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

Subscribe to Updates
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 Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

September 25, 2025
In the Thailand contribution to Labor and Employment Disputes 2026, four members of Tilleke & Gibbins’ Bangkok labor and employment team outline key aspects of dispute resolution in Thailand. Their analysis, part of Lexology Panoramic’s comparative guide covering jurisdictions worldwide, addresses the following areas: 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 complete Thailand chapter can be downloaded below. Tilleke & Gibbins also contributed the Cambodia and Vietnam 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.
Read More
September 25, 2025
Four of Tilleke & Gibbins’ labor and employment specialists in Phnom Penh have authored the Cambodia chapter of Labor and Employment Disputes 2026, the latest edition of Lexology Panoramic’s global guide to handling labor and employment disputes. The chapter provides practical insights on a wide range of dispute resolution issues, including: 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 full Cambodia chapter is available for download below. Tilleke & Gibbins also contributed the Thailand and Vietnam 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.
Read More
September 2, 2025
On August 26, 2025, the Thai cabinet approved a one-year postponement of mandatory contributions to the Employee Welfare Fund. Originally scheduled to take effect on October 1, 2025, the enforcement date has been deferred to October 1, 2026. The decision to delay the implementation stems from ongoing economic uncertainties in Thailand, driven by several external and domestic factors. These include increased trade tariffs imposed by the United States, the recent rise in the national minimum wage, and continued geopolitical tensions resulting from unresolved disputes with neighboring countries. These challenges have placed significant pressure on both businesses and the labor market, prompting the government to offer temporary relief through this deferral. As a result of the postponement, the following regulations will now come into effect on October 1, 2026: Royal Decree determining the Commencement Period for Savings and Contributions to the Employee Welfare Fund; Ministerial Notification specifying the Rates of Savings and Contributions; and Ministerial Notification outlining the Criteria and Procedures for Employers to Provide Assistance in Cases of Termination of Employment or Death. The Labour Welfare Fund Committee has formally endorsed the postponement. Contribution Rates Unchanged Although the implementation has been delayed, the contribution rates remain unchanged: October 1, 2026–September 30, 2031: Employers and employees each contribute 0.25% of the employee’s wage to the fund. From October 1, 2031, onward: Contributions increase to 0.5% of the employee’s wage for both parties. All other rules and conditions concerning the Employee Welfare Fund remain in full effect.
Read More
August 29, 2025
On August 15, 2025, Laos’ Immigration Police Department introduced a pilot online arrival registration system for foreign passport holders entering the country. Under the new system, visitors to Laos will be able to register their arrival online up to three days in advance and will be exempt from filling out paper forms at the border. Starting September 1, 2025, online registrations will be accepted at four major international border checkpoints: Wattay International Airport in Vientiane, Luang Prabang International Airport, Pakse International Airport in Champasak Province, and the First Lao-Thai Friendship Bridge linking Vientiane and Nong Khai Province in Thailand. Foreign passport holders arriving in Laos from this date onward will be able to complete the online registration via the official website of the Department of Immigration: http://www.immigration.gov.la/. Upon successful registration, travelers will receive a QR code valid for three days, which must be presented to border authorities upon arrival to verify the registration. During the pilot phase, which is expected to run until early 2026, travelers who have not registered online will still have the option to complete a paper form at the checkpoint. After the pilot phase, the online registration system will become mandatory nationwide, and paper forms will no longer be accepted. This initiative marks a significant step toward modernizing Laos’ immigration procedures. Transitioning from traditional paper-based entry forms to a streamlined digital system will greatly enhance efficiency at border checkpoints. The submission of traveler information ahead of arrival is expected to drastically reduce processing times and alleviate congestion at arrival counters, especially during peak travel periods.
Read More