No reduction in overtime and bonuses when increasing regional minimum wage

Workers continue to enjoy full benefits according to regulations, without having their overtime and night work wages cut, or in-kind compensation increased when the regional minimum wage is adjusted from January 1, 2026.

From January 1, 2026, the new regional minimum wage officially takes effect according to Decree 293/2025 of the Government , replacing Decree 74/2024.

Accordingly, trained workers or workers doing special jobs will continue to receive a salary at least 7% higher than the regional minimum wage.

This regulation applies to those working in arduous, toxic, and dangerous environments to ensure income commensurate with job requirements. In addition, the Government also stipulates that employers operating in a region must apply the minimum wage prescribed for that region.

Notably, Decree 293/2025 also states that the minimum wage adjustment must not reduce any of the existing income or benefits of employees, including overtime, night work, in-kind compensation and agreed benefits. More favorable agreements in labor contracts or collective labor agreements must remain in place.

The government requires no other salary cuts when increasing regional minimum wages. Photo: HN

For positions requiring training, businesses must pay at least 7% higher than the minimum wage; and for jobs with especially heavy, toxic, or dangerous elements, the pay must be at least 7% higher than equivalent jobs under normal conditions.

In case the adjustment of the locality causes the new minimum wage to be lower than the current one, the enterprise is required to continue to maintain the current level until there is a replacement regulation.

At the same time, the Government requires businesses to review all labor contracts, collective labor agreements and internal regulations to update them according to the new minimum wage, ensuring harmony of interests and maintaining legal commitments with employees.

It is known that in the period 2014-2026, the minimum wage has undergone many adjustments, with increases ranging from 5.3% to 15.2%.

The increase applied from January 1, 2026 is 7.2%, built on the basis of considering factors such as consumer price index, economic growth, labor productivity, labor supply and demand and business affordability.

Minimum wages continue to be established by region to ensure a minimum standard of living for every family in a context of price fluctuations.

Source: https://ttbc-hcm.gov.vn/khong-cat-giam-che-do-lam-them-thuong-khi-tang-luong-toi-thieu-vung-1019985.html