The Ministry of Justice is reviewing the draft Decree on minimum wages for contract workers developed by the Ministry of Home Affairs. The drafting agency proposes to adjust the regional minimum wage by month and hour from January 1, 2026. Accordingly, region I is 5.31 million VND; region II is 4.73 million VND; region III is 4.14 million VND; region IV is 3.7 million VND. This increase is equivalent to 250,000-350,000 VND compared to the current level.
The minimum hourly wage is converted based on the monthly rate and standard working time, specifically in region I it is 25,500 VND per hour; region II 22,700 VND; region III 20,000 VND; region IV 17,800 VND. The Ministry of Home Affairs assessed that the 7.2% increase in the minimum wage would help improve income when it had already calculated a part of the consumer price index in 2026, while harmonizing the interests of workers and businesses - both increasing income and maintaining production and business.
It is forecasted that this adjustment will increase production costs by 0.5-0.6%, and textiles and footwear by 1.1-1.2%. However, most businesses currently pay more than the minimum, so the main impact is on increased social insurance costs. For low-wage workers, raising the minimum is considered necessary to avoid discrepancies and inadequacies.
Without adjustments, the policy impact report warns that workers’ lives will become more difficult as the minimum wage fails to keep up with essential prices, leading to disputes. The Ministry of Home Affairs cited that the 6% increase in Decree 74 in 2024 was rapidly devalued due to a 3.7% annual increase in the CPI in 2025-2026, causing real income to be about 6.6% lower than the minimum living standard by the end of 2026.
The application date of January 1, 2026 is considered suitable for the growth recovery cycle and creates conditions for businesses to prepare resources. Since 2000, the Government has adjusted the minimum wage 20 times, of which 15/18 times were implemented on January 1, except for special crisis periods.
Previously, the Association of Small and Medium Enterprises proposed dividing the increase into two phases in 2026: January 1 - May 30, 2026 with an increase of 4% and June 1 - December 31, 2026 with an increase of 3.2%. However, the Ministry of Home Affairs kept the rate of 7.2% because this was the rate recommended by the National Wage Council, with the participation of the Association in voting.
Along with the rate adjustment, the Ministry of Home Affairs also proposed to rearrange the list of applicable areas after the administrative unit merger. Some places will have their salary zones increased to reflect the labor market conditions and the formation of industrial clusters and infrastructure.
Source: https://baohatinh.vn/bo-noi-vu-de-xuat-tang-luong-toi-thieu-72-tu-nam-2026-post296716.html
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