Vietnam officially increases base salary, pensions, and adjusts numerous allowances

Vietnam has officially implemented a series of significant policy changes concerning salaries, pensions, and allowances, effective July 1. These adjustments are set to impact millions of civil servants, public employees, laborers, and social security recipients across the country.

The base salary for civil servants, public employees, and members of the armed forces has been officially raised to 2.53 million VND per month. This new base salary serves as the foundation for calculating wages, various allowances, and other benefits as stipulated by current regulations. For central agencies operating under special financial and income mechanisms, the government has stipulated that they will continue to reserve the difference between their June income and the new base salary, or abolish the special mechanism altogether.

In addition to salary adjustments, pensions and social security benefits have been increased by 8% compared to June levels. This adjustment will benefit approximately 3.4 million individuals. The government is also continuing its policy of providing supplementary support for retirees who had low benefit levels before January 1, 1995. Those receiving benefits of 3.5 million VND per month or less will receive an additional 300,000 VND per month. Individuals whose benefits are between 3.5 million and 3.8 million VND per month will have their benefits adjusted to reach 3.8 million VND.

Furthermore, allowances for elderly and retired officials in communes, wards, and townships have also been increased by 8% from their June levels, according to Circular 12/2026. Similar to pension adjustments, those receiving less than 3.5 million VND per month will get an additional 300,000 VND, while those receiving between 3.5 million and 3.8 million VND will be adjusted up to 3.8 million VND. These measures aim to narrow the gap in benefit levels between long-term retirees and those who retired more recently, ensuring a more equitable system.