Increase in Minimum Wage for Social Insurance Contributions
Effective January 1, 2026, the regional minimum wage will officially increase as per Decree 293/2025/NĐ-CP. This adjustment will subsequently impact the minimum wage used to calculate mandatory social insurance contributions for employees.
According to current social insurance laws, the monthly wage used for mandatory social insurance contributions must not be lower than the regional minimum wage for workers performing the simplest jobs under normal working conditions.
Decree 293/2025/NĐ-CP adjusts the monthly minimum wage across four regions starting from January 1, 2026. Concurrently, existing social insurance laws stipulate that the monthly wage for mandatory social insurance contributions must not fall below the regional minimum wage for workers in the simplest roles under normal working conditions.
Therefore, from January 1, 2026, the minimum wage for calculating mandatory social insurance contributions will be as follows:
Region I: 5,310,000 VND/month (an increase of 350,000 VND)
Region II: 4,730,000 VND/month (an increase of 320,000 VND)
Region III: 4,140,000 VND/month (an increase of 280,000 VND)
Region IV: 3,700,000 VND/month (an increase of 250,000 VND)
In addition to raising the minimum wage for social insurance contributions, Decree 293 also adjusts the minimum hourly wage effective January 1, 2026:
Region I: 25,500 VND
Region II: 22,700 VND
Region III: 20,000 VND
Region IV: 17,800 VND
Increase in Maternity Benefits
For Female Employees
– Maternity Allowance for Female Employees Giving Birth:
Maternity benefits during a female employee’s childbirth leave are calculated according to Article 59 of the 2024 Social Insurance Law:
Benefit Amount = 100% × Average Monthly Wage for Social Insurance Contributions (6 months prior to leave) × 6 months
For Male Employees
Maternity Benefits for Male Employees
As per Article 59 of the 2024 Social Insurance Law, maternity benefits for husbands are calculated as follows:
Benefit Amount = Average Monthly Wage for Social Insurance Contributions (6 months prior to leave) ÷ 24 × Number of Leave Days
Thus, from the above formula, it is evident that as the monthly wage for social insurance contributions increases, the maternity benefit amount will also rise accordingly.
Increase in Maximum Unemployment Benefits
Effective January 1, 2026, the 2025 Employment Law will come into force, outlining the calculation of unemployment benefits in Article 38, Clause 1:
1. The monthly unemployment benefit equals 60% of the average monthly wage for unemployment insurance contributions over the last 6 months before the termination of the labor contract or employment, but must not exceed 5 times the regional minimum monthly wage announced by the Government and applied in the final month of unemployment insurance contributions.
According to this provision, the maximum monthly unemployment benefit an employee can receive will not surpass 5 times the regional minimum wage.
Therefore, when the regional minimum wage increases, the maximum unemployment benefit for employees will also be adjusted upward.
Additionally, as per Clause 2, Article 15 of Decision 595/QĐ-BHXH:
“2. Employees whose unemployment insurance contributions are based on wages determined by the employer will have their monthly unemployment insurance contributions calculated using the wage basis for mandatory social insurance contributions as specified in Clause 2, Article 6. If an employee’s monthly wage exceeds 20 times the regional minimum wage, the monthly unemployment insurance contribution will be based on 20 times the regional minimum wage.”
Thus, unemployment insurance contributions also depend on the monthly wage used for social insurance contributions. When the regional minimum wage increases, the minimum monthly wage for social insurance contributions will rise, and the minimum unemployment insurance contribution will also increase, thereby raising the unemployment benefits for employees.
Increase in Layoff Compensation
According to Article 99 of the 2019 Labor Code, employees are entitled to compensation during layoffs caused by another employee’s fault, power outages, water shortages, natural disasters, fires, dangerous epidemics, etc.
– If the layoff is due to another employee’s fault: Compensation must be at least equal to the regional minimum wage.
– If the layoff is due to power outages, water shortages, natural disasters, etc.: For the first 14 days, compensation must be at least equal to the regional minimum wage.
Therefore, when the regional minimum wage increases, the minimum layoff compensation for employees will also rise accordingly.
Who Qualifies for the Minimum Wage Increase Starting January 1, 2026?
The new minimum wage will take effect for employees under labor contracts starting January 1, 2026, six months earlier than the usual annual implementation date of July 1.
Implementing Regional Minimum Wage Increases Effective January 1, 2026
The government has outlined specific criteria for those eligible for regional minimum wage increases in Decree No. 293/2025/NĐ-CP, effective January 1, 2026.
Qualifying for Early Retirement Pension Disqualifies You from Unemployment Benefits
Unlawful termination of an employment contract or resigning while eligible for a pension disqualifies individuals from receiving unemployment benefits.
When Can Workers Receive Up to 318 Million VND in Unemployment Benefits by 2026?
Article 1, Section 39 of the 2025 Employment Law (effective January 1, 2026) outlines the entitlement, duration, timing, and application process for unemployment benefits as follows.
100% Health Insurance Premium Support for Individuals Aged 65 to 75
The Ho Chi Minh City Social Insurance Agency (BHXH TPHCM) requests all local authorities to compile a list of permanent residents aged 65 to under 75 and submit it to the local BHXH office by November 25, 2025.
