VCI Legal – December 30, 2025

On 10 November 2025, the Government issued Decree No. 293/2025/ND-CP (“Decree 293”), which sets forth the minimum wages applicable to employees working under labour contracts. This new Decree will take effect on 1 January 2026, replacing the previous regulation under Decree No. 74/2024/ND-CP dated 30 June 2024. The issuance of Decree 293 reflects the Government’s ongoing effort to adjust wage levels in line with economic development, inflation, and the cost of living, ensuring fair compensation for employees across different regions of Vietnam.
From 1 January 2026, the monthly minimum wages for employees will be adjusted as follows:
• Region I: VND 5,310,000 per month, up from VND 4,960,000. This region includes the most economically developed urban areas and major cities, where living costs are higher.
• Region II: VND 4,730,000 per month, increased from VND 4,410,000. This region typically comprises provinces with moderate industrial and service sector activity.
• Region III: VND 4,140,000 per month, up from VND 3,860,000. This region includes provinces with lower average income levels and slower economic development.
• Region IV: VND 3,700,000 per month, increased from VND 3,450,000. Region IV covers the least developed and often remote or rural areas where the cost of living is lower.

In addition to monthly wages, the Decree also revises the minimum hourly wages to reflect similar adjustments: VND 25,500 per hour in Region I, VND 22,700 per hour in Region II, VND 20,000 per hour in Region III, and VND 17,800 per hour in Region IV. These hourly rates apply to employees paid by the hour and serve as a legal benchmark to ensure minimum compensation is maintained for part-time or flexible working arrangements.
The regional classifications are detailed in the Appendix of Decree 293 and are based on commune- and ward-level administrative units. Region I primarily covers most wards in Hanoi, Ho Chi Minh City, and Hai Phong City, as well as selected communes and wards in Quang Ninh, Dong Nai, and Tay Ninh provinces. The remaining communes and wards nationwide fall under Regions II, III, or IV, with certain remote and mountainous provinces, such as Tuyen Quang, Lang Son, Gia Lai, and Dak Lak, predominantly classified as Region III or IV. This classification ensures that minimum wages correspond to local economic conditions, living costs, and labour market realities.
Overall, the adjustments under Decree 293 aim to enhance social equity, support workers’ welfare, and maintain alignment between wage policies and regional economic conditions. Employers are required to comply with these new wage levels when entering into labour contracts or making payments to employees, and any existing wage arrangements below the revised minimum must be updated to meet the legal requirements from 1 January 2026.

About VCI Legal:

VCI Legal is an award-winning business law firm in Vietnam with a wide range of legal and corporate services, among other things, corporate, banking & finance, tax, labor & HR, real estate and dispute resolution with special focus on international investment disputes, We also offer our specialized type of service called “In-House Counsel Service” with the aim of assisting our clients in dealing with all types of internal and external issues arising from their day-to-day operations and business activities. With our offices in both Hanoi and Ho Chi Minh City, we have a tremendous depth of experience in providing well-reasoned and comprehensive legal advice to not only multinationals and Fortune 500 companies, but also small and medium enterprises.

Our professional team comprises one of the leading law firms in Vietnam with service quality highly recommended and acknowledged by international legal service reviewers such as: The Legal 500, AsiaLaw Profiles, IFLR, KPMG’s Tax Directors’ Handbook, Acquisition International, ACQ Global, Global Law Experts, Finance Monthly, and Chambers & Partners.

For many years, VCI Legal has been ranked among the top law firms in Vietnam for corporate, finance, insurance, taxation, employment, intellectual property and investment. With a “Can Do Attitude” combined with a “Know How” capacity, our firm is big enough to provide comprehensive legal support for any in-house legal matters, yet small enough to care about each of our clients. We undertake each engagement with the mindset of a long-term relationship, with the will to give whatever it takes to understand and fulfill your needs.

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