Labor Regulations Update in January 2026

Law No. 109/2025/QH15 on personal income tax

On 12th October 2025, the National Assembly passed the 2025 Personal Income Tax Law – Law No. 109/2025/QH15.
Talentnet would like to summarize some key highlights related to human resources and payroll as follows:

• Family Circumstance Deduction: Increased the personal relief for individuals to VND 15.5 million/month and Increased deduction for dependents to VND 6.2 million/month.
• Progressive Tax Schedule: Reduced the progressive tax brackets from 7 levels to 5 levels and increased taxable income thresholds for each bracket.

Expansion of Tax-Exempt Income:

• Night shift and overtime wages as prescribed by law.
• Wages paid for unused leave days as prescribed by law (upon termination or job loss).
• Wages for individuals performing scientific, technological, and innovative tasks.
• Wages and salaries of foreign experts working for non-refundable ODA programs/projects, foreign non-government organizations in Vietnam; Vietnamese individuals working at United Nations representative offices in Vietnam; and individuals participating in United Nations peacekeeping forces.

Additional Tax Exemptions/Reductions:

• 5-year personal income tax exemption for wages and salaries of high-quality digital industry workforce in the following cases:
  • Income from digital industry projects in concentrated digital technology zones.
  • Income from R&D and production of key digital technology products, semiconductors, AI systems.
  • Income from training activities for digital industry workforce.
• 5-year personal income tax exemption for wages and salaries of high-tech workforce engaged in R&D of high-tech or strategic technologies listed as prioritized for investment under the law.

Healthcare and Education Expenses:

Taxpayers’ and dependents’ expenses on healthcare and education/training may be deducted from taxable income if supported by valid invoices and documents. Detailed guidance is expected to be issued by the Government.

With this new Law, Talentnet recommends reviewing and update internal policies/documents/procedures related to payroll, overtime, time sheets, leave payment policies, etc., to ensure sufficient basis for explaining new deductions or exemptions. Employers should also notify employees of the changes in the Law and internal procedures, if any.

Law No. 109/2025/QH15 will take effect from 1st July 2026. However, provisions on business income and wages/salaries of resident individuals will apply from the 2026 tax year (starting 1st January 2026).
Talentnet would like to attach Law No. 109/2025/QH15 for your reference.

Decree No. 337/2025/NĐ-CP on electronic labor contracts

On 24th December 2025, the Government issued Decree No. 337/2025/NĐ-CP regulating electronic labor contracts.

Accordingly, an electronic labor contract (ELC) is defined as a contract concluded and designed in the form of a data message in accordance with labor law and electronic transaction law, and it carries the same legal validity as a paper-based labor contract.

Effective date: The ELC takes effect from the time the last party applies its digital signature, accompanied by a timestamp, the digital signatures of the parties, and certification by the eContract service provider, unless otherwise agreed by the parties.

The electronic labor contract platform is developed by the Ministry of Home Affairs. When enterprises decide to implement ELCs, they must comply with the signing and reporting requirements under this Decree. The conclusion of ELCs must be carried out via eContract and meet the following key conditions:

• eContract system: Must ensure lawful digital signatures, identification and authentication of parties, information security and safety, data storage and retrieval, contract certification, conversion between electronic and paper formats, API connection with the electronic labor contract platform, and support for reporting and statistics as prescribed.
• Employees and employers: Must possess valid identification documents, digital signatures, and timestamps in accordance with electronic transaction law.
• eContract service providers: Must meet technical requirements, provide biometric identification, and hold a license to provide data message certification services.
• Implementation process: Contracts must be digitally signed, time-tamped, and certified on the eContract system. Within 24 hours from the time the last party signed, the eContract provider must upload the contract to the electronic labor contract platform to assign an ID.

With this new Decree, Talentnet recommends reviewing the processes and methods of using electronic labor contracts to ensure compliance with statutory requirements.

Decree No. 337/2025/NĐ-CP will take effect on 1st January 2026. However, the electronic labor contract platform must be officially operational no later than 1st July 2026; from this date, all conclusion and implementation of ELCs must comply with Decree No. 337/2025/NĐ-CP.

Talentnet attaches Decree No. 337/2025/NĐ-CP for your reference.

Decree No. 373/2025/NĐ-CP amending and supplementing certain articles of Decree No. 126/2020/NĐ-CP dated 19th October 2020, of the government detiling certain provisions of the law on tax administration

On 31st December 2025, the Government issued Decree No. 373/2025/NĐ-CP amending and supplementing certain articles of Decree No. 126/2020/NĐ-CP dated 19th October 2020, which details certain provisions of the Law on Tax Administration.
Talentnet would like to summarize some key highlights related to human resources and payroll as follows:

1. If a taxpayer has filed taxes quarterly but does not meet the conditions, they must switch to monthly filing starting from the first month of the following quarter. They must also resubmit monthly tax returns for the previous quarters and pay late payment interest as prescribed.
2. Conversion of Filing Periods applies both when the taxpayer self-detects or when the tax authority detects and issues a written request (except when discovered during on-site inspections). Taxpayers will not be administratively penalized for late submission of returns that must be resubmitted due to the change in filing period. Resubmitted monthly returns are considered replacements for the previously filed quarterly returns.
3. Personal Income Tax (PIT) Finalization for Individuals with Multiple Employers: Resident individuals with income from two or more employers must submit PIT finalization dossiers to the tax authority managing the organization that paid the largest income during the year. If there are multiple sources of equal largest income, the individual may choose one of the relevant tax authorities.
4. Incorrect Tax Authority Submission: If an individual submits the finalization dossier to the wrong tax authority, the receiving authority will assist in transferring the dossier to the competent authority for settlement.

Decree No. 373/2025/NĐ-CP will take effect on 14th February 2026.

For other details, please kindly refer to the attached Decree No. 373/2025/NĐ-CP.

Resolution No. 80-NQ/TW on the development of Vietnamese culture

On 7th January 2026, the Central Committee issued Resolution No. 80-NQ/TW on the development of Vietnamese culture, which includes the decision to designate 24th November each year as Vietnamese Culture Day.

Accordingly, the Politburo agreed that 24th November each year will be observed as “Vietnamese Culture Day”, designated as a public holiday with full salary entitlement for employees. The purpose is to enhance public access to cultural enjoyment, encourage creativity among artists, and promote a cultural and civilized lifestyle across society.

Resolution No. 80-NQ/TW takes effect from 7th January 2026.
Talentnet would like to attach Resolution No. 80-NQ/TW for your reference.

Sincerely,

Talentnet Corporation