According to the 2019 Labor Code, the salary stated in a labor contract must not be lower than the regional minimum wage.
Currently, the regional minimum wage is applied under Decree 74/2024/NĐ-CP.
From January 1, 2026, the Government will implement Decree 293/2025/NĐ-CP with new regional minimum wage levels, all of which are higher than the current rates.
I. New Regional Minimum Wage Levels (Effective from 01/01/2026):
| Region | Monthly Minimum Wage | Hourly Minimum Wage |
| Region 1 | 5,310,000 | 25,500 |
| Region 2 | 4,730,000 | 22,700 |
| Region 3 | 4,140,000 | 19,900 |
| Region 4 | 3,700,000 | 17,800 |
(All increased compared to current levels.)
II. When Must Employers Increase Salaries?
Under Decree 293/2025/NĐ-CP, no later than January 1, 2026, employers must adjust salaries if:
Case 1: The salary in the labor contract is lower than the new regional minimum wage.
→ Employers must raise salaries to meet the new minimum.
Case 2: Salary arrangements that are beneficial to employees no longer meet the required percentage above the new minimum wage.
For example:
- Jobs requiring training must be at least 7% higher than the minimum wage.
- Heavy, hazardous, or dangerous jobs must be at least 5% higher.
- Particularly heavy, hazardous, or dangerous jobs must be at least 7% higher.
→ If the current salary no longer satisfies the required differential, employers must increase it accordingly.
Employers must review:
- All labor contracts
- Collective labor agreements
- Salary regulations and internal policies
And they must not reduce current benefits such as:
- Overtime pay
- Night shift pay
- In-kind allowances
- Other statutory benefits
III. What Salary-Related Information Must Be Included in a Labor Contract?
A labor contract must clearly state:
1 Salary according to job or position
The main salary applicable to the role.
2. Form of salary payment
- By time
- By product/output
- By contract/task
3. Salary payment schedule
Monthly, semi-monthly, by cycle, or as agreed.
4. Salary allowances and additional payments
E.g., responsibility allowance, hazardous allowance, phone, fuel, attendance, etc.
5. Salary increase and promotion policy
Conditions, evaluation criteria, and review timeline.
IV. How Can Employers Pay Salaries?
According to the law:
- Salaries may be paid by time, product/output, or contract.
- Payment can be made in cash or via bank transfer. If paid via bank transfer, the employer must cover account opening fees and transfer fees.
At Metasource, we support businesses in navigating regulatory changes with ease, from labor contract compliance and payroll updates to workforce management and HR outsourcing. With our expertise in Vietnam labor law, EOR services, and end-to-end HR solutions, we help employers stay compliant, reduce operational risk, and focus on growing their business.
If your company needs guidance or hands-on support in adjusting salary structures ahead of 2026, Metasource is here to help. Let’s simplify compliance, together.
