Labor Regulations Update in May 2026

Decree No. 161/2026/ND-CP on base salary and bonus policies for officials, civil servants, public employees, and the armed forces

On May 15, 2026, the Government issued Decree No. 161/2026/ND-CP dated May 15, 2026, providing regulations on the base salary level and bonus policies applicable to officials, civil servants, public employees, and the armed forces.

Accordingly, from July 1, 2026, the base salary will be VND 2,530,000 per month, an increase of VND 190,000 compared to the previous base salary of VND 2,340,000 per month.
As the base salary increases, the ceiling for compulsory Social Insurance (SI) and Health Insurance (HI) contributions will also increase from VND 46.8 million/month to VND 50.6 million/month (equivalent to 20 times the base salary). Employees earning more than VND 46.8 million/month will therefore be required to make SI and HI contributions based on the higher ceiling.

With this increase, the maximum compulsory contribution base for Social Insurance (SI) and Health Insurance (HI) rises from VND 46,800,000/month to VND 50,600,000/month (equivalent to 20 times the base salary). At the same time, SI benefits for high-income employees earning above VND 46,800,000/month will also increase correspondingly, since SI and HI entitlements are calculated based on the salary used for SI contributions.

Decree No. 161/2026/ND-CP takes effect from July 1, 2026.

Decree No. 162/2026/ND-CP on the adjustment of pensions, social insurance allowances, and monthly benefits

On May 15, 2026, the Government issued Decree No. 162/2026/ND-CP dated May 15, 2026, on the adjustment of pensions, social insurance allowances, and monthly benefits.

Accordingly, from July 1, 2026, pensions, social insurance allowances, and monthly benefits payable in June 2026 will be increased by an additional 8% for the following groups of beneficiaries:

• Employees, officials, civil servants, public employees, military personnel, police officers, and cipher personnel currently receiving pensions.
• Commune/ward/township officials currently receiving pensions or monthly allowances.
• Persons receiving loss-of-working-capacity allowances, allowances under support policies for persons beyond working age, and elderly rubber workers.
• Commune/ward officials receiving allowances under previous policies.
• Demobilized and discharged military personnel receiving monthly allowances under policies relating to the resistance war against the United States.
• People’s Public Security personnel receive monthly allowances under similar policies.
• Military personnel, police officers, and cipher personnel who participated in wars for national defense or international missions after April 30, 1975 and are currently receiving allowances.
• Individuals receive monthly occupational accident or occupational disease allowances.
• Persons receiving monthly allowances under Article 23 of the Law on Social Insurance 2024.

In addition, individuals in the above groups who retired before January 1, 1995 and whose benefits remain below VND 3.8 million/month after the adjustment will continue to receive additional support to raise their benefit level.

Decree No. 162/2026/ND-CP takes effect from July 1, 2026.

Resolution No. 66.16/2026/NQ-CP on the reduction and simplification of administrative procedures and regulations related to production and business activities

On April 7, 2026, the Government issued Resolution No. 66.16/2026/NQ-CP on the reduction and simplification of administrative procedures and regulations related to production and business activities.

Accordingly, under Section D. Tax Sector of Appendix I.9 issued together with Resolution No. 66.16/2026/NQ-CP, taxpayers declaring Personal Income Tax (PIT) arising from salaries and wages shall conduct PIT declarations on a quarterly basis.

However, pursuant to Article 19 of Resolution No. 66.16/2026/NQ-CP, the Resolution takes effect from April 15, 2026 until the end of February 28, 2027. In cases where a Circular issued by the Ministry of Finance providing regulations on administrative procedures related to the provisions of this Resolution takes effect during the period from April 15, 2026 to before March 1, 2027, the corresponding provisions of this Resolution shall cease to be effective from the effective date of such Circular.

Decision No. 1109/QD-BTC on the announcement of amended, supplemented, and abolished administrative procedures in the fields of tax administration and customs under the management authority of the Ministry of Finance

On May 8, 2026, the Ministry of Finance issued Decision No. 1109/QD-BTC regarding the announcement of amended, supplemented, and abolished administrative procedures in the field of tax administration under the management authority of the Ministry of Finance.

