Ministry of Home Affairs proposes to adjust minimum wage to increase by 7.8%

The Ministry of Home Affairs is seeking opinions on the draft Decree stipulating the minimum wage for employees working under labor contracts.

The main content of the draft Decree stipulates the adjustment of the minimum wage to increase by 7.8% compared to the current level to be applied from January 1, 2027.

This increase coincides with the plan that the National Wage Council unanimously recommended to the Government after 2 recent meetings.

Regulations on minimum monthly wages according to 4 regions include: Region I is 5.7 million VND/month, region II is 5.08 million VND/month, region III is 4.45 million VND/month, region IV is 4.04 million VND/month.

The minimum wage mentioned above increased from 310,000 - 390,000 VND (equivalent to an average rate of 7.8%) compared to the current minimum wage.

The above-mentioned minimum wage adjustment is about 3.1% higher than the minimum living standard of workers by the end of 2027 to improve for workers.

The Ministry of Home Affairs said that this adjustment level shares and harmonizes the interests of employees and businesses, both paying attention to improving the lives of employees and paying attention to ensuring the maintenance and development of production and business of businesses.

In addition, the Ministry also proposed to stipulate the minimum hourly wage levels according to 4 regions: Region I is 27,400 VND/hour, region II is 24,400 VND/hour, region III is 21,400 VND/hour, region IV is 19,400 VND/hour.

The hourly minimum wage continues to be determined based on the equivalent conversion method from the monthly minimum wage and standard working hours according to the provisions of the Labor Code.

This is a method recommended by ILO experts to Vietnam and has been used when calculating the hourly minimum wage from 2022 to present.