VI Minimum Wage in Vietnam 2027: New Rates and 6 Payroll Checks
The minimum wage in Vietnam 2027 will increase across all four regions from 1 January 2027 under Decree No. 399/2026/ND-CP. The new monthly rates will range from VND 4,040,000 to VND 5,700,000, while hourly minimum wages will also increase.
For businesses preparing for the minimum wage in Vietnam 2027, particularly foreign-invested enterprises (FDIs) and companies with multiple workplaces, compliance requires more than updating salary figures. Employers should review applicable wage regions, employment contracts, payroll calculations and existing employee benefits before the new rates take effect.
This guide explains the confirmed 2027 minimum wage rates, their legal implications and six practical payroll checks businesses should complete before January 2027.
1. Legal Basis for the Minimum Wage in Vietnam 2027
On 2 November 2026, the Vietnamese Government issued Decree No. 399/2026/ND-CP on minimum wages applicable to employees working under labour contracts.
The Decree will take effect on 1 January 2027 and replace Decree No. 293/2025/ND-CP dated 10 November 2025 on minimum wages applicable to employees working under labour contracts, which governs the rates effective throughout 2026.
Under Articles 1 and 2 of Decree No. 399/2026/ND-CP, the regulations establish regional monthly and hourly minimum wages for employees working under labour contracts and their employers.
The rules cover enterprises, cooperatives, organisations, households and individuals employing workers under applicable labour legislation. Foreign-invested enterprises are subject to the same regional minimum wage framework as domestic employers.
As of November 2026, the regulations governing the minimum wage in Vietnam 2027 have been officially issued but are not yet in effect. Employers should continue applying the 2026 regulations until 31 December 2026 and prepare to implement the new requirements from 1 January 2027.
The official Decree is available through the Vietnamese Government’s legal document database.
2. Minimum Wage in Vietnam 2027: Regional Rates Compared With 2026
2.1. Monthly minimum wage rates
Clause 1, Article 3 of Decree No. 399/2026/ND-CP establishes four regional monthly minimum wages.
| Region | 2026 (VND/month) | 2027 (VND/month) | Monthly increase |
|---|---|---|---|
| Region I | 5,310,000 | 5,700,000 | 390,000 |
| Region II | 4,730,000 | 5,080,000 | 350,000 |
| Region III | 4,140,000 | 4,450,000 | 310,000 |
| Region IV | 3,700,000 | 4,040,000 | 340,000 |
For the minimum wage in Vietnam 2027, Region I will have the highest monthly rate at VND 5.7 million, representing an increase of approximately 7.34%. Region IV will experience the highest percentage increase, approximately 9.19%, although its monetary increase will be lower than that of Region I.
These figures represent statutory minimum wages rather than recommended salary levels or average employee earnings.
For employers, the financial impact depends on the number of employees whose contractual job salaries fall below the applicable 2027 minimum. Companies already paying above the new threshold may not need to increase every employee’s salary.
2.2. Hourly minimum wage rates for 2027
The minimum wage in Vietnam 2027 also includes higher hourly rates, which are particularly relevant to employees paid on an hourly basis.
| Region | 2026 (VND/hour) | 2027 (VND/hour) | Hourly increase |
|---|---|---|---|
| Region I | 25,500 | 27,400 | 1,900 |
| Region II | 22,700 | 24,400 | 1,700 |
| Region III | 20,000 | 21,400 | 1,400 |
| Region IV | 17,800 | 19,400 | 1,600 |
Under Article 4, the hourly minimum is the lowest remuneration for the employee’s agreed job or position when the employee works one hour and fulfils the agreed work requirements.
For employees receiving weekly, daily, piece-rate or task-based remuneration, employers must convert the agreed pay into a monthly or hourly equivalent using the methods prescribed in Clause 3, Article 4.
For example, weekly pay may be converted into a monthly equivalent by multiplying the weekly salary by 52 and dividing by 12. Daily pay may be converted by multiplying the daily salary by the number of normal working days in the month.
Employers should not assume that the monthly minimum wage can always be converted into the statutory hourly minimum simply by dividing it by a fixed number of hours. The Decree establishes separate monthly and hourly thresholds and specifies conversion methods for other payment arrangements.
3. Which Minimum Wage Region Applies to Your Business?
One of the most important compliance steps for the minimum wage in Vietnam 2027 is identifying the correct wage region for each workplace.
Clause 3, Article 3 of Decree No. 399/2026/ND-CP generally determines the applicable minimum wage by the location where the employer operates.
3.1. Businesses with multiple branches
Where an employer has branches or operating units located in different wage regions, each unit must apply the minimum wage applicable to its own location.
Hypothetical example: An FDI company maintains its head office in Region I and operates a manufacturing unit in Region II. The head office generally follows Region I, while the manufacturing unit applies Region II, assuming the locations are classified accordingly under the Decree’s Annex.
The company should not automatically apply the head office’s rate to every employee across its operations.
