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Increase in regional minimum wage effective January 1, 2026.

On November 10, 2025, the Government issued... Decree No. 293 / 2025 / ND-CP regulations on the minimum wage for workers employed under labor contracts. Effective from June 1, 2026This replaces Decree No. 74/2024/ND-CP. Accordingly, the regional minimum wage will be adjusted upwards by 250,000 – 350,000 VND/month, equivalent to an average increase of 7.2% compared to the current level.

Increase in regional minimum wage effective January 1, 2026.
Increase regional minimum wage in 2026

I. What is the regional minimum wage?

Article 91 Labor Code 2019 regulations:

Minimum wage

  1. The minimum wage is the lowest wage paid to workers performing the simplest tasks under normal working conditions, in order to ensure a minimum standard of living for workers and their families, in accordance with socio-economic development conditions.
  2. Minimum wages are set regionally and regulated on a monthly or hourly basis.
  3. The minimum wage is adjusted based on the minimum living standard of workers and their families; the correlation between the minimum wage and market wages; the consumer price index; economic growth rate; the relationship between labor supply and demand; employment and unemployment; labor productivity; and the ability of businesses to pay.
  4. The Government shall provide detailed regulations for this Article; decide and announce the minimum wage level based on the recommendations of the National Wage Council.

The regulations on minimum monthly and minimum hourly wages for workers employed by employers vary by region and time, as specifically stipulated by the Government in relevant decrees, such as: Effective from July 1, 2026 leaves Decree 293/2025/ND-CP.

Thus, the regional minimum wage is the lowest wage that employers must pay to employees working under normal working conditions, in order to ensure a minimum standard of living for employees and their families, in accordance with socio-economic development conditions.

II. What will the regional minimum wage be in 2025?

The regional minimum wage table for 2025 for workers, as stipulated in Decree 74/2024/ND-CP, is as follows:

Region

monthly minimum wage
(VND/month)

minimum hourly wage
(VND/hour)

Region 1

4,960,000

23,800

Region 2

4,410,000

21,200

Region 3

3,860,000

18,600

Region 4

3,450,000

16,600

III. 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

monthly minimum wage
(VND/month)

minimum hourly wage
(VND/hour)

Region 1

5,310,000

25,500

Region 2

4,730,000

22,700

Region 3

4,140,000

20,000

Region 4

3,700,000

17,800

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

Therefore, from January 1, 2026, the regional minimum wage is expected to increase depending on the region, specifically as follows:

Region

Monthly minimum wage increase
(VND/month)

Increase in minimum hourly wage
(VND/hour)

Region 1

350,000

1,700

Region 2

320,000

1,500

Region 3

280,000

1,300

Region 4

250,000

1,200

IV. Regulations on the application of the minimum wage

➤ The minimum monthly wage is the lowest level used as a basis for negotiating and paying wages to employees working on a monthly basis, ensuring that it is not lower than the stipulated level.

➤ The minimum hourly wage serves as the basis for negotiations with hourly workers, ensuring that the wage for a job or position is not lower than the minimum hourly wage.

➤ For weekly, daily, piece-rate, or fixed-rate wage systems, when converting to monthly or hourly wages, the amount must not be lower than the minimum monthly or hourly wage. The wage conversion method is as follows:

  • Monthly salary:
    • 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.
  • Hourly wage:
    • 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.

V. Principles of application based on geographical area

➤ 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 applies 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.

VI. What should businesses do?

➤  Identify Which region should the business be located in to start applying the regulations accurately?

➤  Review Payroll and employment contracts need to be updated to comply with the new regulations.

➤  Update Salary and insurance calculation system effective from January 1, 2026.

➤  Communicate Internally, this information is conveyed to employees regarding changes in the law.

➤  Planning Budget to cover the increase in insurance premiums.

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

Adjusting the regional minimum wage is a mandatory regulation that directly affects payroll, contracts, personnel costs, and social insurance contributions. Therefore, to avoid incorrect insurance payments and to ensure compliance, businesses need to pay attention to the above points and the effective date to minimize unnecessary errors.

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