>Review payroll records to identify employees with military or defense-sector backgrounds and revise their compensation packages by June 15, 2026, aligning with new local market benchmarks.
>Update social insurance contribution calculations in Vietnam payroll systems to reflect revised salary ranges effective July 1, 2026, per Decision 595/QD-BHXH.
>Brief HR teams and expat managers on implications for recruitment budgets, retention strategies, and competitive salary benchmarking in Vietnam.
English Summary
Vietnam will raise the base salary for state employees—including all military personnel—by 8% effective July 1, 2026, increasing monthly military pay to VND8–26.3 million (US$304–997). Affected groups include generals (VND26.3M), corporals (VND8M), cryptography specialists (VND8–19.5M), and defense workers (VND7.3–16.8M). Though this applies only to public-sector payroll, foreign businesses operating in Vietnam must adjust HR planning accordingly: local salary benchmarks will rise, impacting wage negotiations, statutory social insurance contributions (calculated on actual salaries), and competitiveness in hiring veterans or technical staff with military backgrounds. No new tax or reporting obligations are introduced, but payroll systems must reflect updated local market rates for compliance with Vietnam’s Labor Code and Decree 141/2023/ND-CP on wage policies.