Minimum wage increases from 2026, labor costs form new premises

Song Anh |

From January 1, 2026, Decree 293/2025/ND-CP takes effect, requiring businesses to review salaries and manage labor costs according to the new scale.

From January 1, 2026, Decree 293/2025/ND-CP of the Government officially takes effect, adjusting the minimum monthly salary and minimum hourly salary for employees working under labor contracts. From a business perspective, this regulation sets out the requirement for businesses to review wage policies and managing labor costs to be consistent with the new legal framework.

Labor costs are adjusted according to the policy roadmap

According to Decree 293/2025/ND-CP, the minimum wage is adjusted to increase by region, applied to businesses using labor under contract. This adjustment leads to changes in wage costs for the group of workers who are enjoying a salary level close to the legal floor.

In addition to salaries, social insurance, health insurance, and unemployment insurance contributions are also calculated based on new salaries. Therefore, total labor costs of enterprises may increase in certain positions, especially in industries that use a lot of unskilled labor.

However, the adjustment level has been announced in advance, helping businesses have time to prepare and proactively balance in the 2026 financial plan.

Businesses proactively review labor use models

For many businesses, the effectiveness of Decree 293/2025/ND-CP is an opportunity to re-evaluate the labor structure, productivity and efficiency of personnel use. Instead of just focusing on salary costs, some businesses are paying more attention to optimizing processes, redistributing shifts, or investing in technology to improve labor productivity.

For small and medium-sized enterprises, adjusting labor costs is considered part of the overall management problem, along with cost of raw materials, logistics and finance. Proactive adaptation helps businesses maintain stable operations, while ensuring compliance with legal regulations.

Hourly minimum wage and flexible management requirements

Decree 293/2025/ND-CP continues to clearly stipulate the minimum hourly wage, applicable to employees working part-time. This regulation creates a clearer legal basis for flexible and popular labor-using models in the fields of retail, services, logistics and tourism.

For businesses, this requires stricter hourly working time and salary management, and at the same time building a labor use plan suitable to actual needs. In many cases, good hourly labor management can help businesses use human resources more effectively, instead of increasing unnecessary costs.

Balancing benefits between businesses and workers

Decree 293/2025/ND-CP was issued with the goal of ensuring a minimum living standard for workers, while creating a unified legal framework for the labor market. For businesses, adjusting labor costs according to new regulations is part of the policy adaptation process, taking place in parallel with improving productivity and business efficiency.

In the context of the labor market continuing to fluctuate, the ability to proactively adjust and balance benefits between businesses and workers is considered an important factor in helping businesses develop sustainably in the coming period.

Song Anh
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