Summary of 6 New Regulations in 2026

As 2026 begins, a series of important HR-related policies concerning wages, personal income tax, and data governance will officially take effect. To help businesses comply with the law and ensure employee rights and benefits, Human Resources departments need to promptly update the following six key changes:

1. Increase in Personal Income Tax Family Deductions

From January 1, 2026, the family deduction level will officially be adjusted upward significantly. This means the taxable income threshold for employees will be higher, helping increase their take-home income.

Specifically, under Resolution 110/2025/UBTVQH15, the personal income tax family deductions from January 1, 2026 will be adjusted as follows:

• The deduction for individual taxpayers will increase from VND 11 million to VND 15.5 million per month, equivalent to an increase from VND 132 million to VND 186 million per year.
• The deduction for each dependent will increase from VND 4.4 million to VND 6.2 million per month.

In response to this change, HR departments should proactively take the following steps to ensure employee benefits and accuracy in payroll management:

• Review the payroll system: Coordinate with the IT department or accounting/HR software provider to update deduction parameters and configure the new five-tier tax schedule in the January 2026 payroll system.
• Internal communication: Promptly inform and update all employees about the changes in deduction levels when carrying out tax finalization.
• Update dependent records: Notify employees to review and register additional dependents in order to optimize their payable tax under the new deduction levels.

2. Change in the Progressive Personal Income Tax Schedule: From 7 Tiers to 5 Tiers

Under the amended Personal Income Tax Law, a five-tier progressive tax schedule will apply from the 2026 tax year, starting January 1, 2026, as follows:

The tax schedule has been simplified from seven tiers to five tiers, along with wider income brackets. This change not only simplifies the calculation process but also directly reduces tax rates in the middle-income brackets to support employees. Notably, the tax rate in Tier 2 has been reduced from 15% to 10%, and Tier 3 has been reduced from 25% to 20%, significantly easing financial pressure for key employee groups within businesses.

At the same time, the threshold for the highest tax rate of 35% has been expanded to apply to taxable income above VND 100 million per month, instead of above VND 80 million as previously regulated. This contributes to improving work motivation and increasing actual income for employees across different income segments.

3. Adjustment to Regional Minimum Wages in 2026

Under Decree 293/2025/ND-CP, from January 1, 2026, the minimum wage for employees working under labor contracts will increase by VND 250,000 to VND 350,000 per month compared with the provisions of Decree 74/2024/ND-CP. The adjusted levels are as follows:

Accordingly, Article 91 of the 2019 Labor Code defines the minimum wage as the lowest wage paid to employees performing the simplest work under normal working conditions, in order to ensure the minimum living standards of employees and their families, in line with socio-economic development conditions.

To ensure a smooth update process, HR should quickly implement the following steps:

• Review salary scales and payroll tables: Check the list of employees whose basic salary is equal to or close to the previous minimum wage level. Pay special attention to Region I, where the salary must not be lower than VND 5,310,000.
• Recalculate labor costs: Update the 2026 salary budget, because when basic salary increases, the company’s social insurance contribution costs will also increase accordingly.
• Proactively notify employees about adjustments based on new legal regulations and the company’s commitment to ensuring employees’ living standards.

4. Update on the Roadmap for Increasing Retirement Age from 2026

Under Clause 2, Article 4 of Government Decree No. 135/2020/ND-CP, the retirement age for employees working under normal working conditions from 2026 onward is determined as follows:

For Male Employees

For Female Employees

Therefore, in 2026, the retirement age will be 61 years and 6 months for male employees and 57 years for female employees. From 2027 onward, the retirement age will continue to increase gradually according to the roadmap until male employees reach 62 years old in 2028 and female employees reach 60 years old in 2035.

