Regional minimum wage underpins employees' livelihoods

The National Wage Council held its first meeting to discuss proposals for revising the regional minimum wage (RMW) for 2027 before submitting its recommendations to the Government for consideration and decision. Based on the actual needs of employees, the Vietnam General Confederation of Labor put forward two options for increasing the RMW, with average increases of 8.5% and 9.8%.

Employees are hopeful for an increase in the RMW in 2027. In the picture: Workers are on the production line at a company in Dong Nai. Photo: Nguyen Hoa

Employees are hopeful for a reasonable increase in the RMW to help offset the rising cost of living. The RMW is regarded as a pillar of support that helps employees ensure their livelihoods while encouraging them to remain with their enterprises.

Ensuring the minimum standard of living

According to a survey conducted by the Vietnam General Confederation of Labor among 2,000 employees in seven localities with large concentrations of workers, nearly 27% of employees had to borrow money to cover expenses in 2026, double the proportion recorded in 2025, as living costs increased faster than income. The Vietnam General Confederation of Labor's proposal to raise the RMW under the two aforementioned options has received support from many trade union officials and employees. The adjustment is considered necessary to improve employees' quality of life and promote production.

Le Van Tien, a worker at Bien Hoa 2 Industrial Park in Tran Bien Ward, said that after more than 14 years on the job, his family still has to rent a small room because of limited income. According to Tien, his current wages are only sufficient to cover essential monthly expenses, making it very difficult to save money. Whenever the prices of electricity, water, food, or consumer goods increase, his family's financial pressure becomes even heavier.

Workers at Eclat Textile Co., Ltd. (Vietnam) in Nhon Trach Ward during production hours.

"Adjusting the RMW is necessary to give employees better conditions to cover their living expenses. What I hope for most is that wages will be adjusted in line with increases in market prices, creating motivation for employees to work with peace of mind and remain with the enterprise," said Tien.

For employees, the RMW is not only a basic income level but also a foundation for ensuring the livelihoods of themselves and their families. It is the primary source of income that enables employees to cover essential living expenses such as food and housing, transportation, healthcare, and child-rearing while gradually improving their quality of life. An appropriate adjustment to the RMW helps reduce financial pressure and strengthens employees' confidence in social welfare policies.

In May 2026, a delegation from the Vietnam General Confederation of Labor conducted a survey on the living conditions, employment, and wages of employees at enterprises in Dong Nai City. The survey results serve as a basis for analyzing and clarifying the factors affecting employees' lives, employment, and income while proposing that the National Wage Council continue adjusting the RMW in the coming period.

According to Dang Tuan Tu, Chairman of the Trade Union of Chang Shin Vietnam Co., Ltd. in Tan Trieu Ward, the RMW is important not only in terms of income but also in promoting harmonious, stable, and progressive labor relations. In addition, sound welfare policies help enterprises retain employees. When employees' basic rights are guaranteed, they are more motivated to work, improve productivity, and remain committed to the enterprises over the long term. This also helps enterprises stabilize production and sustain development.

Improving employees' livelihoods

At the beginning of 2026, many enterprises in Dong Nai proactively adjusted and increased wages in accordance with the Government's Decree No. 293/2025/ND-CP, which stipulates the minimum wage for employees working under labor contracts. In addition to wage adjustments, many enterprises also increased allowances and support for meals, housing, fuel, and attendance. These measures contribute to increasing employees' actual income and reducing the pressure of daily expenses.

According to the proposal of the Vietnam General Confederation of Labor, option 1 would increase the RMW by 360,000-520,000 VND, representing an average increase of 9.8%, while option 2 would raise it by 315,000-450,000 VND, representing an average increase of 8.5% compared with 2026.

Nguyen Sy Nguyen, Assistant Manager of Global Powersports Manufacturing Incorporation in Trang Bom Ward, said that at the beginning of 2026, the company increased employees' wages by an average of 400,000 VND per person per month. The wage increase is intended to help employees cope with rising living costs while encouraging them to work with peace of mind and remain committed to the enterprise over the long term. The company currently has orders through the end of 2026 and ensures stable employment for its employees. It also hopes that employees will continue making greater efforts and accompany the enterprise in its continued development.

At Shing Mark Enterprise Co., Ltd. in An Vien Commune, in addition to increasing wages for all employees by nearly 400,000 VND per person per month from January 2026, the company increased the seniority bonus by 100,000 VND per person for employees who have completed one full year of service, with the bonus continuing to accumulate in subsequent years. Previously, the company had also increased attendance allowances to encourage employees' commitment to their work.

For enterprises, adjusting the RMW increases cost pressures, particularly in labor-intensive industries such as textile and garment, leather and footwear, seafood processing, and electronic assembly. However, over the long term, it is regarded as a necessary investment in human resources. Appropriate wage and benefit policies help enterprises attract and retain skilled employees, reduce labor turnover, and serve as a driver for improving productivity, workforce quality, and production and business efficiency.

The RMW adjustment, scheduled to take effect on July 1, 2027, is expected to help improve income, enhance employees' livelihoods, and provide greater motivation for employees to work with peace of mind and remain with their enterprises. Over the long term, however, the RMW can achieve its full effectiveness only when accompanied by coordinated measures such as inflation control and the expansion of the social welfare system. Training and vocational skills development also help employees gain access to positions with higher productivity and income.

By Thao My – Translated by Minh Hong, Thu Ha