Increase in regional minimum wage effective January 1, 2026.
The government has just issued Decree No. 293/2025 stipulating the minimum wage for employees working under labor contracts, effective from January 1, 2026, replacing Decree No. 74/2024.
According to Decree No. 293/2025, the minimum monthly wage in the four regions is stipulated as follows:
Region I:The price increased by 350,000 VND, from 4,960,000 VND/month to 5,310,000 VND/month.
Region II:The price increased by 320,000 VND, from 4,410,000 VND/month to 4,730,000 VND/month.
Region III:The amount increased by 280,000 VND, from 3,860,000 VND/month to 4,140,000 VND/month.
Region IV:The amount increased by 250,000 VND, from 3,450,000 VND/month to 3,700,000 VND/month.
The minimum hourly wage in 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, and Region IV from 16,600 VND/hour to 17,800 VND/hour.
Thus, the aforementioned minimum wage increases by 250,000-350,000 VND/month (corresponding to an average increase of 7.2%) compared to the current regional minimum wage stipulated in Decree 74/2024.
Employers operating in a particular region must apply the minimum wage rate stipulated for that region.
If an employer has units or branches operating in areas with different minimum wage levels, each unit or branch operating in a particular area shall apply the minimum wage level prescribed for that area.
Employers operating in industrial parks, export processing zones, high-tech zones, and digital technology zones located in areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage.
Employers operating in areas where the name has been changed or the area has been divided shall temporarily apply the minimum wage rate applicable to the area before the name change or division until the Government issues new regulations.
Employers operating in newly established areas formed from one or more areas with different minimum wage levels shall apply the minimum wage level of the area with the highest minimum wage until the Government issues new regulations.
Apply the minimum wage.
The decree statesmonthly minimum wageThis is the lowest wage level used as a basis for negotiating and paying wages to employees who are paid monthly, ensuring that the wage for employees working normal hours in the month and completing the agreed-upon labor quota or work is not lower than the monthly minimum wage.
minimum hourly wageThis is the lowest wage level used as a basis for negotiating and paying wages to workers who are paid on an hourly basis, ensuring that the wage for the job or position of a worker for one hour of work and completion of the agreed-upon labor quota or work is not lower than the minimum hourly wage.
For workers who are paid weekly, daily, by-product, or on a piece-rate basis, the monthly or hourly wage of these payment methods must not be lower than the minimum monthly wage or the minimum hourly wage.
The salary is calculated monthly or hourly based on normal working hours as chosen by the employer in accordance with labor laws.
Specifically, the monthly salary is calculated by multiplying the weekly salary by 52 weeks and dividing by 12 months, or by multiplying the daily salary by the number of normal working days in the month, or by the piece-rate salary or fixed salary for work performed during normal working hours in the month.
Hourly wage is calculated by dividing the weekly or daily wage by the normal number of working hours per week or day; or by dividing the piece-rate or contract wage by the normal number of working hours for producing products or fulfilling contracted tasks.