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Vietnam Minimum Wage 2026: Regional Rates, Hourly Rates and 2027

Vietnam's regional minimum wage in 2026 is VND 5,310,000 a month in Region I (about USD 202), VND 4,730,000 in Region II, VND 4,140,000 in Region III and VND 3,700,000 in Region IV, in force from 1 January 2026 under Decree 293/2025/ND-CP, up VND 250,000–350,000 on 2025. The matching hourly rates are VND 25,500, 22,700, 20,000 and 17,800. This article is for business owners, HR and finance teams hiring in Vietnam who need to identify the right region, check pay scales and insurance bases, and budget for the proposed rates from 1 January 2027; it reflects the rules as of 12 October 2026.

What is the minimum wage in Vietnam in 2026?

The 2026 regional minimum wage in Vietnam is VND 5,310,000 a month (Region I), VND 4,730,000 (Region II), VND 4,140,000 (Region III) and VND 3,700,000 (Region IV); the hourly minimums are VND 25,500, 22,700, 20,000 and 17,800, under Decree 293/2025/ND-CP effective 1 January 2026:

RegionMonthly minimum (VND/month)Hourly minimum (VND/hour)Increase on 2025 (VND/month)
Region I5,310,00025,500+350,000
Region II4,730,00022,700+320,000
Region III4,140,00020,000+280,000
Region IV3,700,00017,800+250,000

The monthly rate applies to employees paid by the month; the hourly rate applies to employees paid by the hour, typically part-time, seasonal or short-shift workers. For employees paid weekly, daily, by output or on a lump-sum basis, pay converted to a monthly or hourly figure must not fall below these levels either.

When did the 2026 minimum wage take effect, and under which decree?

The current regional minimum wage took effect on 1 January 2026 under Decree 293/2025/ND-CP of 10 November 2025, which replaced Decree 74/2024/ND-CP. The legal basis is Article 91 of the 2019 Labour Code: the minimum wage is set by region, fixed per month and per hour, and announced by the Government on the recommendation of the National Wage Council.

In 2025 the corresponding rates were VND 4,960,000, 4,410,000, 3,860,000 and 3,450,000 a month under Decree 74/2024/ND-CP. Businesses still holding pay scales, contracts or annexes with the old figures need to review them for payroll from January 2026.

What is the regional minimum wage, and how does it differ from the base salary and the reference level?

The regional minimum wage is the lowest wage payable to an employee doing the simplest work under normal working conditions, intended to secure a minimum standard of living for the employee and their family (Article 91(1) of the 2019 Labour Code); it is a mandatory floor for every business paying wages under an employment contract. Two figures that are often confused with it play very different roles:

So a full-time employee in Region I must have a contract salary of at least VND 5,310,000 a month, even though the insurance reference level is much lower.

How do you know whether a workplace is in Region I, II, III or IV?

The minimum-wage region is determined by the area where the employee actually works, looked up in the list of areas issued with Decree 293/2025/ND-CP — after Vietnam's 2025 administrative reorganisation, the list is drawn up by commune, ward and special zone rather than by district as before. A business with branches, factories, warehouses or shops in several areas applies each area's rate at each site, not one rate based on its head office.

Three principles commonly used when looking up the region:

When unsure which region a new commune or ward falls into, match its name against the decree's annex and keep a record of the lookup in case of an inspection.

What is the penalty for paying below the minimum wage in Vietnam?

An employer that pays below the minimum wage is fined according to the number of employees affected: VND 20–30 million (1–10 employees), VND 30–50 million (11–50) and VND 50–75 million (51 or more), under Article 23(3) of Decree 283/2026/ND-CP, in force from 10 September 2026 and replacing Decree 12/2022/ND-CP. These are the rates for individuals; a business, as an organisation, is fined double under Article 7(1), i.e. VND 40–60, 60–100 and 100–150 million.

On top of the fine, the business must pay the wage shortfall plus interest at the highest non-term deposit rate published by state-owned commercial banks at the time of the penalty (Article 23(5)(a)). A wage shortfall also means insurance was under-paid on the contribution base.

How much social insurance is paid on a salary of VND 6 million?

On a contract salary of VND 6,000,000 a month used as the contribution base, the employee pays 10.5%, or VND 630,000 a month (social insurance 8%, health insurance 1.5%, unemployment insurance 1%), and the employer pays 21.5%, or VND 1,290,000 a month, plus the 2% trade union fee of VND 120,000. VND 6,000,000 is above the minimum wage in all four regions, so it is valid anywhere.

This employee takes home VND 5,370,000 and owes no personal income tax, because income after insurance is below the VND 15,500,000 personal deduction. The employer's total cost for the position is VND 7,410,000 a month.

What else changes when the regional minimum wage rises?

When the regional minimum wage rises, besides the lowest wage in each contract, a business has to review at least four other items, because they are calculated from or capped by this figure:

Allowances that the business's own pay policy links to the minimum wage (for example an allowance set as a percentage of it) also change, so the pay policy should be re-read before the first payroll of the year.

What will Vietnam's minimum wage be in 2027?

Vietnam's regional minimum wage is proposed to rise by an average of 7.8% from 1 January 2027, to VND 5,700,000 a month (Region I), VND 5,080,000 (Region II), VND 4,450,000 (Region III) and VND 4,040,000 (Region IV), under the option agreed by the National Wage Council in July 2026 and submitted to the Government by the Ministry of Home Affairs. As of 12 October 2026 the Government had not issued the official decree, so the figures below are still proposals:

Region2026 (VND/month)Proposed 2027 (VND/month)IncreaseProposed 2027 hourly (VND/hour)
Region I5,310,0005,700,000+390,00027,400
Region II4,730,0005,080,000+350,00024,400
Region III4,140,0004,450,000+310,00021,400
Region IV3,700,0004,040,000+340,00019,400

The draft also proposes moving some areas of Ho Chi Minh City, Hai Phong, Dong Nai, Da Nang and Hung Yen into a higher region. Businesses should budget 2027 payroll on the proposed rates and re-check each site's region once the decree is issued.

What should employers do when the minimum wage changes?

Employers need to do four things before the first payroll at the new rates: re-confirm the region of every workplace, raise any monthly or hourly wage below the new floor, update insurance contribution bases and the unemployment insurance cap, and notify employees of the change through a contract annex or a pay-rise decision.

Nhan Kiet — Nhan Kiet Manpower Supply Co., Ltd, in operation since 2009 and holding labour sub-leasing Licence No. 15/2019/SHCM — runs monthly payroll for employees in 34 provinces and cities, and updates the minimum-wage region for each workplace from the first payroll of the year. Businesses that want to hand this over can use payroll outsourcing in Vietnam, check the cost of a position with the free Vietnam salary calculator, or, without a Vietnamese entity, hire through an Employer of Record in Vietnam.

See also: Severance Pay in Vietnam (2026): Eligibility, Formula and Examples · Hiring Seasonal Workers in Vietnam 2026: Rules and Options

Sources

This article summarises the rules for orientation; specific situations need individual advice.

Contact us

Businesses that need to check minimum-wage regions, pay scales and insurance bases against the new minimum wage can contact:

Need advice for your own headcount?
Call +84 908 636 108 or see labour compliance, payroll outsourcing, EOR Vietnam.

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