VnExpress reports that the government has issued Decree 399/2026, raising the regional minimum wage from 1 January 2027. The decree replaces the rates that have applied since the start of 2026. It covers workers employed under labour contracts.

Monthly minimums rise by VND310,000 to VND390,000, depending on the region. Region I goes from VND5.31 million to VND5.7 million, an increase of VND390,000. Region II rises from VND4.73 million to VND5.08 million, Region III from VND4.14 million to VND4.45 million, and Region IV from VND3.7 million to VND4.04 million.

Hourly minimums also rise. Region I moves from VND25,500 to VND27,400 an hour, Region II from VND22,700 to VND24,400, Region III from VND20,000 to VND21,400 and Region IV from VND17,800 to VND19,400.

Employers apply the rate for the area where they operate. A company with branches in different areas applies the rate that matches each location. Firms in industrial parks, export processing zones, high-tech zones, free trade zones and similar areas that span localities with different rates apply the highest of them.

If a locality is renamed or split, employers keep applying the earlier rate until a new rule is issued. If a new locality is formed from several areas with different rates, the highest rate applies.

For monthly-paid workers, the minimum applies when they work normal hours and meet the agreed output or duties. For workers paid by the week, day, product or contract, employers must convert pay to a monthly or hourly figure for comparison, and the converted amount cannot fall below the regional minimum.

The decree sets a floor, not a pay rise for every worker. Employees who already earn above the new minimum are not automatically entitled to an increase under this decree. Which region a workplace falls in is set by the government's list of localities, so employers and workers should check the decree's annex for their ward or commune.

Sources

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