The Ministry of Justice is currently reviewing a draft decree outlining minimum wage adjustments for employees under labor contracts.
According to the Ministry of Home Affairs’ proposal, the decree applies to: Employees working under labor contracts; employers; and other relevant agencies, organizations, and individuals involved in implementing minimum wage regulations.
The draft decree proposes a 7.2% increase in the minimum wage, effective January 1, 2026, aligning with the National Wage Council’s recommendation.
The Ministry of Home Affairs proposes a 7.2% minimum wage increase, effective 2026.
The proposed monthly minimum wages are as follows: Region I – 5,310,000 VND, Region II – 4,730,000 VND, Region III – 4,140,000 VND, and Region IV – 3,700,000 VND.
These adjustments represent an increase of 250,000 to 350,000 VND (averaging 7.2%) compared to current rates. The proposed increase exceeds the projected minimum living standards for workers by approximately 0.6% through 2026, aiming to improve their well-being.
“This adjustment balances the interests of both workers and businesses, striving to enhance workers’ livelihoods while ensuring sustainable business operations,” the Ministry of Home Affairs explained.
The draft also outlines hourly minimum wages: Region I – 25,500 VND/hour, Region II – 22,700 VND/hour, Region III – 20,000 VND/hour, and Region IV – 17,800 VND/hour.
Hourly minimum wages are calculated based on the equivalent conversion from monthly minimum wages and standard working hours as defined by the Labor Code.
“This method, recommended by ILO experts, has been Vietnam’s approach to determining hourly minimum wages since 2022,” stated the Ministry of Home Affairs.
The Ministry of Home Affairs suggests implementing the wage adjustment on January 1, 2026, allowing businesses sufficient time to prepare resources and plans.
The Ministry notes that most countries align wage adjustments with the start of their fiscal year, facilitating business planning. In Vietnam, since 2000, the government has adjusted minimum wages 20 times, with 15 of 18 adjustments occurring on January 1. Deviations from this date were due to exceptional circumstances.
Ministry of Home Affairs Proposes 7.2% Minimum Wage Increase, Effective 2026
The draft decree outlines a 7.2% increase in the minimum wage, effective January 1, 2026. This adjustment translates to a raise of 250,000 to 350,000 VND above the current minimum wage levels.
How Do International Experts Forecast Vietnam’s 2025 GDP Growth Compared to ASEAN-6 Nations, Over a Month After the U.S. Imposed a 20% Retaliatory Tariff?
Among countries in the region, Vietnam stands as the sole nation for which the Asian Development Bank (ADB) has revised its GDP growth forecast upward for this year, compared to its April report.
MobiFone and SOVICO Partner to Develop Multi-Utility Telecom Technology Ecosystem
Yesterday in Hanoi, MobiFone Telecommunications Corporation and SOVICO Group signed a comprehensive Memorandum of Understanding (MoU), marking the beginning of a transformative journey to build a multi-utility technology and service ecosystem. This partnership aims to drive national development, empower businesses, and enhance services for the people.
Proposing Fresh Content Ideas on Deposit Insurance
Some argue that the insurance payout limit of 125 million VND has become outdated in relation to today’s living standards, necessitating a more flexible adjustment.
Vietcap Securities Updates on Vietnam’s Market Upgrade Potential
Vietcap Securities (VCI) has released an update on the FTSE market upgrade process following their recent trip to London. In collaboration with FTSE, VCI will co-host the Vietnam Access Day 2025 event on September 18th.
