From 1 January 2026, Vietnam’s regional minimum wages rise by an average 7.2% under Decree 293/2025/ND-CP, lifting the entire social-insurance contribution base with them. The Netherlands, meanwhile, adjusts its minimum wage every six months and places most of the social-insurance burden on employers. Labour-cost math differs at the formula level.
Vietnam’s 2026 minimum wage: new rates under Decree 293/2025
Decree 293/2025/ND-CP (issued 10 November 2025, effective 1 January 2026, replacing Decree 74/2024) sets monthly/hourly minimum wages for employees working under labour contracts:
- Region I: VND 5,310,000/month (VND 25,500/hour)
- Region II: VND 4,730,000/month (VND 22,700/hour)
- Region III: VND 4,140,000/month (VND 20,000/hour)
- Region IV: VND 3,700,000/month (VND 17,800/hour)
The increase is VND 250,000–350,000/month over 2025. Employers must review labour contracts, salary scales and the social-insurance base — because the monthly salary used for compulsory social insurance may not fall below the regional minimum in force at the contribution date.
Vietnam’s contribution ratios: the employer’s share
Under the Law on Social Insurance 41/2024/QH15 (effective 1 July 2025), on the contribution salary base:
- Employee pays: 8% to the pension and death-benefit fund.
- Employer pays: 14% (pension, death) + 3% (sickness, maternity) + 0.5% (work accidents, occupational disease) = 17.5%.
Adding health insurance (employee 1.5%, employer 3%) and unemployment insurance (1% each side), the employer’s insurance load is about 21.5% of payroll. At 2026 Region I rates, minimum insurance cost per ordinary worker already exceeds VND 1.1 million/month — a figure that belongs in the budget from day one.
The Netherlands: minimum wage reset twice a year
The Netherlands applies a national hourly minimum wage under the Minimum Wage Act (Wet minimumloon), adjusted twice a year (January and July) tracking collectively agreed wage growth. The rate keys off the standard working week (usually 36–40 hours depending on sector) — so the same hourly rate yields different monthly pay across sectors.
Social insurance splits into national schemes (AOW pensions and others, run by the SVB) and employee schemes (unemployment WW, sickness, disability, run by the UWV). The big contrast with Vietnam: employers carry most employee-scheme premiums, and must keep paying sick employees for up to two years (at least 70% in year one) — an obligation Vietnamese law does not impose.
Costing it right: never compare gross pay alone
- Vietnam: true cost = gross pay + ~21.5% employer insurance + 2% union levy. The minimum wage is a hard floor — paying below it is an administrative offence.
- Netherlands: true cost = gross pay + employer insurance premiums (materially higher than Vietnam’s) + two years of sick-pay exposure + minimum four weeks’ annual leave. Sectoral collective agreements (cao) usually lift standards above statute.
- Bottom line: Dutch gross pay being multiples of Vietnam’s is not the conclusion — add up the full employment cost including insurance, leave, sick pay and termination risk.
Frequently asked questions
What is the 2026 Region I minimum wage?
VND 5,310,000/month (VND 25,500/hour) under Decree 293/2025/ND-CP, effective 1 January 2026 — up VND 350,000 from 2025.
What percentage does a Vietnamese employer contribute to social insurance?
About 21.5% of payroll: 14% pension/death + 3% sickness/maternity + 0.5% work accidents (social insurance), 3% health insurance and 1% unemployment insurance. Employees add 8% + 1.5% + 1%.
How often does the Netherlands adjust its minimum wage?
Twice a year (January and July) under the Wet minimumloon, based on collectively agreed wage developments.
How long must a Dutch employer keep paying a sick employee?
Up to two years, at least 70% of salary in the first year — an obligation with no equivalent in Vietnamese labour law and a major hidden cost in budgeting.
Contact FLAT Law Firm
FLAT Law Firm helps businesses cost labour correctly when investing between Vietnam and the Netherlands: from minimum wages and insurance ratios to each country’s special employer duties. Contact us for an accurate headcount-cost budget for your expansion plan.
This article has been quality-reviewed by the FLAW AI Legal Council
