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What should businesses do when the regional minimum wage changes from January 1, 2026?

On November 10, 2025, the Government issued... Decree No. 293 / 2025 / ND-CP, yes Effective from June 1, 2026This regulation stipulates a new regional minimum wage, replacing Decree 74/2024/ND-CP. Let's explore with Expertis the key points and steps businesses need to take when the regional minimum wage is adjusted upwards from January 1, 2026, to ensure legal compliance and optimize personnel costs.

Checklist for increasing the regional minimum wage in 2026
Minimum wage increase in 2026: What should businesses do?

I. New regional minimum wage rates effective from January 1, 2026

Government issued Decree 293 / 2025 / ND-CP This includes the issuance of two new minimum wage tables for the region (monthly and hourly), specifically as follows:

Region

(Old) monthly minimum wage

Minimum monthly wage (new 2026)

Increase

(Old) minimum hourly wage

Minimum hourly wage (new 2026)

I

4,960,000

5,310,000

350,000

23,800

25,500

II

4,410,000

4,730,000

320,000

21,200

22,700

III

3,860,000

4,140,000

280,000

18,600

20,000

IV

3,450,000

3,700,000

250,000

16,600

17,800

Refer: The categories of regions I, II, III, and IV are defined as follows: Appendix issued together with the Decree this.

II. Determining the scope of application

➤ Businesses operating in a particular region must apply the minimum wage of that region.

➤ If a business has multiple branches in different regions, each unit will apply the salary scale of the region where the branch is located.

➤ For businesses located in industrial parks, export processing zones, high-tech zones, and digital technology zones with varying wage levels across different geographical areas, the highest wage rate will apply.

➤ In cases where a locality changes its name, is divided, merged, or newly established, the minimum wage of the old locality or the highest wage in the relevant regions will temporarily apply until new regulations are issued.

III. Review of payroll and employment contracts

➤ Check the salary scale to ensure it is not lower than the new regional minimum wage.

➤ Adjust employment contracts or contract addendums for affected positions.

➤ Review other forms of wage payment: weekly, daily, piecework, and fixed rates. The converted monthly/hourly rates must not be lower than the new minimum wage. The wage conversion method is as follows:

Monthly salary

Hourly wage
  • Weekly wage × 52 weeks ÷ 12 months, or;
  • Daily wage × number of normal working days in the month, or;
  • Salary is based on output/piecework during normal working hours in a month.
  • Weekly or daily wage ÷ corresponding normal number of working hours, or;
  • Piecework/score-based pay ÷ number of normal working hours required to complete the piecework/task.

IV. Updating the payroll and social insurance system.

➤ Adjust the timekeeping, payroll, social insurance, and personal income tax systems according to the new salary levels.

➤ Ensure that contributions to social insurance, health insurance, and unemployment insurance are not lower than the minimum level.

➤ For probationary, part-time, or multi-location employees, the minimum wage applicable to the respective region will be applied.

👉 See more: Guidelines for constructing salary scales in 2026

V. Internal Communication

➤ Inform employees about the new minimum wage.

➤ Explain the impact on employee wages to avoid misunderstandings and ensure transparency.

VI. Budget Planning

➤ Estimate the cost impact of wage increases (number of workers, average increase).

➤ Adjust the 2026 human resources budget to align with the company's financial situation.

Adjusting the regional minimum wage is a mandatory regulation that 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;
  • Providing advice on adjusting and updating the salary system in accordance with legal regulations.

(I.e. Contact Us Contact Expertis today for detailed consultation and receive fast, accurate implementation solutions for your business!

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