Talentnet would like to summarize several key highlights related to human resources and payroll as follows:

1. Amendment and Supplementation of Administrative Procedures under the Management Authority of the Ministry of Finance: Initial Tax Registration for Individual Taxpayers and Dependents (Administrative Procedure Code: 1.008498)

Accordingly, the initial tax registration procedures for individual taxpayers and dependents shall be implemented from May 8, 2026 as follows:

a. Initial Tax Registration for Individual Taxpayers

Contents	Initial Tax Registration for Individual Taxpayers
	Registration through Income-Paying Organization	Direct Registration with Tax Authority
Tax Authority	Tax authority directly managing the income-paying organization	– Local tax authority where the individual resides (permanent or temporary residence) – Provincial/municipal tax authority where work arises in Vietnam for individuals receiving foreign-sourced income
Document	– Tax registration declaration Form No. 05-ĐK-TH-TCT prepared by the income-paying organiza – Authorization letter Form No. 41/UQ-ĐKT – Copy of valid passport for foreigners or overseas Vietnamese	For Vietnamese citizens: – Tax registration declaration Form No. 05-ĐK-TH-TCT For foreigners or overseas Vietnamese: – Tax registration declaration Form No. 05-ĐK-TH-TCT – Copy of a valid passport. In cases where the individual has registered and obtained Level-2 electronic identification, passport copies are not required if already integrated into the national database. – Copy of appointment/assignment letter issued by the employing organization in cases where foreign individuals are non-residents in Vietnam under Personal Income Tax (PIT) regulations and receive income abroad
Submission Method	Electronic submission via the General Department of Taxation’s e-portal	Direct submission to tax authority or electronic submission
Competent Authority	Provincial/municipal tax authority, local tax authority, Large Enterprise Tax Sub-Department, or E-commerce Tax Sub-Department
Processing Time	03 working days from receipt of complete dossier

b. Initial Tax Registration for Dependents for Personal Income Tax Family Deduction Purposes

Contents	Initial Tax Registration for Dependents for Personal Income Tax Family Deduction Purposes
	Registration through Income-Paying Organization	Direct Registration with Tax Authority
Tax Authority	Tax authority directly managing the income-paying organization	– Local tax authority where the individual resides (permanent or temporary residence) – Provincial/municipal tax authority where work arises in Vietnam for individuals receiving foreign-sourced income
Dossier	– Consolidated declaration Form No. 20-ĐK-TH-TCT prepared by the income-paying organization – Authorization letter Form No. 41/UQ-ĐKT – Form No. 07/XN-NPT-TNCN regarding persons directly supported, issued together with Appendix I.9 of Resolution No. 66.16/2026/NQ-CP – Supporting documents for dependents in accordance with PIT regulations. In cases where the tax authority has completed data integration with the National Population Database, these supporting documents are no longer required.	For Vietnamese dependents: – Declaration Form No. 20-ĐK-TCT – Form No. 07/XN-NPT-TNCN regarding persons directly supported issued together with Appendix I.9 of Resolution No. 66.16/2026/NQ-CP – Supporting documents for dependents in accordance with PIT regulations. In cases where the tax authority has completed integration with the National Population Database, these supporting documents are no longer required. For foreign dependents: – Declaration Form No. 20-ĐK-TCT – Copy of a valid passport or other valid legal identification documents (if no passport is available) – Form No. 07/XN-NPT-TNCN regarding persons directly supported issued together with Appendix I.9 of Resolution No. 66.16/2026/NQ-CP – Supporting documents for dependents in accordance with PIT regulations
Submission Method	Electronic submission via the General Department of Taxation’s e-portal	Direct or electronic submission
Competent Authority	Provincial/municipal tax authority, local tax authority, Large Enterprise Tax Sub-Department, or E-commerce Tax Sub-Department
Processing Time	03 working days from receipt of complete dossier

2. Quarterly Personal Income Tax Declaration for Organizations and Individuals Withholding PIT on Salaries and Wages (Administrative Procedure Code: 2.002235)

