Vietnam Regional Minimum Wage is no longer just a table of four salary bands. After Vietnam reorganised provincial-level administrative units in 2025, payroll teams need to check which commune or ward applies to each work location before setting base pay.
For EU companies hiring in Vietnam, the risk is practical. A payroll file may still show the old province name, while the legal wage mapping now follows updated administrative units. Incorrect mapping can affect salary floors, hourly paychecks, payroll processing, and compensation approvals.
This guide explains what changed after the province-city mergers, what the 2026 regional minimum wage rates are, and what your HR or payroll team should verify before the next pay cycle.
TL;DR
Vietnam’s 2025 administrative mergers changed how employers should verify regional minimum wage locations. From January 1, 2026, Decree 293/2025/ND-CP sets monthly minimum wages from VND 3,700,000 to VND 5,310,000 depending on region. Employers should verify each employee’s commune or ward, branch location, and industrial-zone rule before running payroll.
- The biggest change is location mapping, not only the wage increase.
- If an employee’s mapped region changes, payroll, contracts, benefits, and compensation bands may need review.
- EU employers should keep evidence of the wage-region check for payroll compliance and audit readiness.
What changed for Vietnam Regional Minimum Wage after province-city mergers?
Vietnam reorganised provincial-level administrative units under Resolution No. 202/2025/QH15. After the reorganisation, Vietnam has 34 provincial-level administrative units, and the resolution took effect from June 12, 2025.
For payroll, the more important follow-up was Decree 128/2025/ND-CP. The Government’s official document page records Decree 128/2025/ND-CP as issued on June 11, 2025, effective from July 1, 2025. The decree updated the list of commune-level areas used to apply regional minimum wage after the administrative changes. A legal database version of the decree states that the old appendix under Decree 74/2024/ND-CP was repealed and replaced by a commune-level list from July 1, 2025.
The practical point: do not rely only on the old province or district name in your HRIS. Payroll should check the current commune or ward where the employer, branch, or worksite operates.
The 2026 Vietnam Regional Minimum Wage rates
From January 1, 2026, Decree 293/2025/ND-CP replaces Decree 74/2024/ND-CP. The Government’s official document page records Decree 293/2025/ND-CP as issued on November 10, 2025 and effective from January 1, 2026.
| Region | Monthly minimum wage from Jan 1, 2026 | Hourly minimum wage from Jan 1, 2026 |
|---|---|---|
| Region I | VND 5,310,000 | VND 25,500 |
| Region II | VND 4,730,000 | VND 22,700 |
| Region III | VND 4,140,000 | VND 20,000 |
| Region IV | VND 3,700,000 | VND 17,800 |
Under the previous Decree 74/2024/ND-CP, the monthly regional minimum wages were VND 4,960,000 for Region I, VND 4,410,000 for Region II, VND 3,860,000 for Region III, and VND 3,450,000 for Region IV.
| Region | 2024 rate under Decree 74 | 2026 rate under Decree 293 | Change |
|---|---|---|---|
| Region I | VND 4,960,000 | VND 5,310,000 | +VND 350,000 |
| Region II | VND 4,410,000 | VND 4,730,000 | +VND 320,000 |
| Region III | VND 3,860,000 | VND 4,140,000 | +VND 280,000 |
| Region IV | VND 3,450,000 | VND 3,700,000 | +VND 250,000 |
How to decide which wage region applies
The wage region depends on where the employer operates. Decree 293 states that an employer operating in a specific region applies the minimum wage for that location. If an employer has branches in different wage regions, each branch applies the wage rate for its own location.
For industrial parks, export processing zones, high-tech zones, and concentrated digital technology zones that sit across multiple wage regions, the highest applicable regional minimum wage must be used.
For EU, Dutch, and UK employers, this mapping check should sit inside your wider payroll compliance process, because the wage region affects salary floors, contract checks, and payroll evidence.
What happens if the merger creates a lower wage region?
Do not reduce a salary floor automatically because the new administrative mapping appears to place an employee in a lower region.
Decree 293 includes transition rules for renamed, split, and newly established locations. If the employer operates in an area with a changed name or a split, it temporarily applies the previous minimum wage until the Government provides a new rule. If the employer operates in a newly established area formed from one or more areas with different minimum wages, the highest previous minimum wage applies until the Government provides a new rule.
Decree 293 also states that if the local wage-region adjustment results in a lower minimum wage than the rate set by the Government on December 31, 2025, employers must continue applying the December 31, 2025 minimum wage for employees hired on or before that date until a new Government rule is issued.
Keep a record of the old location, new commune or ward, applied wage region, source document, and approval date so the decision is ready for a future payroll audit.
Payroll checklist for EU companies hiring in Vietnam
Before the next payroll run, your team should verify the employee’s work location at commune or ward level, not only province level. This should include the registered employer location, branch location, worksite, and any industrial-zone classification.
