On November 10, 2025, the Government issued Decree No. 293/2025/NĐ-CP stipulating the monthly minimum wage and hourly minimum wage for employees working under labor contracts. This Decree replaces Decree No. 74/2024/NĐ-CP and takes effect from January 1, 2026. Below are the key updates that businesses should note.
1. Regional Minimum Wages for 2026 (Average Increase of 7.2%)
According to Decree No. 293/2025/NĐ-CP, both monthly and hourly minimum wages in 2026 are increased by 7.2% compared to current levels.
|
Region |
Monthly minimum wage (Unit: VND/month) |
Hourly minimum wage |
||
|
Current |
New |
Current |
New |
|
|
I |
4.960.000 |
5.310.000 |
23.800 |
25.500 |
|
II |
4.410.000 |
4.730.000 |
21.200 |
22.700 |
|
III |
3.860.000 |
4.140.000 |
18.600 |
20.000 |
|
IV |
3.450.000 |
3.700.000 |
16.600 |
17.800 |
2. Changes to Applicable Administrative Areas by Region
Unlike Decree No. 74/2024/NĐ-CP, which classified regions at the district level, Decree No. 293/2025/NĐ-CP issues a list of commune-level administrative areas for applying the new regional minimum wages.
Important Note – Article 5.5
If the adjustment of administrative areas results in a new minimum wage lower than the wage applied as of December 31, 2025, then:
Employers must continue applying the minimum wage in effect on December 31, 2025
This applies to all employees hired on or before December 31, 2025
Until new regulations are issued by the Government
3. Expanded Scope of Application
According to Point c, Article 3.3 of Decree No. 293/2025/NĐ-CP, the scope for applying the highest regional minimum wage has been expanded to include special zones, such as high-tech parks and concentrated digital technology zones.
Specifically, when employers operate in industrial zones, export processing zones, high-tech parks, or concentrated digital technology zones that span areas with different minimum wage levels, the highest applicable minimum wage within that area must be applied.
What Businesses need to do:
- Re-check commune-level administrative areas to determine the correct regional classification under the new Decree
- Update minimum wage levels effective January 1, 2026
- Review labor contracts, salary scales, payroll structures, and 2026 labor costs, and coordinate with grassroots trade unions and employees to amend or supplement them if necessary
You can view the full text of this Decree here.
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