5 common misconceptions about salary increases from January 1, 2026

From January 1, 2026, Decree 293/2025/ND-CP, which stipulates the minimum wage for employees working under labor contracts, will come into effect.

Báo Đồng Tháp•17/12/2025

However, many people are still confused about the salary increase effective January 1, 2026, mainly regarding the following issues:

1. Who is getting a raise?

From January 1, 2026, employers must increase wages for employees if their current wages are lower than the new minimum wage effective from January 1, 2026.

If an employee's salary is equal to or higher than the new minimum wage, and there was a prior agreement between the two parties regarding a salary increase if specific conditions were met, then the employer must increase the employee's salary.

In cases where the employer has established a salary scale or wage table, and the salary increase is applied within their unit, if the employee now meets the conditions for a salary increase as stipulated by the employer, the employer is obligated to increase the salary.

2. In areas where the minimum wage from January 1, 2026, is lower than it is currently, how will wages be adjusted?

In cases where adjustments to the applicable geographical areas result in the minimum wage specified in the Appendix to Decree 293/2025/ND-CP being lower than the minimum wage stipulated by the Government at the time of December 31, 2025, employers must continue to apply the minimum wage at the time of December 31, 2025, for employees recruited on or before December 31, 2025, until the Government issues new regulations.

For example: Workers recruited on or before December 31, 2025, working in Hoang Van Thu commune, Lang Son province, are currently subject to a minimum wage of VND 3,860,000/month (Region III - according to Decree 74/2024/ND-CP and Decree 128/2025/ND-CP). From January 1, 2026, the employer must continue to apply the minimum wage of VND 3,860,000/month to these workers.

This regulation aims to ensure that the rights of workers are not affected by changes in legal policies (specifically, that wages are not reduced). However, if workers are recruited from January 1, 2026, to work in Hoang Van Thu commune, the employer is entitled to apply a minimum wage of VND 3,700,000 (Region IV - according to Decree 293/2025/ND-CP).

3. Do workers have the right to request a wage increase above the minimum wage?

The monthly minimum wage is the lowest wage level used as a basis for negotiating and paying wages to employees who are paid monthly. It ensures that the wage for an employee working the full normal working hours in the month and completing the agreed-upon labor quota or work cannot be lower than the monthly minimum wage.

Therefore, employees have the right to propose that their company increase their wages above the new minimum wage if they believe it is commensurate with the effort they put in.

If the company does not agree, and the employee does not wish to continue the work, they have the right to unilaterally terminate the employment contract and comply with the notice period as stipulated in Clause 1, Article 35 of the 2019 Labor Code.

4. Is it mandatory for the salary of a university graduate to be 7% higher than the minimum wage?

Decree 293/2025/ND-CP does not mandate that the salary of employees with a university degree must be more than 7% higher than the minimum wage.

However, for provisions agreed upon and committed in labor contracts, collective labor agreements, or other legally binding agreements that are more beneficial to employees (such as a salary system for employees performing jobs or positions requiring higher education or vocational training that is at least 7% higher than the minimum wage...) than the regulations in Decree 293/2025/ND-CP, these shall continue to be implemented, unless the parties agree otherwise.

5. Is paying employees less than the minimum wage punishable?

According to Clause 1, Article 6 and Clause 3, Article 17 of Decree 12/2022/ND-CP, employers who pay employees less than the minimum wage are subject to the following fines:

- Fines ranging from 20 million to 30 million VND for violations involving 1 to 10 employees.

- Fines ranging from 30 million VND to 50 million VND for violations involving 11 to 50 employees.

- Fines range from 50 million VND to 75 million VND for violations involving 51 or more employees.

The aforementioned fine applies to individual employers; if the employer is an organization, the fine will be doubled.

At the same time, according to point a, clause 5, Article 17 of Decree 12/2022/ND-CP, the employer is required to pay the employee the full salary plus the overpaid interest calculated at the highest interest rate for demand deposits published by state-owned commercial banks at the time of the penalty for the violation.

According to vnexpress.net

(Lawyer Pham Thanh Huu - Ho Chi Minh City Bar Association)

Source: https://baodongthap.vn/5-nham-lan-thuong-gap-ve-tang-luong-tu-1-1-2026-a234217.html