Proposed increase in regional minimum wage from 250,000

The increase was proposed by the Ministry of Interior in the draft Government Decree stipulating the minimum wage for employees working under labor contracts.

The Ministry of Interior proposes increasing the minimum wage from January 1, 2026. PHOTO: THU HANG

According to the Ministry of Interior, the decree applies to employees working under labor contracts as stipulated in the Labor Code; enterprises; agencies, organizations, cooperatives, households, and individuals who employ workers by agreement; and other agencies, organizations, and individuals involved in implementing the minimum wage stipulated in this decree.

The draft proposal suggests adjusting the monthly minimum wage and the hourly minimum wage applicable to employees working under labor contracts by 7.2% compared to the current levels (coinciding with the plan recommended by the National Wage Council to the Government ).

Specifically, the minimum wage increase is divided into 4 regions as follows:

The minimum wage in Region I increased from 4.96 million VND/month to 5.31 million VND/month (an increase of 350,000 VND).

Region II increased from 4.41 million VND/month to 4.73 million VND/month (an increase of 320,000 VND).

Region III increased from 3.86 million VND/month to 4.14 million VND/month (an increase of 280,000 VND). Region IV increased from 3.45 million VND/month to 3.7 million VND/month (an increase of 250,000 VND).

The Ministry of Interior stated that the aforementioned minimum wage increase ranges from 250,000 to 350,000 VND (corresponding to an average increase of 7.2%) compared to the current minimum wage.

The aforementioned minimum wage adjustment is approximately 0.6% higher than the minimum living standard for workers until the end of 2026. The proposed adjustment date is January 1, 2026, to allow businesses time to prepare for implementation.

Areas where minimum wage rates apply based on the new commune-level administrative units.

The draft proposes a new list of geographical areas classified as Region I, Region II, Region III, and Region IV, based on the existing list stipulated in Decree No. 128/2025/ND-CP and with a review and update based on the requests of provincial People's Committees.

The draft decree stipulates that the application of the regional area is determined according to the location of the employer's operations as follows:

Employers operating in a particular region must apply the minimum wage rate stipulated for that region.

If an employer has units or branches operating in areas with different minimum wage levels, then each unit or branch must apply the minimum wage stipulated for the area in which it operates.

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.

Employers operating in areas where the name has been changed or the area has been divided shall temporarily apply the minimum wage rate applicable to the area before the name change or division until the Government issues 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.

The draft clearly states that employers are responsible for reviewing the agreements in labor contracts, collective labor agreements, and the employer's regulations and rules to adjust and supplement them accordingly; they are not allowed to abolish or reduce wage entitlements for employees working overtime, working at night, in-kind compensation, and other entitlements.

Regarding provisions already agreed upon or committed to in labor contracts, collective labor agreements, or other legally valid agreements that are more favorable to employees than those stipulated in this decree, they shall continue to be implemented, unless the parties agree otherwise.

The draft also stipulates minimum hourly wage rates according to four regions: Region I at 25,500 VND/hour, Region II at 22,700 VND/hour, Region III at 20,000 VND/hour, and Region IV at 17,800 VND/hour.

According to Thanh Nien Newspaper

Source: https://thanhnien.vn/de-xuat-muc-tang-luong-toi-thieu-vung-tu-250000-350000-dong-thang-185250718121256223.htm

Source: https://baolongan.vn/de-xuat-muc-tang-luong-toi-thieu-vung-tu-250-000-350-000-dong-thang-a199003.html