Vietnam Ministry of Home Affairs Details New Salary and Allowance Calculations Effective July 1

Vietnam's Ministry of Home Affairs has issued a detailed circular outlining new methods for calculating salaries and allowances, set to take effect on July 1. This directive replaces Circular 07/2024 and provides clear formulas for salary, allowances, and preservation coefficients.

The new regulations apply to a broad range of public sector workers. This includes civil servants paid from the state budget, employees of public service units, and individuals working within organizations assigned tasks by the Party and State. It also covers non-professional staff in villages and residential groups, provincial People's Council delegates receiving activity fees, and personnel in crucial security organizations.

Furthermore, the circular addresses individuals employed under labor contracts in administrative agencies and public service units who are eligible for salary adjustments according to Decree 204/2004. It also clarifies how to calculate social insurance contributions and other salary-related benefits for those undergoing training, on leave, or in trial periods.

Starting July 1, salaries will be calculated by multiplying the current salary coefficient by the new base salary of 2.53 million VND per month. Allowances calculated based on the base salary will follow the same multiplication principle. For allowances calculated as a percentage of the current salary plus leadership and seniority bonuses, the total will be multiplied by the specified percentage. Allowances set at fixed amounts will remain unchanged. The circular also details how to calculate activity fees for People's Council delegates and the subsidy fund for non-professional village staff, both based on the new base salary.