The Ministry of Home Affairs responds to the proposal to increase the minimum wage in 2 phases in 2026
In response to the business's proposal on a roadmap to adjust the minimum wage into 2 phases, the Ministry of Home Affairs has responded.
The Ministry of Justice is reviewing the Draft Decree regulating the minimum wage developed by the Ministry of Home Affairs before submitting it to the Government for approval.
The draft Decree stipulates the adjustment of the minimum wage to increase by 7.2% compared to the current level to be applied from January 1, 2026.
The draft stipulates the minimum monthly salary levels in 4 regions as follows: Region I is 5,310,000 VND/month, Region II is 4,730,000 VND/month, Region III is 4,140,000 VND/month, Region IV is 3,700,000 VND/month.
The above minimum wage increases from 250,000 VND - 350,000 VND (equivalent to an average of 7.2%) compared to the current minimum wage. The above minimum wage adjustment is about 0.6% higher than the minimum living standard of employees until the end of 2026 to improve employees.
The Vietnam Association of Small and Medium Enterprises has proposed a proposal related to the minimum wage plan for 2026.
Notably, the Association proposes to study the establishment of an additional plan on a roadmap for adjusting the minimum wage divided into 2 stages.
Phase 1 increases by an average of 4%, applied from January 1 to May 30, 2026; phase 2 increases by an average of 3.2% and applies from June 1 to December 31, 2026.
" applying a 7.2% increase from January 1, 2026 could put pressure on some sectors, especially those that employ many simple workers" - Vietnam Association of Small and Medium Enterprises stated the reason.
Responding to the opinions of enterprises, the Ministry of Home Affairs said that the adjustment of the minimum wage to increase by 7.2% from 2026 was developed based on the recommendation report of the National Wage Council, in which the Vietnam Textile and Garment Association and the Vietnam Association of Small and Medium Enterprises, 2 members of the Council, participated in voting to recommend this adjustment.
Regarding the time to adjust the minimum wage to be implemented from January 1, 2026, the Ministry of Home Affairs said that it has ensured time for businesses to prepare plans and resources for implementation.
In Vietnam, from 2000 to present, the Government has adjusted the general minimum wage 20 times, of which 15/18 times were adjusted on January 1. Other adjustments at the time of January 1 every year are associated with unusual fluctuations.
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