As Vietnam’s labor policies continue to be adjusted to align with the country’s evolving socio-economic landscape, businesses need to pay close attention to significant changes in salary calculation, social insurance, and personal income tax (PIT) regulations from 2025. The following article, compiled by NIC Global – a trusted and professional HR solutions provider – is designed to help HR, finance departments, and business leaders stay informed, compliant, and operationally effective.Salary regulations 2025.

Social Insurance: Changes in Contribution Rates and Eligible Participants

Adjustments in the salary base for insurance contributions

From July 1, 2025, the regional minimum wage is expected to increase by 6–7%, leading to a corresponding rise in the minimum wage base used for calculating mandatory social insurance. This means a slight increase in employer insurance costs, especially for businesses employing unskilled workers. Salary regulations 2025.

Expansion of mandatory social insurance coverage

The revised Social Insurance Law, expected to take effect in 2025, expands the scope of mandatory participants to include:

• Employees with contracts of 1 month or more (previously 3 months)
  
• Seasonal and part-time workers
  

This requires HR departments to stay updated to avoid administrative violations and penalties. Salary regulations 2025.

PIT: Changes in Withholding and Declaration Methods

New progressive tax bracket structure

Starting in 2025, the progressive PIT schedule with 7 brackets is expected to be slightly adjusted to ease the tax burden on average-income earners. Specifically:

• The personal deduction may increase to VND 12 million/month
  
• The dependent deduction may rise to VND 5 million/month
  

These adjustments help reduce the tax burden for those earning VND 15–25 million/month.

Mandatory electronic tax declaration

From 2025, all businesses must declare PIT electronically via the General Department of Taxation’s portal. Payroll platforms must be API-integrated to directly export data, eliminating manual duplication. Salary regulations 2025.

The Role of Payroll Services in Regulatory Compliance

With so many changes, in-house payroll processing becomes more complex and risk-prone. That’s why professional payroll services are increasingly a strategic choice. Salary regulations 2025.

NIC Global – A Comprehensive Solution for Businesses

NIC Global is supporting over 200 businesses in Vietnam with standardized payroll services that comply with updated regulations:

• Automatic updates on changes to social insurance, PIT, and minimum wage
  
• Integrated online PIT declarations and insurance reports
  
• Consulting on benefits policies tailored to each company’s HR strategy
  

Common Questions:

What should new FDI companies in Vietnam know about salary regulations?

They should implement a transparent and legally compliant salary system from the outset and consider outsourcing payroll services to ensure compliance with Vietnamese labor laws.

How to stay updated on insurance contribution levels?

NIC Global provides up-to-date tools for calculating social insurance and PIT based on current regulations, automatically updating when changes are issued by authorities.

Projected Impacts of New Regulations on Businesses and Employees

For Businesses:

• Increased operating costs: Adjustments in minimum wage, expanded insurance coverage, and PIT reforms will increase HR costs, especially for labor-intensive businesses. Salary regulations 2025.
  
• Need to standardize salary systems: The new regulations require transparent and auditable salary systems. Businesses without job-based salary scales may face difficulties during audits or disputes.
  
• Higher demand for HR software and outsourcing: The shift toward payroll automation, tax declaration, and social insurance reporting will intensify in 2025. Many companies will seek HR outsourcing to reduce legal risks. Salary regulations 2025.
  

For Employees:

• Higher net income: With increased family deductions, employees can retain more post-tax income.
  
• Enhanced social insurance benefits: Broader participation means more protection for seasonal and part-time workers.
  
• Greater need for legal awareness: Employees must stay informed about policies and understand payroll deductions to avoid misunderstandings with employers. Salary regulations 2025.
  

5 Practical Tips for Businesses to Adapt in 2025

NIC Global recommends businesses:

1. Review all labor contracts to ensure salary, insurance, and tax terms comply with new regulations
   
2. Rebuild job-based salary scales to ensure transparency and fairness
   
3. Switch to payroll software with integrated tax and insurance reporting features
   
4. Train accounting and HR staff on the latest regulations to minimize errors
   
5. Consider using outsourced payroll services to save time, reduce costs, and ensure compliance
   

Common Mistakes When Businesses Don’t Update Regulations

Many businesses still operate under outdated payroll, insurance, and PIT frameworks, which can result in data inconsistencies and legal/financial risks:

• Applying outdated deduction levels or tax brackets may lead to PIT underpayment or overpayment
  
• Failing to update the regional minimum wage for insurance contributions can result in incorrect payments, arrears, and penalties
  
• Incomplete documentation or payroll records increases risks during tax or labor inspections
  

Therefore, regularly updating regulations is essential for transparent, efficient, and lawful operations. Salary regulations 2025.

How NIC Global Helps Businesses Adapt to Change Salary regulations 2025.

As a trusted and professional HR solution provider, NIC Global offers payroll and HR management services to hundreds of local and foreign-invested businesses. In response to continuous legal changes, NIC Global has implemented the following:

• Automatic legal updates in payroll software, including new regional minimum wages, insurance contribution rates, and PIT brackets
  
• Industry-specific consulting, tailored to working hours, bonuses, and benefits unique to each sector
  
• Periodic payroll audits to help businesses detect risks early and prepare compliant documentation for inspections
  

These advantages help businesses not only stay compliant but also optimize administrative costs and minimize risks. Salary regulations 2025.

What Should Businesses Do to Prepare for the New Rules? Salary regulations 2025.

To stay ahead of upcoming changes in labor, tax, and insurance regulations from 2025, businesses should:

• Review all salary and insurance policies against the new regulations in Decree 13/2023/NĐ-CP, the revised Social Insurance Law, and the new PIT circular
  
• Train HR and accounting teams on updated legal knowledge, or partner with professional service providers for regular consulting
  
• Store and protect payroll records in compliance with data protection laws
  
• Consider outsourcing payroll to reputable providers like NIC Global to save time, reduce costs, and ensure compliance

For contact and support:

Facebook: NIC Global – Human Resource Solutions
LinkedIn: NIC Global Sourcing JSC
Website: www.nicvn.com
Email: [email protected]
Hotline: 0981.23.43.76
Address:

• Hanoi Office: No. 3A Thi Sach, Pham Dinh Ho Ward, Hai Ba Trung District, Hanoi, Vietnam
• Ho Chi Minh City Office: Dakao Center Building, 35 Mac Dinh Chi, District 1, Ho Chi Minh City, Vietnam

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