From January 1, 2026, the new minimum wage according to Decree 293/2025/ND-CP will officially apply. However, not everyone is entitled to a salary increase and many workers are misunderstanding their rights.
Subjects receiving salary increases
Employers are forced to increase their salary if the current salary is lower than the new minimum wage. In case there is an agreement to increase salaries in contracts, agreements or internal regulations and employees meet the conditions, the enterprise must also increase salaries.
Will wages be reduced when the locality applies a lower minimum wage?
Employees who were recruited before December 31, 2025 will continue to receive the old minimum wage if the new one is lower, to ensure that wages are not reduced. Employees recruited from January 1, 2026 onwards will apply the new minimum wage by locality.
Is it possible to propose a salary higher than the minimum?
The minimum wage is only the floor. Workers have the right to propose a higher salary. If an agreement cannot be reached and do not want to continue working, the employee has the right to unilaterally terminate the contract within the prescribed notice period.
Is the compulsory university graduation rate higher than 7%?
Decree 293/2025/ND-CP does not require university graduates to receive a salary 7% higher than the minimum. However, more favorable agreements as stated in the contract or agreement continue to be implemented.
How is paying a salary lower than the minimum penalty?
According to Decree 12/2022/ND-CP, the act of paying a salary lower than the minimum wage will be severely punished.
Specifically, individual employers will be fined:
From 2030 million VND if violated by 1 to 10 workers.
From 3050 million VND if violated by 11 to 50 workers.
From 5075 million VND if violated by 51 or more employees.
In case the employer is an organization, the fine will be double.
In addition, enterprises are also required to pay the full remaining wages and interest for late payment to employees, calculated according to the highest interest rate for non-term deposits of state-owned commercial banks at the time of penalty.
