A salary scale is not just an HR management tool — it is the foundation of compulsory social insurance contributions. Many companies face arrears collection and sanctions simply because their salary scales were built carelessly, set wages below the regional minimum, or “renamed” payments to dodge the contribution base. Here are 7 notes for building salary scales that keep social insurance contributions compliant, under the Labour Code 45/2019/QH14, the Social Insurance Law 41/2024/QH15 and the latest guiding decrees.
1. Building a salary scale is mandatory — for every company, regardless of size
Clause 1 Article 93 of the Labour Code requires employers to build wage scales, salary tables and labour norms as the basis for recruitment, labour utilization, agreeing wages by job or title stated in labour contracts, and paying employees. This duty applies to companies of all sizes — there is no exception for small businesses.
This is not a formality: the job/title wage in the salary scale is the first component of the monthly wage used as the social insurance contribution base (clause 1 Article 7 of Decree 158/2025/ND-CP). A wrong salary scale means wrong social insurance contributions.
2. Scale wages must not fall below the CURRENT regional minimum wage
Decree 293/2025/ND-CP (effective 1/1/2026, replacing Decree 74/2024/ND-CP) sets the new monthly minimum wages: Region I VND 5,310,000 (VND 25,500/hour); Region II VND 4,730,000 (VND 22,700/hour); Region III VND 4,140,000 (VND 20,000/hour); Region IV VND 3,700,000 (VND 17,800/hour). These are the floors for employees doing the simplest jobs under normal working conditions.
Never use the old figures from Decree 74/2024 (4.96/4.41/3.86/3.45 million VND) — that document expired on 1/1/2026. Every wage in the salary scale and in labour contracts must be rechecked against the 4 new regional levels.
3. Understand the contribution-base formula correctly: 3 components, variable payments excluded
For employees under the employer-determined wage regime, the monthly wage used as the compulsory social insurance contribution base has 3 components (point b clause 1 Article 31 of the Social Insurance Law 2024 + clause 1 Article 7 of Decree 158/2025/ND-CP):
- (a) The job/title wage calculated by time (monthly), following the wage scale and salary table built by the employer under Article 93 of the Labour Code and agreed in the labour contract — this is the direct link between the salary scale and the contribution base;
- (b) Wage allowances compensating working conditions, job complexity, living conditions and labour attraction — excluding allowances that depend on or vary with labour productivity, work processes or work quality;
- (c) Other additional payments with specifically determinable amounts alongside the wage, agreed in the labour contract and paid regularly and stably each pay period — excluding amounts varying with productivity, processes or work quality.
The key principle of the social insurance authority: assessment follows the actual nature of payment, not the name of the amount. Calling it “support” or “allowance” while paying it fixed every month still brings it into the contribution base. To exclude an amount from the base, the company must prove its genuinely variable nature.
4. Remember the NEW cap and floor from 1/7/2026: cap of VND 50.6 million/month
Compulsory social insurance contributions are based on wages of at least the reference level and at most 20 times the reference level at the time of contribution (point dd clause 1 Article 31 + Article 7 + clause 13 Article 141 of the Social Insurance Law 2024). While the statutory pay rate has not been abolished, the reference level equals the statutory pay rate.
From 1/7/2026, Decree 161/2026/ND-CP raised the statutory pay rate to VND 2,530,000/month → reference level = 2,530,000 → SOCIAL INSURANCE CAP = VND 50,600,000/month; floor = VND 2,530,000/month. Wages above the cap are contributed only up to the cap. Never use the old figures of 2,340,000 / 46.8 million cap (Decree 73/2024 was replaced from 1/7/2026).
On contribution rates: Article 32 of the Social Insurance Law 2024 provides 3% of the base wage to the sickness and maternity fund and 22% to the retirement and survivorship fund (medium confidence on the split between employer and employee — companies should check the original text of Article 32 before applying specific split figures).
5. Consult the employee representative organization and publicize before applying
Clause 3 Article 93: when building wage scales, salary tables and labour norms, employers must consult the grassroots employee representative organization (where one exists); the scales, tables and norms must be publicly posted at the workplace before implementation. Clause 2 Article 93 further requires labour norms to be average levels achievable by most employees without extending normal working hours, and to be trial-applied before official issuance.