5. Expansion of Groups Subject to Unemployment Insurance Participation

Under Clause 1, Article 31 of the 2025 Employment Law, from January 1, 2026, three new groups will be required to participate in unemployment insurance:

• Employees with contracts of one month or more: Employees working under indefinite-term labor contracts or definite-term labor contracts of at least one month, including cases where employees and employers enter into agreements under different names but the content reflects paid employment, wages, and the management, direction, or supervision of one party.
• Part-time employees: Employees mentioned in item (1) who work part-time and have a monthly wage equal to or higher than the lowest wage used as the basis for compulsory social insurance contributions under the 2024 Social Insurance Law.
• Salaried enterprise and cooperative managers: Enterprise managers, controllers, representatives of enterprise capital as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Supervisory Board or controllers, and other elected managerial positions of cooperatives or cooperative unions as prescribed by the Law on Cooperatives, who receive salaries.

This marks an expansion of the groups required to participate in unemployment insurance.

6. The Personal Data Protection Law Officially Takes Effect

The Personal Data Protection Law (91/2025/QH15) introduces strict regulations on the protection of personal data in recruitment and employment, effective from January 1, 2026.

Accordingly, Section 2, Chapter II of the 2025 Personal Data Protection Law sets out the responsibilities of agencies, organizations, and individuals in protecting personal data during recruitment and employment as follows:

• Only information serving the recruitment purposes of the recruiting agency, organization, or individual may be requested, in accordance with the law. The information provided may only be used for recruitment purposes and other purposes as agreed, in compliance with the law.
• The information provided must be processed in accordance with legal regulations and with the consent of the applicant.
• Information provided by applicants must be deleted or destroyed if they are not hired, unless otherwise agreed with the applicant.
• Employees’ personal data must be stored for the period prescribed by law or as agreed.
• Employees’ personal data must be deleted or destroyed upon termination of the labor contract, unless otherwise agreed or otherwise provided by law.

At the same time, the processing of employees’ personal data collected through technological or technical measures in employee management is regulated as follows:

• Technological and technical measures may only be applied in accordance with the law and must ensure the rights and interests of the personal data subject, on the basis that the employee is fully aware of such measures.
• Personal data collected through technological or technical measures must not be processed or used in violation of the law.

HR Compliance Checklist for the Personal Data Protection Law

In light of the strict requirements under the 2025 Personal Data Protection Law, HR departments need to proactively shift their management mindset from “maximum collection” to “minimum collection and maximum security.” Specifically:

Optimize the Recruitment Process

• Review all candidate information forms and application forms, requesting only data that is truly necessary and relevant to the position.
• Add a clear “Consent to Data Processing” clause directly to application forms.
• Establish a process to delete or destroy candidate records, both hard copies and digital files, for unsuccessful candidates immediately after the recruitment process ends, unless there is another written agreement on data retention.

Ensure Transparency During Employment

• Prepare written notices detailing the technological measures being applied, such as fingerprint timekeeping machines, surveillance cameras, and productivity management software.
• Ensure employees clearly understand the purposes of data collection and their rights regarding such data before any data is collected.

Manage Data Upon Contract Termination

• Work closely with the IT department to “clean up” employees’ personal data from internal systems once they leave the company.
• Only retain information that is legally required under tax, insurance, and labor regulations for the prescribed retention periods.

Establish Internal Legal Policies

• Issue an internal data privacy policy applicable across the company.
• Organize periodic training for HR teams to raise awareness of data security and avoid legal risks from January 1, 2026 onward.

Conclusion

The year 2026 will not only bring changes in tax figures and minimum wage levels, but also stricter requirements for security and transparency in HR data management. Proactively updating regulations under the Personal Income Tax Law, the Employment Law, and especially the Personal Data Protection Law is a key factor in helping HR protect businesses from legal risks and build trust with employees.

As regulations become increasingly complex, adopting technology is an essential solution to reduce pressure on HR teams. With the support of a comprehensive HR management solution such as SunFish HR, businesses can easily automate new tax parameters, optimize payroll fund management, and ensure that the employee data lifecycle always complies with the 2026 legal roadmap. Careful preparation today will serve as the foundation for HR to confidently lead businesses toward stable and effective operations during this transition period