A draft decree proposes adjusting the regional minimum wage for employees in the enterprise sector from 1/1/2027. Under this proposal, the minimum wage for Region I would be 5,7 million VND; Region II 5,08 million VND; Region III 4,45 million VND; and Region IV 4,04 million VND. If approved, wages across all regions will increase by 310,000 VND to 390,000 VND, representing an overall rise of 7,8%, which will also impact various contribution and benefit schemes.
Maximum unemployment contribution and benefit levels to increase
Current law stipulates that the maximum salary used for calculating unemployment insurance contributions for enterprise employees is 20 times the regional monthly minimum wage announced by the Government at the time of contribution.
From 1/1/2027, if the minimum wage for Region I increases to 5,7 million VND, the maximum salary cap for unemployment insurance contributions will similarly rise to 114 million VND. With a 1% contribution rate to the fund, employees could contribute a maximum of 1,14 million VND per month.
As contributions increase, maximum unemployment benefit levels will also adjust, as they are calculated based on the regional minimum wage. Regulations state that the maximum benefit cannot exceed 5 times the regional minimum wage announced by the Government in the last month of unemployment insurance participation. Consequently, the maximum benefit will be 20,2 million VND for Region IV and a high of 28,5 million VND for Region I.
The projected monthly salary used for unemployment insurance contributions and maximum unemployment benefits from 1/1/2027 are as follows (unit: million VND):
| Region | Minimum Wage | Maximum Contribution Base | Maximum Benefit |
| I | 5,7 | 114 | 28,5 |
| II | 5,08 | 101,6 | 25,4 |
| III | 4,45 | 89 | 22,25 |
| IV | 4,04 | 80,8 | 20,2 |
 |
Employees processing unemployment insurance procedures at the Ho Chi Minh City Employment Service Center, 2023. Photo: Thanh Tung
Wages for work stoppages and job transfers not below minimum wage
Under current law, if a work stoppage occurs due to employer fault, employees receive their full contractual salary. If the stoppage is due to objective events, such as natural disasters, fires, or economic reasons, both parties agree on the wage, but it must not fall below the regional minimum wage. Thus, the lowest work stoppage wage will correspond to the region where the enterprise operates, with a minimum of 4,04 million VND for Region IV and 5,7 million VND for Region I.
When employees are transferred to a different job than specified in their contract, they receive the salary for the new position. This new salary must be at least 85% of their previous wage but not lower than the regional minimum wage. Specifically, for enterprises in Region I, it must not be less than 5,7 million VND; Region II, 5,08 million VND; Region III, 4,45 million VND; and Region IV, 4,04 million VND.
The regional minimum wage represents the lowest permissible wage for enterprises to negotiate and pay their employees. This rate applies to individuals working under labor contracts governed by the Labor Code; those employed in enterprises, cooperatives, households, and by individuals who hire and utilize labor under agreement; and other relevant agencies, organizations, and individuals.
Hong Chieu
