Proposal to Increase Regional Minimum Wage from 01/01/2026: What Should Businesses and Workers Prepare For?


On July 10, 2025, the National Wage Council reached a consensus to propose an adjustment to the regional minimum wage starting from January 1, 2026. This new rate will be officially applied once the Government issues a new Decree to replace Decree 38/2022/NĐ-CP.

Who Will Be Directly Affected?

– Employees working under labor contracts at enterprises

– Businesses, organizations, and cooperatives using the minimum wage as a basis for salary and insurance contributions

– HR and accounting departments of employers

– Social insurance agencies, since minimum wage adjustments will affect compulsory insurance contribution levels

Key Highlights of the 2026 Minimum Wage Proposal

Average increase: 6% compared to the current rates

Proposed new monthly minimum wages (effective 01/01/2026 if approved):

– Region I: 4,960,000 VND (up 280,000 VND)

– Region II: 4,410,000 VND (up 250,000 VND)

– Region III: 3,860,000 VND (up 220,000 VND)

– Region IV: 3,450,000 VND (up 200,000 VND)

New minimum hourly wages:

– Region I: 23,800 VND/hour

– Region II: 21,200 VND/hour

– Region III: 18,600 VND/hour

– Region IV: 17,100 VND/hour

The proposed increase takes into account:

– The minimum living standards and basic needs of workers

– Labor productivity and economic recovery

– Business performance and ability to absorb increased costs

Key Recommendations from LTS LAW

– Enterprises should prepare salary plans early, ideally from Q4/2025, to avoid delays once the official decree is issued

– Labor contracts, salary scales, and bonus policies should be reviewed and adjusted to comply with the new minimum wage

– Social insurance (SI), health insurance (HI), and unemployment insurance (UI) contributions must be recalculated, as contribution bases cannot be lower than the new minimum wage

– Failure to comply may result in penalties under Decree 12/2022/NĐ-CP

Legal References

– Proposal by the National Wage Council dated 10/07/2025

– Decree 38/2022/NĐ-CP (current minimum wage regulations)

– Labor Code 2019 (governing salaries, contracts, and employee rights)

– Decree 12/2022/NĐ-CP (administrative penalties in labor field)

Contact LTS LAW

LTS LAW supports businesses with consulting and adjusting their salary–bonus systems in line with new regulations:

– Reviewing labor contracts and salary regulations

– Recalculating financial obligations related to social insurance

– Representing businesses in handling wage-related complaints and labor disputes

Free legal consultation hotline: 0902 798 066
Website: https://lts.com.vn

    CONTACT LTS LAW


    Tell Us About Your
    Enquiry


    Please provide a brief description of your enquiry or legal matter. This will help us understand your requirements and ensure your enquiry is directed to the appropriate lawyer.