Vietnam Announces 7% Minimum Wage Increase for Contract Workers

New Minimum Wage Structure

Vietnam's government has implemented a 7% minimum wage increase for contract workers starting in 2026, as announced through a document signed by Deputy Prime Minister Ho Duc Phoc. The new minimum wage rates, effective January 1, 2025, will range from US$141 to US$202 monthly, which translates to approximately Rp 2.35-3.37 million based on current exchange rates.

Regional Variations

The exact minimum wage will vary by region, reflecting Vietnam's economic development disparities across different areas. This adjustment aims to balance labor costs with living expenses in various parts of the country.

Implications for Labor Market

This wage adjustment will serve as a foundational figure for negotiations between employers and employees regarding salaries. While the new regulation specifically targets contract workers, it is likely to have broader implications for Vietnam's labor market dynamics.

Economic Context

The decision comes as Vietnam continues to develop its economy and navigate labor market conditions. The 7% increase represents a significant move to adjust wages in line with economic conditions while maintaining competitiveness for businesses operating in the country.