The Ministry of Home Affairs has just proposed a draft Decree stipulating the base salary and bonus regime for cadres, civil servants, public employees, and armed forces.
The draft Decree is currently in the process of collecting comments, stipulating the base salary applied from July 1, 2026 is 2.53 million VND/month, an increase of 19,000 VND compared to the current level.
Notably, the Ministry of Home Affairs has amended the regulations on implementation funds to be consistent with the provisions of the 2025 State Budget Law and the 2026 state budget estimate.
Funding sources of Ministries and central agencies
Use 10% of recurrent expenditure savings (excluding salaries, salary allowances, salary-related items and personnel expenditures under the regime) of the 2026 estimate to increase compared to the 2025 estimate assigned by competent authorities;
Use at least 40% of the revenue left under the 2026 regime after deducting costs directly related to service provision and fee collection activities. Specifically, for revenue from the provision of medical examination and treatment services, preventive medicine and other medical services of public health facilities, use at least 35% after deducting costs directly related to service provision and fee collection activities;
Use resources for salary reform in 2025 that have not been fully used to transfer (if any).
Funding sources of provinces and centrally-run cities
Use 70% of the local budget revenue increase in 2025 compared to the estimate assigned by the Prime Minister (excluding land use fees; lottery; equitization and divestment of state-owned enterprises managed by localities and items excluded according to Resolutions of the National Assembly, Decisions of the Prime Minister);
Use 50% of the local budget revenue increase estimated for 2026, 2025, 2024 compared to the previous year's estimate assigned by the Prime Minister (excluding land use fees; lottery; equitization and divestment of state-owned enterprises managed by localities and expenses excluded according to the National Assembly's Resolution, Prime Minister's Decision);
Use 10% of recurrent expenditure savings (excluding salaries, allowances, salary contributions, salary-related items and personnel expenses under the regime) of the 2026 estimate assigned by competent authorities.
Use the surplus funds for salary reform by the end of 2025 to transfer to;
Using local budget funds to save on supporting regular activities (salary payments, operating expenses according to the provisions of law) due to streamlining staff, arranging the organizational structure to implement the 2-level local government model;
Use at least 40% of the revenue left under the 2026 regime after deducting costs directly related to service provision and fee collection activities. Specifically, for revenue from the provision of medical examination and treatment services, preventive medicine and other medical services of public health facilities, use at least 35%.
The central budget supplements the remaining funding due to the adjustment of the base salary and the implementation of the bonus regime in 2026.
