The new wage policy will take effect from January 1, 2026: Key points labours should know

From January 1, 2026, several new salary policies will officially take effect, directly impacting the income of workers and teachers nationwide. These changes not only adjust the regional minimum wage but also establish a new salary and allowance mechanism for teachers in the public administration system.

This article will provide a detailed analysis of the most important aspects of the new wage policy, helping employees and employers proactively understand and correctly apply the regulations.

1. Adjustment of regional minimum wage effective January 1, 2026

One of the key aspects of the new wage policy is the adjustment of the regional minimum wage for workers employed under labor contracts. This adjustment aims to ensure a minimum standard of living for workers in the context of rising living costs.

Before going into detail, it's important to understand that the regional minimum wage is a crucial basis for negotiating salaries, establishing salary scales, and calculating mandatory insurance benefits.

1.1. Regional minimum wage rates applicable from 2026

According to Decree No. 293/2025/ND-CP on regional minimum wageThe monthly minimum wage and hourly minimum wage in the four regions have been adjusted upwards compared to the current levels, specifically:

• Region I: 5,310,000 VND/monthan increase of 350,000 VND) and 25,500 VND/hour
• Region II: 4,730,000 VND/month (an increase of 320,000 VND) and 22,700 VND/hour
• Region III: 4,140,000 VND/month (an increase of 280,000 VND) and 20,000 VND/hour.
• Region IV: 3,700,000 VND/month (an increase of 250,000 VND) and 17,800 VND/hour

This adjustment lays the groundwork for improving workers' incomes and provides a basis for businesses to review their internal wage policies.

Adjusting the regional minimum wage aims to ensure a decent standard of living and basic rights for workers.

1.2. Scope of application of the new regional minimum wage

The policy of increasing the regional minimum wage applies to employees working under labor contracts and employers in accordance with the Labor Code. The scope of application includes businesses, agencies, organizations, cooperatives, households, and individuals who employ workers.

Consistent application helps ensure fairness and transparency in the labor market.

2. New salary policy for teachers under the 2025 Teacher Law

Besides adjusting the regional minimum wage, the new wage policy also has an important focus related to the salary and allowance system for teachers, which is specifically regulated in the 2025 Law on Teachers.

The 2025 Law on Teachers clearly stipulates the salary and allowance regime for teachers.

This law marks a major step forward in affirming the status and role of teachers and building a compensation policy commensurate with the unique nature of the profession.

2.1. Salary of nTeachers are given the highest priority in the public administration system.

According to regulations, the salaries of teachers working in public educational institutions are ranked highest in the administrative and public service salary scale. This is an important new point, demonstrating priority and recognition for the education workforce.

In addition to their salaries, teachers also receive allowances commensurate with the nature of their work and working conditions.

2.2. Groups of teachers receive higher salaries and allowances.

Certain groups of teachers receive higher salaries and allowances than the normal rate, including:

• Preschool teacher
• Teachers working in ethnic minority areas, mountainous regions, border areas, and islands.
• Teachers working in areas with particularly difficult socio-economic conditions.
• Teachers who teach in special education schools or provide inclusive education.
• Teachers in specialized fields and professions.

This regulation aims to compensate for difficult working conditions and create incentives for long-term commitment to the profession.

3. Regulations on salaries for teachers in private schools and specialized professions.

Besides adjusting the salary system for teachers in public educational institutions, the new salary policy also clarifies the principles for application to teachers working in the non-public sector and in industries with specific characteristics. Specifying each group of teachers helps ensure transparency, consistency, and suitability to the characteristics of each educational model.

3.1. Salaries of teachers in private schools

For teachers working in non-public educational institutions, the salary system is implemented according to labor laws, based on an agreement between the employee and the employer through a labor contract.

The salaries of teachers in private schools are determined by employment contracts and comply with labor laws.

Although flexible negotiation is allowed, the salaries and benefits of teachers in private schools must still adhere to general principles such as:

• Not lower than the regional minimum wage set by the Government.
• Ensure timely, full, and transparent salary payments.
• Fulfill all obligations related to social insurance, health insurance, and other mandatory benefits as prescribed by law.

The application of a negotiation mechanism allows private educational institutions to proactively develop salary policies that match their financial capacity, while also creating opportunities for teachers to negotiate income levels commensurate with their professional qualifications and work performance.

3.2. Salary regime for teachers in specialized fields and professions.

Teachers working in specialized fields and professions are entitled to separate salaries and allowances as prescribed by law, to compensate for the unique characteristics of their work, working conditions, or higher professional requirements compared to the general standard.

These specific modes may include:

• Allowances based on industry, occupation, or field of training.
• Allowance based on working environment and conditions.
• Other forms of support are subject to the specific policies of each sector.

In cases where teachers are simultaneously eligible for multiple different benefits, the law stipulates that only the highest benefit level will be applied if the policies overlap. This regulation aims to avoid duplication, ensuring fairness and consistency in the implementation of salary policies.

To ensure consistent implementation in practice, the Government will issue detailed guidelines clarifying the scope of application, benefit levels, and implementation procedures for each group of teachers in specific sectors and professions.

It is clear that the new salary policy from 2026 is of significant importance in increasing workers' income and affirming the status of the teaching staff. The increase in the regional minimum wage contributes to protecting workers' rights, while the new regulations on teachers' salaries demonstrate concern and investment in the education sector.

Workers, teachers, and employers need to proactively update themselves on new regulations, review contracts and wage policies to ensure full and proper compliance with the law.Follow the SeABank News page to stay up-to-date on new salary policies and suitable financial solutions for individuals and businesses.