Proposed increases to Minimum Monthly Wages by 6% from 1 July 2022.

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Proposed increases to minimum monthly wages by 6% from 1 july 2022

On 12 April 2022, Vietnam’s National Wage Council finalised their proposal to increase Minimum Monthly Wage for employees in Vietnam at an average of 6% across the 4 regions, effective from 1 July 2022. This increase is subject to the Prime Minister’s final approval, which is expected to be procedural.

Zone Minimum Monthly Wage (VND) Increase (VND)
Prior to 1 July 2022 From 1 July 2022
Zone 1 4,420,000 4,680,000 260.000
Zone 2 3,920,000 4,160,000 240.000
Zone 3 3,420,000 3,640,000 220.000
Zone 4 3,070,000 3,250,000 180.000

(Zone 1 covers areas including urban areas of Hanoi, Ho Chi Minh City and Hai Phong, along with certain industrial areas of Binh Duong, Dong Nai and Ba Ria – Vung Tau. Zone 2 covers rural areas of Hanoi and Ho Chi Minh City, along with major urban areas in the country)

How does the change impact costs of employers and employees?

Once the change is effective:

  • Employers should ensure that their staff are not paid less than the monthly minimums.
  • This increase also impacts the maximum cap for the monthly calculation of Unemployment Insurance for employer and employee portions. The maximum cap is 20 times the Minimum Monthly Wage of the Zone the employer is in.

Example for Zone 1:

Insurances Maximum Monthly Cap
Prior to 1 July 2022 From 1 July 2022
Unemployment Insurance (UI) 88,400,000 VND

(20 x 4,420,000 VND)

93,600,000 VND
(20 x 4,680,000 VND)

Employers should factor in these changes into their budget.


Contact our teams for expert support and further information on managing corporate compliance in Vietnam.

Tran Huynh, Head of Payroll Services and HR Consulting


Matthew Lourey, Managing Partner


Last updated on June 14, 2022
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