On November 10, 2025, the Government issued Decree No. 293/2025/ND-CP stipulating the minimum wage for employees working under labor contracts (“Decree 293”), replacing the previous Decree No. 74/2024/ND-CP (“Decree 74”).
Accordingly, from January 1, 2026, the minimum wage applicable to employees working under labor contracts at enterprises and organizations, determined by region, will be adjusted as follows:
| Region |
Monthly minimum wage (VND/month) |
Hourly minimum wage (VND/hour) |
||
|---|---|---|---|---|
|
Decree 74 (old) |
Decree 293 (new) |
Decree 74 (old) |
Decree 293 (new) |
|
| Region I | 4,960,000 | 5,310,000 | 23,800 | 25,500 |
| Region II | 4,410,000 | 4,730,000 | 21,200 | 22,700 |
| Region III | 3,860,000 | 4,140,000 | 18,600 | 20,000 |
| Region IV | 3,450,000 | 3,700,000 | 16,600 | 17,800 |
Compared to the current levels, the minimum wage from January 1, 2026 will increase by VND 250,000 – 350,000 per month (equivalent to a 7.06% – 7.26% increase), depending on the region.
The adjustment of the minimum wage will directly impact payroll costs and the statutory benefits that employers must pay to employees. To ensure legal compliance and maintain stable operations, ATA recommends that enterprises review and adjust the following:
1. Adjust the salaries of employees currently receiving the regional minimum wage:
Under the Labor Code, the lowest wage paid to an employee must be at least equal to the regional minimum wage applicable to that area.
Therefore, from January 1, 2026, when the regional minimum wage increases, enterprises must ensure that employees’ base salary is not lower than the new minimum level.
2. Increase contributions to social insurance, health insurance, and unemployment insurance ("SI, HI, UI"):
Under the Law on Social Insurance, the salary used as the basis for compulsory SI contribution is the employee’s monthly salary, which must not be lower than the regional minimum wage.
Thus, for employees whose salary is currently based on the regional minimum wage, enterprises must increase their SI, HI, and UI contributions accordingly when salaries are adjusted.
3. Increase trade union fee contributions:
The trade union fee is currently calculated at 1% of the salary used as the basis for SI contributions.
Therefore, along with the increase in SI, HI, and UI contributions, the increase in the regional minimum wage will also raise the trade union fee amount contributed for employees whose salaries are adjusted, thereby increasing the enterprise’s total trade union fund.
Decree 293 takes effect on January 1, 2026.
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Enterprises must review their labor contracts, collective labor agreements, and internal regulations to ensure compliance.
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Enterprises must continue to implement any terms, commitments, or agreements in labor contracts, collective labor agreements, or other lawful arrangements that are more favorable to employees than the provisions under Decree 293.
Comment: