Effective January 1, 2026, the minimum wage for employees working under regional classifications will increase by 7.2% compared to the current rates. This adjustment is outlined in Decree No. 293/2025/NĐ-CP, recently issued by the Government.
In practice, many businesses operate branches across regions with varying minimum wage levels. Some companies register their headquarters in one location but operate in another, while others function within industrial zones spanning multiple wage regions. This raises the question: which minimum wage region should employers reference when compensating their employees?
An employee’s minimum wage region is determined by the operational location of their employer.
Addressing this issue, Mr. Phạm Văn Hiền, Deputy Director of the HCMC Labor Confederation’s Legal Consulting Center, explains that according to Decree No. 293/2025/NĐ-CP, employers must apply the minimum wage corresponding to the region where they operate.
Specifically, if an employer has units or branches operating in regions with different minimum wages, each unit or branch must apply the minimum wage of its respective region.
For employers operating in industrial zones, export processing zones, high-tech parks, or concentrated digital technology zones that span multiple wage regions, the highest applicable minimum wage must be implemented.
Under Decree 293, the minimum wages are set as follows: Region I at 5.31 million VND/month, Region II at 4.73 million VND/month, Region III at 4.14 million VND/month, and Region IV at 3.7 million VND/month.
In cases where a region’s name changes or it is divided, the previous minimum wage will apply until the Government issues new regulations.
For newly established regions formed from one or more existing regions with different minimum wages, the highest applicable minimum wage will be used until new government regulations are introduced.
If adjustments to regional classifications result in a minimum wage lower than that mandated by the Government as of December 31, 2025, employers must maintain the December 31, 2025 minimum wage for employees hired before that date until new regulations are issued.
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