An important change from the Labour Code 2012: the 2019 Labour Code abolished the duty to submit salary scales to district-level state agencies. Companies build, keep internally and publicize them — but precisely because there is no longer a filing “gate”, companies bear full responsibility for the correctness of the scales they issue.
6. Align three layers: salary scale, labour contract, contribution declaration
Three layers of documents must align: the salary scale (Article 93) → the wage in the labour contract → the social insurance declaration. Employees working under labour contracts of 01 month or more are subject to compulsory social insurance (Article 2 of the Social Insurance Law 2024) — so every contract wage must be grounded in the salary scale and must not fall below the regional minimum wage.
In labour contracts, state the nature of each payment clearly: which are wage allowances and which are separately-itemized support amounts (per clause 5 Article 3 of Circular 10/2020/TT-BLDTBXH). Per a secondary source (Official Letter 1198/CTL&BHXH-BHXH of 2025, medium confidence), 14 separately-itemized allowances/supports in labour contracts are listed as not forming the contribution base — companies should note the source and check the original document before applying. Again the principle: the social insurance authority assesses by actual payment nature, not by the name of the amount.
7. Review periodically whenever the statutory pay rate or regional minimum wage changes
A salary scale is not a “build once, use forever” document. Whenever the statutory pay rate or regional minimum wage changes (as in the two major recent changes: Decree 293/2025 from 1/1/2026 and Decree 161/2026 from 1/7/2026), companies must promptly review and adjust salary scales, contract wages and social insurance contribution levels.
On sanctions: from 10/9/2026, underpaying or evading compulsory social insurance contributions is heavily sanctioned under Decree 283/2026/ND-CP (replacing Decree 12/2022/ND-CP). Companies should record this only as a principle and check the original text before applying any specific sanction figures.
Conclusion
A compliant salary scale is the foundation of correct social insurance contributions: mandatory for every company; wages not below the new regional minimum (Decree 293/2025); correct understanding of the 3-component base formula and the “payment nature” principle; remembering the new VND 50.6 million monthly cap from 1/7/2026; consultation and publication before application; alignment of the three layers — salary scale, labour contract, insurance declaration; and periodic review whenever wage policies change.
FAQs
Must small companies build a salary scale?
Yes. Clause 1 Article 93 of the Labour Code applies to all employers, regardless of company size.
Must salary scales still be filed with a state agency?
No. The 2019 Labour Code abolished this duty (a requirement of the 2012 Labour Code). Companies build, keep internally and publicize them at the workplace.
For a VND 60 million monthly wage, what is the contribution base?
The cap of VND 50,600,000/month (20 times the 2,530,000 reference level, applicable from 1/7/2026 under Decree 161/2026/ND-CP).
Legal sources
- Labour Code 45/2019/QH14 (cited per consolidated document 18/VBHN-VPQH 2026): Article 93 (building wage scales, salary tables and labour norms).
- Social Insurance Law 41/2024/QH15 (cited per consolidated document 19/VBHN-VPQH 2026): Article 2 (subjects), Article 31 (contribution base wage), Article 32 (contribution rates), Article 141 (reference level).
- Decree 158/2025/ND-CP (1/7/2025): Article 7 (social insurance contribution base).
- Decree 293/2025/ND-CP (1/1/2026): new regional minimum wages.
- Decree 161/2026/ND-CP (1/7/2026): statutory pay rate of VND 2,530,000/month.
- Decree 283/2026/ND-CP (10/9/2026): social insurance sanctions (stated as a principle).
- Circular 10/2020/TT-BLDTBXH: clause 5 Article 3 (separately-itemized amounts in labour contracts).
Does your company need to build or review its salary scale and determine the correct social insurance contribution base? Reach us via the Contact page of FLAT Law Firm for support.
The legal content of this article is reviewed by FLAT’s AI Legal Council and submitted to the owner for approval; it is not an opinion of a licensed lawyer and does not replace legal advice for specific cases.
For reference only, not legal advice.