• Organizations and individuals paying income subject to PIT withholding are required to prepare and submit dossiers to the tax authority.
• Filing deadline: Quarterly tax declaration dossiers must be submitted no later than the last day of the first month of the following quarter in which the tax obligation arises. If the deadline falls on a weekend or public holiday, it shall be extended to the next working day.
• Dossier components include:
  • PIT declaration form (applicable to organizations and individuals paying salary and wage income) – Form No. 05/KK-TNCN.
  • Appendix determining the amount of PIT payable to local authorities entitled to revenue allocation – Form No. 05-I/PBT-KK-TNCN.
• Applicable entities: Organizations and individuals paying taxable salary and wage income.
• Competent authority: Provincial/municipal tax authority or local tax authority.

Decision No. 1109/QD-BTC takes effect from May 8, 2026.

Decision No. 526/QD-BNV on the announcement of amended and supplemented administrative procedures relating to foreign employees working in Vietnam under the state management authority of the Ministry of Home Affairs

On May 13, 2026, the Ministry of Home Affairs issued Decision No. 526/QD-BNV announcing amended and supplemented administrative procedures relating to foreign employees working in Vietnam in the field of employment under the state management authority of the Ministry of Home Affairs.

This Decision introduces amendments and supplements to administrative procedures in the employment sector, including two main groups:

1. Procedures relating to the issuance (Administrative Procedure Code: 1.014196), re-issuance (Code: 1.014197), and extension (Code: 1.014198) of confirmations that foreign employees are exempt from work permit requirements;
2. Procedures relating to the issuance (Administrative Procedure Code: 1.014199), re-issuance (Code: 1.014200), and extension (Code: 1.014201) of work permits for foreign employees working in Vietnam.

Accordingly, Decision No. 526/QD-BNV provides detailed guidance on implementation procedures, dossier composition and quantity for 15 different categories of foreign employees, processing timelines, fees and charges, and application forms/declarations relating to confirmations of exemption from work permit requirements; and issuance of work permits for foreign employees working in Vietnam.

Decision No. 526/QD-BNV takes effect from May 13, 2026.

Circular No. 08/2026/TT-BNV providing detailed regulations and guidance for implementation of certain articles of Decree No. 337/2025/ND-CP dated December 24, 2025 on electronic labor contracts

On May 13, 2026, the Ministry of Home Affairs officially issued Circular No. 08/2026/TT-BNV guiding the implementation of Decree No. 337/2025/ND-CP on electronic labor contracts.
The Circular provides detailed regulations and guidance on issuance of electronic labor contract identification codes (IDs); issuance, suspension, and reactivation of accounts accessing the electronic labor contract platform; connection to the electronic labor contract platform; management, use, and operation of the platform; and management, updating, exploitation, storage, and sharing of data on the platform.

Talentnet summarizes several key points related to human resources and payroll as follows:

1. Identification Code (ID) for Electronic Labor Contracts

• Each valid electronic labor contract will be assigned a unique ID that does not duplicate any other contract.
• The ID is issued only once and remains unchanged even if the contract is amended, supplemented, suspended, or terminated. Related appendices and notices shall use the same ID.
• State authorities will use the ID to manage electronic labor contract data. The issuance of the ID does not alter the execution date, contents, or validity of the contract.
• The ID may be linked with other reference codes such as administrative unit codes, employee identification numbers, or enterprise tax codes; however, these codes do not replace the contract ID.

2. Structure of the Identification Code (ID)

• The ID consists of 1 alphabetical character and 12 numeric characters.
• The alphabetical character indicates:
  • “A”: electronic contracts concluded from July 1, 2026 via the eContract system in compliance with regulations.
  • “B”: electronic contracts converted from paper contracts.
  • “C”: electronic contracts concluded before July 1, 2026.
• The 12 numeric characters include:
  • the first 2 digits: the last two digits of the year in which the ID is issued;
  • the remaining 10 digits: a random number sequence.

