The question of whether salaries subject to social insurance contributions should exceed the minimum wage is one that many payroll accountants and HR departments are struggling with as we approach 2026. Decree 293/2025/ND-CP The new regional minimum wage framework has officially replaced the old one. Many businesses, accustomed to the principle of "adding 7% for trained workers" for many years, are surprised to no longer see this regulation mentioned as a mandatory obligation. So, does the regulation regarding salaries subject to social insurance contributions exceeding the 7% minimum wage still exist, and if so, who does it apply to? This article provides a comprehensive analysis of the legal basis to help chief accountants and business owners find accurate answers before the payroll and social insurance closing period.
Why is it a matter of concern from 2026 onwards if the salary used for calculating social insurance contributions is higher than the minimum wage (7%)?
For many years, the regional minimum wage principle has included two familiar "additional" amounts:
- Add at least 7% for workers performing jobs requiring prior education or vocational training;
- And add at least 5 to 7% for workers performing strenuous, hazardous, or dangerous work.
This is why, in many businesses, salaries used for calculating social insurance contributions are higher than the minimum wage, and this has become a default setting in payrolls.
Decree 293/2025/ND-CP, which stipulates the regional minimum wage applicable from January 1, 2026, has changed the approach: it no longer includes a general, mandatory provision requiring all businesses to pay wages for social insurance contributions higher than the minimum wage for trained workers.
This change has led to misunderstandings in many accounting departments, leading to two opposing viewpoints:
- Or, to put it another way, regulation 7% has been completely abolished.
- Or they could continue applying the same method without verifying the basis. Both interpretations carry risks when the Social Insurance agency verifies the basis for contributions.
Therefore, accurately determining how much higher the salary used for calculating social insurance contributions is than the minimum wage, which groups it applies to, and on what legal basis, is not just a matter of salary calculation techniques. This issue directly affects the rights of employees and the compliance obligations of businesses during social insurance audits and inspections.
Legal basis for determining whether a salary used for calculating social insurance contributions is higher than the minimum wage.
To accurately answer the question of when a salary subject to social insurance contributions exceeds the minimum wage stipulated in Decree 7%, it is necessary to read three documents simultaneously: Social Insurance Law 2024, Labor Code 2019 and Decree 293/2025/ND-CP.
Article 31 of the Social Insurance Law 2024: Basis for social insurance contributions
Clause 1, Article 31 of the Social Insurance Law 2024 stipulates:
For employees whose salaries are determined by the employer, the salary used as the basis for mandatory social insurance contributions is the monthly salary, including the salary based on the job or position, salary allowances, and other supplementary payments agreed upon and paid regularly and stably in each pay period.
This provision is fundamental in determining how much higher the salary for social insurance contributions should be than the minimum wage to be considered reasonable: the contribution basis is not limited to the basic salary but also includes salary allowances and stable supplementary payments, which can significantly increase the salary for social insurance contributions above the regional minimum wage depending on the nature of the job.
Article 90 of the 2019 Labor Code: Principle of paying wages not lower than the minimum wage.
Article 90 of the 2019 Labor Code stipulates that the salary for a job or position must not be lower than the minimum wage. This is a mandatory legal floor that all businesses must comply with, independent of how much the salary used for social insurance contributions exceeds the minimum wage for each specific job position.
Clause 4, Article 5 of Decree 293/2025/ND-CP: Key transitional provisions
This is the provision that directly determines the answer to the question of which cases have salaries subject to social insurance contributions exceeding the minimum wage. Clause 4, Article 5 of Decree 293/2025/ND-CP stipulates:
Employers are responsible for reviewing and adjusting existing labor contracts and collective bargaining agreements to ensure compliance; they are not permitted to abolish or reduce existing wage provisions. Regarding legally agreed-upon provisions that are more beneficial to employees than those stipulated in this Decree (for example, wage rates for jobs requiring higher education and vocational training that are at least 7% higher than the minimum wage, and wage rates for jobs with particularly arduous, hazardous, or dangerous working conditions that are at least 7% higher than the wage for jobs of equivalent complexity under normal conditions), these provisions shall continue to be implemented, unless otherwise agreed upon by the parties.
From 2026 onwards, will the regulation requiring social insurance contributions to be based on a salary higher than the minimum wage (7%) still be mandatory?
Are notDecree 293/2025/ND-CP does not mandate that all businesses pay wages for social insurance contributions higher than the minimum wage for trained workers.
This is a fundamental difference compared to previous regional minimum wage decrees, which rigidly stipulated this difference as a mandatory wage floor.
However, "no longer a general requirement" does not mean "no longer applicable cases." Salary levels for social insurance contributions exceeding the minimum wage (7%) still exist and have full legal validity in the specific cases analyzed in the following section. This is the most important point businesses need to understand when reviewing payrolls and the basis for social insurance contributions for 2026.
