How to apply the minimum wage increase by locality from January 1, 2026

HƯƠNG NHA |

The Government specifically stipulates the subjects eligible for regional minimum wage increases in Decree No. 293/2025/ND-CP from January 1, 2026.

The Government issued Decree No. 293/2025/ND-CP stipulating the minimum wage for employees working under labor contracts, effective from January 1, 2026, replacing Decree No. 74/2024/ND-CP.

Accordingly, Decree No. 293/2025/ND-CP stipulates the minimum monthly salary and minimum hourly salary applicable to employees working under labor contracts.

The subjects of application of Decree No. 293/2025/ND-CP include:

First, employees work under labor contracts according to the provisions of the Labor Code.

Second, employers according to the provisions of the Labor Code, including: Enterprises according to the provisions of the Law on Enterprises. Agencies, organizations, cooperatives, households and individuals that hire or employ workers to work for them according to the agreement. Other agencies, organizations and individuals related to the implementation of the minimum wage prescribed in this Decree.

The Decree stipulates the minimum monthly and hourly wages for employees working for employers in regions as follows:

Anh:

Accordingly, the minimum monthly salary in 4 regions increased as follows: Region I: increased by 350,000 VND to 5,310,000 VND/month; Region II: increased by 320,000 VND to 4,730,000 VND/month; Region III: increased by 280,000 VND to 4,140,000 VND/month; Region IV: increased by 250,000 VND to 3,700,000 VND/month.

The minimum hourly wage in region I increases from 23,800 VND/hour to 25,500 VND/hour, region II from 21,200 VND/hour to 22,700 VND/hour, region III from 18,600 VND/hour to 20,000 VND/hour, region IV from 16,600 VND/hour to 17,800 VND/hour.

The Decree also clearly states the application of the area determined according to the place of operation of the employer.

Employers operating in a region will apply the minimum wage prescribed for that region.

Employers with units and branches operating in areas with different minimum wages shall have the unit or branch operating in which area, apply the minimum wage prescribed for that area.

Employers operating in industrial parks, export processing zones, high-tech zones, and concentrated digital technology zones located in areas with different minimum wages shall apply according to the area with the highest minimum wage.

Employers operating in the area with name changes or division will temporarily apply the minimum wage prescribed for the area before changing the name or division until the Government has new regulations.

Employers operating in the area that are newly established from one area or more areas with different minimum wages shall apply the minimum wage according to the area with the highest minimum wage until the Government has new regulations.

HƯƠNG NHA
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