Labour Regulations Update in September 2025

Update on regulations regarding salary used as a basis for compulsory social insurance contribution

On 5th September 2025, the Department of Salary and Social Insurance under the Ministry of Home Affairs issued Official Letter No. 1198/CTL&BHXH-BHXH regarding salary used as the basis for compulsory Social Insurance (SI) contributions.

According to the guidance in this Official Letter, other regimes and welfare allowances that are listed as separate items in the labor contract (as per Clause 5, Article 3 of Circular 10/2020/TT-BLDTBXH), are not considered part of the salary used as the basis for compulsory SI contributions.

These items include: Bonuses as regulated under Article 104 of the Labor Code; Innovation bonuses; Mid-shift meal allowances; Allowances for transportation, mobile phone, commuting, housing, childcare, and nursing of young children; Support provided in the event of a family member’s death, a family member’s marriage, employee’s birthday, or hardship due to occupational accidents or diseases; and Other support and allowances.

In light of this guidance, Talentnet recommends reviewing labor contracts and verify how these benefits and allowances are reflected, in order to correctly determine the salary amount used as the basis for SI contributions.

Update on mid-shift meal allowance regulations

In our previous Talentnet Newsletter, we had mentioned recent updates regarding mid-shift meal allowances.

As of now, certain local Tax Authorities have issued more detailed guidance. Accordingly, mid-shift meal allowances (exempt from personal income tax) must be regulated under the labor contract, collective labor agreement, or the company’s internal rules/regulations, effective from 15th June 2025.

Given these updates, Talentnet recommends reviewing labor contracts, collective labor agreements, and company policies/regulations to ensure full compliance with the latest regulations regarding salary, personal income tax, and employees’ entitlements.