Minimum wage increase from January 1, 2026, highest level 5.3 million VND/month

The Government has just issued Decree No. 293/2025/ND-CP stipulating the minimum wage for employees working under labor contracts. The Decree takes effect from January 1, 2026.

The minimum wage increase applies to two groups. The first is employees working under labor contracts as prescribed by the Labor Code.

Second, employers as prescribed by the Labor Code include: Enterprises as prescribed by the Law on Enterprises; agencies, organizations, cooperatives, households, and individuals that hire and use workers under agreements. Other agencies, organizations, and individuals related to the implementation of the minimum wage prescribed in this Decree.

Regulations on monthly minimum wage and hourly minimum wage for workers by region are as follows:

Accordingly, employers operating in a region shall apply the minimum wage prescribed for that region.

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

Employers operating in industrial parks and export processing zones located in areas with different minimum wages shall apply the locality with the highest minimum wage.

In addition, employers operating in an area that has changed its name or split shall temporarily apply the minimum wage prescribed for the area before the name change or split until the Government has new regulations.

In addition, 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.

The Decree stipulates that the minimum monthly wage is the lowest wage level used as a basis for negotiation and payment of 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 norms or work must not be lower than the minimum monthly wage.

In addition, 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.

Specifically, the Decree states that 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 or 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 by product salary or contract salary divided by normal working hours to produce products or perform contracted tasks.

This time the minimum wage increase is half a year earlier than usual. The new wage will be applied from January 1, 2016 instead of mid-year (July 1).

This is the result of two salary negotiation sessions in July. At that time, the National Wage Council agreed on a plan to adjust the minimum wage to increase by 7.2% compared to the current level, applicable from January 1, 2026, to recommend the Government to consider.

Thus, the minimum wage will increase by 250,000-350,000 VND compared to current.

The National Wage Council calculated that the above minimum wage adjustment is about 0.6% higher than the minimum living standard of workers until the end of 2026. This level has shared and harmonized the interests of workers and businesses, paying attention to improving the lives of workers and ensuring the maintenance and development of production and business of enterprises.

In Vietnam, from 2000 to present, the Government has adjusted the minimum wage 20 times.

Source: https://baohatinh.vn/chot-tang-luong-toi-thieu-tu-112026-muc-cao-nhat-53-trieu-dongthang-post299158.html