Vietnam Sets 2027 Minimum Wages at VND4.04 Million to VND5.7 Million a Month

New pay floors take effect on January 1

Vietnam will raise its regional minimum monthly wages to between VND4,040,000 and VND5,700,000 from January 1, 2027, under Decree No. 399/2026/ND-CP, signed on behalf of the government by Deputy Prime Minister Pham Thi Thanh Tra. Monthly increases range from VND310,000 to VND390,000, depending on where an employer operates.

The government's minimum wage announcement, published on November 3, 2026, also sets higher hourly rates and explains how employers must handle branches, industrial zones and administrative boundary changes. The decree replaces Decree No. 293/2025/ND-CP when the new rates begin.

Region I receives the largest increase in dong, while Region IV receives the largest percentage increase. The rules also preserve statutory benefits and require employers to review contracts and pay arrangements, making the change about both the amount workers receive and the terms attached to their wages.

How much will monthly wages rise?

The government's four regional monthly floors will change as follows. VND is the currency code for the Vietnamese dong.

• Region I: VND5,310,000 to VND5,700,000, an increase of VND390,000, or about 7.3%.
• Region II: VND4,730,000 to VND5,080,000, an increase of VND350,000, or about 7.4%.
• Region III: VND4,140,000 to VND4,450,000, an increase of VND310,000, or about 7.5%.
• Region IV: VND3,700,000 to VND4,040,000, an increase of VND340,000, or about 9.2%.

Region IV's larger proportional rise brings its floor slightly closer to Region I's. Its monthly minimum rises from about 69.7% of the Region I rate to about 70.9%. The difference in actual money still grows, from VND1,610,000 to VND1,660,000 a month.

A worker paid exactly the existing monthly minimum would receive an additional VND3,720,000 to VND4,680,000 over 12 months at the new rate, assuming the worker completes the required normal hours and agreed work throughout that period. Those figures come from multiplying each regional monthly increase by 12.

Hourly wages rise in every region

Workers paid by the hour also receive a higher legal floor from January 1. Region I's hourly minimum will increase by VND1,900, Region II's by VND1,700, Region III's by VND1,400 and Region IV's by VND1,600.

• Region I: VND25,500 to VND27,400 an hour.
• Region II: VND22,700 to VND24,400 an hour.
• Region III: VND20,000 to VND21,400 an hour.
• Region IV: VND17,800 to VND19,400 an hour.

The hourly floor applies to the wage for a job or position when a worker completes an hour of work and meets the agreed work requirement. For someone paid monthly, the monthly floor applies when the worker completes normal working hours for the month and the agreed workload.

For both groups, the decree sets the lowest wage employers may agree and pay under those conditions. A worker whose existing wage is below the applicable new floor will need an adjustment to bring it into line with the rule.

Who is covered, and when does the change happen?

Employees working under labor contracts covered by Vietnam's Labor Code fall within the decree. Employers include businesses, agencies, organizations, cooperatives, households and individuals who hire people to work under an agreement. Other organizations and individuals involved in applying the minimum wage rules are also covered.

The transition brings the replacement decree and the new pay rates into effect on the same date:

• November 10, 2025: Decree No. 293/2025/ND-CP, the previous minimum wage measure, was dated.
• November 3, 2026: The government published its announcement explaining Decree No. 399/2026/ND-CP and the new rates.
• January 1, 2027: The new decree takes effect, and Decree No. 293/2025/ND-CP ceases to apply.

Employers must review employment contracts, collective labor agreements and their own pay regulations so that the arrangements match the new requirements. A collective labor agreement sets employment terms agreed between an employer and worker representatives.

Workplace location determines the rate

An employer normally applies the minimum wage for the area where it operates. A company with branches in different wage regions must apply the rate corresponding to each branch's location.

For example, a branch operating in Region I would use the VND5,700,000 monthly floor, while a branch in Region III would use VND4,450,000. The location rule gives a company with several workplaces a separate regional wage obligation for each relevant branch.

Employers operating inside certain zones face a further rule when the zone stretches across areas with different minimum wages: the highest applicable regional rate must be used. This covers industrial parks, export processing zones, zones for advanced technology, concentrated digital technology zones, special economic zones, free trade zones and agricultural zones using advanced technology.

A covered industrial park spanning Regions II and III would therefore use Region II's higher floor of VND5,080,000 a month or VND24,400 an hour, according to the relevant payment method. That gives workers and payroll teams a single higher regional benchmark within such a zone.

