Vietnam Social Insurance Contributions Guide 2026

Overview — BHXH (Bảo hiểm xã hội)

Vietnam's social insurance system is a mandatory pay-as-you-go system administered by Vietnam Social Security (VSS, Bảo hiểm xã hội Việt Nam). All employees with indefinite-term or definite-term labor contracts of 1 month or more must participate. The system consists of three compulsory components: social insurance (BHXH), health insurance (BHYT), and unemployment insurance (BHTN). Combined contributions total approximately 32% of gross salary, with 10.5% paid by the employee and 21.5% by the employer. Contribution ceilings apply — the maximum salary used for contributions is capped at 36 times the statutory minimum wage per month for BHXH and BHYT.

Employee Contributions (Total ~10.5%)

Employees contribute the following percentages of their gross monthly salary:

• Retirement and Survivor Fund (Quỹ hưu trí và tử tuất): 8% — funds the state pension system (defined benefit)
• Health Insurance (BHYT — Bảo hiểm y tế): 1.5% — funds public healthcare coverage
• Unemployment Insurance (BHTN — Bảo hiểm thất nghiệp): 1% — funds unemployment benefits and job training

Total employee contribution: 10.5% of gross monthly salary. These are deducted at source by the employer. For an employee earning VND 20,000,000/month, the deduction is VND 2,100,000/month.

Employer Contributions (Total ~21.5%)

Employers contribute on behalf of each employee:

• Sickness and Maternity Fund (Quỹ ốm đau và thai sản): 3% — covers sick leave and maternity leave benefits
• Occupational Accident and Disease Fund (Quỹ tai nạn lao động, bệnh nghề nghiệp): 0.5% — covers workplace injury and occupational disease
• Retirement and Survivor Fund (Quỹ hưu trí và tử tuất): 14% — employer share of pension funding
• Health Insurance (BHYT): 3% — employer share of health insurance
• Unemployment Insurance (BHTN): 1% — employer share of unemployment insurance

Total employer contribution: 21.5% of gross monthly salary. Note: The 3% sickness/maternity and 0.5% occupational accident funds apply only to employees under labor contracts; some components may not apply to certain categories (e.g., foreign employees are exempt from BHTN).

Contribution Caps and Ceilings

Contributions are subject to maximum salary ceilings:

BHXH and BHYT cap: The maximum monthly salary used for BHXH and BHYT contributions is 20 times the statutory minimum wage (mức lương cơ sở). As of 2026, the statutory minimum wage is approximately VND 2,340,000/month, so the cap is VND 46,800,000/month. Salary above this amount is not subject to BHXH/BHYT contributions.

BHTN cap: The maximum salary for BHTN contributions is 20 times the regional minimum wage (mức lương tối thiểu vùng). For Region 1 (Hanoi, HCMC), the regional minimum wage is approximately VND 4,960,000/month, giving a cap of VND 99,200,000/month.

36-month salary cap: For lump-sum BHXH payments (one-time withdrawal), the maximum benefit calculation uses 36 months' salary as a cap on the total payout, effectively limiting the maximum social insurance benefit.

Health Insurance (BHYT) — 4.5% Combined

Health insurance is mandatory for all employees. The combined rate is 4.5% of gross salary: 1.5% from the employee and 3% from the employer. BHYT covers medical examination, treatment, prescription drugs, hospitalization, and certain preventive services at public healthcare facilities. Coverage tiers depend on the level of the healthcare facility (district, provincial, central). BHYT typically covers 80-100% of costs depending on the patient's category and the facility type. The cap for BHYT contributions is the same as BHXH (20× statutory minimum wage).

Unemployment Insurance (BHTN) — 2% Combined

Unemployment insurance applies to employees with indefinite-term or definite-term labor contracts of 3 months or more. The combined rate is 2% (1% employee + 1% employer). Benefits include unemployment allowance (60% of average insured salary, paid for 3-12 months depending on contribution period), job-seeking support, and vocational training support. Foreign employees working in Vietnam under work permits are currently exempt from BHTN contributions.

