Vietnam to Raise Minimum Wages in 2027; Social Insurance Contribution Floor Will Not Rise Automatically
Vietnam will raise regional minimum wages by VND 310,000–390,000 per month from January 1, 2027. Under the 2024 Law on Social Insurance, the floor for compulsory social insurance contributions will not rise automatically, though contributions and benefits may change if employers increase actual wages.
Vietnam will raise regional minimum wages from January 1, 2027. Under Decree No. 399/2026/NĐ-CP, monthly minimum wages across the regions will increase by VND 310,000–390,000 from the previous rates. However, under the 2024 Law on Social Insurance, an increase in regional minimum wages will not automatically raise the floor for compulsory social insurance contributions.
For employees whose wages are set by their employers, the wage used to calculate compulsory social insurance contributions is based on the agreed wage for the job or position, wage allowances, and other amounts paid regularly and consistently in each pay period. The statutory floor for the contribution wage is the reference level at the time of contribution, and the ceiling is 20 times that level; neither is determined directly by the regional minimum wage.
The new decree establishes the regional monthly minimum wage as the lowest basis for negotiating and paying wages to employees paid monthly. Employers must review employees’ wages to ensure they are no lower than the new rates from January 1, 2027. If a company raises the job or position wage in an employment contract to comply, and the increase is included in the wage used to calculate social insurance contributions, the employee’s actual contributions will rise.
When the wage used to calculate contributions rises, benefits such as sick leave, maternity and pensions that are calculated from monthly contribution wages may change accordingly. The outcome still depends on the contribution history and the calculation rules for each benefit.
Illustration of the relationship between wages used to calculate social insurance contributions and pensions.（VietVance）
Monthly pension payments depend on the benefit rate corresponding to the years of contributions and the average monthly wage used to calculate contributions over the contribution period. Changes to the contribution wage may therefore affect a worker’s pension after retirement.
Source: VietVance
