08:00 13/07/2025

Regional minimum wage proposed for 7.2% increase from 2026

Phạm Long

If approved by the Government, the regional minimum wage shall increase by VND350,000-500,000 ($15.5-22.2) per month from the current ones, depending on each region.

(Illustrative  image)
(Illustrative image)

The National Wage Council has put forward a proposal to the Government to raise the regional minimum wage by 7.2 per cent, applicable from January 1, 2026, according to a report from the Government News.

If approved by the Government, the regional minimum wage shall increase by VND350,000-500,000 ($15.5-22.2) per month from the current ones, depending on each region.

As a result, the monthly minimum wage for Regions 1, 2, 3 and 4 will be VND4.96 million ($219), VND4.41 million ($194), VND2.6 million ($114) and VND2.5 million ($109), respectively.

The minimum wage, the lowest amount an employer is legally required to pay a worker for simple jobs under normal working conditions, targeting to ensure that the worker can meet his or her most basic needs.

Based on these minimum rates, employers can negotiate with their employees over actual monthly salaries that must not be lower than the minimum wage in each region.

As of July 1, 2025, Vietnam's regional minimum wage has been applied in 34 provinces and centrally run cities following the merger of localities.

Vietnam's monthly minimum wages vary across four different regions, each based on the living standards in those areas. The new organization of local administrative units has significantly changed how regions are categorized, such as:

Region 1: This region encompasses the most economically developed and urbanized areas, including its key industrial and business hubs, such as Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang.

Region 2: This region encompasses areas with substantial industrial and economic development, albeit at a lower intensity than Region I. Most areas of former  Binh Duong and Dong Nai provinces in Southern Vietnam, and Can Tho city in the Mekong Delta belong to this region.

Region 3: Comprising areas with moderate economic development, this region features emerging industrial and agricultural areas, some of which belong to former Hai Duong province in Northern Vietnam, former Khanh Hoa province in South Central Region, and former Long An province in the Mekong Delta.

Region 4: This region encompasses the least economically developed areas, often characterized as rural or less industrialized, with a primary focus on agriculture and small-scale industries.