Need to calculate BHXH, BHYT, BHTN & PIT for a Vietnam payslip? This walkthrough covers contribution rates, ceilings, and a worked monthly example for a typical local employee.
Note: Figures below are typical planning rates for private-sector local employees in Vietnam as commonly applied in 2026 payroll models. Ceilings, regional wages, and personal deductions can change by decree. Confirm current parameters with counsel or your payroll partner before each cycle. This is general guidance, not legal or tax advice.
1) Start with the contribution base
Compulsory insurance is calculated on the salary used for social insurance (often the contracted salary / wage stated for contribution purposes), not always every cash allowance. Cap rules matter:
- BHXH & BHYT ceiling — commonly 20 × base salary (lương cơ sở). From 1 July 2026, base salary is widely cited at VND 2,530,000, implying a SI/HI cap near VND 50,600,000.
- BHTN ceiling — commonly 20 × regional minimum wage for the employee’s region (higher in Region I).
2) Apply BHXH, BHYT, BHTN rates
For typical local employees, Asia Payroll Hub models the following splits (same as our Vietnam payroll page):
| Scheme | Employer | Employee | Total |
|---|---|---|---|
| BHXH (Social Insurance) | 17.5% | 8% | 25.5% |
| BHYT (Health Insurance) | 3% | 1.5% | 4.5% |
| BHTN (Unemployment) | 1% | 1% | 2% |
| Combined | 21.5% | 10.5% | 32% |
Formula: contribution = rate × min(contribution salary, applicable ceiling).
3) Calculate PIT (personal income tax)
For tax residents with employment income, monthly PIT commonly follows progressive brackets after deductions:
- Start from taxable employment income for the month.
- Subtract employee compulsory insurance (BHXH/BHYT/BHTN) where deductible.
- Subtract personal deduction (commonly VND 11,000,000/month) and dependent deductions (commonly VND 4,400,000/dependent/month) — confirm current amounts.
- Apply progressive rates (often discussed as 5%–35%) to assessable income.
Non-residents are typically taxed under a different flat treatment — do not use the resident progressive table without classifying residency correctly.
4) Worked example (simplified)
Local resident, no dependents, gross = contribution base = VND 20,000,000, under ceilings:
- Employee SI total 10.5% = VND 2,100,000
- Employer SI total 21.5% = VND 4,300,000 (employer cost, not a payslip deduction)
- Income after employee SI ≈ 20,000,000 − 2,100,000 = 17,900,000
- After personal deduction 11,000,000 → assessable ≈ 6,900,000
- PIT on progressive brackets (illustrative) ≈ tax on first 5,000,000 at 5% + next 1,900,000 at 10% ≈ VND 440,000
- Net pay ≈ 20,000,000 − 2,100,000 − 440,000 = VND 17,460,000
Real payslips add allowances, OT, unpaid leave, and year-to-date finalization rules — this example is for method only.
5) Month-end control points
- Re-check ceilings after base-salary or regional minimum wage updates
- Separate local vs foreign employee profiles
- Keep dependent registrations aligned with PIT deductions
- Reconcile remittance drafts before payday
FAQ
What is the difference between BHXH, BHYT, and BHTN?
BHXH is social insurance (retirement, sickness/maternity, occupational funds), BHYT is health insurance, and BHTN is unemployment insurance.
Do ceilings affect high earners?
Yes. Once salary exceeds the SI/HI or UI cap, contributions stop increasing even if cash salary rises.
Can payroll software calculate this automatically?
Yes — configured correctly. Spreadsheet errors usually appear when ceilings or joiners/leavers are mishandled.
Need Vietnam payroll or EOR support?
Explore payroll outsourcing Vietnam, EOR Vietnam, or EOR vs local entity.