Circular No. 08/2026/TT-BNV takes effect from July 1, 2026.

Resolution No. 28/2026/QH16 on the development of Vietnamese culture

On April 24, 2026, the National Assembly passed Resolution No. 28/2026/QH16 on the development of Vietnamese culture.

Accordingly, the Resolution designates November 24 each year as Vietnamese Culture Day, during which employees are entitled to a paid day off.

In addition, entrance fees and service charges at public cultural and sports facilities may be exempted or reduced on Vietnamese Culture Day in accordance with decisions of competent state authorities. The Resolution also encourages public participation, especially among youth and children, in cultural activities during major national holidays and events.

Resolution No. 28/2026/QH16 takes effect from July 1, 2026.

Law No. 107/2025/QH15 – Amended law on judicial records 2025

On December 5, 2025, during the 10th Session of the 15th National Assembly, the National Assembly passed Law No. 107/2025/QH15 dated December 15, 2025 amending and supplementing a number of articles of the Law on Judicial Records.

Accordingly, the Government uniformly manages state administration of judicial records, under which the Ministry of Public Security shall be responsible before the Government for judicial record management and coordinate with the Supreme People’s Court, the Supreme People’s Procuracy, the Ministry of National Defence, and the Ministry of Justice in building, searching, and verifying information. The Professional Records Department under the Ministry of Public Security shall replace the National Judicial Records Center.

In addition, the amended law supplements provisions regarding:

• Judicial record information, including criminal records and information on prohibitions from holding positions, establishing, or managing enterprises and cooperatives.
• Judicial record databases, including personal information such as personal identification number/passport number, full name, date of birth, gender, place of birth, nationality, place of residence, and information relating to parents and spouse.
• Agencies, organizations, and individuals are not permitted to request citizens to provide judicial record information or Judicial Record Certificate No. 1, unless otherwise specifically provided by law.
• Requests for judicial record information may only be made for specific purposes such as:
  • Recruitment;
  • Issuance of licenses or professional practice certificates;
  • Occupations or positions related to national defense, security, social order and safety, or public health;
  • Protection of the interests of the State and the lawful rights and interests of organizations and individuals;
  • Supporting legal proceedings, enforcement of judgments, or protection of vulnerable groups in society.

Law No. 107/2025/QH15 takes effect from July 1, 2026.

Decree No. 168/2026/ND-CP providing detailed regulations and implementation measures for certain articles of the law on population

On May 15, 2026, the Government issued Decree No. 168/2026/ND-CP providing detailed regulations and implementation measures for certain articles of the Law on Population.

Accordingly, female employees giving birth to a second child and male employees whose wives give birth to a second child, and who satisfy the conditions prescribed by social insurance laws, shall be entitled to maternity leave benefits in accordance with Point a, Clause 1, Article 14 of the Law on Population 2025.

The applicable condition is that, at the time of childbirth, either the father or the mother must already have one living biological child. Cases falling under Clause 2, Article 52 of the Law on Social Insurance 2024 shall not be entitled to this maternity benefit for the second childbirth.
Regarding procedures, the process and formalities for enjoying maternity benefits shall comply with social insurance laws and the procedures for settlement and payment issued by the Minister of Finance. Individuals making declarations shall bear full legal responsibility for the accuracy and truthfulness of the information provided in support of the benefit claim.

In addition, the Decree introduces a minimum financial support amount of VND 2,000,000 per woman upon childbirth, applicable to three specific groups: women belonging to ethnic minorities with very small populations; women residing in provinces or centrally governed cities with fertility rates below the replacement level; and women giving birth to two children before the age of 35. Where a woman simultaneously falls under multiple eligible categories above, she shall only receive one financial support amount.

Regarding implementation, the Chairperson of the commune-level People’s Committee shall rely on the interconnected birth registration system, the National Population Database, and the national digital identification application (VNeID) to issue support decisions.

The competent authorities shall make support payments concurrently with birth registration in order to minimize direct administrative procedures.

Decree No. 168/2026/ND-CP takes effect from July 1, 2026.

Sincerely,

Talentnet Corporation