Minimum Wage in Vietnam
There are two categories to Vietnam’s minimum wage:
- Common Minimum Wage – Applied as the salary cap for Social and Health Insurance contributions, as well as the employer’s 2% Trade Union contribution.
- 2,340,000 VND per month – Applied from 01 July 2024 (Decree No. 73/2024/NĐ-CP).
- Regional Minimum Wage –
- Region I covers the rural and urban districts of Hanoi, Ho Chi Minh City, Hai Phong, Dong Nai and Binh Duong, Ha Long (Quang Ninh).
- Region II covers the remaining rural districts of Hanoi, Hai Phong, Hai Duong City, Can Gio (Ho Chi Minh), Ba Ria City (HCM), two suburban districts of Dong Nai, and main provincial cities of Provinces.
- Region III covers the remaining provincial cities and suburban districts of Provinces.
- Region IV covers the remaining localities.
Update in Minimum Wage as of 1 January 2026:
| Defined by government | Depends on the location where the worker is employed | |
| Region | Minimum Wage per Month | Minimum Wage per hour |
| Region I | 5,310,000 | 25,500 |
| Region II | 4,730,000 | 22,700 |
| Region III | 4,140,000 | 20,000 |
| Region IV | 3,700,000 | 17,800 |
- This rate is applied for non-skilled worker only, not applicable 7% higher for trained or apprenticed worker (Draft Decree, effective from 01 January 2026 to replace Decree No. 74/2024/NĐ-CP).
Factors Influencing Minimum Wage
Several factors influence the determination of the minimum wage in Vietnam, including:
- Economic Growth: Rapid economic development leads to adjustments in wage levels to ensure fair compensation.
- Inflation Rates: The government considers inflation to maintain the purchasing power of workers.
- Living Costs: Regional variations reflect differences in living costs between urban and rural areas.
- Labor Market Conditions: Supply and demand for labor impact wage adjustments.
Legal Framework and Compliance
The Vietnamese government regularly reviews and adjusts the minimum wage to ensure it meets the needs of workers. Employers must comply with the minimum wage regulations to avoid penalties. Key compliance points include:
- Regular Updates: Staying informed about annual adjustments to the minimum wage.
- Accurate Payment: Ensuring that employees receive at least the minimum wage for their region.
- Record-Keeping: Maintaining accurate payroll records to demonstrate compliance.
Minimum Wage vs. Average Wage
While the minimum wage sets the legal baseline, the average wage in Vietnam provides a broader picture of earnings across various sectors. The average monthly wage is 14.9 million VND, reflecting higher earnings in industries such as technology, finance, and manufacturing.
Regional Variations in Minimum Wage
The minimum wage varies significantly across different regions in Vietnam:
- Urban Areas: Higher minimum wages in cities like Ho Chi Minh City and Hanoi due to higher living costs.
- Rural Areas: Lower minimum wages in rural regions to reflect lower living costs.
Impact on Businesses and Employees
The minimum wage has significant implications for both businesses and employees:
- Businesses: Must adjust their payroll budgets to comply with wage regulations, potentially impacting profitability.
- Employees: Benefit from a guaranteed minimum income, helping to reduce poverty and improve living standards.
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Understanding the minimum wage in Vietnam is essential for both employers and employees. By staying informed about wage regulations and ensuring compliance, businesses can avoid penalties and support fair labor practices, while employees can secure a stable income.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Vietnam employment laws and regulations, please visit the official governmental websites.
Updated on: November 2025
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