The Government has issued Decree No. 399/2026/ND-CP on minimum wages for employees working under labour contracts, signed on its behalf by Deputy Prime Minister Pham Thi Thanh Tra. The decree takes effect on January 1, 2027 and replaces Decree No. 293/2025/ND-CP of November 10, 2025. Monthly minimum wages rise by VND310,000 to VND390,000 depending on the region.
New minimum wages by region
The monthly minimum wages are adjusted as follows:
- Region I: from VND5,310,000 to VND5,700,000 per month (up VND390,000); hourly from VND25,500 to VND27,400.
- Region II: from VND4,730,000 to VND5,080,000 per month (up VND350,000); hourly from VND22,700 to VND24,400.
- Region III: from VND4,140,000 to VND4,450,000 per month (up VND310,000); hourly from VND20,000 to VND21,400.
- Region IV: from VND3,700,000 to VND4,040,000 per month (up VND340,000); hourly from VND17,800 to VND19,400.
What employers need to prepare
Under the decree, employers must review labour contracts, collective labour agreements and internal rules and adjust them accordingly. They may not remove or cut pay for overtime, night work, in-kind allowances or other entitlements under labour law. Terms that are more favourable to employees remain in force unless both sides agree otherwise.
The applicable rate follows the area where the employer operates; branches in other areas apply their local rate, while industrial zones spanning areas with different rates apply the highest one. Publishing the decree ahead of its effective date gives businesses time to plan labour costs for 2027.
Support for consumption and the labour market
A higher wage floor supports workers' incomes and thereby helps underpin domestic purchasing power, one of the pillars of growth. For labour-intensive industries such as textiles, footwear and processing, it is also a moment to accelerate automation and raise productivity rather than compete on low labour costs alone.
Key takeaways
- Decree 399/2026/ND-CP takes effect on January 1, 2027; the Region I minimum wage reaches VND5.7 million per month and Region IV VND4.04 million.
- Increases range from VND310,000 to VND390,000 per month depending on the region.
- Employers must review contracts and pay rules and may not cut employees' other entitlements.