Payroll compliance vietnam 2026

From January 1st, 2026, the regional minimum wage will officially increase according to Decree 293/2025/ND-CP. Simultaneously, the 2026 Social Insurance Law will tighten the method of determining wages used as the basis for social insurance contributions. This makes building and updating the 2026 salary scale an urgent task for all businesses. If the scale is built haphazardly and not in accordance with the law, businesses may face the risk of penalties, tax arrears, social insurance contributions, and labor disputes.

Conversely, a standardized salary scale system will be an effective human resource management tool, helping to minimize legal risks and optimize costs. In this article, S4B Vietnam will summarize and provide detailed guidance on how to build a payroll compliance risk management 2026 for you.

1. Is it mandatory payroll reporting vietnam to create a salary scale?

The answer is YES. According to Article 93 of the 2019 Labor Code, all businesses are required to create a salary scale. However, there is an important change compared to before:

Mandatory creation, public disclosure, and storage: Businesses must create a salary scale, consult with the employee representative organization at the workplace (if any), publicly disclose it at the workplace, and store records at the business.

Mandatory payroll reporting vietnam

No longer required to register with state agencies: From January 1, 2021, the regulation regarding submitting/registering salary scales with the District Labor, War Invalids and Social Affairs Department has been abolished. Businesses only need to present them upon request for inspection or audit.

2. Updating the 2026 payroll audit requirements for FDI companies according to Decree 293/2025/ND-CP

This is a mandatory foundation when building the 2026 salary scale. Decree 293/2025/ND-CP, effective from January 1, 2026, stipulates the minimum monthly and hourly wages as follows:

Salary calculation rules vietnam labor law:

  • Region I 5,310,000 VND/month
  • Region II 4,730,000 VND/month
  • Region III 4,140,000 VND/month
  • Region IV 3,700,000 VND/month

Important Note: The wage for a job or position paid to an employee who works full normal working hours and completes the labor quota must not be lower than the regional minimum wage stated. This is payroll audit requirements for FDI companies.

3. Salary as the basis for social insurance contributions from July 1, 2025

The 2024 Social Insurance Law and Decree 158/2025/ND-CP stipulate that the salary used as the basis for mandatory social insurance contributions includes:

The salary according to the job or position recorded in the enterprise’s salary scale.

Salary allowances to compensate for working conditions, the complexity of the job, living conditions, etc.

Other supplementary payments with a specific amount determined and paid regularly in each salary period.

This means that the salary for social insurance contributions must be closely tied to and cannot be lower than the salary in the salary scale and labor contract. Any attempt to circumvent the law by creating a salary scale lower than the actual salary paid carries the risk of retroactive collection and late payment penalties.

4. Specific Regulations for State-Owned Enterprises under Circular 06/2024/TT-BLDTBXH

For wholly state-owned limited liability companies, Circular 06/2024/TT-BLDTBXH allows:

More proactive approach in developing, amending, and issuing salary scales, salary tables, salary allowances, and applicable standards.

However, this decision must ensure that the total annual salary does not exceed the approved planned salary fund and must still comply with the regional minimum wage regulations.

Payroll compliance risk management

5. Checklist for Updating Salary Scales Based on the 2026 Regional Minimum Wage

To ensure compliance with regulations, the HR and accounting departments need to implement the following checklist starting from January 1, 2026:

  • Re-determine the minimum wage region: Re-check the company’s operating area according to the Appendix of Decree 293/2025/ND-CP.
  • Compare the entire current salary scale: Review each salary level for each job title, ensuring that no level is lower than the new regional minimum wage.
  • Adjust the salary scale if necessary: Increase the salary for level 1 and adjust the remaining levels to ensure fairness.
  • Update labor contracts: Sign contract addendums to adjust salaries for affected employees.
  • Complete legal documents: Issue the adjustment decision, solicit opinions (if any), publicly announce it, and carefully archive it for inspection purposes.

The development and updating of payroll compliance vietnam 2026 is not only a legal obligation but also a strategic step in human resource management. Compliance with the new regional minimum wage as stipulated in Decree 293/2025/ND-CP and related regulations of the 2024 Social Insurance Law is mandatory to avoid risks of administrative penalties, retroactive collection of social insurance contributions, and taxes.

By establishing a clear, fair, and legally compliant salary scale system, businesses not only protect themselves legally but also create a transparent work environment, motivating and retaining talent effectively. To outsourced payroll compliance services, please contact S4B Vietnam.

S4B Vietnam

  • Address: Unit 701B – 701C, Tower A, Handi Resco Towers, 521 Kim Ma Street, Giang Vo Ward, Hanoi, Vietnam
  • Tel: +84 24 3974 4181
  • Email: service@s4b.com.vn

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