Finalizing the increase in the regional minimum wage from January 1, 2027, the highest level up to 5.7 million VND/month

The Government has just issued Decree No. 399/2026/ND-CP stipulating the minimum wage for employees working under labor contracts. This Decree takes effect from January 1, 2027.

Decree No. 399/2026/ND-CP clearly states the subjects of application including:

1. Employees working under labor contracts according to the provisions of the Labor Code.

2. Employers according to the provisions of the Labor Code, including: Enterprises according to the provisions of the Enterprise Law; agencies, organizations, cooperatives, households, individuals who hire and use employees to work for them according to agreements.

3. Other agencies, organizations, and individuals related to the implementation of the minimum wage specified in this Decree.

According to Decree No. 399/2026/ND-CP, the minimum monthly salary in 4 regions compared to the provisions of Decree No. 293/2025/ND-CP dated November 10, 2025 of the Government is regulated as follows:

The hourly minimum wage in region I increased from 25,500 VND/hour to 27,400 VND, region II from 22,700 VND/hour to 24,400 VND, region III from 20,000 VND/hour to 21,400 VND, region IV from 17,800 VND/hour to 19,400 VND.

The application of regional areas is determined according to the place of operation of the employer as follows:

Employers operating in which area apply the minimum wage prescribed for that area.

Employers with units and branches operating in areas with different minimum wages, the unit or branch operating in which area shall apply the minimum wage prescribed for that area.

Employers operating in industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, special economic zones, free trade zones, and high-tech agricultural zones located in areas with different minimum wages shall apply according to the area with the highest minimum wage.

Employers operating in the area that is renamed or divided temporarily apply the minimum wage prescribed for the area before renaming or dividing until the Government has new regulations.

Employers operating in areas established from one or more areas with different minimum wages shall apply the minimum wage according to the area with the highest minimum wage until the Government has new regulations.

Decree No. 399/2026/ND-CP stipulates that the minimum monthly salary is the lowest salary as a basis for agreement and salary payment for employees applying the form of monthly salary payment, ensuring that the salary according to the job or title of the employee working full normal working hours in the month and completing the labor norm or agreed work is not lower than the minimum monthly salary.

The hourly minimum wage is the lowest wage as a basis for agreement and payment for employees applying the hourly wage form, ensuring that the wage according to the job or title of the employee working for one hour and completing the labor norm or agreed work is not lower than the hourly minimum wage.

The monthly salary converted is equal to the weekly salary multiplied by 52 weeks divided by 12 months; or equal to the daily salary multiplied by the number of normal working days in the month; or equal to the product salary, contract salary implemented during normal working hours in the month.

Read the original here