Therefore, beyond accurately updating and promptly implementing new regulations in practice, HR now carries an even more important role — acting as the bridge that helps employees fully understand and properly receive their rights and benefits. At the same time, HR represents the company’s transparency and responsibility in complying with labor laws, helping employees feel secure, valued, and motivated to stay with the organization long-term.

Below is a summary of the latest regulations officially taking effect from January 1, 2026, along with practical recommendations specifically for HR professionals.

Regional Minimum Wage Increase — HR Must Review Salary Structures

According to Decree No. 293/2025/ND-CP, regional minimum wages will increase by VND 250,000–350,000 per month (an average increase of 7.2%) starting January 1, 2026.

Under the 2019 Labor Code, the minimum wage is the lowest amount paid to employees performing the simplest work under normal working conditions, ensuring minimum living standards for workers and their families in line with socio-economic development.

For HR departments, the regional minimum wage is not merely a compliance benchmark — it serves as the foundation for:

• Building and adjusting salary scales and payroll structures

• Determining salaries stated in labor contracts

• Calculating social insurance and unemployment insurance contributions

• Ensuring legal compliance and minimizing risks of penalties or back payments

As a result, HR should proactively review the company’s entire compensation system, especially for employees whose salaries are close to or equal to the regional minimum wage, including part-time and entry-level workers.

In addition, minimum wage adjustments may create a “salary compression” effect, where differences between job levels become narrower. If not carefully managed, this can negatively affect employee morale and perceived fairness. Therefore, HR should work closely with leadership teams to maintain a balanced and transparent compensation structure.

Most importantly, salary adjustments should be clearly communicated to employees. When employees understand that these changes are legally required and responsibly implemented by the company, trust in both HR and the organization will significantly increase.

Higher Personal Income Tax Deductions — HR Must Support Employees Proactively

Starting in 2026, personal income tax family deductions will also increase significantly under Resolution No. 110/2025/UBTVQH15.

• Taxpayer deduction: VND 15.5 million/month

• Dependent deduction: VND 6.2 million/month per dependent

These changes directly affect employees’ net income, especially those supporting children or elderly parents.

HR and Compensation & Benefits (C&B) teams therefore play a crucial role in promptly updating and implementing these policies. Many employees may still be unfamiliar with tax thresholds or dependent registration procedures, which could lead to missed tax benefits.

HR departments should proactively:

• Communicate policy changes clearly to employees

• Guide employees in registering or updating dependent information

• Coordinate with payroll and accounting teams to apply new deductions accurately from the first payroll cycle of 2026

New Employment Law — Direct Impact on Unemployment Insurance

From January 1, 2026, the 2025 Employment Law officially takes effect, expanding mandatory unemployment insurance coverage.

Newly covered groups include:

• Employees with contracts from one month or longer

• Part-time employees meeting minimum salary thresholds

• Paid managers, executives, board members, and representatives

This means HR departments can no longer assume that short-term contracts or freelancers are exempt from unemployment insurance obligations.

HR teams should immediately review:

• Short-term contract employees

• Part-time and seasonal workers

• Paid management positions not yet fully covered by insurance programs

Accurate labor data management and transparent insurance records are now more important than ever.

Personal Data Protection Law — HR Must Transform Employee Data Management

The Personal Data Protection Law officially takes effect from January 1, 2026, significantly impacting HR operations.

HR departments handle large volumes of employee personal data, meaning data protection is no longer just an internal management matter — it is now a legal obligation.

The law requires that:

• Personal data may only be collected for legitimate and clearly stated purposes

• Employee consent must be explicit

• Silence or non-response cannot be considered consent

HR departments should therefore review all onboarding forms, recruitment processes, and employee data management systems.

Recruitment Process

HR may only request information directly relevant to recruitment purposes. Sensitive personal information unrelated to the job could be considered excessive data collection.

Companies should also establish procedures to delete or anonymize unsuccessful candidate data after an appropriate period unless candidates explicitly agree to future storage.

Employee Data Management

For current employees, personal data should only be stored for as long as necessary for labor management purposes.

When employment ends, HR must delete, anonymize, or properly archive unnecessary data unless retention is legally required for tax, insurance, or labor dispute purposes.

Restrictions on Data Transfers & Monitoring Technologies

The law strictly prohibits the sale of personal data and imposes tighter regulations on cross-border data transfers, particularly relevant for multinational companies using international HR systems.

Additionally, employee monitoring systems such as CCTV, device tracking, and digital monitoring tools must now be fully transparent regarding their purpose and scope.

HR Checklist for Early 2026 Compliance

To ensure timely and compliant implementation, HR departments should prioritize the following actions:

• Review salary scales and payroll structures

• Update labor contracts and salary appendices if necessary

• Review employee dependent registrations

• Verify payroll tax calculations

• Audit unemployment and social insurance participation

• Update onboarding and personal data consent forms

• Establish candidate data deletion procedures

• Review employee monitoring policies and systems

• Communicate all legal changes transparently to employees

• Create communication channels for employee questions and feedback

Conclusion

The year 2026 marks not only the implementation of many new laws but also a defining moment for HR professionals. HR is no longer simply responsible for administration — it now plays a strategic role in ensuring legal compliance, protecting employee rights, and strengthening organizational trust.

By proactively adapting, standardizing internal processes, and communicating transparently, HR departments can help businesses reduce legal risks while building a more sustainable and employee-centered workplace.