Vietnam increases public service allowances for commune-level officials

The Vietnamese government has issued Decree No. 381/2026/ND-CP, establishing new public service allowance regulations for officials and civil servants working at the commune, ward, and special district levels. Signed by Deputy Prime Minister Pham Thi Thanh Tra, the decree applies to personnel within the Party, State, Vietnam Fatherland Front, and affiliated socio-political organizations.

The new policy introduces a tiered allowance system based on existing salary structures. Officials who do not receive additional salary or income increases via local People's Council resolutions will receive a public service allowance equal to 55% of their current salary, plus leadership and seniority allowances. For those already receiving additional local income increases, the allowance is set at 25%. In cases where the local income increase is lower than the 55% threshold, officials will receive a differential payment to reach the 55% level.

This adjustment represents a 30% increase from the previous 25% standard for many, aimed at motivating grassroots officials who directly serve the public under the two-level local government model. While the decree took effect on October 2, 2026, the new allowance rates are retroactive to July 1, 2026.