Mazars in Vietnam Newsletter - Payroll Update - Issue June 2022

For the 2nd half of 2022, there are several notable HR and labour regulatory changes that businesses should pay close attention in order to remain compliant.

1. Decree 38/2022/ND-CP on the regional minimum salary for employees with labor contracts from 01 July 2022

On 12th June 2022, the Government issued Decree 38/2022/ND-CP on regional minimum salary applied to employees working under labour contracts, which shall take effective from 01 July 2022, as follows:

  • For enterprises located in region I: VND 4,680,000/month; VND 22,500/hour
  • For enterprises located in region II: VND 4,160,000/month; VND 20,000/hour
  • For enterprises located in region III: VND 3,640,000/month; VND 17,500/hour
  • For enterprises located in region IV: VND 3,250,000/month; VND 15,600/hour

The list of Regions I, II, III and IV are prescribed in the Appendix enclosed with this Decree 32.

Accordingly, the new cap for Unemployment Insurance (“UI”), shall be effective from 1st July 2022 and vary for each region, since it is calculated as 20 times of minimum regional salary. The new cap for UI shall be VND 93.6 million, VND 83.2 million, VND 72.8 million and VND 65 million, respectively for Region from I to IV.

Of note, as per this Decree, the regional minimum salary for employees who are skilled workers or have vocational training certificate is not required to be 7% higher than that for employees working under normal conditions as stated under Decree 90/2019/ND-CP.

Besides, this Decree has guided on the conversion method to covert the salary on monthly/weekly/daily basis.

2. Official Letter 1147/BHXH-TST on declaration of Personal Identification Number/Citizen Identification Number when submitting dossiers for participation in Social Insurance (“SI”), Health Insurance (“HI”)

According to Official Letter 1147/BHXH-TST issued by the Vietnam Social Insurance Authority on 04 May 2022, when organizations and individuals carry out procedures, dossiers for registration in SI/HI, information adjustment on the SI book/HI card, change of the payment rate/method of voluntary SI contribution, it is compulsory to use Citizen Identification Number or Personal Identification Number (for those who have not been issued Citizen Identification Card) to declare to the Social Insurance authority.

In case of having no Citizen Identification Number or Personal Identification Number, individuals should contact Commune Police Department where permanent residence is registered to be granted with a notice of Personal Identification Number or can search the personal identification number online at the Residence Management Public Service Portal

3. Change on compulsory contribution rate to occupational accidents and diseases fund from 01 July 2022

From 1 July 2021 to the end of 30 June 2022, as per Resolution 68/NQ-CP (“Resolution 68”) introducing some policies to support employees and employers in difficulty due to the COVID-19 pandemic, employers can apply the contribution rate of 0% (from 0.5%) of the Social Insurance (“SI”) base salary when contributing to the Insurance Fund for Occupational Accidents and Diseases for employees except employees whose salary are covered by State Budget.

Accordingly, from 01 July 2022, the contribution rate to Occupational Accidents and Diseases fund will increase to 0.5% which made the rate of Social Insurance shall increase to 17,5%.

4. Change on exchange rate for conversion of salary contributed to compulsory insurance from 01 July 2022

For labor contracts agreed under foreign currency, salary for compulsory insurance contribution for last 06 months is required to convert into VND under the average exchange rate on the inter-bank foreign exchange market announced by the State bank of Vietnam on 01 July 2022.

5. Change on Unemployment Insurance rate from 01 October 2022

From 1 October 2021 to the end of 30 September 2022, as per Resolution 116/NQ-CP on the use of unemployment insurance fund balance, employers (excluding state agencies, political organizations, socio-political organizations, people's armed forces and public non-business units covered by the frequent expenditure of State Budget) who are contributing unemployment insurance (“UI”) before 1 October 2021, will be entitled to a reduction of the contribution rate from 1% to 0%.

Accordingly, from 01 October 2022, the contribution rate to Unemployment insurance fund shall be back to normal rate as of 1%. 



We do trust the above points are notable and sufficient, but should you have any questions or need a deeper discussion on this issue, please do not hesitate to contact us.


For regulation changes and tax matters, we can provide you with assistance on:

  • Registration, declaration of Personal Income Tax, Corporate Tax, VAT and Foreign Contractor Tax.
  • Tax refunds assistance and representation.
  • Consultancy on utilizing opportunities provided by transfer pricing.
  • Customs advisory: Compliance & reporting; FTA and C/O; Harmonised System code classification and valuation; Inventory control; International trade arrangement; and Others.

Download full issue in English and Vietnamese below


[ENG] Mazars in Vietnam_Payroll newsletter_Regulatory updates for the 2nd half of 2022
[ENG] Mazars in Vietnam_​Payroll newsletter_​Regulatory updates for the 2nd half of 2022
[VIE] Mazars Việt Nam_Bản tin Nhân sự_Cập nhật quy định về nhân sự cho 6 tháng cuối năm 2022
[VIE] Mazars Việt Nam_​Bản tin Nhân sự_​Cập nhật quy định về nhân sự cho 6 tháng cuối năm 2022