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People Advisory Services Tax Alert | May 2026 | Decree 161/2026/ND-CP on statutory base salary from 1 July 2026
On 15 May 2026, the Government issued Decree 161/2026/ND-CP (Decree 161), which sets out the statutory base salary and bonus regime applicable to public officials, civil servants, public employees and members of the armed forces.
Pursuant to Decree No. 161, the statutory base salary is set to increase to VND2,530,000 per month, effective from 1 July 2026. This represents an upward adjustment of VND190,000 per month compared to the current base salary level of VND2,340,000 per month.
Under Decree 161, effective from 1 July 2026, the statutory base salary will be increased by VND190,000 compared to the current level, as outlined below:
|
Effective date |
The statutory base salary |
Legal basic |
|---|---|---|
|
From 1 July 2024 to 30 June 2026 |
VND2,340,000 per month |
Decree 732 |
|
From 1 July 2026 onwards |
VND2,530,000 per month |
Decree 1611 |
The statutory base salary serves as the basis for determining the caps on contributions and benefit entitlements for social insurance, health insurance, and the trade union fund. Accordingly, this increase is expected to lead to corresponding upward adjustments in these contribution caps and related benefits.
The increase in the statutory base salary may give rise to several notable implications for businesses, including higher labor costs, the need to adjust compensation and benefits frameworks, updates to payroll systems and related compliance processes, etc. Businesses are therefore recommended to proactively review these impacts and implement the necessary changes in a timely manner to ensure full compliance with applicable regulations.