Special Categories

Foreign employees: Foreign nationals working in Vietnam under labor contracts of 1 month or more must participate in BHXH (for sickness, maternity, occupational accident, retirement, and survivor benefits) as of 2018. They are exempt from BHTN. Contributions are at the same rates as Vietnamese employees (10.5% employee, 21.5% employer) minus the BHTN component.

Part-time employees: Employees working less than full-time but with contracts of 1 month or more are still subject to full social insurance contributions, calculated on their actual salary.

Household business workers: Individuals working for household businesses (hộ kinh doanh) may not be covered by mandatory social insurance unless they have a formal labor contract.

Voluntary social insurance: Self-employed individuals and informal workers can participate in voluntary social insurance (BHXH tự nguyện), covering retirement and survivor benefits only (no sickness, maternity, or occupational accident coverage). The contribution rate is 22% of the chosen income base.

Social Insurance Benefits

• Pension (Lương hưu): Defined benefit based on years of contributions and average insured salary. Minimum 20 years for full pension. Replacement rate starts at 45% for 20 years of contributions, increasing by 2% per additional year (capped at 75%).
• Sickness benefit (Chế độ ốm đau): 75% of insured salary, paid for up to 30-60 days per year depending on the condition.
• Maternity benefit (Chế độ thai sản): 100% of insured salary for 6 months for childbirth, plus additional leave for prenatal checkups.
• Unemployment allowance (Trợ cấp thất nghiệp): 60% of average insured salary for 3-12 months.
• Occupational accident: Lump-sum or monthly allowance depending on disability level.
• Survivor allowance (Tử tuất): Lump-sum payment equal to 10 months' statutory minimum wage for funeral costs, plus monthly allowance for dependents.

FAQs

Are contributions mandatory for foreign employees?

Yes. Since December 2018, foreign employees with labor contracts of 1 month or more must participate in BHXH for most components (sickness, maternity, occupational accident, retirement, survivor). They are exempt from BHTN. The employee rate is 10.5% and employer rate is 20.5% (excluding 1% BHTN from each side).

What is the 36-month salary cap?

The 36-month salary cap refers to the maximum lump-sum BHXH payout. When an employee withdraws their social insurance in a lump sum (one-time), the calculation is capped at a maximum of 36 months' worth of contributions. This effectively limits the total payout, even for employees with many years of contributions above this threshold.

Can I withdraw BHXH in a lump sum?

Yes, under certain conditions: (1) after 1 year of leaving the workforce if you have not paid contributions for 12+ consecutive months; (2) upon reaching retirement age without sufficient years of contributions (under 20 years); (3) if you are diagnosed with a terminal illness; (4) if you emigrate abroad. The lump sum is calculated as 1.5 months' average salary per year of contribution before 2014, and 2 months per year after 2014, capped at 36 months.

How do contributions affect my pension?

Your pension (lương hưu) is calculated based on your average insured salary over the entire contribution period and the number of years contributed. The minimum pension requires 20 years of contributions. The replacement rate is 45% for 20 years, increasing by 2% per additional year, up to a maximum of 75%. Higher contributions (salary) directly result in higher pension payments.

What if my employer does not pay BHXH?

Non-payment or underpayment of social insurance is a violation of Vietnamese labor law. Employees can report violations to the local Department of Labor, Invalids and Social Affairs (Sở Lao động - Thương binh và Xã hội) or to Vietnam Social Security for investigation. Employers face fines and potential criminal liability for prolonged non-payment.

Disclaimer

This guide provides general information about Vietnamese social security contributions for the 2026 tax year. Contribution rates, caps, and regulations may change. Always consult with a qualified Vietnamese payroll advisor, accountant, or Vietnam Social Security (BHXH Việt Nam) directly for advice specific to your situation. InvestmentKit does not provide tax or legal advice.