Vietnam boosts salaries for over 2 million civil servants by 8%

On 1 July 2026 Vietnam’s Ministry of Home Affairs (Bộ Nội vụ) will raise the basic salary of more than 2 million civil servants, public employees and armed‑force personnel by 8%, increasing the base pay to VND 2.53 million per month. The reform also introduces new allowances for about 1,500 communes and wards, with 45 % receiving a regional allowance and 4.7 % receiving a special allowance after the implementation of a two‑tier local‑government model.

Around 3.55 million retirees will see higher pensions and social‑insurance benefits, while the minimum wage was lifted by an average of 7.2 % from 1 January 2026. The ministry has drafted and submitted Decree 07/2026 and Decree 161/2026 to set the new salary levels and is preparing a new resolution to replace the 2018 Resolutions 27 and 28 governing wage and social‑insurance policy. Social‑insurance coverage rose 14.5 % to roughly 21.7 million participants in the first half of 2026, with voluntary enrollment up 40 %.

The updates were presented at a six‑month review conference on 9 July, where the ministry also outlined further reforms for the remainder of the year, including expanding insurance coverage, refining wage‑policy mechanisms and supporting job creation for vulnerable workers.