Vietnam Salary Calculator 2026: Gross ↔ Net, Insurance and Income Tax
A reference tool for HR teams in Vietnam and for foreign companies trying to understand how Vietnamese payroll actually works. All figures in Vietnamese dong.
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How salary is calculated in Vietnam. Start from the gross salary written in the employment contract. The employee has three compulsory insurance contributions withheld — social insurance 8%, health insurance 1.5% and unemployment insurance 1%, a total of 10.5%. What remains, after subtracting a personal deduction of 15,500,000 VND per month and 6,200,000 VND for each registered dependant, is the taxable income. Personal income tax is then applied on a five-bracket progressive scale running from 5% to 35%. Whatever is left is the net salary the employee actually receives.
The employer pays more on top of the gross salary, not out of it: social insurance 17%, occupational accident and disease insurance 0.5%, health insurance 3%, unemployment insurance 1%, and a trade union fee of 2%. For a Vietnamese employee that is 23.5% above gross. For a foreign employee it is 22.5%, because foreign nationals are outside the unemployment insurance scheme.
Two separate ceilings cap these contributions, and they are not the same number — this is the single most common mistake in salary calculators. Social and health insurance stop at 50,600,000 VND per month. Unemployment insurance stops at twenty times the regional minimum wage, which differs by region.
Your inputs
Figures are for one person, one month.
The insurance ceiling changed on 1 July 2026, so the pay period decides the figure.
Advanced — if the insurance base differs from gross salary
Many companies contribute on a basic salary lower than total income. Personal income tax is still assessed on the full income.
Employee
- Gross salary
- —
- Social insurance (8%)
- —
- Health insurance (1.5%)
- —
- Unemployment insurance (1%)
- —
- Union subscription (0.5%)
- —
- Personal income tax
- —
- Net salary
- —paid to the employee
Employer pays on top
- Social insurance (17%)
- —
- Occupational accident & disease (0.5%)
- —
- Health insurance (3%)
- —
- Unemployment insurance (1%)
- —
- Trade union fee (2%)
- —
- Total cost to the company
- —gross plus employer contributions
Disclaimer: results are for reference only and are not tax, insurance or legal advice for any particular case. Actual figures can differ because of income structure, tax-exempt allowances, company policy and regulations issued after the update date above. Please verify with the tax authority, the social insurance agency, or call +84 908 636 108 and Nhan Kiet will check it with you.
Quick reference
What one employee costs in Vietnam in 2026
Region I, no dependants, not a union member, pay period from 1 July 2026. These are the outputs of the calculator above.
| Gross salary | Employee deductions | Net salary | Employer adds | Total cost | Employer % |
|---|---|---|---|---|---|
| 10,000,000 | 1,050,000 | 8,950,000 | 2,350,000 | 12,350,000 | 23.5% |
| 20,000,000 | 2,220,000 | 17,780,000 | 4,700,000 | 24,700,000 | 23.5% |
| 30,000,000 | 3,785,000 | 26,215,000 | 7,050,000 | 37,050,000 | 23.5% |
| 50,000,000 | 7,675,000 | 42,325,000 | 11,750,000 | 61,750,000 | 23.5% |
| 100,000,000 | 19,914,900 | 80,085,100 | 12,385,000 | 112,385,000 | 12.4% |
All amounts in VND per month.
The detail most calculators miss
Above a certain salary, the employer percentage falls
Look at the last column of the table above. From 10 to 50 million the employer always adds 23.5% on top of gross. At 100 million it drops to 12.4%.
That is not an error. Contributions are capped. For a pay period from 1 July 2026, social and health insurance are calculated on a base of at most 50,600,000 VND, however high the salary goes. The trade union fee follows the same capped base, so at a gross salary of 100 million it is 1,012,000 VND, not the 2,000,000 VND a flat 2% would suggest.
A calculator that multiplies 21.5% straight into the salary without applying the ceiling reports 21,500,000 VND of employer contributions at that salary. The correct figure is 12,385,000 VND. That is an overstatement of roughly 74%.