In what cases must the salary used for calculating social insurance contributions be higher than the minimum wage (7%)?
According to Clause 4, Article 5 of Decree 293/2025/ND-CP, salaries subject to social insurance contributions exceeding the minimum wage are only mandatory in the following two groups of cases, with the prerequisite that there has been a prior legal agreement or commitment.
Case 1: The company has committed to paying a salary higher than 7% for trained workers.
If the employment contract, collective bargaining agreement, or company's wage regulations already contain a clause committing to paying employees performing jobs or positions requiring higher education or vocational training at least 7% above the minimum wage, then this commitment continues to be fulfilled. In that case, the higher salary for social insurance contributions, exceeding the minimum wage of 7%, remains the company's obligation to the specific group of employees as committed, not because of general legal requirements, but because this clause is legally advantageous to the employees.
Important conditions to note: This commitment must have existed before Decree 293/2025/ND-CP came into effect, and it must be more favorable than the new regulations. Businesses cannot invoke the old regulations to impose the 7% rate on positions that have never had such a commitment in their labor records.
Case 2: The enterprise has committed to paying a salary higher than 7% for work with particularly arduous, hazardous, or dangerous working conditions.
In parallel with the above case, if the enterprise has committed to paying a salary for jobs or positions with particularly arduous, hazardous, or dangerous working conditions that is at least 7% higher than the salary for jobs of equivalent complexity under normal working conditions, then this commitment will continue to be fulfilled.
This is the highest difference in the group of labor condition allowances, specifically for exceptionally strenuous, hazardous, and dangerous jobs, and should be clearly distinguished from the 5% level applied to strenuous, hazardous, and dangerous jobs at the normal level.
When the salary used for calculating social insurance contributions exceeds the minimum wage (7%), accountants need to refer to the list of particularly arduous, hazardous, and dangerous occupations and jobs issued by competent authorities to correctly identify eligible individuals and avoid indiscriminate application to positions that do not meet the eligibility criteria.
In which cases is the salary used for calculating social insurance contributions NOT required to be higher than the minimum wage?
Conversely, if a business has never had any written agreement or commitment regarding this 7% difference, regardless of whether the actual job requires training or involves strenuous or hazardous work, then from 2026, the business is not required to pay wages for social insurance contributions higher than the 7% minimum wage. The wage only needs to comply with the general principle in Article 90 of the 2019 Labor Code: not lower than the regional minimum wage as stipulated in Decree 293/2025/ND-CP.
At the same time, the parties still have the right to agree differently from the original commitment. If the employer and employee mutually agree to adjust the difference, including a reduction in accordance with the legally agreed procedures, then the salary level for social insurance contributions, which was previously higher than the minimum wage (7%), may no longer be maintained in its current state.
How does a salary higher than the minimum wage affect the basis for social insurance contributions?
When the salary used for calculating social insurance contributions is higher than the minimum wage due to the 7% commitment in the two cases mentioned above, this difference is not an extra charge but must be included in the monthly salary used as the basis for social insurance contributions, in accordance with Article 31 of the Social Insurance Law 2024, because this is an amount that has been agreed upon and paid regularly and stably in each pay period.
Consequence of practice: Businesses are not allowed to separate the difference of 7% from the payroll for social insurance contributions to optimize insurance costs, as this constitutes an act of making unsubstantiated declarations for contributions, which may result in retroactive collection and penalties during inspections.
At the same time, maintaining the correct salary for social insurance contributions, higher than the minimum wage (7%) for the committed positions, also directly increases the benefits of employees when calculating sickness, maternity, and retirement benefits later on, as these benefits are all calculated based on the salary used as the basis for contributions.
Besides Vietnamese workers, businesses employing foreign workers also need to be aware that the basis for social insurance contributions has some specific characteristics that are not entirely the same as the principles applied to Vietnamese workers. Business accountants can refer to the detailed methods for determining this. Social insurance contribution salary for foreign workers To avoid confusion when a business has both groups of employees at the same time.
Do I have to pay social insurance contributions if I work for less than 14 days?
Alongside the question of how much higher the salary for social insurance contributions should be than the minimum wage, another common misconception in salary calculation is that employees working less than 14 days a month are automatically exempt from social insurance contributions. This is an incorrect understanding.
According to Clause 5, Article 33 of the Social Insurance Law 2024:
The condition for not having to pay social insurance contributions in a month is that the employee does not receive salary for 14 or more working days in that month, not based on the actual number of working days. This means that paid leave days according to the 2019 Labor Code, holidays, Tet (Lunar New Year), annual leave, and personal leave are still added to the total number of paid days in the month. An employee who only works 12 days but takes 3 days of paid marriage leave will have a total of 15 paid days, and is still subject to mandatory social insurance contributions.
