Year-end joy for workers

As 2025 draws to a close, workers are eagerly anticipating a rise in their average monthly income, driven by overtime, regional minimum wage increases, and year-end bonuses.

Workers of Manh Phuong Investment One-Member Limited Liability Company (Nha Bich commune) are on the working shift. Photo: Truong Hien

This enables workers to pay off outstanding expenses and prepare for their upcoming budgets.

Expectation for a pay rise

Decree No. 293/2025/ND-CP, issued by the Government on November 10, 2025, and effective from January 1, 2026, establishes the minimum wage for workers under labor contracts (hereafter referred to as Decree 293) as follows: 5.31 million VND per month and 25,500 VND per hour for Region I; 4.73 million VND per month and 22,700 VND per hour for Region II; 4.14 million VND per month and 20,000 VND per hour for Region III; and 3.7 million VND per month and 17,800 VND per hour for Region IV.

Compared to Decree No. 74/2024/ND-CP, dated June 30, 2024, which set the minimum wage for labor contract workers from July 1, 2025, to January 1, 2026, the new minimum wages, both monthly and hourly, that employers must pay will increase by 7.08–7.53%, depending on the region and how wages are calculated.

Pham Thi Thu, a resident of Tan Loi commune working at Bac Dong Phu Industrial Park, feels excited after hearing from friends and colleagues that, starting from January 1, 2026, employers will increase the minimum regional wages, both monthly and hourly. Since she works at Bac Dong Phu Industrial Park, which spans Dong Phu and Tan Loi communes in Region II, she will be entitled to a minimum base wage of 4.73 million VND per month and 22,700 VND per hour.

Starting in 2026, Thu will receive not only the regional minimum wage but also an extra allowance of VND 200,000–300,000 per month from her company as a special bonus for long-term employees, along with the traditional year-end bonus (13th-month pay).

This good news is not only for Pham Thi Thu but also for all workers under labor contracts in Dong Nai province, whether they live near their workplace without renting accommodation or are migrant workers who rent locally.

Tran Van Minh, a resident of Tan Trieu Ward working at Thanh Phu Industrial Cluster, expressed: “Every time the Government adjusts the regional minimum wage for labor contract workers, requiring employers to increase payment accordingly, it is a source of joy for all workers in general and for me personally.”

Application prioritizes workers’ benefits

Article 91 of the 2019 Labor Code states that the minimum wage is the lowest amount that must be paid to a worker performing the simplest tasks under normal working conditions, ensuring a minimum standard of living for the worker and their family, in line with socio-economic development conditions.

The minimum wage is adjusted based on several factors, including workers' basic living needs and those of their families; the relationship between the minimum wage and market wages; consumer price indices; economic growth rates; labor supply and demand; employment and unemployment levels; labor productivity; and the financial capacity of businesses.

Point d, Clause 3, Article 3 of Decree 293 stipulates that if an employer operates in an area newly established from one or multiple areas with different minimum wage levels, the employer must apply the minimum wage of the area with the highest rate until the Government issues new regulations.

Article 4 of Decree 293 states that the monthly and hourly minimum wage is the lowest wage used as a basis for negotiating and paying workers under wage systems based on monthly or hourly pay. It guarantees that the salary for a worker’s job or position, whether for full working hours in a month or for one hour, and for completing the agreed labor norms or tasks, is not less than the applicable minimum wage for either monthly or hourly pay.

Because the regional minimum wage will increase significantly starting from January 1, 2026, many workers currently earning wages equal to or above the regional minimum are wondering whether their salaries will be adjusted under Decree 293. Regarding this, lawyer Pham Dinh Duc from the Dong Nai Provincial Lawyers Association explained that Clause 2, Article 90 of the 2019 Labor Code states that the wage for a job or position must not be lower than the minimum wage. If an employer is already paying a worker a wage that meets or exceeds the regional minimum before Decree 293 takes effect, an adjustment is not obligatory. However, the law allows both parties to renegotiate the wage if it benefits the worker.

Clause 4, Article 5 of Decree 293 states that for terms already agreed upon in labor contracts, collective bargaining agreements, or other lawful arrangements that are more favorable to workers - such as wages for jobs or positions requiring higher education or vocational training at least 7% above the minimum wage; wages for jobs with heavy, hazardous, or toxic working conditions at least 5% above the minimum; and salaries for jobs with burdensome, dangerous, or poisonous conditions at least 7% higher than similar roles under normal conditions - employers may continue to honor these agreements unless the parties decide otherwise.

By Doan Phu – Translated by Hong Van, Thu Ha