3.2. Industrial parks and special economic areas
Special rules apply to employers operating in industrial parks, export processing zones, high-tech parks, concentrated digital technology zones, special economic zones, free trade zones and high-tech agricultural zones.
When a qualifying zone spans localities with different minimum wage levels, the employer applies the highest applicable regional minimum.
This rule does not mean every industrial park automatically belongs to Region I. The geographical boundaries and classifications must be checked against the Decree.
3.3. Administrative changes and newly established localities
The Decree also addresses changes in administrative boundaries.
Where a locality is renamed or divided, the previous applicable minimum wage temporarily continues until the Government introduces new regulations.
Where a locality is newly formed from one or several areas with different minimum wage levels, the highest applicable minimum is used until new regulations are issued.
For payroll preparation, companies should maintain an updated workplace register identifying the actual operating address, administrative unit and applicable region.
The complete list is available in the Government’s 2027 regional minimum wage locality schedule.
4. Must All Employees Receive a Salary Increase in 2027?
No. The minimum wage in Vietnam 2027 does not automatically require every employee to receive a salary increase.
Under Clause 1, Article 4, the salary agreed for the employee’s job or position must not fall below the applicable monthly minimum when the employee works normal working hours and fulfils the agreed work requirements.
For example, an employee in Region I earning a contractual job salary of VND 5,500,000 per month would fall below the new VND 5,700,000 threshold. The employer would need to raise the applicable job salary by at least VND 200,000 per month, assuming no other legally relevant circumstances.
However, another employee earning VND 9,000,000 per month in the same region does not automatically become entitled to a salary increase solely because the statutory minimum has changed.
Employers must nevertheless review contractual commitments, collective bargaining agreements and internal remuneration policies. Some companies have salary scales, allowances or wage adjustments linked directly to statutory minimum wage levels.
The appropriate comparison concerns the remuneration for the job or position under normal working conditions. Employers should not assume that overtime payments, night-work premiums or unrelated benefits can be added to an insufficient job salary to satisfy the minimum wage requirement.
5. Protection of Existing Employee Benefits and Agreements
When implementing the minimum wage in Vietnam 2027, employers must also comply with Article 5 of Decree No. 399/2026/ND-CP, which requires reviewing employment contracts, collective labour agreements and internal rules and making necessary adjustments.
Clause 3 specifically prohibits employers from eliminating or reducing statutory remuneration arrangements for overtime work, night work, in-kind benefits and other benefits protected under labour legislation.
The Decree also preserves more favourable lawful agreements already made with employees, unless the parties agree otherwise.
Examples include previously agreed salary advantages of at least 7% for jobs requiring vocational training, or additional wage differentials of 5% or 7% for certain hazardous or particularly hazardous working conditions.
These percentages are examples of protected existing commitments. Decree No. 399/2026/ND-CP does not create a universal new requirement to pay every trained employee 7% above the minimum wage.
Employers should distinguish statutory minimum wage obligations from more favourable contractual arrangements.
The new Decree also does not reproduce every specific transitional provision contained in the 2026 Decree. Therefore, companies should not automatically carry forward previous location-related transitional rules without examining their continuing legal relevance and the applicable employment agreements.
6. Example: How the 2027 Minimum Wage Increase Affects Payroll Costs
To illustrate the financial implications of the minimum wage in Vietnam 2027, consider a hypothetical manufacturing business in Region I with 40 employees earning a contractual job salary of VND 5,500,000 per month.
From 1 January 2027, the applicable monthly minimum will increase to VND 5,700,000.
| Payroll calculation | Amount |
|---|---|
| Current monthly job salary | VND 5,500,000 |
| Required minimum from January 2027 | VND 5,700,000 |
| Increase per employee | VND 200,000/month |
| Affected employees | 40 |
| Additional monthly salary cost | VND 8,000,000 |
| Additional annual salary cost | VND 96,000,000 |
Illustrative assumptions: All 40 employees work normal full-time schedules, meet the agreed job requirements, receive the stated job salary and remain employed for all 12 months of 2027.
The calculation excludes employer insurance contributions, bonuses, allowances and other employment-related expenses.
Where an adjusted salary also changes the applicable compulsory insurance contribution base, additional employer costs may arise. However, the increase must be evaluated under the relevant insurance legislation and the employee’s actual remuneration structure rather than assumed to apply automatically to all payroll components.
For multi-location businesses, the calculation should be performed separately for every wage region.
A practical payroll budget should therefore distinguish between mandatory base salary adjustments, consequential changes under existing agreements and additional costs arising from applicable insurance or benefit arrangements.
7. Six Payroll Checks Before 1 January 2027
To prepare for the minimum wage in Vietnam 2027, employers should use the remaining months of 2026 to complete the following six payroll compliance checks.
Check 1: Confirm the correct minimum wage region
Prepare a register of headquarters, branches, factories, warehouses and operating sites. Match each location to the Annex of Decree No. 399/2026/ND-CP.
Pay particular attention to industrial zones crossing administrative boundaries and locations affected by administrative restructuring.
Check 2: Audit monthly and hourly salary arrangements
Compare each employee’s agreed job salary with the relevant 2027 minimum.
