Under the Law on Social Insurance No. 41/2024/QH15, which takes effect on July 1, 2025, foreign nationals working in Vietnam are required to participate in compulsory social insurance if they meet the following conditions:

• They are employed by organizations in Vietnam under a labor contract with a term of at least 12 months.

• They hold a valid work permit, relevant practical license, or certificate.

This mandatory participation extends the social insurance benefits to foreign employees, allowing them to enjoy the same protections as Vietnamese workers, including:

• Maternity leave

• Sick leave

• Occupational diseases and accidents compensation

• Retirement pensions

• Death benefits

• One-time pension payment upon exiting Vietnam
  
  

Foreign staff is not eligible for mandatory social insurance in the following situations:

• Foreigners come from an overseas office due to an internal transfer.

• They have more than one employer in Vietnam. The social insurance is only applicable to their first employment, and each of the foreigner's employer is responsible for labor accident and occupational diseases insurance at 0.5%

They are in their retirement age, which is 57 for women and 61 years and 6 months for men. The statutory retirement age will become 60 for women from 2035 and 62 for men from 2028.

Paid and Unpaid Leaves for Employees in Vietnam

Regulated mainly by Vietnam’s current Labour Code and social insurance requirements.

Employers in Vietnam must provide the following paid leaves according to the latest laws:

• Annual Leave: Minimum 12 days; 14–16 days for hazardous jobs; with one additional day for every five years with the same employer. Pro-rated if less than 12 months worked.

• Public Holidays: Employees are entitled to 11 paid public holiday days each year. If a public holiday falls on a weekly rest day, a substitute day off applies. Foreign employees receive two additional paid days, one for their traditional New Year and one for their national day. Employees working on public holidays are entitled to at least 300% of their normal wage, excluding the holiday pay itself for daily-paid employees.

• Maternity & Paternity Leave: 6 months maternity leave; 5–10 days prenatal checkup; 5 days paternity leave (7 days for C-section/multiple births).

• Sick Leave: 30–60 days paid sick leave/year based on social insurance contributions.

• Marriage & Bereavement Leave: 3 days for employee’s marriage; 1 day for child’s or parent’s marriage; 3 days for death of parent, spouse, or child; 1 day for grandparent or sibling.

• Unpaid Leave: Allowed with employer consent; up to 5 days unpaid emergency leave/year protected by law (Labor Law 2025).

Conclusion

 Managing social insurance in Vietnam requires employers to stay on top of contribution rates, payroll obligations and employee entitlements. The requirements also differ between Vietnamese and foreign employees, making accurate classification and consistent payroll administration important for staying compliant and avoiding unnecessary issues. 

From social, health and unemployment insurance to trade union contributions and statutory leave, each obligation needs to be handled correctly as part of day-to-day workforce management. Ascentium supports employers with payroll, social insurance administration and ongoing HR compliance in Vietnam, helping businesses manage these requirements with greater clarity and control.

Frequently Asked Questions