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Implementation of New Salary Structure Scheduled for July 2024

Starting July 2023, Vietnam’s new salary regime, in line with Resolution No. 27-NQ/TW, will increase the base salaries of public officials by nearly 21%. This resolution, integral to the country’s comprehensive salary reform, was initially set for implementation in 2021 but got delayed due to the pandemic.

Adopted at the 12th Party Central Committee’s 7th plenum, the resolution aims to modernize the country’s wage policies, marking a substantial change in public sector governance and wage systems.

From July 1, 2023, the base salary for public servants, including military personnel, has been raised to VND1.8 million per month, a 20.8% hike. This base salary is fundamental to the salary calculation process in the state sector, using a coefficient-based system.

ILO Vietnam Director Chang-Hee Lee highlights that the reform of the outdated wage system is crucial for Vietnam’s socio-economic development. He views the new salary regime as a breakthrough in public sector wage systems and governance, overcoming previous limitations that impeded the nation’s progress.

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