You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

December 24, 2019

Vietnam’s Regional Minimum Wages to Increase

Taylor Vinters – International Employment Law Update

On January 1, 2020, region-based minimum wages for non-state employees in Vietnam will increase by an average of 5.5%. The increase was passed by Vietnam’s National Wage Council on July 11, 2019, and approved by the prime minister on November 17 of the same year.

As the cost of living varies dramatically throughout Vietnam, the government divides the country into four salary regions for the purpose of issuing minimum wages, reflecting the economic realities of the urban/rural divide and other developmental factors. The increase in the minimum wage for 2020 is summarised in the table below.

Monthly minimum wage by region:

  • Companies are not permitted to pay unskilled employees monthly wages which are lower than the relevant minimum wage. Wages paid to employees who have undergone vocational training should be at least 7% higher than the minimum salary, according to the country’s Ministry of Labor, Invalids and Social Affairs.Region I includes the urban and suburban districts of Hanoi and Hai Phong in the north, and the urban and suburban districts of Ho Chi Minh City and its neighboring provinces of Dong Nai, Binh Duong, and Ba Ria – Vung Tau in the south.
  • Region II includes the outskirts of Hanoi and Ho Chi Minh City, as well as other large and medium-sized cities throughout Vietnam, such as Da Nang, Nha Trang, and Can Tho.
  • Region III includes smaller provincial cities and suburban districts.
  • Region IV includes all remaining areas, including the least developed and sparsely populated rural and mountainous regions of Vietnam.

Comment

Employers with employees in each of the four regions mentioned above should be aware of these changes and ensure that they are complying with them by paying their employees the minimum wage for that region. Contract and payroll reviews are therefore recommended to ensure compliance.

