HCMC – The Ministry of Home Affairs has submitted a proposal to raise the minimum wage by 7.2% from 2026, equivalent to an additional VND300,000 per month.
The ministry said the adjustment is necessary as the economy maintains steady growth, GDP expands, and the labor market continues to recover. The increase is aimed at protecting workers’ living standards against inflation.
If approved, the monthly minimum wage would rise by an average of 7.2% compared to the levels set under Decree 74/2024, following recommendations from the National Wage Council.
Region I would see the monthly wage rise from VND4.96 million to VND5.31 million, while Region II would increase from VND4.41 million to VND4.73 million. In Region III, the minimum wage would climb from VND3.86 million to VND4.14 million, and in Region IV, from VND3.45 million to VND3.7 million.
Corresponding hourly minimum wages would be VND25,500 in Region I, VND22,700 in Region II, VND20,000 in Region III, and VND17,800 in Region IV.
The ministry noted that without an adjustment, the 2026 minimum wage would fall about 6.6% below the projected minimum living standard due to inflation. The proposed increase would push the wage 0.6% above the expected living standard, improving worker incomes while keeping business cost pressures under control.
Overall, company expenses would rise by only 0.5-0.6%, though labor-intensive industries such as textiles and footwear could face increases of 1.1-1.2%.
The draft also updates the regional wage classification based on revised administrative boundaries. Localities including Haiphong City, Nghe An, Khanh Hoa, and Quang Tri provinces would be moved into higher-wage categories, while some disadvantaged communes in Quang Ninh and Quang Tri provinces would shift into lower-wage groups to better reflect local economic conditions and infrastructure.
If the plan is approved, businesses will be required to adjust employment contracts and wage structures in line with the new rules. Employers, however, cannot reduce any existing benefits that are already higher than the minimum requirements.
The minimum wage sets the lowest legal payment for full-time employees who complete their assigned work. For workers paid by the week, day, or output, the converted amount must not be lower than the regional minimum wage.