What steps should businesses take to comply with regulations regarding salaries subject to social insurance contributions exceeding the minimum wage (7%)?
Before the first payroll period of 2026, the HR and payroll department should take the following steps:
- Step 1 – Review all employment contracts and collective bargaining agreements: Identify which positions or job titles have previously committed to paying wages at least 7% higher than the minimum wage for trained workers, or higher than 7% for particularly strenuous, hazardous, or dangerous work.
- Step 2 – Clearly categorize existing commitments into two groups: Firstly, legally binding commitments that are more beneficial to workers and should continue to be implemented according to Clause 4, Article 5 of Decree 293/2025/ND-CP. Secondly, commitments applied out of habit, never documented in writing, and not required to be maintained in their current state.
- Step 3 – Compare with the current social insurance contribution payroll: Check whether any difference (if any) has been fully included in the monthly salary used as the basis for social insurance contributions according to Article 31 of the Social Insurance Law 2024.
- Step 4 – Re-negotiate with employees if adjustments are needed: If the business wants to change an existing commitment, it must follow the correct negotiation procedure and cannot unilaterally cut existing benefits.
- Step 5 – Documentation: All evidence proving that the salary used for calculating social insurance contributions is higher than the minimum wage (7%), including labor contracts, collective labor agreements, salary regulations, and detailed payroll records, must be fully archived for explanation when the social insurance agency or labor inspectors conduct an audit.
The changes to the basis for contributions, contribution rates, and eligible participants in social insurance under the 2024 Social Insurance Law are not limited to the issue of salaries subject to social insurance contributions exceeding the minimum wage. Businesses should update themselves on other important new points in this article. 4 notable changes in social insurance policy. To gain a comprehensive overview before reviewing the entire unit's salary system..
Conclude
From 2026, a salary higher than the minimum wage (7%) for social insurance contributions will no longer be a mandatory requirement for all businesses as before. This difference will only remain mandatory in two cases:
- The company has committed to paying higher salaries (beyond 7%) to trained workers;
- Or, similar commitments have been made for jobs with particularly arduous, hazardous, or dangerous working conditions, and these commitments must be legally binding agreements that are more beneficial to the workers and were established before Decree 293/2025/ND-CP came into effect.
This is a change that needs careful review, because errors in determining how much higher the salary for social insurance contributions should be than the minimum wage not only affect the personnel costs of businesses but also directly impact the long-term social insurance benefits of employees.
If businesses are unsure about reviewing labor contracts, determining the correct basis for social insurance contributions, or restructuring payrolls to comply with Decree 293/2025/ND-CP, please refer to the following information. full accounting service Contact MAN – Master Accountant Network for support to ensure that payroll and social insurance contributions are always in compliance with regulations.
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Responsible for production and professional content review by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant NetworkHe is a CPA Vietnam auditor with over 30 years of in-depth experience in accounting, auditing, taxation, and corporate legal consulting.
Frequently Asked Questions about Social Insurance Contributions based on Salaries Exceeding the Minimum Wage
From 2026 onwards, will the salary used for calculating social insurance contributions be required to be higher than the minimum wage (7%)?
This is not a mandatory requirement. Decree 293/2025/ND-CP no longer stipulates that the 7% level is a general obligation for all businesses. This level will only continue to apply if the business has made a legally binding commitment beforehand.
In what cases must the salary used for calculating social insurance contributions still be higher than the minimum wage (7%)?
There are two scenarios: either a commitment to pay a higher wage than 7% for workers who have received vocational training; or a commitment to a similar wage for work with particularly arduous, hazardous, or dangerous working conditions. Both must be legally valid agreements that are more beneficial to the workers.
If a business has never made a 7% commitment, do they need to make one?
No. Businesses only need to ensure that salaries are not lower than the regional minimum wage as stipulated in Article 90 of the 2019 Labor Code; they are not required to set an additional difference (7%) if they have not previously committed to it.
Should the difference between the salary used for calculating social insurance contributions and the minimum wage (7%) be included in the basis for social insurance contributions?
Yes. This is a regular, stable payment during the payroll period, so it must be included in the monthly salary used as the basis for social insurance contributions according to Article 31 of the Social Insurance Law 2024.
Can the company renegotiate to waive the previously committed 7% rate?
It is possible, if the employer and employee mutually agree on a different arrangement in accordance with legal procedures, to unilaterally reduce benefits that have already been agreed upon.
How do the 5% and 7% levels in labor conditions commitments differ?
Level 5% applies to jobs with generally arduous, hazardous, or dangerous working conditions; level 7% applies to jobs with exceptionally arduous, hazardous, or dangerous working conditions, with higher levels allocated to higher-risk groups.
