Base salary for Vietnamese public employees up 30% from July

The monthly base salary for public employees in Vietnam will increase from VND1.8 million ($70.7) to VND2.34 million ($92), starting July 1 per a resolution adopted by the National Assembly on Saturday.

The base salary is used to calculate salaries and allowances of public employees, based on their corresponding coefficients. This is the strongest increase in years after it was delayed due to Covid-19.

The legislature also approved a 15% increase in pensions and social insurance allowances. For pensioners who retired before 1995, their monthly pensions will be raised by an additional VND300,000 ($11.78) if they are lower than VND3.2 million ($125.74) and to VND3.5 million ($137.52) if they are between VND3.2 million and VND3.5 million after the adjustment.

Allowances for people who rendered services to the nation will be increased by 35.7% to VND2.79 million ($109.6) per month from the current VND2.06 million ($80.7).

Monthly social assistance for disadvantaged people will be lifted from VND360,000 (over $14) to VND500,000 (nearly $20).

Meanwhile, an average rise of 6% will be applied to the regional minimum wage for the business sector.

Accordingly, Region 1 will see the minimum wage increase to VND4.96 million ($194.8), Region 2 to VND4.41 million ($173.2), Region 3 to VND3.86 million ($151.6), and Region 4 to VND3.45 million ($135.5).

Region 1 covers the urban areas of Hanoi and Ho Chi Minh City. Region 2 encompasses the rural areas of Hanoi and HCMC, along with major urban areas in the country such as Can Tho, Danang and Hai Phong cities. Region 3 features provincial cities and the districts of Bac Ninh, Bac Giang, and Hai Duong provinces; and Region 4 comprises the rest of the country.

The above policies shall benefit at least 50 million people, Minister of Home Affairs Pham Thi Thanh Tra said, adding the government has allocated around VND680 trillion ($26.7 billion) for the new salary, social insurance benefit, and allowance hikes.