1️⃣ Official Information

According to the Ministry of Finance’s latest draft, the personal income tax (PIT) deduction is expected to increase:

• From 11 million → 15 million VND/month for taxpayers.

• From 4.4 million → 6 million VND/month for each dependent.

The new rates are projected to take effect from the 2026 tax year, reflecting higher living costs and average incomes.

2️⃣ Impact on Employees

The new deduction levels will significantly reduce the tax burden:

• Those earning around 17 million VND/month or less may no longer need to pay PIT.

• Employees with dependents will benefit even more, as each dependent is eligible for an additional 6 million VND deduction per month.

3️⃣ HR Perspective

From a human resources standpoint, this change brings several benefits:

• Increased take-home pay improves employee satisfaction and retention.

• Employers may face less pressure to adjust salaries, as tax relief enhances disposable income.

• HR and C&B teams should proactively update payroll systems, review dependent records, and prepare for tax recalculations ahead of implementation.

Beyond taxation, this is also an opportunity for organizations to enhance employee experience through clear communication and support in applying the new policy.

While awaiting detailed guidance, the adjustment represents a positive step toward fairer taxation, supporting workers’ financial well-being and helping companies maintain HR stability amid rising living costs.

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