Officially increase basic salary from July 1, 2024

The National Assembly also agreed to increase the current pension and social insurance benefits by 15%. Those who were receiving pensions before 1995, if after adjustment their monthly benefit is less than 3.2 million VND, will have their monthly benefit adjusted to increase by 300,000 VND; those who received from 3.2 to less than 3.5 million VND per month will have their monthly benefit adjusted to 3.5 million VND.

In addition, the preferential allowance for meritorious people at the standard level also increased by 35.7% from 2.055 million to 2.789 million VND/month. This level maintains the current correlation of preferential allowances for meritorious people compared to the standard allowance level. The social assistance standard increased by 38.9%, from 360,000 to 500,000 VND/month; the regional minimum wage increased by an average of 6%, effective from July 1.

For units that are applying special financial and income mechanisms at the Central level, the National Assembly proposed to continue reviewing the entire legal framework to have a basis for submitting to competent authorities to decide to amend or abolish the special financial and income mechanisms of agencies accordingly before December 31, 2024. The difference between the salary and additional income in June 2024 of cadres, civil servants and public employees and the salary from July 1 after amending or abolishing the special financial and income mechanisms will be reserved.

The National Assembly assigned the National Assembly Standing Committee to consider regulations on salaries and policies for full-time National Assembly deputies, full-time People's Council deputies, cadres, civil servants, public employees, and other workers of the National Assembly Office.

Because the conditions for implementing 9 new allowances as in the resolution on salary reform are not met, the National Assembly agreed to keep the current allowances such as allowances for leadership positions, concurrent positions, seniority beyond the framework, and professional responsibilities.

From July 1, civil servants and public employees' salaries are still calculated based on the basic salary multiplied by the current coefficient depending on each different group. Allowances are calculated based on the base of 2.34 million VND multiplied by the coefficient. In addition, allowances calculated as a percentage of current salary plus position allowance, seniority exceeding the framework (if any) are calculated by multiplying the total basic salary plus that allowance by the percentage enjoyed.

According to the Ministry of Finance's calculations, the budget for adjusting the basic salary by 30%, the bonus of 10% of the basic salary fund, adjusting the pension and cumulative allowance for the 3 years 2024-2026 must increase by 913,300 billion VND. By the end of 2023, the whole country will have set aside 680,000 billion VND for salary reform.