Vietnam proposes 7.8% minimum wage increase for 2027

minimum wage labor contract wage adjustment Region I Vietnam labor policy

The Ministry of Home Affairs has proposed an average increase of 7.8% in the minimum wage for employees working under labor contracts, effective January 1, 2027. The draft decree, which is currently being reviewed by the Ministry of Justice, aims to improve workers' living standards while balancing the interests of businesses.

Under the proposal, the monthly minimum wage would be categorized into four regions. Region I is expected to reach 5.7 million VND per month, Region II at 5.08 million VND, Region III at 4.45 million VND, and Region IV at 4.04 million VND. Hourly rates are also proposed, with Region I at 27,400 VND and Region IV at 19,400 VND.

The adjustment represents an increase of between 310,000 and 390,000 VND compared to current levels. This increase is approximately 3.7% higher than the estimated minimum cost of living for workers through the end of 2027. Authorities noted that regional classifications may be adjusted based on economic growth, infrastructure changes, and labor market development.

Entities

Ho Chi Minh City · Ministry of Home Affairs · Ministry of Justice · National Wage Council · Vietnam

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The Ministry of Home Affairs has accepted proposals to adjust minimum wage regions in seven provinces and cities. baolaocai.vn
[● 2 SOURCES] The minimum wage increase ranges from 310,000 VND to 390,000 VND.
[● 2 SOURCES] The proposed adjustment is approximately 3.7% higher than the minimum cost of living for workers through the end of 2027.
[● 3 SOURCES] Seven provinces and cities proposing adjustments include Hung Yen, Da Nang, Dong Nai, Ho Chi Minh City, Hai Phong, Quang Ninh, and Gia Lai. baolaocai.vn
[● 2 SOURCES] The draft decree proposes a 7.8% increase in the minimum wage compared to current levels, effective January 1, 2027.