The new regional minimum wage under four regions will take effect from July 1, 2025 when the two-tier local administrations officially come into operation

The minimum wage, the lowest amount an employer is legally required to pay workers for simple jobs under normal working conditions, targeting to ensure that workers can meet their most basic needs.

With the new policy, monthly minimum wage shall be VND 4.96 million (US$194.50) in Region 1, VND 4.41 million (US$172.90) in Region 2, VND 3.86 million (US$151.30) in Region 3 and VND 3.45 million (US$135.30) in Region 4.

Meanwhile, the hourly minimum wage shall be between VND 16,600 (US$0.65) and VND 23,800 (US$0.93) depending on the region.

Earlier, the Government issued Decree 74/2024/ND-CP dated June 30, 2024 providing for regional minimum wage, applicable from July 1, 2024. The regional minimum wage went up by 6 percent from VND200,000 to VND280,000 per month (US$7.8-11).

This coordinated effort aims to improve workers' living standards and ensure that wage policies align with the country's economic growth and evolving administrative boundaries.

Region I covers urban areas of Ha Noi and Ho Chi Minh City, while region II covers rural areas of Ha Noi and Ho Chi Minh City along with Can Tho, Da Nang and Hai Phong cities.

Region III covers provincial-level cities and districts of Bac Ninh, Bac Giang, Vinh Phuc provinces and region IV encompasses the rest of the country./.