Ministry of Home Affairs responds to request to postpone minimum wage increase to July 2027

The Ministry of Home Affairs has developed a draft Decree stipulating the minimum wage for employees working under labor contracts, and sent it for comments from ministries, branches, localities and relevant units.

According to the proposed plan in the draft Decree, the minimum wage is expected to increase by an average of 7.8%, implemented from January 1, 2027.

This increase corresponds to 4 regions as follows: region I increases to 5,700,000 VND/month, region II is 5,080,000 VND/month, region III is 4,450,000 VND/month, region IV is 4,040,000 VND/month.

This minimum wage increases from 310,000 - 390,000 VND compared to the current minimum wage.

After a period of taking opinions, the Ministry of Home Affairs has received many comments from ministries, branches, localities and related units.

A total of 55 units were consulted (34 provinces/cities, 15 ministries, branches, 6 related agencies) and posted on 2 Electronic Information Portals (of the Ministry of Home Affairs and the Government).

In which, the Vietnam Textile and Apparel Association proposed to reconsider the maximum increase of 7.8%; proposed the start time from July 1, 2027.

Responding to the above content, the Ministry of Home Affairs said that the adjustment increase of 7.8% and the implementation time from January 1, 2027 were agreed upon by the National Wage Council based on exchange, negotiation, and agreement on related factors and implementation time.

On that basis, the National Wage Council recommended to the Government in Recommendation Report No. 008/BC-HDTLQG dated August 4, 2026 (Vietnam Textile and Apparel Association has 1 representative who is a member of the National Wage Council).

Discussing this issue, Ms. Nguyen Thi Lan Huong - former Director of the Institute of Labor Science and Social Affairs (Ministry of Home Affairs) - said that the minimum wage is the lowest level paid to workers working in normal conditions.

According to Ms. Huong, Vietnam currently does not have a separate law on the minimum wage, so the adjustment is mainly based on the annual proposal of the National Wage Council. The consideration bases often focus on consumer price index and economic growth.

Ms. Huong believes that in the long term, the minimum wage needs to aim for a living wage, capable of meeting the basic needs of workers and their families such as food, accommodation, travel, health care, education and other essential needs. At the same time, this wage level also needs to be adjusted to suit the economic development speed of the country.

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