Base salary may be increased by 8% from next July
VGP - Base salary may be increased by 8 percent from July 1, 2026, Deputy Prime Minister Pham Thi Thanh Tra told voters in the northern province of Lao Cai on March 9.
Deputy Prime Minister Pham Thi Thanh Tra at the meeting with voters, Lao Cai province, March 9, 2026 - Photo: VGP/Thu Giang
Accordingly, the base salary would increase from current VND 2.34 million per month (around US$96) to VND 2.53 million (about US$103) starting July 1, 2026.
On July 7, 2024, the Government issued Decree No. 73/2024/ND-CP, raising the base salary from VND 1.8 million to VND 2.34 million per month after five-year hiatus due to COVID-19 pandemic.
The base salary is a fixed amount set by the Government and serves as the reference for calculating wages, allowances, and other benefits for public-sector employees, including officials, civil servants, public employees, and the armed forces.
Monthly wage = Base salary × Salary coefficient
The salary coefficient depends on an employee's rank, grade, and position. In practice, total income may also include various allowances.
Therefore, the total income is typically calculated as: Total income = Base salary × Salary coefficient + Allowances.
These adjustments mark an important step in the broader roadmap for wage policy reform set out in the Party Central Committee's Resolution No. 27-NQ/TW, dated May 21, 2018 for cadres, civil servants, public employees, armed forces and employees in enterprises.
To date, the base salary of cadres, civil servants, public employees and armed forces has increased by about 58 percent. However, compared to practical requirements and the living standards of workers, this salary level is still low.
For the private sector, the minimum wage has been increased annually, but in general, it still does not fully meet the actual needs.
The Government is also continuing to study and refine a performance-based bonus mechanism, which would allow agencies and units to evaluate and classify staff based on work results. This mechanism is expected to help ensure that salaries and bonuses are paid to the right people for the right jobs while improving the effectiveness of the public administration system.
Relevant authorities are also reviewing the implementation of Resolution 27 to report to competent bodies on the roadmap for salary reform in the next phase./.
