Quick summary
- Document: Decree 399/2026/NĐ-CP, issued by the Government on November 2, 2026, effective from January 1, 2027, replacing Decree 293/2025/NĐ-CP.
- New level (VND/month): region I 5,700,000, region II 5,080,000, region III 4,450,000, region IV 4,040,000.
- Hourly rate (VND/hour): zone I 27,400, zone II 24,400, zone III 21,400, zone IV 19,400.
- Applicable area according to the employer's place of operation, look up according to the Appendix of the list of areas (communes and wards) of the Decree.
- Enterprises must: review labor contracts, agreements, and salary regulations; Do not cut overtime, night work and other benefits.
Toàn văn Nghị định và Phụ lục xem tại trang Nghị định 399/2026/NĐ-CP.
Guide businesses through each step
Step 1. Determine the area for each operating location
Each factory, branch, and office should be looked up separately in the Appendix according to the current commune or ward name. Rules applied according to Article 3 of the Decree:
- For activities in any region, the level of that region will apply.
- If there are units or branches in many areas with different levels, each unit or branch applies the level of the area where they operate.
- In industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, special economic zones, free trade zones, high-tech agricultural zones located in many different areas, the highest level is applied.
- If an area is renamed or divided, the level of the previous area will temporarily apply; New areas established from many areas with different levels will apply the highest level, until the Government has new regulations.
Some examples from the Appendix: Ho Chi Minh City has region I including the wards of Saigon, Thu Duc, Di An, Thuan An, Thu Dau Mot, Ben Cat, Tan Uyen, Vung Tau, Phu My and many other communes and wards; The remaining communes and wards of the city belong to region II. Hanoi city has region I including many inner city wards and suburban communes, the rest belongs to region II. Enterprises always need to compare the correct commune and ward names in the Appendix instead of guessing according to the old province name.
Step 2. Compare the current payroll with the new level
Article 4 stipulates that the salary according to the job or title of a person working full normal working hours and completing the norm must not be lower than the minimum monthly salary (or minimum hourly salary if paid hourly). Make a comparison table for each person, each location: current salary, new minimum, difference.
For weekly, daily, product or piece wages, it is necessary to convert according to the Decree's instructions:
| Form of salary payment | How to convert to months | For example in region I (minimum 5,700,000 VND/month) |
|---|---|---|
| By week | Weekly salary × 52 weeks ÷ 12 months | Weekly salary must be about 1,315,400 VND or more (5,700,000 × 12 ÷ 52) |
| By date | Daily salary × number of normal working days in the month | Working 26 days/month, the daily salary starts from about 219,200 VND; Working 22 days starts from about 259,100 VND |
| Hourly | Direct comparison with minimum hourly wage | From 27,400 VND/hour |
| According to product, package | Product and contract salaries are made during normal working hours of the month | Converted into a month, not less than 5,700,000 VND |
The numbers in the example column are rounded for illustration; Enterprises calculate according to the actual number of normal working days that they have chosen according to labor law.
Step 3. Adjust contracts, salary scales and regulations
Article 5 assigns responsibility to the employer to review labor contracts, collective labor agreements and internal regulations and regulations to adjust and supplement accordingly. What to do: create a contract addendum or notice of salary adjustment for groups of people whose salary is lower than the new level, update the salary scale, and keep review records.
Step 4. Keep other modes unchanged
The Decree clearly states that salaries must not be eliminated or reduced when employees work overtime, work at night, compensation in kind and other benefits according to labor law. Agreements that are more beneficial to workers continue to be made, unless the parties agree otherwise. The Decree gives examples of pay regimes that are at least 7% higher for people doing jobs that require vocational training, at least 5% higher for jobs with heavy, toxic, and dangerous conditions, and at least 7% higher for jobs that are especially heavy, toxic, and dangerous. Enterprises that have committed to these regimes need to compare them with their salary scale when recalculating.
Step 5. Re-estimate personnel costs in 2027
Salary increases lead to payments calculated on the salary, such as overtime pay, coefficient allowances and insurance payments calculated on the salary paid for insurance. Businesses should re-estimate personnel costs for each location, and review the prices of outsourcing and labor supply contracts running into 2027.
Suggested work schedule until December 2026
- First week of November: Look up the Appendix and determine the area of each location.
- Mid-November: Prepare a salary reconciliation table, determine the number of people needing adjustment and the budget.
- End of November: Prepare contract addendum, update salary scale and regulations.
- Early December: notify employees and agree on more favorable agreements.
- End of December: Update salary calculation software, finalize data to apply for the January 2027 salary period.
Business Frequently Asked Questions
When does the new minimum wage apply? From January 1, 2027. Decree 293/2025/NĐ-CP expires from this date.
Do employees' salaries have to be increased if they are higher than the new level? The Decree sets the lowest salary level. If the salary according to the job or title is not lower than the new level, the Decree does not force an increase, unless the contract, agreement or regulations of the enterprise stipulate otherwise.
If a company has branches in many provinces, how does it apply? Each branch or unit applies the level of the area where it operates.
What happens if an enterprise is located in an industrial park spread over two different areas? The highest level in those areas applies.
If an area has just changed its name or merged, what level should be applied? If an area has been renamed or split: temporarily apply the level of the previous area. Areas established from many areas have different levels: the highest level applies. Both cases remain the same until the Government has new regulations.
Are piece wages and product wages bound? Yes. Conversion into months or hours must not be lower than the corresponding minimum level.
Are allowances added to meet the minimum wage? Article 4 refers to the salary according to job or title. Enterprises should compare this salary level and review the terms in the contract and regulations on calculation, and discuss with the legal department or consulting provider before applying.
What do businesses that outsource labor or use EOR services need to do? It is necessary to review service provider prices and contract appendices for the period from January 1, 2027, because the salary costs of outsourced workers must also follow the minimum level of the workplace area.
What does Nhân Kiệt support?
Nhân Kiệt helps businesses determine the region for each location, prepare a salary comparison table according to the new level, prepare contract appendices and calculate salaries from January 2027. View the service Outsourced payroll calculation or send a request via Contact page, hotline 0901 557 456. The document is applicable until the end of 2026, see 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.