For hourly, weekly, daily, piece-rate and task-based employees, perform the appropriate legal conversion before assessing compliance.
Record employees requiring salary adjustments and the effective dates of those adjustments.
Check 3: Review employment contracts and existing benefits
Identify contractual clauses linked to minimum wages, salary grades, vocational training differentials and hazardous-work allowances.
Review collective labour agreements and internal remuneration policies to ensure more favourable existing commitments are preserved in accordance with Article 5.
Where amendments are required, follow the relevant legal procedures rather than changing contractual terms unilaterally.
Check 4: Reassess personnel budgets and insurance implications
Calculate the expected increase in monthly and annual salary costs for affected employees.
Review compulsory insurance contribution bases, overtime calculations and benefits linked to job salaries, where applicable.
Finance teams should incorporate these changes into the 2027 operating budget.
Check 5: Update payroll systems and supporting documents
Configure the new regional and hourly thresholds in payroll software with an effective date of 1 January 2027.
Update approved salary schedules and prepare contractual amendments or written notifications as legally appropriate.
Maintain records of changes, approvals and relevant payroll calculations.
Check 6: Test the January 2027 payroll before implementation
Run a simulated January payroll to identify employees below the new minimum.
Review exceptions, confirm each workplace’s region and check that protected benefits remain correctly calculated.
HR, Finance and Payroll should agree on the final changes and communicate relevant adjustments to affected employees before the first applicable payroll run.
8. Common Payroll Mistakes Businesses Should Avoid
Implementing the minimum wage in Vietnam 2027 may expose existing payroll problems, particularly incorrect regional classifications and incomplete salary reviews.
A company may mistakenly use the registered head office’s wage region for a separate factory or branch. Another may compare an employee’s total take-home pay against the minimum instead of reviewing the agreed salary for the job.
Errors may also occur when hourly or piece-rate payments are not converted correctly, when previous contractual benefits are removed during salary restructuring or when payroll systems retain outdated wage thresholds.
Finally, businesses sometimes calculate only the additional salary expense without checking whether insurance contributions or other linked employee costs also require adjustment.
A documented payroll review helps businesses identify these issues before the new rates become effective.
9. Frequently Asked Questions About Minimum Wage in Vietnam 2027
When will the 2027 minimum wage take effect?
Decree No. 399/2026/ND-CP will take effect on 1 January 2027. Until 31 December 2026, the rates established under Decree No. 293/2025/ND-CP remain applicable.
What is the highest monthly minimum wage in Vietnam in 2027?
Region I will have the highest statutory monthly minimum wage at VND 5,700,000.
Does the minimum wage apply to foreign employees?
The Decree applies to employees working under labour contracts under Vietnam’s labour legislation and does not establish a general exclusion for foreign employees.
Must employees earning above the new minimum receive a raise?
Not automatically. Other salary increases depend on employment contracts, applicable collective agreements, internal policies or other legal obligations.
Does the minimum wage increase automatically change social insurance contributions?
Not necessarily in every case. Employers should review the applicable contribution base, its statutory limits and the components of remuneration subject to insurance contributions.
Do part-time workers have to receive the monthly minimum wage?
The applicable requirement depends on the payment arrangement. Employees paid by the hour are subject to hourly minimum wage requirements, while other payment methods must be assessed using the conversion rules in Article 4.
How should a business with several factories apply the new minimum wage?
Each operating location generally follows its own regional classification. Special rules apply to qualifying industrial and economic zones spanning areas with different minimum wage levels.
10. How PHAM CONSULT Can Support Your Business
Preparing for the minimum wage in Vietnam 2027 requires coordination between HR, Finance and Payroll, particularly for FDI enterprises and businesses operating across multiple provinces or cities.
PHAM CONSULT provides payroll and labour compliance support to businesses operating in Vietnam. Our services include payroll processing, employee data management, personal income tax compliance, social insurance procedures and labour-related documentation.
For the 2027 minimum wage transition, PHAM CONSULT can assist businesses with reviewing applicable wage regions, identifying employees requiring salary adjustments, assessing payroll cost implications and preparing appropriate payroll updates.
Businesses may also consider ongoing payroll outsourcing where managing employee remuneration, compliance obligations and reporting internally requires substantial administrative resources.
Learn more about our services:
Social Insurance Procedure Services
If your business requires support preparing for the new wage regulations, contact PHAM CONSULT to discuss a payroll compliance review.
Legal References
- Decree No. 399/2026/ND-CP dated 2 November 2026 — Effective from 1 January 2027.
- Decree No. 293/2025/ND-CP dated 10 November 2025 — Applicable during 2026 and replaced from 1 January 2027.
- Vietnamese Government guidance on the 2027 minimum wage.
- Official schedule of applicable minimum wage regions for 2027.
Disclaimer: This article provides general information based on legislation issued and publicly available as of 5 November 2026. It does not constitute legal advice for a specific business or employment arrangement. Employers should verify applicable regional classifications, employment agreements and related legislation before implementing payroll changes.
