On November 10, 2025, the Government issued... Decree No. 293 / 2025 / ND-CP, yes Effective from June 1, 2026This includes regulations setting new regional minimum wage levels for contract workers. This is a crucial change that all businesses need to understand to ensure legal compliance and optimize personnel costs.
However, during implementation, many businesses often overlook building a salary scale, leading to legal risks and difficulties in human resource management. This article will guide businesses step-by-step. Develop a salary scale for 2026.The new regional minimum wage ensures transparency, fairness, and ease of application.
I. What is a salary scale?
➤ A salary scale is a system of salary levels divided into several tiers, applied to each job title or group of jobs within a company, used as a basis for negotiating salary levels in contracts and paying wages to employees.
➤ A payroll is a summary of the actual amounts paid to employees, including basic salary, allowances, bonuses, subsidies, etc., over a specific period.
II. Why are salary scales mandatory for businesses?
➤ Legal regulations: Article 93 Labor Code 2019 It requires all businesses employing workers to establish a salary scale.
➤ Better human resource management: Provides a basis for salary payments, salary increases, rewards, and disciplinary actions.
➤ Avoid legal risks: Businesses can be fined from 5 to 20 million VND by labor inspectors if they do not have a salary scale.
➤ Motivating employees: Employees see a clear path to salary increases and promotions.
III. Principles when constructing salary scales
When constructing a salary scale, businesses need to pay attention to the following principles:
- The law does not limit the maximum number of salary grades, but at least two grades must be established to incentivize employees to receive salary increases. Typically, businesses establish between 5 and 15 salary grades.
- Lowest level (level 1): Must not be below the regional minimum wage.
- Fair and just: Higher positions should have higher salaries.
- Employee input is sought: If the company has a labor union or collective labor representative body.
- Transparency and openness: Post the relevant information at the workplace before implementation.
IV. Steps to build a salary scale
➡️ Step 1: Determine the regional minimum wage
According to the Decree 293 / 2025 / ND-CP The regional minimum wage for 2026 will be:
|
Region |
monthly minimum wage |
minimum hourly wage |
|
I |
5,310,000 đ |
25,500 đ |
|
II |
4,730,000 đ |
22,700 đ |
|
III |
4,140,000 đ |
20,000 đ |
|
IV |
3,700,000 đ |
17,800 đ |
👉 The lowest level in the salary scale must be equal to or higher than the corresponding regional minimum wage levels in 2026.
➡️ Step 2: List job titles
The job title is the name of each position In a business, job titles are linked to specific tasks and responsibilities. Listing job titles can be based on these criteria. Business organizational structure or actual operationAny job that has employees must have a job title in the salary scale.
Examples: Director, Department Head, Accountant, Salesperson, General Laborer…
➡️ Step 3: Establish salary scales for each job title
When building salary grades in the salary scaleTo ensure this, businesses need to pay attention to the following principles. Fair, transparent, and in accordance with the law:
- In line with the regional minimum wage.
- The lowest salary level must not be lower than the regional minimum wage of 2026. Decree 293 / 2025 / ND-CP.
- Ensure compliance with the law to avoid the risk of penalties.
- Internal fairness
- The salary range between levels within the same job title/department must be reasonable.
- Matching the employee's qualifications, experience, abilities, and job responsibilities.
- Encourage employee development and engagement.
- The increase between salary grades reflects competence, work performance, and seniority.
- It helps retain employees, motivates them to achieve KPIs, and promotes career development.
- Transparency and clarity
- Employees need to clearly understand their current salary, the next salary level, and the criteria for promotion.
- It helps manage human resources effectively and reduce internal conflicts.
- Affordability and budget balance
- The salary scale should be designed to optimize the company's payroll budget.
- Avoid creating excessive cost pressure while maintaining motivation and fairness.
- Suitable for the labor market.
- Salary scales should be based on the average salary in the industry/region to maintain competitiveness in recruitment and retain talent.
- Flexible and easy to update.
- Salary scales need to be adaptable to changes in the minimum wage or changes in bonus policies and organizational structure.
➡️ Step 4: The business director issues the Decision to promulgate the document.
The decision must be signed, stamped, and attached with the salary scale.
➡️ Step 5: Consult with the employee representative organization within the company.
➡️ Step 6: Publicize the salary scale at the workplace before implementation.
➡️ Step 7: File the records at the company.
To facilitate inspections at the enterprise, please submit the following documents when an inspection is conducted:
- Salary scale system;
- Decision issued;
- Minutes of the employee consultation (if any);
- Table of regulations specifying the standards and conditions for applying for job titles.
The adjustment of the regional minimum wage in 2026 directly impacts payrolls, contracts, personnel costs, and social insurance contributions. To ensure businesses comply with the law, optimize costs, and implement quickly, Expertis is ready to assist:
- Review and update salary scales according to the new minimum wage level;
- Expertis is ready to assist businesses in building modern salary scales using the following methodology. 3P (Position – Person – Performance).
(I.e. Contact us Contact Expertis today to receive a fast, accurate, and legally compliant implementation solution.