On November 10, 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.
Minimum salary increases from 250,000 - 350,000 VND/month
According to Decree 293/2025/ND-CP, the minimum monthly salary in 4 regions is stipulated as follows:
Region I: increased by 350,000 VND, from 4,960,000 VND/month to 5,310,000 VND/month;
Region II: increased by 320,000 VND, from 4,410,000 VND/month to 4,730,000 VND/month;
Region III: increased by 280,000 VND from 3,860 VND/month to 4,140,000 VND/month;
Region IV: increased by 250,000 VND from 3,450,000 VND/month 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.
Thus, the above minimum wage increases by 250,000 - 350,000 VND/month (equivalent to an average rate of 7.2%) compared to the current minimum wage stipulated in Decree 74/2024/ND-CP.
The application of regional areas is determined according to the place of operation of the employer as follows:
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.
Applying the minimum wage
The Decree clearly states that the minimum monthly salary is the lowest salary level used as a basis for negotiating and paying salaries to employees applying the form of monthly salary payment, ensuring the salary according to the job or title of the employee working enough normal working hours in a month and completing the agreed labor or work rate not lower than the monthly minimum wage.
The minimum hourly wage is the lowest wage used as a basis for negotiating and paying wages to employees who apply the form of hourly wages, ensuring the salary according to the job or position of the employee working in an hour and completing the agreed labor norms or work must not be lower than the minimum hourly wage.
For employees applying the form of weekly or daily salary payment or by product or contract salary, the salary of these forms of salary payment if converted monthly or by hour must not be lower than the minimum monthly or hourly minimum wage.
The salary is converted monthly or hourly based on normal working hours chosen by the employer according to the provisions of labor law as follows:
- The salary is converted monthly by the salary per week with 52 weeks divided by 12 months; or the salary per day multiplied by the number of normal working days in the month; or the salary per product, the contract is implemented during normal working hours in the month.
- The salary is converted by the hour to the salary by week, by day divided by the normal working hours of the week, by day; or the salary by product, the contract salary divided by the number of working hours during the normal working hours to produce products, perform contract tasks.
