Insights
Vietnam Minimum Wage 2026: Regional Rates, Hourly Rates and 2027
By Nguyễn Quốc Trung — Deputy General Director · Updated
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:
| Region | Monthly minimum (VND/month) | Hourly minimum (VND/hour) | Increase on 2025 (VND/month) |
|---|---|---|---|
| Region I | 5,310,000 | 25,500 | +350,000 |
| Region II | 4,730,000 | 22,700 | +320,000 |
| Region III | 4,140,000 | 20,000 | +280,000 |
| Region IV | 3,700,000 | 17,800 | +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:
- The base salary (lương cơ sở) is used in the public sector to calculate pay and allowances for civil servants, public employees and the armed forces. Private businesses do not use it to set wages.
- The reference level (VND 2,530,000 a month from 1 July 2026) is used in the social insurance formula under Social Insurance Law No. 41/2024/QH15: it is the lowest contribution base and the basis of the 20× cap (VND 50,600,000) for social and health insurance.
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:
- A unit or branch operating in an area applies the minimum wage set for that area.
- An industrial park or export processing zone spanning areas with different rates applies the highest rate among them.
- Outsourced or seconded staff working at a client's factory are assessed by where they actually work, not by the address of the contracting party.
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:
- Internal pay scales: grade 1 cannot be below the new rate; if the scale is built on coefficients, the higher grades move too.
- Hourly pay for part-time and seasonal staff: it cannot be below the region's hourly rate, for example VND 25,500 an hour in Region I.
- The unemployment insurance cap: 20 times the regional minimum wage, i.e. VND 106,200,000 a month in Region I in 2026.
- Overtime and night-work pay: calculated on the wage actually paid, so it rises when the lowest wage rises.
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:
| Region | 2026 (VND/month) | Proposed 2027 (VND/month) | Increase | Proposed 2027 hourly (VND/hour) |
|---|---|---|---|---|
| Region I | 5,310,000 | 5,700,000 | +390,000 | 27,400 |
| Region II | 4,730,000 | 5,080,000 | +350,000 | 24,400 |
| Region III | 4,140,000 | 4,450,000 | +310,000 | 21,400 |
| Region IV | 3,700,000 | 4,040,000 | +340,000 | 19,400 |
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
- List of areas applying the minimum wage, issued with Decree 293/2025/ND-CP — monthly and hourly minimum wages and the list of areas; decree issued 10 November 2025, in force 1 January 2026
- 2019 Labour Code (No. 45/2019/QH14) — Article 90 (wages), Article 91 (minimum wage)
- Decree 283/2026/ND-CP — Article 23(3) and (5) (paying below the minimum wage), Article 7(1) (organisations fined double); in force 10 September 2026
- Ministry of Home Affairs proposes a 7.8% average minimum wage rise from 1 January 2027 — Government e-newspaper, 22 July 2026
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:
- Nguyen Quoc Trung — Deputy General Director
- Phone: 0908 636 108 — [email protected]
- Switchboard: 028 3505 4224
- Head office: Room 202, Building 57, 57 Le Thi Hong Gam, Ben Thanh Ward, Ho Chi Minh City
Call +84 908 636 108 or see labour compliance, payroll outsourcing, EOR Vietnam.