Statutory Minimum Regional Wages in Vietnam

(Effective January 1, 2026)

From January 1, 2026, minimum regional wage levels will be adjusted according to new regulations, creating important changes for both employees and employers. The regional minimum wage is a mandatory legal basis for determining wages, social insurance contributions, as well as building salary scales within enterprises. However, many units and employees still have problems with the application, scope of adjustment, as well as the necessary notes to ensure the rights of both parties and compliance with legal regulations. In the following article, Viet An Law would like to provide customers with information on minimum regional wage levels in Vietnam (Effective January 1, 2026)

What are the minimum regional wage levels?

According to Article 91, Labor Code 2019, minimum regional wage levels are the minimum wages of workers who do the simplest jobs in normal working conditions that are sufficient to support themselves and their families. The agreed salary between the employee and the employer must not be lower than the minimum regional wage levels.

Statutory minimum wages per month or per hour vary according to regions.

Current minimum  regional wage levels

According to Article 3 of Decree 74/2024/ND-CP, currently, the minimum  regional wage levels applied nationwide are as follows:

• The minimum regional wage level of Region I: 960.000 VND/month and 23.800 VND/hour;
• The minimum regional wage level of Region II: 410.000 VND/month and 21.200 VND/hour;
• The minimum regional wage level of Region III: 860.000 VND/month and 18.600 VND/hour;
• The minimum regional wage level of Region IV: 450.000 VND/month and 16.600 VND/hour.

Minimum Regional Wage Levels in Vietnam (Effective January 1, 2026)

To actively contribute to improving wages and living standards of workers, promoting the recovery of the labor market, production and business, maintaining harmonious, stable and progressive labor relations, according to the Draft Decree regulating the minimum regional wage level for employees working under labor contracts, the minimum regional wage level has been adjusted to increase from 250,000 VND – 350,000 VND (equivalent to an average rate of 7.2%) compared to the current minimum wage. From January 1, 2026, the monthly minimum wage and the hourly minimum wage for employees working for employers by region will be applied as follows:

• The statutory minimum wages per month of Region I: 310.000 VND, The statutory minimum wages per hour of Region I: 25.500 VND;
• The statutory minimum wages per month of Region II: 4.730.000 VND, The statutory minimum wages per hour of Region II: 700 VND;
• The statutory minimum wages per month of Region III: 140.000 VND; The statutory minimum wages per hour of Region III: 19.900 VND;
• The statutory minimum wages per month of Region IV: 700.000 VND; The statutory minimum wages per hour of Region IV: 17.800 VND.

Minimum Regional Wage Levels in Vietnam (Effective January 1, 2026)

Determine the area to apply the minimum regional wage levels

The application of the regional area is determined according to the employer’s place of operation, specifically:

• Employers operating in communes, wards, towns, or special zones in any region shall apply the minimum wage levels prescribed for that region;
• If an employer has many units or branches operating in many locations, the minimum wage levels for each unit or branch operating in that location shall be applied;
• Employers operating in industrial parks and export processing zones located in many locations with different minimum wage levels shall apply the locality with the highest minimum wage level.
• Employers operating in areas with a change of name or administrative division shall temporarily apply the minimum wage levels for the area before the change until new regulations are issued.
• Employers operating in a newly established area from one or more areas with different minimum wage levels shall apply the minimum wage according to the area with the highest minimum wage level.

From January 1, 2026, to determine which commune, ward, town, or special zone the employer operates in, compare it with the List of areas applying the minimum wage levels in the Appendix issued with the Draft Decree regulating the minimum wage levels for employees working under labor contracts.

Subjects applying minimum regional wage levels

Subjects applying minimum regional wage levels include:

• Employees who work under employment labor contracts
• Enterprises have been granted a certificate of business registration
• Regulatory authorities, organizations, cooperatives, family households, and individuals that employ other people under agreements.

What are the minimum wage levels for daily or weekly pay?

In case the employee agrees to be paid weekly or daily or by product or piecework, the salary of these forms, if converted to monthly or hourly, must not be lower than the statutory minimum wages per month and per hour.

The statutory minimum wages per month and per hour based on normal working hours chosen by the employer according to the following regulations:

In case of weekly payment:

• The converted monthly salary = (The weekly salary ´ 52 weeks)/12 months;
• The converted hourly salary = The weekly salary/Working hours in a week

In case of daily payment:

• The converted monthly salary = The daily salary x Working days in a month;
• The converted hourly salary = The daily salary/ Working hours in a day.

In case of piecework pay or a predetermined payment

• The converted monthly salary = Piecework pay, predetermined payment salary during working hours in a month;
• The converted hourly salary = Piecework pay, predetermined payment salary/Working hours

Will wage commitments change when the minimum wage level changes?

Based on the transitional provisions of the new Draft Decree, after the new Decree comes into effect, employers have the following responsibilities:

• Employers shall review and make appropriate modifications to their agreements in employment contracts, collective bargaining agreements, as well as other regulations and rules;
• Agreements or commitments under employment contracts, collective bargaining agreements or other lawfully concluded agreements that are more advantageous to employees shall remain valid, unless otherwise agreed upon between the parties (For example: Paying wages to employees doing jobs or holding positions that require education and vocational training is not less than 7% of the minimum wage level; Paying wages to employees doing heavy, toxic, or dangerous jobs is not less than 5% of the minimum wage level…);
• Employers are not allowed to cut or reduce any overtime pay, nightshift pay, perquisites, and other benefits paid to employees as prescribed by the Labor Code.

How will companies be punished if they pay wages lower than the minimum regional wage level?

According to Article 17, Decree 12/2022/ND-CP, the following fines shall be imposed upon an employer for paying their employees salaries which are lower than the statutory minimum wages announced by the Government.

• A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed if the violation involves 01 – 10 employees;
• A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed if the violation involves 11 – 50 employees;
• A fine ranging from VND 50.000.000 to VND 75.000.000 shall be imposed if the violation involves 51 employees or more.

Moreover, the employer that commits the violation is compelled to pay full salaries plus interest on late payments or insufficient payments of salary, which are calculated at the highest rate of the demand deposit interest rates publicly quoted by state-owned commercial banks on the date of penalty imposition, to employees.

If you need any detailed advice on minimum regional wage levels in Vietnam (effective January 1, 2026), please contact Viet An Law for the best support!