Vietnam Minimum Wage in 2027: New Regional Rates from January 1

Vietnam will raise its regional minimum wages on January 1, 2027. Monthly minimum wages will range from VND 4.04 million to VND 5.7 million, depending on the location. Employers should verify the region for each worksite and update pay rates before processing their first payroll for work performed in 2027.

Vietnam issued Decree No. 399/2026/ND-CP on 2 November 2026, setting new monthly and hourly minimum wages for employees working under labour contracts. The decree takes effect on 1 January 2027, replacing Decree No. 293/2025/ND-CP. The government reported an average increase of 7.8 percent, with monthly wage floors rising by VND 310,000 to VND 390,000 depending on the region.

What are Vietnam’s minimum wage rates in 2027?

Vietnam’s regions are categorised as follows:

• Region 1: This region encompasses the most economically developed and urbanised areas of Vietnam, including its key industrial and business hubs, such as Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang.
• Region 2: This region encompasses areas with substantial industrial and economic development, albeit at a lower intensity than Region I. Most areas of Binh Duong, Dong Nai, and Can Tho belong to this region.
• Region 3: Comprising areas with moderate economic development, this region features emerging industrial and agricultural areas, some of which belong to Hai Duong, Khanh Hoa, and Long An.
• Region 4: This region encompasses the least economically developed areas, often characterised as rural or less industrialised, with a primary focus on agriculture and small-scale industries.

Also Read: How to understand the regional minimum wage in Vietnam

Which regional minimum wage applies to each worksite?

The applicable rate generally follows the locality where the employer operates. Companies with branches or units in different wage regions apply the rate for each location. For example, a company with a Region I office and a Region II factory would apply the VND 5.7 million monthly floor at the office and the VND 5.08 million floor at the factory, assuming neither site is subject to a special location rule.

Employers operating in designated zones, including industrial parks and export processing zones, apply the highest applicable rate if the zone spans localities with different wage floors. The decree also provides interim rules for administrative changes. Renamed or split localities temporarily retain their previous rate, while a newly formed locality drawing from areas with different rates takes the highest applicable rate until the government issues new rules. Check the current ward or commune for each worksite against the decree’s appendix.

Which employees need a pay adjustment?

For monthly paid employees, the wage for the job or position must meet the regional monthly floor when the employee works normal hours for the month and completes the agreed work or output. For hourly paid employees, the hourly rate for the job or position must meet the applicable hourly floor. Employers paying weekly, daily, by piece or by task must convert pay to a monthly or hourly equivalent using normal working time and test it against the corresponding minimum. For example, employers can convert a daily wage to an hourly equivalent by dividing it by the normal working hours in a day.

An employee on VND 5.5 million per month in Region I would need an increase of at least VND 200,000 to reach the new floor. For employees already above the new minimum, check whether a contract, collective agreement, or internal pay rule ties their rate to the statutory floor or provides a higher entitlement.

What should employers do before January payroll?

1. Map each worksite. Confirm its current administrative address and record the applicable wage region. Check any special zone that spans more than one locality.
2. Audit pay by role and pay method. Compare wages for normal working time with the new floor. Test daily and piece-rate pay using the decree’s conversion rules, and budget for any adjustments to wage-linked payroll costs.
3. Review contracts and pay policies. Check labour contracts, collective agreements and internal rules for more favourable commitments, including any agreed premium for jobs requiring vocational training or involving hazardous conditions. Such commitments continue unless the parties agree otherwise. The decree also bars employers from cutting statutory overtime pay, night-work pay, or in-kind benefits when implementing the new rates.
4. Test the payroll update. Set the new rates to apply from 1 January, document affected pay changes, and run a trial calculation before the first payroll covering January work. Where wages change, check that the system recalculates any wage-linked payments correctly.