If you're working in Vietnam, it's essential to know how taxes and deductions from your salary work. The government regularly reviews and updates tax rates and rules.
Personal Income Tax (PIT)
Employees must pay income tax if their monthly wage exceeds the annual threshold set by the government. This threshold varies depending on whether you have registered dependents.
Remote calculates Personal Income Tax (PIT) based on your assessable income. This is your total taxable income after deducting compulsory insurance premiums, charitable and humanitarian contributions, tax-exempt amounts, and dependent reliefs (if applicable).
For example, if your salary—after deducting compulsory insurance premiums, charitable and humanitarian contributions, and other tax-exempt amounts—is at least 15.5 million VND per month (or 186 million VND per year), you are required to pay personal income tax.
If you have registered dependents, you can deduct 6.2 million VND per month for each dependent. In this case, you would start paying personal income tax only if your salary exceeds, for example, 21.7 million VND per month.
Personal Income Tax exemptions (effective July 1, 2026)
Under Decree No. 253/2026/ND-CP, certain payments are exempt from personal income tax:
- The premium or higher-rate portion of night shift and overtime pay, above your standard day-rate wage, is exempt from personal income tax, provided the overtime hours and working conditions comply with Vietnamese labor law limits. The standard portion of your pay for those hours remains taxable.
- Cash payouts for unused annual leave are exempt from personal income tax only when paid upon termination or resignation. Payouts for unused leave made to active employees who remain with the company are fully taxable.
Income Tax Rates
Your income is taxed at progressive rates, ranging from 5% to 35%, depending on how much you earn. If you are a tax resident in Vietnam, your worldwide income is subject to Vietnamese personal income tax, regardless of where it's paid or received.
Social, Health, and Unemployment Insurance (SHUI)
In Vietnam, you are required to contribute to Social, Health, and Unemployment Insurance (SHUI). Remote withholds a portion of your salary and contributes it to these insurance programs on your behalf.
For 2026, the contribution rates are as follows:
- Social Insurance: 8%
- Health Insurance: 1.5%
- Unemployment Insurance: 1%
The SI-HI contributions are capped at 20 times the statutory base salary. Effective July 1, 2026, Vietnam's statutory base salary increased from 2,340,000 VND to 2,530,000 VND per month under Decree No. 161/2026/ND-CP, issued May 15, 2026. As a result, the SI-HI contribution cap increased from 46,800,000 VND to 50,600,000 VND per month. This change doesn't affect the contribution rates or your contractual salary. It only raises the maximum salary used to calculate SI-HI contributions.
If your SI-HI-contributable salary is 46,800,000 VND or below, this change doesn't affect your contributions. If your contributable salary is between 46,800,000 VND and 50,600,000 VND, your contribution increases only on the portion above 46,800,000 VND. If your contributable salary is 50,600,000 VND or higher, your monthly contribution increases by up to 361,000 VND, and your employer's or the customer's monthly contribution increases by up to 855,000 VND, including the applicable Trade Union fee.
The UI contribution is capped at 20 times the regional salary, which is currently set at 106,200,000 VND.
See also: Social Insurance changes for fixed monthly allowances in Vietnam
Trade Union Funds
Trade union contributions are paid by employers, so employees don't need to worry about this deduction from their salary.
Benefits in Kind (BIK)
If an employer offers additional benefits, such as private health insurance, these are considered benefits in kind. Additional salary deductions may apply for these benefits.
Example of salary structure in 2026:
Let's consider an example: In Jan 2026, the regional salary increased to 5,310,000 VND, and effective July 1, 2026, the statutory base salary increased to 2,530,000 VND, raising the SI-HI contribution cap to 50,600,000 VND. For an employee earning a monthly salary of 110,460,000 VND (about 4,200 USD), here's a breakdown of their deductions:
| Contribution type | Before Jan 2026 (VND) | From Jan 2026 (VND) | From July 2026 (VND) | Increase (VND) |
|---|---|---|---|---|
| Social Insurance (8%) | 3,744,000 | 3,744,000 | 4,048,000 | 304,000 |
| Health Insurance (1.5%) | 702,000 | 702,000 | 759,000 | 57,000 |
| Unemployment Insurance (1%) | 992,000 | 1,062,000 | 1,062,000 | 70,000 |
| Trade Union | 0 | 0 | 0 | 0 |
On the other hand, the employer's or customer's contributions increase as follows:
| Contribution type | Before Jan 2026 (VND) | From Jan 2026 (VND) | From July 2026 (VND) | Increase (VND) |
|---|---|---|---|---|
| Social Insurance (17.5%) | 8,190,000 | 8,190,000 | 8,855,000 | 665,000 |
| Health Insurance (3%) | 1,404,000 | 1,404,000 | 1,518,000 | 114,000 |
| Unemployment Insurance (1%) | 992,000 | 1,062,000 | 1,062,000 | 70,000 |
| Trade Union | 936,000 | 936,000 | 1,012,000 | 76,000 |
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