What does Decree 399/2026/NĐ-CP stipulate?
Decree 399/2026/NĐ-CP dated November 2, 2026 of the Government regulates the monthly minimum wage and hourly minimum wage by region for employees working under labor contracts. Decree takes effect from January 1, 2027 and replaces Decree 293/2025/NĐ-CP. From this date, Decree 293/2025/NĐ-CP expires.
You can read the full text of the Decree, with an appendix listing each region, at page Decree 399/2026/NĐ-CP in the 2019 Labor Code section.
New minimum wage by region
| Region | Current monthly minimum wage (Decree 293/2025) | From January 1, 2027 | Increase | Minimum hourly wage from January 1, 2027 |
|---|---|---|---|---|
| Region I | 5,310,000 VND | 5,700,000 VND | 390,000 VND (about 7.3%) | 27,400 VND/hour |
| Region II | 4,730,000 VND | 5,080,000 VND | 350,000 VND (about 7.4%) | 24,400 VND/hour |
| Region III | 4,140,000 VND | 4,450,000 VND | 310,000 VND (about 7.5%) | 21,400 VND/hour |
| Region IV | 3,700,000 VND | 4,040,000 VND | 340,000 VND (about 9.2%) | 19,400 VND/hour |
The current hourly rates according to Decree 293/2025/NĐ-CP are 25,500, 22,700, 20,000 and 17,800 VND/hour for regions I to region IV, respectively.
How to determine which region an enterprise belongs to
The Appendix of the Decree lists each region according to communes, wards, and special zones of 34 provinces and cities. Applicability is determined according to the employer's place of operation:
- Enterprises operating in any region will apply the minimum wage of that region.
- Enterprises that have branches and units in many different areas, each branch or unit applies the level of the area where they operate.
- Enterprises in industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, special economic zones, free trade zones or high-tech agricultural zones located in many areas with different levels will apply the highest level.
- For areas that are renamed or divided, the level of the area before the name change or division will temporarily apply until the Government has new regulations. New areas established from one or more areas with different levels will apply the highest level.
How does the minimum wage apply to each form of payment?
- Monthly salary: salary according to job or title, of the person who works full normal working hours and completes the norm, must not be lower than the monthly minimum salary.
- Hourly pay: the hourly salary according to job or title must not be lower than the hourly minimum wage.
- Pay by week, by day, by product or by piece: converted to month or hour must not be lower than the corresponding minimum rate. How to convert by month: weekly salary times 52 weeks divided by 12 months; or daily wage multiplied by the number of normal working days in the month; or product salary or piece salary made during normal working hours of the month.
What do businesses need to review?
According to Article 5 of the Decree, employers are responsible for:
- Review labor contracts, collective labor agreements, internal regulations and regulations to adjust and supplement accordingly.
- It is not allowed to eliminate or reduce wages for overtime, night work, in-kind compensation and other regimes according to labor law.
- Continue to implement agreements that are more beneficial to workers, for example, the salary of people doing work requiring vocational training is at least 7% higher than the minimum level, or the salary of heavy, hazardous, dangerous work is at least 5% higher and especially heavy, toxic, dangerous work is at least 7% higher than work of equivalent complexity under normal conditions, unless the parties agree otherwise.
Things to do before January 1, 2027
- Make a list of employees whose salary is lower than the new minimum level according to each work location.
- Redefining the applicable area for each branch, factory, and office according to the new appendix, especially for locations in industrial parks.
- Update salary schedule, salary scale and contract appendix; notify workers.
- Re-estimate personnel costs in 2027, because salary increases will lead to salary increases.
- For businesses that outsource labor or leasing labor, review service prices according to the new minimum wage.
What does Nhân Kiệt support?
Nhân Kiệt helps businesses review payroll according to the new minimum level, determine the applicable area for each location and update contracts. Outsourcing payroll service calculates salary, personal income tax, social insurance and payslips according to current regulations. Businesses can contact via Contact page or hotline 0901 557 456.
See more current documents on regional minimum wages at page Decree 293/2025/NĐ-CP.
Source: full text of Decree 399/2026/NĐ-CP dated November 2, 2026 of the Government. Content updated until November 2026.