Regional minimum wage increase from January 1, 2026

Illustration photo (VGP)

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

Accordingly, the Government decided to increase the minimum wage in 4 regions from 250,000 VND - 350,000 VND/month (equivalent to an average rate of 7.2%) compared to the current minimum wage, the increase date is from January 1, 2026.

Regarding the minimum hourly wage, the Government decided: region I increased from 23,800 VND/hour to 25,500 VND/hour; region II from 21,200 VND/hour to 22,700 VND/hour; region III from 18,600 VND/hour to 20,000 VND/hour; region IV from 16,600 VND/hour to 17,800 VND/hour.

The Government Decree also stipulates the application of regional areas determined according to the place of operation of the employer.

Accordingly, 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 by product salary or contract salary divided by normal working hours to produce products or perform contracted tasks.

(VTC)

Source: https://baoninhbinh.org.vn/tang-luong-toi-thieu-vung-tu-112026-251112162144026.html