Regional minimum wages increases by 7.2% from January 1, 2026

On 10 November 2025, the Government issued Decree No. 293/2025/ND-CP prescribing the minimum wage applicable to employees working under labor contracts, effective from 1 January 2026.Compared with Decree No. 74/2024/ND-CP, the monthly regional minimum wage increases by an average of 7.2%, equivalent to an increase of VND 250,000 – 350,000. The hourly minimum wage increases by an average of 6%, equivalent to an increase of VND 700 – 1,700.

Specifically: Region I: The monthly minimum wage increases from VND 4,960,000 to VND 5,310,000 (hourly minimum wage increases from VND 23,800/hour to VND 25,500/hour); Region II: The monthly minimum wage increases from VND 4,410,000 to VND 4,730,000 (hourly minimum wage increases from VND 21,200/hour to VND 22,700/hour); Region III: The monthly minimum wage increases from VND 3,860,000 to VND 4,140,000 (hourly minimum wage increases from VND 18,600/hour to VND 20,000/hour); Region IV: The monthly minimum wage increases from VND 3,450,000 to VND 3,700,000 (hourly minimum wage increases from VND 16,600/hour to VND 17,800/hour).

In addition, Decree No. 293/2025/ND-CP provides guidance on the application of regional boundaries, consistent with changes to administrative boundaries taking effect from July 2025. Specifically, if an employer operates in an industrial park, export-processing zone, high-tech park, or digital-technology zone spanning multiple regions with different minimum wage levels, the employer must apply the highest applicable regional minimum wage. In cases where an employer operates in a newly established administrative area formed from one or more areas with different minimum wage levels, the highest minimum wage shall apply.

To ensure compliance with the new minimum wage requirements, employers should proactively review and adjust relevant provisions in labor contracts, collective bargaining agreements, and internal regulations to align regional minimum wage levels accordingly and safeguard employees’ rights.