Then check the employment contract. The monthly minimum wage is the lowest basis for wage agreement and payment for employees paid by month. The hourly minimum wage is the lowest basis for employees paid by hour. For weekly, daily, product-based, or piece-rate pay, the converted monthly or hourly amount must not fall below the legal minimum wage.
For EU employers, the payroll file also contains employee personal data. The GDPR has applied since May 25, 2018 and is applicable throughout the European Economic Area. When payroll teams share Vietnam wage-region evidence with headquarters, use access control, version control, and secure document handling.
| Payroll item | What to verify | Why it matters |
|---|---|---|
| Employee work location | Current commune or ward and province | Confirms the correct wage region |
| Branch or unit location | Whether the branch is in a different wage region | Prevents one-rate-fits-all payroll errors |
| Industrial-zone status | Whether the site crosses multiple wage regions | Highest regional wage may apply |
| Contract base pay | Monthly or hourly wage is above the legal floor | Avoids underpayment risk |
| Allowances and benefits | Whether changes affect salary bands | Keeps pay structure consistent |
| Payroll evidence | Save source, mapping, approval, and effective date | Supports audit and HQ review |
If a regional wage update changes the employee’s contract salary, your team should also review Vietnam Social Insurance records to make sure payroll, SHUI, and HR files stay consistent.
Regional minimum wage is the legal floor, but it should also be checked against your wider compensation strategy, especially if you hire across several Vietnam locations.
When salary floors change, review related employee benefits so allowances, salary bands, and internal pay rules do not drift apart.
If your Vietnam payroll still depends on old province names or manual wage-region mapping, payroll services can help verify each employee’s location, salary floor, and payroll evidence before the next pay cycle.
What this means for Employer of Record arrangements
If your team hires in Vietnam through an Employer of Record, the EOR should be the legal employer on Vietnamese employment records. That means the EOR should also control the local wage-region check, contract update, and payroll adjustment when the minimum wage changes.
For EU companies, this reduces the number of local decisions your internal HR team has to make. You still need visibility. Ask your EOR to confirm which wage region applies, what source was used, whether any branch or industrial-zone exception applies, and when the payroll system was updated.
If you are hiring before setting up a local entity, an Employer of Record in Vietnam can help manage local employment, payroll, and wage-region compliance under the correct legal employer setup.
How Sunbytes helps with Vietnam payroll after regional wage changes
Regional wage changes create pressure because the update touches several files at once: payroll, contracts, employee benefits, social insurance, and HR records. If one file changes and another does not, your team may only discover the mismatch during a payroll audit or employee query.
Through Accelerate Workforce Solutions, Sunbytes supports international companies with payroll, Employer of Record, and workforce operations that keep Vietnam hiring compliant and payroll-ready. Payroll runs on time, employee documents are handled securely, and HR teams have a clearer record of what changed, who approved it, and when it took effect.
This works because Accelerate is supported by Sunbytes’ two other delivery layers. Digital Transformation Solutions provides the workflow and system discipline behind payroll operations, so wage-region updates are not handled as scattered spreadsheet fixes. Cybersecurity Solutions supports the employee-data layer, with secure document handling, access control, GDPR-aware workflows, and ISO 27001-aligned practices for sensitive payroll records.
Sunbytes brings 15 years of payroll operations experience for distributed teams and clients across 20 countries. For EU, Dutch, and UK companies hiring in Vietnam, that means payroll updates can be handled with local compliance checks, secure evidence, and a controlled process before the next pay cycle closes.
FAQs
Vietnam Regional Minimum Wage is the legal minimum monthly or hourly wage that an employer must use for employees working under labour contracts in a specific wage region. Vietnam uses four wage regions, with Region I having the highest minimum wage and Region IV the lowest. From January 1, 2026, the monthly range is VND 3,700,000 to VND 5,310,000.
The mergers changed the administrative mapping that employers use to confirm wage regions. The wage amounts were then updated by Decree 293/2025/ND-CP, effective January 1, 2026. Employers should check both the current commune-level location and the 2026 wage table.
Not automatically. Decree 128 states that if the new commune-level application creates a lower wage than the one applied before July 1, 2025, the employer continues applying the previous district-level wage until new Government regulations are issued.
Each branch applies the minimum wage for the location where that branch operates. If a site is in an industrial park or similar zone spanning multiple wage regions, the highest applicable regional minimum wage is used.
EU companies should check the employee’s work location, the employer or branch location, the correct wage region, the contract base salary, and payroll evidence. They should also protect payroll files as employee personal data under GDPR-aware workflows.
It can affect payroll design, but the minimum wage and social insurance contribution bases are not the same thing in every case. HR teams should still review Vietnam Social Insurance records when wage-region changes lead to contract or base salary updates.
Review payroll before the first pay cycle affected by a wage-region or rate change. For Decree 293/2025/ND-CP, the key effective date is January 1, 2026.
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