2026 MINIMUM WAGE: WHAT SHOULD BUSINESSES TAKE NOTE OF?

From January 1, 2026, the minimum wage applicable to employees working under employment contracts is adjusted under Decree No. 293/2025/ND-CP. Compared with 2025, the monthly minimum wage increases by VND 250,000–350,000 per month, depending on the region.

What changes to the 2026 minimum wage?

Decree No. 293/2025/ND-CP adjusts both the monthly minimum wage and hourly minimum wage applicable to employees working under employment contracts. Compared with the rates under Decree No. 74/2024/ND-CP, the 2026 minimum wage increases in all four regions.

The 2026 hourly minimum wages are VND 25,500 (Region I), VND 22,700 (Region II), VND 20,000 (Region III), and VND 17,800 (Region IV), respectively.

In addition, for employees paid on a weekly, daily, piece-rate, or lump-sum basis, the converted monthly or hourly wage must not be lower than the corresponding minimum wage. The conversion is based on normal working hours: weekly/daily wages are converted based on the corresponding number of weeks, days, or working hours, while piece-rate and lump-sum wages are calculated based on the amount of work performed during normal working hours.

How is the minimum wage determined by geographical area?

Under Decree No. 293/2025/ND-CP, the minimum wage is determined based on the geographical area where the employer operates and the corresponding region specified in the Decree.

Where an enterprise has branches, units, or production/business establishments operating in multiple areas with different minimum wage rates, the applicable minimum wage shall be determined according to the respective area of each branch or unit. For industrial parks, export processing zones, high-tech parks, or centralized digital technology zones located across multiple areas with different minimum wage rates, the highest applicable minimum wage shall be applied.

In addition, Decree No. 293/2025/ND-CP provides rules for applying the minimum wage where there are changes in the names, division, merger, or establishment of administrative areas, ensuring that wage payments are not disrupted when administrative boundaries change. Employers should refer to the Appendix issued together with Decree No. 293/2025/ND-CP to accurately determine whether their area falls under Region I, II, III, or IV and the corresponding minimum wage.

Key considerations when applying the 2026 regional minimum wage

When applying the 2026 regional minimum wage, enterprises are responsible for:

– Reviewing, amending, and supplementing provisions relating to wages in employment contracts, collective bargaining agreements, internal regulations, and other company policies to ensure compliance with the new minimum wage.

– Not abolishing or reducing overtime pay, night-work pay, in-kind allowances, or other benefits of employees as prescribed by labor laws.

– Continuing to implement terms agreed upon in employment contracts, collective bargaining agreements, or other lawful agreements that are more favorable to employees than those provided under Decree No. 293/2025/ND-CP, unless otherwise agreed by the parties.

Specifically, under Clause 4, Article 5 of Decree No. 293/2025/ND-CP, more favorable agreements may include wages at least 7% higher for jobs or positions requiring employees to have undergone education or vocational training; at least 5% higher for jobs involving arduous, hazardous, or dangerous working conditions; and at least 7% higher for jobs involving particularly arduous, hazardous, or dangerous working conditions.