1. Entities Subject to the 2026 Regional Minimum Wage Adjustment
According to Article 2 of Decree No. 293/2025/ND-CP, the scope of entities subject to the application of the regional minimum wage has been clearly defined and expanded to include the following groups:
- Employees working under labor contracts in accordance with the current Labor Code of Vietnam.
- Employers as stipulated under the Labor Code, including:
- Enterprises established and operating in compliance with the Law on Enterprises;
- Agencies, organizations, cooperatives, households, and individuals that employ workers under lawful labor agreements.
- Other relevant agencies, organizations, and individuals involved in the implementation and application of the regional minimum wage in accordance with Decree No. 293/2025/ND-CP.
2. Application of the New Regional Minimum Wage from January 1, 2026
On November 10, 2025, the Government issued Decree No. 293/2025/ND-CP regulating the regional minimum wage applicable to employees working under labor contracts. This adjustment represents a significant policy update aimed at safeguarding employees’ livelihoods while remaining aligned with Vietnam’s economic growth and productivity trends.
Regional Minimum Wage Rates on a Monthly Basis
According to Decree No. 293/2025/ND-CP, the monthly regional minimum wage levels have been revised upward by region as follows:
|
Minimum Wage Rates by Month (Unit: VND/month) |
||
|
Region |
2025 | 2026 |
|
Region I |
4.960.000 | 5.310.000 |
|
Region II |
4.410.000 |
4.730.000 |
| Region III | 3.860.000 |
4.140.000 |
| Region IV | 3.450.000 |
3.700.000 |
The regional minimum wage has been adjusted upward by approximately 7.2% compared to 2025, contributing to higher income levels and stronger social security for employees, particularly in the manufacturing and service sectors.
Regional Minimum Wage Table by Hour
|
Minimum Wage Rate by Hour (Unit: VND/hour) |
||
|
Region |
2025 | 2026 |
|
Region I |
23.800 | 25.500 |
|
Region II |
21.200 |
22.700 |
| Region III | 18.600 |
20.000 |
| Region IV | 16.600 |
17.800 |
The adjustment of the hourly minimum wage enhances flexibility for seasonal and part-time employment arrangements, while ensuring the protection of workers’ rights in an increasingly diverse labor market.
3. Regulations on the Application of the Minimum Wage
According to the Decree, the monthly minimum wage represents the lowest level used as the basis for wage agreements between employers and employees. Specifically:
- Employees who work full standard working hours and fulfill their assigned duties must be paid no less than the applicable regional minimum wage.
- For employees paid on an hourly basis, the hourly wage must not be lower than the minimum hourly wage applicable to the corresponding region.
- In cases where wages are paid by day, week, output, or lump-sum basis, the converted monthly or hourly wage must ensure compliance with at least the regional minimum wage level.
Wage Conversion Methods:
- Monthly wage = (Weekly wage × 52) / 12, or Daily wage × Number of normal working days in the month
- Hourly wage = Weekly wage (or daily wage) / Number of normal working hours in the week (or day)
4. Employer Responsibilities When Applying the Minimum Wage
According to Clause 4, Article 5 of Decree No. 293/2025/NĐ-CP on effectiveness and implementation responsibilities, employers are required to fulfill the following obligations when applying the minimum wage to employees:
- Employers must review and adjust the provisions in labor contracts, collective labor agreements, and internal regulations to ensure compliance with the new regulations. At the same time, they are not permitted to abolish or reduce employees’ lawful wage and benefit entitlements, including overtime pay, night-shift pay, in-kind allowances, and other benefits prescribed under labor laws.
- For agreements that are more favorable to employees and were previously established (for example, wage levels higher than the minimum wage for trained workers or those working in hazardous, arduous, or dangerous conditions), enterprises are required to continue implementing such agreements, unless otherwise mutually agreed by the parties involved.
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