Increase in Regional Minimum Wages from 1 January 2026 Under Decree 293/2025/ND-CP

On 10 November 2025, the Government issued Decree 293/2025/ND-CP on the regional minimum wages applicable in 2026, replacing Decree 74/2024/ND-CP. The new minimum wages will take effect from 1 January 2026, with increases ranging from VND 250,000 to VND 350,000 per month, depending on the region.

This adjustment reflects rising inflation, living costs, and the Government’s continued efforts to support workers as the labour market further recovers.

1. Regional Minimum Wages Effective from 1 January 2026

Besides monthly wages, hourly minimum wages will also increase proportionately. For example, in Region I, the hourly rate will rise from 23,800 VND to 25,500 VND per hour.

2. Key Impacts on Employers

(1) Impact on Personnel Costs

An average 6–7% increase in the minimum wage floor will result in higher:

• Payroll expenses
• Mandatory insurance contributions (social, health, and unemployment insurance)
• Other cost items linked to base salary

Businesses that employ a large number of workers at or near minimum wage levels will be affected the most.

(2) Review of Labour Contracts and Allowances

Enterprises must carefully review all employee records to ensure compliance with the new regulations:

• Is the base salary lower than the new minimum wage?
• Does the total income stated in the contract meet legal requirements?

Such review helps prevent compliance risks during labour inspections and ensures transparency in compensation policies.

(3) HR and Financial Planning for 2026

HR and Finance departments should promptly:

• Update payroll software
• Adjust the 2026 budgeting plan
• Recalculate insurance contributions based on the new wage levels
• Prepare communication materials to inform employees about the changes

The 2026 regional minimum wage adjustment is not only a response to current economic conditions but also demonstrates the Government’s consistent commitment to improving employee income and welfare. Businesses that plan ahead will be better positioned to manage costs, ensure compliance, and maintain competitiveness in the year ahead.