For foreign companies
Payroll for foreign employees is not the same
Foreign nationals working in Vietnam do not pay unemployment insurance. The Employment Law covers Vietnamese citizens, so that one contribution falls away for both sides. Everything else — social insurance, health insurance, occupational accident insurance and the trade union fee — is the same as for a Vietnamese employee.
A foreign national is inside the compulsory social insurance scheme when holding an employment contract of twelve months or longer with an employer in Vietnam. There are exemptions: intra-company transferees, people who have already reached retirement age when the contract is signed, and cases covered by an international agreement, such as the social security agreement between Vietnam and Korea.
| Gross salary 30,000,000 VND | Vietnamese employee | Foreign employee |
|---|---|---|
| Social insurance withheld (8%) | 2,400,000 | 2,400,000 |
| Health insurance withheld (1.5%) | 450,000 | 450,000 |
| Unemployment insurance withheld (1%) | 300,000 | 0 |
| Personal income tax | 635,000 | 665,000 |
| Net salary | 26,215,000 | 26,485,000 |
| Employer adds on top | 7,050,000 | 6,750,000 |
| Employer contribution rate | 23.5% | 22.5% |
The foreign employee pays slightly more income tax because the unemployment contribution is no longer deductible from taxable income — yet still takes home more.
Reference
Contribution rates and thresholds for 2026
| Item | Employee | Employer | Legal basis |
|---|---|---|---|
| Social insurance | 8% | 17% | Social Insurance Law 41/2024/QH15 |
| Occupational accident & disease | — | 0.5% | Decree 58/2020/ND-CP |
| Health insurance | 1.5% | 3% | Health Insurance Law, as amended |
| Unemployment insurance (Vietnamese nationals only) | 1% | 1% | Employment Law |
| Trade union fee | — | 2% | Trade Union Law 50/2024/QH15 |
| Union subscription (members only) | 0.5% | — | Decision 61/QD-TLD |
| Total | 10.5% | 23.5% | 21.5% insurance plus the 2% union fee |
Contribution ceilings — two different numbers
| Ceiling applies to | Basis | Amount per month |
|---|---|---|
| Social and health insurance | 20 × reference level 2,530,000 VND | 50,600,000 |
| Unemployment insurance — Region I | 20 × regional minimum wage | 106,200,000 |
| Unemployment insurance — Region II | 20 × regional minimum wage | 94,600,000 |
| Unemployment insurance — Region III | 20 × regional minimum wage | 82,800,000 |
| Unemployment insurance — Region IV | 20 × regional minimum wage | 74,000,000 |
The 50,600,000 VND ceiling applies to pay periods from 1 July 2026. Before that date it was 46,800,000 VND.
Personal income tax — five brackets
From tax year 2026 the schedule was cut from seven brackets to five under Personal Income Tax Law 109/2025/QH15. The second bracket fell from 15% to 10% and the third from 25% to 20%.
| Bracket | Monthly taxable income | Rate | Quick formula |
|---|---|---|---|
| 1 | Up to 10,000,000 VND | 5% | 5% × TI |
| 2 | Over 10 to 30,000,000 VND | 10% | 10% × TI − 500,000 |
| 3 | Over 30 to 60,000,000 VND | 20% | 20% × TI − 3,500,000 |
| 4 | Over 60 to 100,000,000 VND | 30% | 30% × TI − 9,500,000 |
| 5 | Over 100,000,000 VND | 35% | 35% × TI − 14,500,000 |
TI = taxable income, after insurance and personal deductions. Personal deduction 15,500,000 VND per month, plus 6,200,000 VND per dependant, under Resolution 110/2025/UBTVQH15.
The mechanics
Gross, net and the real cost of employment
What gross salary means in Vietnam
Gross salary is total income before any deduction — the figure written into the employment contract. From it, compulsory insurance of 10.5% and personal income tax are withheld before the employee is paid.
What net salary means
Net salary is what actually arrives in the bank account after insurance and tax. The formula is: net = gross − 10.5% insurance − union subscription if a member − personal income tax.
What it costs the employer
The real cost does not stop at gross salary. The employer additionally pays social insurance 17%, occupational accident insurance 0.5%, health insurance 3%, unemployment insurance 1% and the trade union fee 2%. The formula is: total cost = gross + 21.5% insurance + 2% union fee, with each percentage applied to the capped contribution base.
The order of calculation, from gross to net
- Determine the contribution base — the gross salary, floored at the regional minimum wage and capped at the applicable ceiling.
- Withhold employee insurance: 8% social, 1.5% health, 1% unemployment.
- Subtract insurance and the personal deductions from income to get taxable income.
- Apply the five-bracket progressive tax to that taxable income.
- Net salary is gross minus insurance, minus any union subscription, minus tax.
Union subscription is not deductible for income tax, and the employer trade union fee never touches the employee's pay or tax. Both are frequently modelled incorrectly.
Common questions
Questions people ask about Vietnamese payroll
At what salary does personal income tax start in Vietnam?
With no dependants, tax starts once monthly income exceeds roughly 17.3 million VND. That is the personal deduction of 15,500,000 VND plus the 10.5% insurance withheld, both of which come out before tax is assessed. Each dependant raises the threshold by 6,200,000 VND.
Do foreign employees pay social insurance in Vietnam?
Yes, when they hold an employment contract of twelve months or longer with an employer in Vietnam. They pay 8% social and 1.5% health insurance, and the employer pays 20.5%. They do not pay unemployment insurance, which applies to Vietnamese citizens only.
Must a company pay the trade union fee if it has no union?
Yes. The 2% trade union fee is owed on the payroll used as the social insurance contribution base whether or not a grassroots union exists at the company, under the Trade Union Law 50/2024/QH15.
What is the social insurance contribution ceiling in 2026?
50,600,000 VND per month for pay periods from 1 July 2026, being twenty times the reference level of 2,530,000 VND. For periods from January to June 2026 the ceiling was 46,800,000 VND.
Is the unemployment insurance ceiling the same as the social insurance one?
No, and this is the mistake most often found in salary calculators. Unemployment insurance is capped at twenty times the regional minimum wage, which is 106,200,000 VND in Region I and 74,000,000 VND in Region IV, while social and health insurance are capped at 50,600,000 VND nationwide.
Can an employer pay below the regional minimum wage?
Not for full-time work. The regional minimum wage under Decree 293/2025/ND-CP is 5,310,000 VND in Region I down to 3,700,000 VND in Region IV. Even where a lower figure is agreed, insurance remains payable on at least the regional minimum.
Legal basis
Where these figures come from
- Social Insurance Law 41/2024/QH15 — contribution rates and the twenty-times-reference-level ceiling.
- Personal Income Tax Law 109/2025/QH15 — the five-bracket schedule, applied to employment income of residents from tax year 2026.
- Resolution 110/2025/UBTVQH15 — personal deduction 15,500,000 VND per month and 6,200,000 VND per dependant.
- Decree 293/2025/ND-CP — regional minimum wages effective 1 January 2026.
- Trade Union Law 50/2024/QH15 — the 2% employer trade union fee.
- Decree 58/2020/ND-CP — occupational accident and disease insurance at 0.5%, reducible to 0.3% for qualifying employers.
Rules change. This page states what applied on 29 August 2026 and is reviewed when new instruments are issued.
Who maintains this calculator
Nhan Kiet Supplying Manpower Co., Ltd has run payroll and labour compliance in Vietnam since 2009. Tax code 0308022768, labour sub-leasing licence 15/2019/SHCM, certified to ISO 9001:2015, ISO 45001 and ISO 14001, member of the Korean Chamber of Commerce in Vietnam. We process payroll and statutory contributions for tens of thousands of workers every month, which is why the ceilings and the foreign-employee rules are modelled here rather than glossed over.
If you would rather hand the whole thing over, we run payroll outsourcing and act as the legal employer under labor compliance and EOR arrangements in Vietnam. Fees are quoted per case — call +84 908 636 108 or email trungnguyen@nhankiet.vn.