🇻🇳 Vietnam: Minimum Wage Increase for 2026 – Remofirst

The Vietnamese Government has announced updates to wage regulations that will take effect on January 1, 2026. These changes include an increase to the regional minimum wage and an adjustment to personal income tax family deduction levels.

Below is a summary of what’s changing and how it may impact your team in Vietnam.

Regional Minimum Wage Increase (Region I)

All employees managed under Region I will be subject to the updated minimum wage.

What’s changing

Current minimum wage (Region I):
4,960,000 VND per month
New minimum wage (effective January 1, 2026):
5,310,000 VND per month

This increase applies to all employees working under labor contracts in Vietnam. In addition to base salary adjustments, this change may also impact Unemployment Insurance (UI) contributions for employees whose salaries exceed 99,200,000 VND (the previous UI contribution cap).

In Vietnam, the minimum wage is defined by geographic regions, not job level. Region I includes the highest-cost urban and industrial areas in the country.

🇻🇳 Region I typically covers:

Hà Nội (urban districts)
Ho Chi Minh City
Bình Dương
Đồng Nai
Bà Rịa – Vũng Tàu
Bắc Ninh
Hải Phòng (urban districts)
Quảng Ninh (select areas)

Adjustment to Family Deduction Levels (Personal Income Tax)

Alongside the minimum wage increase, Vietnam has also updated family deduction levels for Personal Income Tax (PIT), which may reduce taxable income for eligible employees.

Current deduction levels

Taxpayer:
11,000,000 VND per month (132,000,000 VND per year)
Per dependent:
4,400,000 VND per month

New deduction levels (effective January 1, 2026)

Taxpayer:
15,500,000 VND per month (186,000,000 VND per year)
Per dependent:
6,200,000 VND per month

This update may slightly reduce PIT liability and increase net take-home pay for employees previously subject to PIT.

What You Need to Do

No action is required from your side at this time.

We will:

Implement the updated minimum wage
Apply the revised tax deduction levels
Update payroll calculations starting January 2026

If any individual salary adjustments are required to remain compliant, your team will be notified directly.

Need Help or Have Questions?

If you have questions about how these changes apply to your employees in Vietnam or would like to review specific cases, our Support Team is happy to help.