Regional Minimum Wage 2026 in Vietnam: Latest Updates and Key Changes

Regional-Minimum-Wage-2026-in-Vietnam_-Latest-Updates-and-Key-Changes-Vina-TPT

Regional-Minimum-Wage-2026-in-Vietnam_-Latest-Updates-and-Key-Changes-Vina-TPT

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)

Regional-Minimum-Wage-2026-in-Vietnam_-Latest-Updates-and-Key-Changes-Vina-TPT

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.

5. Why Vina TPT Is the Trusted Partner for HR Outsourcing in Vietnam?

Vina TPT is a trusted partner for many FDI enterprises and SMEs, delivering professional HR outsourcing and payroll services supported by a team of experts with over 15 years of experience. Vina TPT helps businesses effectively manage human resources, ensure accurate payroll processing, and maintain full compliance with Vietnam’s labor and employment regulations. 

Vina TPT’s HR & Payroll services stand out through: 

  • Experienced legal and HR specialists with up-to-date regulatory knowledge: Our experts stay continuously updated on the latest regulations regarding labor law, wages, social insurance, personal income tax, and international standards, helping businesses minimize compliance risks. 
  • Accurate and transparent payroll processing: We manage payroll calculations, tax withholdings, social insurance contributions, and employee benefits with precision, confidentiality, and on-time execution. 
  • Bilingual Vietnamese – English – Japanese reporting: Designed to meet the governance and reporting requirements of FDI enterprises, supporting communication with parent companies and regulatory authorities in Vietnam. 
  • Integrated end-to-end solutions: By synchronizing HR, payroll, and financial data, Vina TPT reduces errors, saves time, and optimizes operating costs for businesses. 

With Vina TPT’s HR outsourcing and payroll solutions, enterprises can focus on their core business activities while all HR and payroll processes are handled professionally, accurately, and transparently. This is a key factor in ensuring legal compliance and building a strong, professional image with employees and international investors. 

Reach out to Vina TPT for professional HR outsourcing and payroll solutions that help your business optimize human resource management, payroll administration, and overall operational efficiency.

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How Korean IoT Startups Streamline Payroll Management in Vietnam

Vina TPT Payroll service streamlining outsource payroll for korean IoT startups

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1. Payroll Challenges Faced by Korean IoT Startups in Vietnam

When Korean startups expand into Vietnam to develop IoT (Internet of Things) products, they often take advantage of the highly skilled and affordable Vietnamese engineering team. However, a major challenge arises right from the beginning: managing payroll and complying with Vietnamese labor regulations – an area where professional payroll processing companies play a crucial role in ensuring accuracy, compliance, and efficiency.

Many startups have to handle complex contracts, including full-time employees, part-time engineers, and freelancers. Calculating salaries, social insurance, personal income tax, and labor declarations are often done manually, leading to errors and legal violations.

That is why more and more Korean businesses choose to outsource payroll to local experts.

2. Why Payroll Outsourcing Is the Smart Choice for Tech Startups

For small tech companies or Korean IoT startups in Vietnam, maintaining an in-house accounting and human resources department is often costly and ineffective. Outsourcing payroll processing services is a smart choice to help them cut operating costs while still ensuring accuracy and legal compliance. When cooperating with payroll processing companies, businesses can automate the entire process of calculating salaries, deducting taxes and issuing electronic payslips, instead of having to manually process them using Excel spreadsheets.

This solution not only saves time but also limits the risk of errors and violations of labor regulations. Instead of spending hours checking data, startups can focus on product research, technology development and market expansion. Meanwhile, all issues related to payroll, taxes and insurance are handled quickly and transparently by a professional team – making outsourcing payroll the optimal choice for startups that want to develop sustainably in Vietnam.

3. Core Components of Payroll Processing Services

A comprehensive employee payroll service typically includes:

  • Collecting and validating timekeeping data.
  • Calculating salaries, bonuses, allowances, and deducting insurance and personal income tax.
  • Preparing periodic reports to tax and insurance authorities.
  • Issuing electronic payslips and storing personnel records.
  • Automatically updating when there are changes in minimum wages or new regulations.

As a result, businesses can save dozens of hours each month on repetitive administrative tasks.

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4. Local Compliance for Foreign-Run Startups

When expanding operations to Vietnam, Korean IoT startups need to focus not only on technology development but also on ensuring compliance with all labor and tax regulations for foreign-invested enterprises. In Vietnam, all forms of salary payments, whether for Vietnamese or foreign employees, must be transparently declared and in accordance with regulations on labor contracts, personal income tax (PIT) and social insurance (SI).

What makes it difficult for many Korean startups is the difference in the legal systems between the two countries. For example, a Korean engineer working in Vietnam may have to pay taxes under two double taxation agreements (DTAs), or require a work permit and legal residence declaration. Meanwhile, Vietnamese employees are subject to different regulations regarding fixed-term contracts, overtime hours and compulsory insurance premiums.

Handling these discrepancies without expertise can easily lead to mistakes, such as underpaying insurance, miscalculating taxes, or creating contracts with incorrect formats. Therefore, Korean startups often choose payroll outsourcing services to ensure that the entire payroll and tax reporting process is carried out legally, on time, and always ready for audit. With support from experts who understand Vietnamese law, businesses can avoid legal risks and strengthen their reputation with regulators and investors.

5. How Payroll Outsourcing Integrates with IoT Business Operations

In the IoT industry, human resources often include short-term contract engineers, foreign experts, and R&D partners.

Managing payroll for this diverse group of human resources requires flexibility that conventional Excel spreadsheets cannot provide.

Cloud-based online payroll processing allows startups to:

  • Manage human resources data by project.
  • Track labor costs for each product group.
  • Generate quick reports for investors or headquarters in Korea.

In addition, when there are foreign employees working in Vietnam, the payroll system needs to ensure compliance with tax regulations for foreigners, that something that Vina TPT Payroll Service fully supports.

6. Why Korean Companies Choose Vina TPT Payroll Service

Vina TPT is one of the prestigious payroll processing companies in Vietnam, chosen by many Korean startups thanks to its experience in supporting technology businesses.

Highlights of Vina TPT Payroll Service include:

  • Bilingual interface and reports in English – Vietnamese.
  • Support for many types of contracts (full-time, part-time, freelancer).
  • Integration with the startup’s existing accounting system.
  • Ensuring the security and transparency of salary data.
  • Continuous compliance consulting, helping businesses develop with peace of mind.

With a standardized process, Vina TPT helps Korean startups save time, reduce legal risks and maintain trust with Vietnamese employees.

7. From Payroll Stability to Growth Readiness

A stable payroll system not only helps businesses operate smoothly, but also serves as a foundation for expansion and attracting investment capital.

With the administrative burden removed, Korean IoT startups can focus on their core strengths which are developing technology, expanding products and conquering the Southeast Asian market.

With Vina TPT Payroll Service, payroll is no longer a complicated problem but a stepping stone for sustainable growth in Vietnam.

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