Decree 293/2025/ND-CP of the Government on the Minimum Wage for employees working under labor contracts

By KMC Consulting Company Limited

New Minimum Wage for Employees from 2026

On November 10, 2025, the Government issued Decree No. 293/2025/ND-CP, stipulating the minimum wage for employees working under labor contracts, effective from January 1, 2026.

This Decree applies to employees working under labor contracts and employers under the Labor Code, including enterprises, agencies, organizations, cooperatives, households, and individuals employing labor. In addition, other agencies, organizations, and individuals involved in the implementation of the minimum wage are also within the scope of this Decree.

Regional minimum wage

The Decree stipulates the monthly and hourly minimum wage for employees by region as follows:

  • Region I: VND 5,310,000/month, VND 25,500/hour
  • Region II: VND 4,730,000/month, VND 22,700/hour
  • Region III: VND 4,140,000/month, VND 20,000/hour
  • Region IV: VND 3,700,000/month, VND 17,800/hour

Regional Scope of Application

The list of areas to which the minimum wage applies is specified in the Appendix attached to the Decree. The regional classification is determined based on the location of the employer’s operations. In the event of a change in the area, the minimum wage shall be applied in accordance with the new Government regulations.

Application of the Minimum Wage

The monthly minimum wage serves as the basis for negotiating and paying wages to employees on a monthly basis, ensuring that it is not lower than the minimum wage when the employee works full time and completes the assigned tasks. Similarly, the hourly minimum wage applies to wage payment based on hours worked. For other forms of wage payment, such as weekly, daily, piece-rate, or contract-based wages, the converted wage rate must not be lower than the monthly or hourly minimum wage.

Effectiveness and Enforcement Responsibilities

This Decree takes effect from January 1, 2026, replacing Decree No. 74/2024/ND-CP. Employers are responsible for reviewing and adjusting the agreements in labor contracts to comply with the new regulations and must not reduce any benefits that are favorable to employees.

For more detailed information about this or related Human Resources & Payroll Advisory, please don't hesitate to contact us.
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