Vietnam sets higher minimum wages across four regions
The decree raises both monthly and hourly pay floors while prohibiting employers from reducing existing benefits.
Vietnam has approved higher regional wage floors for employees hired on labour contracts through Decree No. 399/2026, signed by Deputy Prime Minister Pham Thi Thanh Tra. The measure increases minimum pay on both a monthly and hourly basis.
The decree sets the following minimum rates for the four wage regions:
- Region I: monthly pay of ₫5.7 million; hourly pay of ₫27,400.
- Region II: monthly pay of ₫5.08 million; hourly pay of ₫24,400.
- Region III: monthly pay of ₫4.45 million; hourly pay of ₫21,400.
- Region IV: monthly pay of ₫4.04 million; hourly pay of ₫19,400.
Coverage extends to workers employed under contracts by businesses, agencies, organisations, cooperatives, households and other employers. Wage regions are defined by individual administrative areas rather than province-wide or city-wide boundaries.
Each workplace must follow its local wage floor, including branches of businesses operating in several regions. Where industrial parks or other designated economic zones cross regional boundaries, the highest applicable floor must be used. Administrative renaming or division will not change existing classifications until further government regulations are issued.
Employers are required to check their employment contracts, collective agreements and internal rules against the new requirements. They may not offset the changes by reducing overtime or night-shift payments, allowances provided in kind, or other benefits required by law.
The government also encourages employers to retain more favourable pay arrangements. These include wages at least seven per cent above comparable jobs performed under normal conditions for work that is particularly arduous, hazardous or dangerous.
