Vietnam Minimum Wage 2027: New Regional Rates from 1 January 2027 (Decree 399/2026)
Updated 4 November 2026.
Quick answer: From 1 January 2027, Vietnam's regional minimum wages rise under Decree 399/2026/ND-CP: VND 5,700,000 a month in Region I, VND 5,080,000 in Region II, VND 4,450,000 in Region III and VND 4,040,000 in Region IV. Hourly minimums are VND 27,400, 24,400, 21,400 and 19,400. Monthly rates go up by VND 310,000 to 390,000 compared with 2026. The decree replaces Decree 293/2025/ND-CP.
What is the Vietnam minimum wage in 2027?
On 2 November 2026 the Government issued Decree 399/2026/ND-CP on the minimum wage for employees working under labour contracts. It takes effect on 1 January 2027.
Region | Monthly 2026 (VND) | Monthly 2027 (VND) | Increase | Hourly 2026 (VND) | Hourly 2027 (VND) |
|---|---|---|---|---|---|
Region I | 5,310,000 | 5,700,000 | +390,000 (≈ 7.3%) | 25,500 | 27,400 |
Region II | 4,730,000 | 5,080,000 | +350,000 (≈ 7.4%) | 22,700 | 24,400 |
Region III | 4,140,000 | 4,450,000 | +310,000 (≈ 7.5%) | 20,000 | 21,400 |
Region IV | 3,700,000 | 4,040,000 | +340,000 (≈ 9.2%) | 17,800 | 19,400 |
The monthly minimum is the lowest pay for an employee paid monthly who works a full normal month and meets the agreed work norms. The hourly minimum applies to employees paid by the hour. For the rates that apply until 31 December 2026, see Vietnam minimum wage 2026.
Which region applies to your team?
The list of Region I–IV localities is set out in the annex to Decree 399/2026/ND-CP. The region follows where the employer operates, not where the employee lives:
An employer applies the rate of the locality where it operates.
A unit or branch applies the rate of the locality where that unit or branch operates.
Employers in industrial parks, export processing zones, hi-tech parks, digital technology zones, special economic zones, free trade zones and high-tech agricultural zones that span localities with different rates apply the highest rate.
Where a locality is renamed or split, the previous locality's rate applies until the Government issues new rules.
Where a locality is formed from areas with different rates, the highest rate applies until new rules are issued.
Check each office, factory and branch against the ward- and commune-level annex of the new decree; the annex is the official reference.
How do you check daily, weekly, hourly and piece-rate pay?
For weekly, daily, piece-rate or lump-sum pay, the monthly or hourly equivalent must not fall below the minimum. Article 4 of Decree 399/2026/ND-CP sets the conversion:
Weekly pay × 52 weeks ÷ 12 months = monthly equivalent.
Daily pay × normal working days in the month = monthly equivalent.
Weekly or daily pay ÷ normal working hours in the week or day = hourly equivalent.
Piece-rate and lump-sum pay: counted on output within normal working hours.
Pay arrangement (Region I, 26 working days) | Monthly equivalent (VND) | 2027 floor | Result |
|---|---|---|---|
VND 210,000 per day × 26 days | 5,460,000 | 5,700,000 | Below the minimum (compliant in 2026) |
VND 220,000 per day × 26 days | 5,720,000 | 5,700,000 | Compliant |
VND 1,300,000 per week × 52 ÷ 12 | 5,633,333 | 5,700,000 | Below the minimum |
Part-timer, 80 hours × VND 27,400 | 2,192,000 | Hourly rate met | Compliant |
With 26 working days a month, a Region I daily rate needs to be at least about VND 219,231 from 2027. Daily rates set for 2026 should be reviewed before the January 2027 payroll.
How does the 2027 minimum wage affect social and unemployment insurance?
Social insurance floor: from 1 January 2027, the monthly salary used for compulsory social insurance for the simplest job under normal conditions must not be lower than the new regional minimum (Article 31, Law on Social Insurance No. 41/2024/QH15). Employees contributing at the 2026 floor need to be moved up.
Unemployment insurance cap: 20 × the regional minimum wage, so it rises with the new decree.
Social and health insurance cap: based on the base salary (20 × VND 2,530,000 = VND 50,600,000 a month), not on the regional minimum, so Decree 399/2026/ND-CP does not change it.
