In brief
On 10 November 2025, the Vietnamese government issued Decree No. 293/2025/ND-CP (“Decree 293”) regulating the regional minimum wage (RMW) for employees working under employment contracts. Decree 293 took effect on 1 January 2026, replacing Decree No. 74/2024/ND-CP (“Decree 74”) dated 30 June 2024.
In accordance with Decree 293, the monthly and hourly RMW have been increased by approximately 7.2% compared to Decree 74.
Recommended actions
To ensure compliance with Decree 293, employers should consider reviewing employment contracts and policies governing salaries and adjust unemployment insurance premiums for employees.
Please contact us if you require further analysis on the impacts of the new RMW under Decree 293.
In more detail
According to Decree 293, the new RMW represents an increase of approximately 7.2% compared to the previous RMW under Decree 74, as follows:
- Region 1: VND 5.31 million (approximately USD 204)/month; VND 25,500 (approximately USD 0.98)/hour
- Region 2: VND 4.73 million (approximately USD 182)/month; VND 22,700 (approximately USD 0.87)/hour
- Region 3: VND 4.14 million (approximately USD 159)/month; VND 20,000 (approximately USD 0.77)/hour
- Region 4: VND 3.7 million (approximately USD 142)/month; VND 17,800 (approximately USD 0.68)/hour
The salary used as the basis for calculating unemployment insurance contributions in Vietnam is capped at 20 times the RMW. Thus, the capped salary for calculating unemployment insurance contributions will also increase in alignment with the new RMW. Accordingly, employers may also have to consider and adjust unemployment insurance premiums, in light of the new RMW, to ensure compliance with unemployment insurance contribution obligations.
Hoang Anh Nguyen, Special Counsel, has contributed to this legal update.
