The Government’s Decree No. 128/2025 on decentralization and delegation of authority in the field of internal affairs, which will come into force on July 1, includes provisions on minimum wages.
Accordingly, the determination of minimum wages by district will shift to a new determination by commune-level administrative units.
A new list of commune-level administrative units has been categorized into four regions to serve as a basis for setting minimum wage levels.
From July 1, 2025, the determination of minimum wages by district will shift to a new determination by commune-level administrative units. Illustrative image.
The current minimum wage levels are stipulated in the Government’s Decree No. 74/2024, which sets the minimum wages for employees under labor contracts.
Specifically, the current monthly minimum wages are VND 4.96 million in Region I, VND 4.41 million in Region II, VND 3.86 million in Region III, and VND 3.45 million in Region IV.
The corresponding hourly minimum wages are VND 23,800 in Region I, VND 21,200 in Region II, VND 18,600 in Region III, and VND 16,600 in Region IV.
In cases where the new wage levels are lower than the previously applied minimum wages (before July 1), employers shall continue to apply the minimum wage levels based on the pre-July 1 district classification until the Government issues new regulations.
Previously, the National Assembly’s Resolution No. 202/2025/QH15 on the rearrangement of provincial-level administrative units resulted in a total of 34 provincial-level units, including 28 provinces and 6 cities, effective from June 12.
Starting July 1, the new minimum wage levels by region will officially be applied in these 34 provinces and centrally-governed cities.
Proposed Minimum Wage Increase from July
During discussions on socio-economic development plans at the National Assembly on June 18, Representative Thai Thu Xuong, Vice Chairman of the Vietnam General Confederation of Labor (from Hau Giang delegation), urged for an urgent review and adjustment of minimum wages from July 2025.
The representative pointed out an irony: electricity prices have increased four times since 2023, and the prices of food, rent, tuition, and medical expenses – all essential for workers – have also surged. In contrast, the minimum wage has only increased once, by 6%.
According to Representative Thai Thu Xuong, the proposal to adjust wages from July reflects the urgent need arising from the reality of workers’ lives. The minimum wage levels should truly meet the minimum living standards, as stipulated in the Labor Code.
The Minimum Wage Increase for 34 Provinces: Effective July 1st
The latest update on minimum wages across 34 provinces and cities in Vietnam, as per Government Decree No. 128, will come into effect on July 1st.
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A Proposal for Regional Minimum Wage Increase from July
The representative cited that since 2023, electricity prices have surged four times, amounting to a 17% increase, while the minimum wage for workers has only been adjusted once, with a mere 6% increment. The proposal urges an immediate review and adjustment of the regional minimum wage, effective from July onwards. This is deemed a pressing necessity to address the practical needs of the working population.
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“As of 2023, electricity prices have surged by 17% with four price hikes, while the minimum wage for workers has only seen a single 6% increase. This disparity between the rising cost of living and stagnant wages is a pressing issue that demands attention.”
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