Region | UI salary cap 2026 (VND) | UI salary cap 2027 (VND) | Employer cost at the 2027 minimum (salary + 23.5%) |
|---|---|---|---|
Region I | 106,200,000 | 114,000,000 | 7,039,500 |
Region II | 94,600,000 | 101,600,000 | 6,273,800 |
Region III | 82,800,000 | 89,000,000 | 5,495,750 |
Region IV | 74,000,000 | 80,800,000 | 4,989,400 |
The 23.5% is the employer share: 17.5% social insurance, 3% health insurance, 1% unemployment insurance and a 2% trade union fee. A Region I employee paid exactly VND 5,700,000 contributes 10.5% (VND 598,500) and receives VND 5,101,500 before other items. For a senior hire in Region I on VND 120 million, unemployment insurance for each side rises from VND 1,062,000 to VND 1,140,000 a month because the cap goes up. See our social insurance guide for employers and EOR cost in Vietnam.
What should employers do before 1 January 2027?
Review contracts, collective agreements and pay policies: the decree requires employers to review and adjust them to the new rates.
Map each unit and branch to its region using the ward-level annex of Decree 399/2026/ND-CP.
Convert every daily, weekly, hourly, piece-rate and lump-sum rate to a monthly or hourly equivalent and compare.
Raise social insurance salaries for employees at the floor, and update the UI cap for high earners.
Update payroll systems and 2027 budgets, and tell employees about their new pay.
What must employers not do?
Do not abolish or reduce overtime pay, night-work pay, in-kind allowances or other entitlements under labour law when adjusting to the new minimum.
Keep more favourable terms: anything already agreed in a contract or collective agreement that is better for employees, such as paying at least 7% above the minimum for jobs that require training, or at least 5% more for heavy, hazardous or dangerous work and 7% more for especially heavy, hazardous or dangerous work, continues unless both sides agree otherwise.
Do not pay below the minimum: it is an administrative violation under Decree 283/2026/ND-CP, and organisations are fined at twice the individual level.
Legal basis
Topic | Document | Effective |
|---|---|---|
Regional minimum wage 2027 | Decree 399/2026/ND-CP of 2 November 2026 (replaces Decree 293/2025/ND-CP) | 1 January 2027 |
Minimum wage | Labour Code No. 45/2019/QH14 (Article 91) | 1 January 2021 |
Social insurance floor | Law on Social Insurance No. 41/2024/QH15 (Article 31) | 1 July 2025 |
Unemployment insurance cap | Law on Employment No. 74/2025/QH15 | 1 January 2026 |
Base salary (SI/HI cap) | Decree 161/2026/ND-CP | 1 July 2026 |
Penalties | Decree 283/2026/ND-CP | 10 September 2026 |
Frequently asked questions
What is the minimum wage in Vietnam in 2027?
Under Decree 399/2026/ND-CP, from 1 January 2027 the monthly minimum is VND 5,700,000 in Region I, VND 5,080,000 in Region II, VND 4,450,000 in Region III and VND 4,040,000 in Region IV.
When does the new minimum wage take effect?
On 1 January 2027; Decree 293/2025/ND-CP expires on the same date.
How much does the minimum wage rise in 2027?
Monthly rates rise by VND 390,000 in Region I, VND 350,000 in Region II, VND 310,000 in Region III and VND 340,000 in Region IV.
Does the 2027 minimum wage change the social insurance cap?
No. The social and health insurance cap is based on the base salary and stays at VND 50,600,000 a month; only the unemployment insurance cap rises, to VND 114,000,000 in Region I.
Is a daily wage of VND 210,000 legal in Region I in 2027?
Not for a full month: VND 210,000 × 26 working days is VND 5,460,000, below the 2027 Region I minimum of VND 5,700,000.
Can employers cut allowances to offset the increase?
No. The decree prohibits abolishing or reducing overtime pay, night-work pay, in-kind allowances and other entitlements under labour law.
How HR4U can help
HR4U checks region mapping, pay conversions and insurance caps for clients before every rule change. As your Employer of Record in Vietnam, HR4U applies the 2027 minimum wage and insurance changes from the first payroll of the year. Our EOR service fee starts from USD 109 per employee per month (excluding VAT), with statutory costs passed through at cost. See our EOR service in Vietnam, try the employer cost calculator or talk to us.
This article is for general information and is based on Decree 399/2026/ND-CP. It is not legal advice.
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