Ministry of Interior: No cuts in overtime pay and allowances when minimum wage increases

It is expected that the regional minimum wage will be adjusted to increase by an average of 7.2% from January 1, 2026. (Photo: PV/Vietnam+)

The Ministry of Interior is drafting a Decree stipulating the minimum wage for workers employed under labor contracts.

The minimum monthly wage is expected to increase by 250,000-350,000 VND (corresponding to an average increase of 7.2%) compared to the current minimum wage, effective from January 1, 2026. Specifically, the regional minimum wage will be 5.31 million VND/month in Region I, 4.73 million VND/month in Region II, 4.14 million VND/month in Region III, and 3.7 million VND/month in Region IV.

The minimum hourly wage corresponds to the 4 regions as follows: Region I is 25,500 VND/hour, Region II is 22,700 VND/hour, Region III is 20,000 VND/hour, Region IV is 17,800 VND/hour.

In addition, the Ministry of Home Affairs also provides regulations on how to calculate salary levels applicable to specific cases.

Accordingly, for employees who are paid weekly or daily, by product or by piecework, the salary must not be lower than the minimum monthly wage or the minimum hourly wage.

The converted wage based on normal working hours is determined by the employer in accordance with labor laws as follows: Specifically, the converted monthly wage is equal to the weekly wage multiplied by 52 weeks divided by 12 months; or the daily wage multiplied by the number of normal working days in the month; or the piece-rate wage or fixed wage for work performed during normal working hours in the month.

Hourly salary is converted by weekly or daily salary divided by normal working hours per week or per day; or by product salary or contract salary divided by normal working hours to produce products or perform contracted tasks.

The draft regulation stipulates that when adjusting the minimum wage, employers are responsible for reviewing agreements in labor contracts, collective labor agreements and regulations of the employer to make appropriate adjustments and supplements.

In particular, the Ministry of Home Affairs stated that it is not allowed to abolish or reduce salary regimes when employees work overtime, work at night, compensation regimes in kind and other regimes according to the provisions of labor law.

Regarding provisions agreed upon and committed in labor contracts, collective bargaining agreements, or other legally binding agreements that are more beneficial to employees (including agreements on salary regimes for employees performing jobs or positions requiring higher education or vocational training, at least 7% higher than the minimum wage) than the regulations, these shall continue to be implemented, unless the parties agree otherwise.

Ministry of Interior: No cuts in overtime pay and allowances when minimum wage increases

The Ministry of Home Affairs has issued regulations on how to calculate salary levels applicable to specific cases when adjusting regional minimum wages. (Photo: VNA)

Regarding the application of regional minimum wage rates, these will be determined based on the employer's operating location. Specifically, the minimum wage applicable to a particular region where the employer operates will be determined.

If an employer has units or branches operating in areas with different minimum wages, the minimum wage prescribed for the area in which the unit or branch operates shall apply.

Employers operating in industrial zones and export processing zones located in areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage.

For employers operating in an area with a name change or separation, the minimum wage prescribed for the area before the name change or separation shall be temporarily applied until the Government has new regulations.

Employers operating in a newly established area from one or more areas with different minimum wages shall apply the minimum wage according to the area with the highest minimum wage.

According to Vietnam+

Source: https://baothanhhoa.vn/bo-noi-vu-khong-cat-giam-tien-them-gio-tro-cap-khi-tang-luong-toi-thieu-255792.htm