Harmonized Adjustment Levels
The Ministry of Home Affairs is seeking opinions on the draft Decree stipulating minimum wage rates for employees working under labor contracts.
Proposed minimum monthly and hourly wage rates across four regions, effective from 1/1/2026.
In the draft, the Ministry proposes a minimum wage increase ranging from 250,000 to 350,000 VND (equivalent to an average ratio of 7.2%) compared to the current rates, effective from January 1, 2026. The minimum wage will continue to be determined based on four regions: 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.
According to the Ministry of Home Affairs, the proposed wage adjustment is approximately 0.6% higher than the minimum living standard of workers until the end of 2026, aiming to improve their well-being.
This adjustment strikes a balance between the interests of employees and employers, considering both the enhancement of workers’ lives and the maintenance and development of business operations.
In addition to the regional monthly minimum wages, the draft also specifies hourly rates for the four regions: Region I at 25,500 VND/hour, Region II at 22,700 VND/hour, Region III at 20,000 VND/hour, and Region IV at 17,800 VND/hour.
The Ministry of Home Affairs stated that the hourly minimum wage is determined by converting the monthly minimum wage and the standard working hours as stipulated in the Labor Code.
Implementation Details
The draft Decree also provides a detailed list of locations corresponding to the four regions across 34 provinces and cities.
Employers operating in a specific region shall apply the minimum wage rate stipulated for that region. If an employer has branches in different regions with varying minimum wage rates, the branch shall follow the rate applicable to its respective region.
The minimum wage is proposed to increase by 250,000 to 350,000 VND (an average ratio of 7.2%) compared to the current rates. Illustrative image.
For employers operating in industrial parks or export processing zones located in areas with different minimum wage rates, the rate applicable to the area with the highest minimum wage shall be followed.
If there are changes in the name or division of the operating area, the employer shall temporarily apply the minimum wage rate of the area before the change until the Government issues new regulations.
For newly established operating areas comprising multiple regions with different minimum wage rates, the rate applicable to the region with the highest minimum wage shall be followed.
According to current regulations, the monthly minimum wage for Region I is 4.96 million VND, Region II is 4.41 million VND, Region III is 3.86 million VND, and Region IV is 3.45 million VND. In Vietnam, the Government has adjusted minimum wages 20 times since 2000, with 15 out of 18 adjustments taking effect on January 1st. The adjustments that deviated from this timeline were associated with unusual fluctuations.
Proposed Regional Minimum Wage Increase for 2026
The Ministry of Home Affairs is seeking feedback on a draft decree that proposes to set a minimum wage for employees working under labor contracts.
What Income Brackets are Subject to Social Insurance Contributions from July 2025?
The minimum salary used as a basis for compulsory social insurance contributions shall be equal to the reference level, and the maximum shall be 20 times the reference level at the time of payment.
Should There Be a Time Limit on Unemployment Benefits for Workers?
Extending the deadline for unemployment benefit applications is imperative to safeguard the interests of participants.
The Dark Side of Secret Salary Deals: Unraveling the Web of Deceit
A common issue faced by employees is a discrepancy between the salary stated in their labor contract and their actual earnings. This can lead to disadvantages when it comes to receiving social insurance benefits. It is important to address this issue to ensure that workers are fairly compensated and receive the benefits they are entitled to.
The Department of Labor Investigates Salaries at 3,400 Businesses
The investigation will be conducted across 3,400 businesses in 18 provinces and cities, representing 8 economic regions nationwide with a significant number of enterprises and a thriving labor market.
