With the minimum wage increasing, will businesses be forced to increase wages for all workers?

Legal Consulting Department of Lao Dong Newspaper answers:

According to Decree 399/2026/ND-CP of the Government, effective from January 1, 2027. Clause 1, Article 3 of this Decree stipulates that the minimum monthly salary is adjusted as follows: region I is 5.7 million VND; region II is 5.08 million VND; region III is 4.45 million VND and region IV is 4.04 million VND.

Many workers are concerned that when the minimum wage increases, will businesses have to increase wages for all employees?

Clause 1, Article 4, Decree 399/2026/ND-CP stipulates that the minimum monthly salary is the lowest salary as a basis for agreeing and paying salaries for employees applying the form of monthly salary payment, ensuring that the salary according to the job or title of the employee working full working hours normally in the month and completing the labor norms or agreed work is not lower than the minimum monthly salary.

Thus, if the salary according to the job or title of the employee is lower than the new regional minimum level, the enterprise must adjust it to ensure it is not lower than the floor level from January 1, 2027.

Conversely, in the case of employees enjoying a salary higher than the new regional minimum wage, Decree 399/2026/ND-CP does not stipulate that enterprises are required to increase salaries simultaneously or increase according to the adjusted amount of the regional minimum wage.

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