The Ministry of Home Affairs in Vietnam has proposed a significant increase in the minimum wage, suggesting a rise of 7.8% starting January 1, 2027. This proposal is grounded in recommendations from the National Wage Council and takes into account various economic factors as stipulated in the Labor Code.

The proposed minimum wage will vary across four regions: Region I will see a minimum wage of 5.7 million VND per month, Region II will be 5.08 million VND, Region III will be 4.45 million VND, and Region IV will be 4.04 million VND. This increase translates to an additional 310,000 to 390,000 VND compared to the current minimum wage levels.

In response to the draft decree, the Ministry of Ethnic Affairs and Religion has suggested that the minimum wage should be adjusted to better align with the living standards of workers in today's economic conditions. They also recommended ongoing assessments of price fluctuations and living costs to ensure a suitable adjustment timeline.

Furthermore, the Ministry of Agriculture and Rural Development has called for an evaluation of the impact of the proposed wage adjustment, focusing on its effects on businesses' ability to pay, wage costs, employment, and the overall labor market. The Ministry of Home Affairs has assured that the proposed 7.8% increase is designed to balance the interests of both workers and employers, aiming to improve the living standards of employees while ensuring the sustainability of business operations.

The adjustment, which exceeds the minimum living standards for workers by approximately 3.7% by the end of 2027, reflects a commitment to enhancing the welfare of the labor force. The Ministry has also addressed concerns regarding the implementation of the new wage in cases of administrative changes, stating that the existing minimum wage will apply until new regulations are established.