Vietnam to raise regional minimum wages from 2027

Deputy Prime Minister Pham Thi Thanh Tra has signed Decree No. 399/2026, setting new minimum wages for employees working under labor contracts.

Vietnam's regional minimum wage system sets the lowest wages employers can legally pay workers, with rates varying across four regions based on their locations.

Region I covers designated major urban and economic centers and has the highest minimum wage, while Region IV has the lowest. The classifications are determined by specific administrative areas rather than entire provinces or cities.

Under the decree, the monthly minimum wage will rise to VND5.7 million ($221) in Region I, VND5.08 million ($197) in Region II, VND4.45 million ($172) in Region III, and VND4.04 million ($156) in Region IV.

Hourly minimum wages will also increase to VND27,400 ($1.06), VND24,400 ($0.95), VND21,400 ($0.83), and VND19,400 ($0.75), respectively.

The new rates apply to employees working under labor contracts at businesses, agencies, organizations, cooperatives, households, and other employers.

Employers must follow the minimum wage applicable to the region where they operate, while businesses with branches in different regions must apply the corresponding rates at each location.

For industrial parks, export processing zones, high-tech parks, free trade zones, and other designated economic areas spanning multiple regions, the highest applicable regional minimum wage will apply.

In areas affected by administrative renaming or division, existing regional wage classifications will remain in effect until the government issues new regulations.

The decree also requires employers to review labor contracts, collective bargaining agreements, and internal policies to ensure compliance with the new wage levels.

Employers are prohibited from cutting existing benefits, including overtime pay, night-shift pay, in-kind allowances, and other legally mandated entitlements.

The government also encourages employers to maintain more favorable wage agreements, including pay at least seven percent higher for particularly arduous, hazardous, or dangerous jobs compared with equivalent positions under normal working conditions.