MỨC LƯƠNG TỐI THIỂU VÙNG THEO NGHỊ ĐỊNH 293/2025/NĐ-CP (có hiệu lực từ ngày 01/01/2026) / REGIONAL M

Legal situation:

My Company’s location is in Tho Phong Commune, Quang Ngai Province. It is paying social insurance contributions for employees based on the amount of VND 4,000,000 per month. The overtime pay calculation is currently based on a salary of VND 5,000,000. My Company is currently paying social insurance contributions for employees working in hazardous or dangerous environments at a rate 5% higher than the standard contribution base, specifically VND 4,200,000 per month. I would like to clarify whether the regulation allowing a 5% higher social insurance contribution base for employees in hazardous or dangerous working conditions remains in effect.

FDVN’s Opinion:

On November 10, 2025, the Government officially promulgated Decree No. 293/2025/NĐ-CP, stipulating the regional minimum wage rates applicable to employees working under labor contracts. This Decree shall take effect from January 1, 2026, with the following notable new provisions:

1. Increase of minimum wage by 7.2%

Accordingly, Article 3 of Decree No. 293/2025/NĐ-CP stipulates an increase of 7.2% in both the monthly and hourly regional minimum wages applicable to employees working under labor contracts, compared to the regional minimum wage rates effective prior to January 1, 2026, as follows:

As a result, the above minimum wage levels effective from January 1, 2026 represent an increase of VND 250,000 to 350,000 per month compared to the minimum wage levels applied before that date.

2. Amendment to the List of communal-level areas applying minimum wages before January 1, 2026

Pursuant to Clause 3, Article 5 of Decree No. 293/2025/NĐ-CP, the provisions under Clause 7, Article 15 and Appendix I attached to Decree No. 128/2025/NĐ-CP, which provided the list of communal-level areas applying regional minimum wages for employees working under labor contracCP, have been repealed. In replacement, Decree No. 293/2025/NĐ-CP issues a new Appendix specifying the list of areas subject to each regional minimum wage rate.

For your Company’s case, according to No. 22 of the Appendix promulgated together with Decree No. 293/2025/NĐ-CP, which stipulates the list of areas applying regional minimum wages from January 1, 2026, the Company’s location in Tho Phong Commune, Quang Ngai Province falls under Region III. Therefore, starting from January 1, 2026, the applicable monthly regional minimum wage will be VND 4,140,000 per month, and the hourly minimum wage will be VND 20,000 per hour.

Currently, your Company is paying a basic salary of VND 4,000,000. The salary used for social insurance contribution is VND 4,000,000, the salary used for social insurance contribution for employees working in hazardous or dangerous conditions is VND 4,250,000, the salary used for overtime calculation is VND 5,000,000, and the apprenticeship salary is VND 4,000,000. Accordingly: 

1. Regarding the basic salary: pursuant to Article 90 of the 2019 Labor Code, the wage for a job or title must not be lower than the regional minimum wage; therefore, the current basic salary of VND 4,000,000, while from 01 January 2026 the Region III minimum wage will be VND 4,140,000, must be adjusted to ensure it is not lower than the regional minimum wage. 

2. Regarding the salary currently used for social insurance contribution, which is VND 4,000,000:

According to Point 2.6, Clause 2, Article 6 of the Procedure issued under Decision No. 595/QĐ-BHXH 2017 regarding the mandatory social insurance contribution salary under Article 89 of the Social Insurance Law and its guiding documents, the provisions are as follows:

“Salaries paid by non-state employers

2.6. The monthly salary as the basis for payment of compulsory social insurance specified in this Clause must not fall below the region-based minimum wage of the person holding the simplest position under normal working conditions.”

Therefore, the monthly salary used for social insurance contribution must also be adjusted to ensure that it is not lower than the regional minimum wage.

3. The salary used for social insurance contribution for employees working in hazardous or dangerous conditions is VND 4,250,000.

Current laws do not require that the salary used for social insurance contribution of employees performing hazardous or dangerous jobs be at least 5% or 7% higher than the regional minimum wage; therefore, the current salary remains compliant.

However, if the Internal Labor Regulations, Collective Labor Agreement, or Labor Contracts contain provisions stipulating that the Company shall pay employees working in hazardous or dangerous positions a salary that is 5%–7% higher than the regional minimum wage, such salaries must be adjusted accordingly when the regional minimum wage increases.

Nevertheless, Clause 4, Article 5 of Decree No. 293/2025/NĐ-CP provides that, for terms agreed and committed in labor contracts, collective labor agreements, or other lawful agreements that are more favorable to employees (such as: salary for employees performing jobs or holding positions requiring higher education or vocational training at least 7% above the minimum wage; salary for employees performing jobs or holding positions with hazardous, harmful, or dangerous working conditions at least 5% higher; salary for jobs or positions with particularly hazardous, harmful, or dangerous conditions at least 7% higher than the wage for jobs or positions of comparable complexity under normal working conditions), these provisions shall continue to be applied, unless the parties have agreed otherwise. Accordingly, if your Company has a collective labor agreement, labor regulations, or agreements with employees stipulating that social insurance contributions shall be calculated based on wages for hazardous or harmful work at a rate at least 5% higher than the wage for normal working conditions, such arrangement may continue to be implemented, except in cases where the parties have currently agreed otherwise.

4. Regarding the apprenticeship salary

Clause 2, Article 61 of the 2019 Labor Code provides that the form of vocational training to work for an employer involves the employer recruiting individuals to provide practical guidance, training them to perform tasks according to the job position at the workplace. The training period shall not exceed 03 months. The form of apprenticeship currently applied by your Company can be understood as the form of vocational training described above.

At that time, Clause 5, Article 61 of the 2019 Labour Code provides that “During the traineeship or apprenticeship period, if an apprentice or trainee directly performs or participates in performance of the work, he/she shall be paid a salary at a rate agreed by both parties.” According to this provision, the salary paid to trainees during the apprenticeship period is subject to agreement between the parties; there is no requirement that it must not be lower than the regional minimum wage. Therefore, changes in the regional minimum wage do not affect the agreed apprenticeship salary.