Boundary changes have temporary rules

Employers in an area that is renamed or divided must temporarily continue using the minimum wage assigned to the area before the change. That arrangement lasts until the government issues new rules.

A newly established area formed from one or more areas with different minimum wages must use the highest of those rates, again until replacement rules are issued. For example, an area formed from places previously assigned to Regions III and IV would temporarily use Region III's higher rate.

The government announcement gives no date for those later decisions. In the meantime, the temporary rules provide the wage floor employers must use while the administrative map and the wage classifications are brought into line.

Weekly, daily and output pay must meet the floor

Workers paid by the week, day, product or completed task are also protected. Employers must convert those earnings into a monthly or hourly amount and compare the result with the corresponding regional minimum.

The calculation uses normal working time chosen by the employer within labor law requirements. A worker paid for each product, for example, has earnings measured against the normal time needed to produce those goods. The same approach applies to pay for completing an agreed task.

The decree specifies these monthly conversion methods:

• Weekly pay: multiply the weekly wage by 52, then divide by 12.
• Daily pay: multiply the daily wage by the normal number of working days in the month.
• Product or task pay: use the earnings for production or tasks completed during normal monthly working hours.

The weekly formula accounts for all 52 weeks in a year. Multiplying a weekly wage by four would cover only 48 weeks over 12 months and give a lower monthly equivalent.

For an hourly comparison, employers divide weekly pay by normal weekly working hours, or daily pay by normal daily working hours. Product or task earnings are divided by the normal hours needed to produce the goods or complete the task. These calculations give workers paid in different ways a common measure for checking their wage against the legal floor.

Existing benefits and agreed premiums continue

Employers must not remove or reduce statutory pay provisions for overtime or work at night as they adjust wages. The decree also protects allowances provided as goods rather than cash and other benefits required by labor law.

More favorable terms already established through employment contracts, collective agreements or other lawful agreements continue unless the parties agree otherwise. The government announcement identifies several examples:

• Pay at least 7% above the minimum wage for work or positions requiring education or vocational training.
• Pay at least 5% above comparable work under normal conditions for arduous, hazardous or dangerous jobs.
• Pay at least 7% above comparable work under normal conditions for exceptionally arduous, hazardous or dangerous jobs.

The comparison for hazardous work is with a job of similar complexity performed under normal conditions. The training example instead uses the regional minimum wage as its reference point. Those different reference points matter when employers calculate an existing contractual entitlement.

For a Region I worker whose continuing agreement provides a premium of exactly 7% above the regional minimum for a trained role, the new benchmark would be VND6,099,000 a month. That calculation takes the new VND5,700,000 floor and adds VND399,000. Employers must check the wording of each applicable agreement when making such adjustments.

What the increase means for household budgets

The higher floors give workers at the minimum more money to meet regular expenses. Earlier discussion of minimum wages and living costs, published on April 12, 2026, showed the scale of the pressure: a family of four in Region I had an estimated monthly budget of VND14,477,427 for a basic but decent life, according to the Global Living Wage Coalition.

That calculation put the living wage benchmark for an individual worker at VND9,294,701, based on a household supported by an average of 1.76 workers. A living wage benchmark estimates the earnings needed to help cover necessities such as food, housing, healthcare and education.

Compared with that earlier individual benchmark, Region I's new VND5,700,000 minimum amounts to about 61.3%, leaving a difference of roughly VND3,594,701 a month. The earlier VND5,310,000 floor amounted to about 57.1%. The increase narrows the distance against that benchmark, while substantial pressure on household spending continues.

Workers and employers now have three concrete checks to make for January: identify the correct workplace region, apply the appropriate monthly or hourly floor, and preserve statutory benefits and continuing contractual terms. For employees paid by output or completed tasks, converting earnings using normal working time is another essential part of that check.

Key Points

• Vietnam's new minimum wages take effect on January 1, 2027, under Decree No. 399/2026/ND-CP.
• Monthly floors will be VND5,700,000 in Region I, VND5,080,000 in Region II, VND4,450,000 in Region III and VND4,040,000 in Region IV.
• Hourly minimums will range from VND19,400 to VND27,400.
• Branches generally follow their workplace region; covered zones spanning different wage areas use the highest rate.
• Weekly, daily, product and task pay must meet the corresponding floor after conversion.
• Statutory benefits are protected, and more favorable lawful agreements continue unless the parties agree otherwise.