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



