Increasing Regional Minimum Wage from January 1, 2026
On November 10, 2025, the Government issued Decree 293/2025/ND-CP regulating minimum wage levels for employees under labor contracts, replacing Decree 74/2024/ND-CP dated June 30, 2024, and taking effect from January 1, 2026, with an increase of VND 250,000 – 350,000/month (average 7.2%).
New Minimum Wage Levels (from January 1, 2026):
- Region I: VND 5,310,000/month (increase of VND 350,000); VND 25,500/hour.
- Region II: VND 4,730,000/month (increase of VND 320,000); VND 22,700/hour.
- Region III: VND 4,140,000/month (increase of VND 280,000); VND 20,000/hour.
- Region IV: VND 3,700,000/month (increase of VND 250,000); VND 17,800/hour.
Regulations on Applicable Territories:
- Applied based on the location of operation of the employer.
- Branches in a specific region apply that region’s rate.
- Industrial parks/export processing zones/high-tech/digital technology zones: apply the highest rate among involved regions.
- Territories with name changes, divisions, or newly established: temporarily apply the highest rate or previous rate until new Government regulations.
Principles for Applying Minimum Wage:
- Monthly/hourly minimum wage is the lowest level for agreement and payment, ensuring employees working full normal hours and completing agreed norms not below the stipulated rates.
- Other payment forms (weekly, daily, piece-rate, or task-based) must be converted to not fall below monthly/hourly minimum wage, based on normal working hours:
- Monthly conversion: (weekly wage × 52)/12; or daily wage × normal working days/month; or piece-rate/task wage completed in normal monthly hours.
- Hourly conversion: divided by normal hours in week/day or hours to complete piece-rate/task.
The Decree ensures employee rights and provides a unified legal basis for businesses to adjust wages from January 1, 2026.