RELATED INSIGHTS​ 

October 15, 2025
Myanmar’s National Committee for Setting the Minimum Wage has introduced another MMK 1,000 daily allowance for private-sector workers, bringing the total minimum daily wage to MMK 7,800 (approx. USD 3.72). Notification No. 1/2025 marks the third such increase in recent years as the government continues adjusting compensation across both public and private sectors. Although the notification was issued on October 14, 2025, it takes retroactive effect from October 1, 2025. Current Minimum Wage Structure In May 2018, the committee established a base minimum wage of MMK 4,800 (approximately USD 2.29) for an eight-hour workday (MMK 600 per hour), applying to all workers regardless of location or job type. The committee has subsequently announced additional daily allowances for private-sector workers: MMK 1,000 effective October 1, 2023, and another MMK 1,000 effective August 1, 2024. With the latest MMK 1,000 daily allowance from October 1, 2025, the total additional allowance reaches MMK 3,000, resulting in a new combined minimum daily wage of MMK 7,800. Alignment with Public Sector Increases The new allowance aligns with increases granted to government personnel. The Ministry of Finance and Revenue’s Notification No. 110/2025 previously granted monthly increases of MMK 30,000 to service and Tatmadaw personnel starting in October 2023 and August 2024. With the latest increase effective October 1, 2025, the total monthly allowance for these personnel now amounts to MMK 90,000. Daily wage employees in government departments received MMK 1,000 increases in the same periods, totaling MMK 3,000 in daily allowances—mirroring the private-sector adjustment. Key Implementation Details The latest announcement confirms several important aspects of the allowance structure: Employees are entitled to the base wage and additional allowances during their entitled leave and holidays, in accordance with the 1951 Leave and Holidays Act. The MMK 3,000 daily allowance is excluded from overtime calculations, which must
October 8, 2025
On September 24, 2025, Thailand’s House of Representatives voted to approve two draft amendments to the Labor Protection Act in their first reading, aiming to enhance workers’ rights and quality of life through improved working conditions, expanded leave entitlements, and stronger antidiscrimination protections. Key provisions of the draft amendments are outlined below. Draft Bill on Workers’ Rights This draft bill focuses on improving working conditions, working hours, and annual leave entitlements. The key provisions include: Limiting normal working hours to no more than 40 hours per week, reduced from the current 48 hours per week. For hazardous work, as defined by ministerial regulations, the maximum working hours are set at 35 hours per week, reduced from the current 42 hours per week. Mandating at least 2 days off per week, with no more than 5 consecutive working days between rest days. This is an increase from the current requirement of at least 1 day off per week, with the interval between days off not exceeding 6 days. Providing annual leave entitlement of at least 10 working days after the completion of 120 consecutive working days, compared to the current entitlement of 6 days after 1 year of employment. Draft Bill on Workers’ Quality of Life This draft bill is designed to enhance workers’ quality of life and promote equality and nondiscrimination in the workplace. The new additions to the Labor Protection Act include: Menstrual leave for female employees: Up to 3 days per month, which shall not be counted as sick leave or deducted from other statutory leave entitlements. Family caregiving leave: Employees are entitled to up to 15 working days per year to care for close family members or loved ones. For absences of 5 or more days, employers may request supporting documents such as a medical certificate
September 30, 2025
Over the past several years, during and after the COVID-19 pandemic, Thai employees and labor unions have faced reductions in benefits and welfare from their employers. Consequently, they have pursued various strategies to enhance their compensation packages. One such approach involves establishing employee committees to negotiate with employers regarding benefits and welfare. Additionally, companies with existing unions typically nominate representatives to serve on these employee committees. Many employers, however, remain unfamiliar with both the committee’s role and the heightened procedural requirements that apply when disciplinary measures are contemplated against committee members. Because any violation of a committee member’s statutory rights can expose the employer—and its directors or authorized representatives—to criminal liability, a clear understanding of the relevant legal framework is essential. The Labor Relations Act B.E. 2518 (LRA) provides the statutory foundation for establishing employee committees. The purpose of the committee is to promote harmonious industrial relations and create a formal channel through which employees and employers can discuss workplace matters on a regular basis. Any workplace that employs at least fifty employees must, upon request by employees or the labor union, facilitate the creation of a committee. Members may be elected directly by employees or, where applicable, appointed by the labor union. Each member serves a three-year term. The LRA prescribes minimum committee sizes based on the employer’s headcount, as shown in the table below. If union members constitute more than 20 percent of the total workforce, the union must appoint at least one more committee member than the number of nonunion members elected by the general workforce. If union membership exceeds 50 percent of the workforce, the union acquires the exclusive right to appoint every committee member. Where multiple unions exist and their combined appointments would exceed the statutory committee size, the employer may lawfully refuse to
September 25, 2025
Tilleke & Gibbins’ labor and employment team in Hanoi and Ho Chi Minh City has contributed the Vietnam chapter to Labor and Employment Disputes 2026. Drawing on the expertise of three of the firm’s employment specialists, the chapter provides practical guidance for navigating employment disputes in Vietnam and covers: Pre-action considerations: key requirements, third-party funding, contingency fee arrangements Issuing a claim: forum, territorial jurisdiction, standing, commencing claims, fees, service, defendants and legal personality, types of claims, time limits, counterclaims Case management: procedure, rules, amendments to claims, adding parties, consolidating proceedings, class and collective actions, evidence, witnesses, tactical considerations Interim relief: availability, requirements Trial: hearings conduct and time frames, confidentiality and public access, media reporting, elements of successful claims and burden of proof Alternative dispute resolution: available types, requirements and expectations, enforcement Collective employment and labor rights: enforcement and standing Remedies and enforcement: available remedies, assessing compensation, enforcement mechanisms Appeals: procedure, time frames, other means of challenge Updates and trends: recent cases and developments, technology developments, other issues The Vietnam chapter is available for download below. Tilleke & Gibbins also contributed the Cambodia and Thailand chapters to Labor and Employment Disputes 2026. Readers can also gain 30 days of complementary access to the full Labor and Employment Disputes 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.