Officially increase regional minimum wage from January 1, 2026

Regional minimum wage increase from January 1, 2026. Photo: VGP

On November 10, the Government issued Decree No. 293/2025/ND-CP stipulating the minimum wage for employees working under labor contracts, effective from January 1, 2026, replacing Decree No. 74/2024/ND-CP.

Minimum wage increased from 250,000 - 350,000 VND/month

According to Decree 293/2025/ND-CP, the minimum monthly wage in 4 regions is regulated as follows:

Region I: increase by 350,000 VND, from 4,960,000 VND/month to 5,310,000 VND/month;

Region II: increase 320,000 VND, from 4,410,000 VND/month to 4,730,000 VND/month;

Region III: increase 280,000 VND from 3,860 VND/month to 4,140,000 VND/month;

Region IV: increase 250,000 VND from 3,450,000 VND/month to 3,700,000 VND/month.

The minimum hourly wage in region I increased from VND 23,800/hour to VND 25,500/hour, region II from VND 21,200/hour to VND 22,700/hour, region III from VND 18,600/hour to VND 20,000/hour, region IV from VND 16,600/hour to VND 17,800/hour.

Thus, the above minimum wage increases from 250,000 - 350,000 VND/month (equivalent to an average rate of 7.2%) compared to the current minimum wage stipulated in Decree 74/2024/ND-CP.

The application of the regional area is determined according to the employer's place of operation as follows:

Employers operating in a region shall apply the minimum wage prescribed for that region.

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

Employers operating in industrial parks, export processing zones, high-tech zones, and concentrated digital technology zones located in areas with different minimum wages shall apply the minimum wage in the area with the highest minimum wage.

Employers operating in an area with a name change or division shall temporarily apply the minimum wage prescribed for the area before the name change or division 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 until the Government has new regulations.

Apply minimum wage

The Decree clearly states that the minimum monthly wage is the lowest wage level used as a basis for negotiating and paying wages to employees applying the monthly salary payment method, ensuring that the wage level according to the job or position of the employee who works enough normal working hours in the month and completes the agreed labor or work norms must not be lower than the minimum monthly wage.

The minimum hourly wage is the lowest wage used as a basis for negotiation and payment to employees applying the hourly wage payment method, ensuring that the wage according to the job or position of the employee working in one hour and completing the agreed labor norm or work must not be lower than the minimum hourly wage.

For employees who are paid weekly, daily, piecework, or piecework, the salary of these forms of payment, if converted to monthly or hourly, must not be lower than the minimum monthly wage or minimum hourly wage.

The salary converted monthly or hourly based on normal working hours chosen by the employer according to the provisions of labor law is as follows:

- The converted monthly salary is equal to the weekly salary multiplied by 52 weeks divided by 12 months; or the daily salary multiplied by the number of normal working days in a month; or the product-based salary, piecework salary performed during normal working hours in a month.

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

Laodong.vn

Source: https://laodong.vn/thoi-su/chinh-thuc-tang-luong-toi-thieu-vung-tu-112026-1606919.ldo