The government is expected to increase the base salary by about 8% from July 1, 2026, raising the salary from 2.34 million VND to nearly 2.527 million VND/month.
This adjustment will lead to an increase in the income of cadres, civil servants, public employees (CBCCVC) and armed forces according to the current salary coefficient.
The base salary is the basis for calculating salaries of CBCCVC and armed forces according to the formula: salary = base salary x salary coefficient. This is also the basis for determining many allowances in the public sector such as position allowances, regional allowances, seniority allowances and other policy regimes.
The base salary is also the basis for determining the salary level as the basis for compulsory social insurance (SI) contributions of some groups. According to the current Law on SI, the salary as the basis for SI contributions is at least equal to the base salary and at most equal to 20 times this level.
If the base salary increases to 2.527 million VND from July 1st, the salary level used as the basis for social insurance contributions will be the lowest at 2.527 million VND per month and the highest at 50.54 million VND.
For CBCCVC, employees in the state sector and the armed forces, the salary used as a basis for social insurance contributions is the monthly salary according to position, title, rank, grade, military rank and allowances if any. Currently, employees in this group contribute 8% of their salary to the pension and survivorship fund and 1.5% of health insurance each month.
For registered business households, business managers, controllers, state capital representatives and workers going to work abroad under contracts, the salary level used as a basis for social insurance contributions is also determined to be the lowest equal to the base salary and the highest equal to 20 times this level.
Social insurance is organized and implemented by the state in 2 types: compulsory social insurance and voluntary social insurance. Depending on the type of social insurance, the registered participants will be different.
According to Article 2 of the 2024 Law on Social Insurance, Vietnamese citizens are subjects to compulsory social insurance, including:
- People working under indefinite-term labor contracts, fixed-term labor contracts with a term of 1 month or more, even in cases where the employee and employer agree by another name but the content shows pay employment, wages and management, administration, and supervision by one party;
- CBCCVC;
- National defense workers and civil servants, police workers, and other people working in cipher organizations;
- Officers, professional soldiers of the People's Army; officers, non-commissioned officers in professional duties, officers, non-commissioned officers in technical expertise of the People's Police; people working in cipher work receiving salaries as for soldiers;
- Non-commissioned officers, soldiers of the People's Army; non-commissioned officers, soldiers on duty of the People's Police; military, police, and cipher students who are studying are entitled to living expenses;
- Standing militia;
- Workers going to work abroad under contracts specified in the Law on Vietnamese Workers going to work abroad under contracts, except for cases where international treaties to which the Socialist Republic of Vietnam is a member have other provisions;
- Wives or husbands who do not receive salaries from the state budget and are assigned to work for a term with members of the representative agency of the Socialist Republic of Vietnam abroad are entitled to living expenses.
