More than two million public employees and armed forces personnel receive pay rise

Salary and social insurance policies remained closely aligned with socio-economic developments during the first half of 2026, according to the Ministry of Home Affairs. The regional minimum wage was increased by an average of 7.2% from January 1, 2026, while more than two million public officials, civil servants, public employees and members of the armed forces received a salary increase from July 1, 2026.

Officials at the Public Administrative Service Centre of Quang Uyen Commune, Cao Bang Province, perform their duties. (Photo: Thuy Anh)
Officials at the Public Administrative Service Centre of Quang Uyen Commune, Cao Bang Province, perform their duties. (Photo: Thuy Anh)

Key developments in salary and social insurance policies

The Ministry of Home Affairs said policies on wages, labour, social insurance, the protection of workers' and employers' rights, and the development of a universal social security system were implemented in a comprehensive and effective manner during the first six months of 2026.

Salary and social insurance policies were closely aligned with socio-economic developments. The ministry promptly advised on institutional reforms suited to current conditions and submitted a proposal to the Government, leading to the issuance of a decree introducing a new statutory base salary. As a result, more than two million public officials, civil servants, public employees and armed forces personnel received higher salaries from July 1, 2026. Meanwhile, the regional minimum wage was raised by an average of 7.2% from January 1, 2026.

From July 1, 2026, salaries for more than two million public officials, civil servants, public employees and members of the armed forces increased by 8% compared with the level applied on June 30, 2026.

The Ministry of Home Affairs' Department of Wages and Social Insurance has completed preparations for the phased implementation of public-sector pay reform and proposed detailed measures to improve the salary system and gradually raise incomes for public employees. It has also overseen the implementation of Resolution No. 27-NQ/TW, including the issuance of new regulations on salary policies, a revised statutory pay rate, and three circulars on salaries and allowances.

Based on these legal instruments, salaries for more than two million public officials, civil servants, public employees and members of the armed forces rose by 8% from July 1, 2026 compared with the previous level applied on June 30, 2026.

Dr Pham Truong Giang, Director of the Department of Wages and Social Insurance said the restructuring of the three-tier government system has required significant adjustments to public-sector pay policies. Government Decree No. 07/2026/ND-CP, issued in January 2026, promptly revised position-based allowances for public officials, while subsequent regulations, including Circular No. 15/2026/TT-BNV, updated regional allowance policies by applying the highest allowance rate to newly merged communes.

According to the latest statistics, more than 45% of communes and wards are eligible for regional allowances, while over 4.7% qualify for special allowances following the reorganisation of the two-tier local government system. Some localities have also introduced additional income support for public employees based on their socio-economic conditions.

Giang noted that before the administrative restructuring, the lowest monthly salary for a civil servant was 7.4 million VND. Following the increase in the statutory pay rate from July 1, 2026, this has risen to an average of around 9 million VND, although he acknowledged that the level remains modest. In some localities, such as Ha Noi, additional support allows civil servants' monthly income to reach around 24–25 million VND. Many provinces and cities also provide extra benefits, including transport and other allowances.

Regarding wages in the business sector, the Department said the enterprise wage policy framework has been designed to be more transparent, market-oriented and aligned with international integration, while promoting harmonious labour relations, higher productivity and improved workforce quality.

As part of the National Wage Council's plan, the department has continued labour and wage surveys in enterprises. From January 1, 2026, the minimum wage stipulated in Government Decree No. 293/2025/ND-CP was raised by an average of 7.2%, helping improve workers' incomes.

At the same time, the Department of Wages and Social Insurance has continued to advise on social insurance reforms aimed at strengthening social security, improving workers' livelihoods and building a more comprehensive and sustainable social protection system.

In the first six months of 2026, the number of social insurance participants was estimated at 21.7 million, up 14.48% year-on-year. Voluntary social insurance enrolment reached 2.65 million, an increase of 40.06%, while the number of pensioners and recipients of monthly social insurance benefits and allowances rose by 5.98% to 3.55 million.

The Ministry of Home Affairs has also continued to improve the legal framework governing the operation and management of the electronic labour contract platform, issuing one circular and four decisions to guide its implementation. The pilot platform has now completed its core functions, with its trial results serving as the basis for assessing its feasibility before nationwide deployment.

According to the Department, labour relations in the business sector remained broadly stable during the first half of 2026. Social dialogue and collective bargaining continued to expand, while the number of strikes maintained its downward trend.

Studying proposals on wage and social insurance reform

Giang said that in the second half of 2026, the Department of Wages and Social Insurance will focus its resources on completing key assigned tasks, with priority given to finalising proposals on wage and social insurance reform for submission to the fifth plenum of the 14th Party Central Committee.

The department will also continue drafting and submitting legal documents on schedule, including amendments to the Law on Social Insurance and its implementing regulations, as well as four government decrees, one prime ministerial decision and three ministerial circulars.

At the same time, it will review and improve legislation on labour, wages, industrial relations and social insurance, while accelerating digital transformation through the nationwide deployment of a unified electronic labour contract platform. The platform will support the receipt, management, storage and sharing of electronic employment contract data and will be connected to the national population database, the national social insurance database and other government information systems to better serve citizens, businesses and state management.

The department will also assess the implementation of workplace regulations, assist enterprises in developing and registering internal labour rules, and strengthen oversight of labour outsourcing services.

The department will step up communications on new policies covering labour, wages, social insurance and industrial relations in line with the 2019 Labour Code, the 2024 Law on Social Insurance, Resolution No. 27-NQ/TW on wage reform, Resolution No. 28-NQ/TW on social insurance reform, Directive No. 37-CT/TW on industrial relations in the new context, and regulations governing electronic labour contracts.

Giang also noted that the Government's Resolution No. 403/NQ-CP, issued on December 10, 2025, sets targets for expanding social insurance coverage through 2030. Progress made by localities will be reviewed later this year, and provincial Departments of Home Affairs have been urged to assess implementation during the remainder of 2026 and prepare for the 2030 targets.

He further called on local authorities to compile accurate data on salaries, allowances and additional income to support the development of the wage and social insurance reform proposal, while continuing to raise public awareness of new labour, wage and social insurance regulations that directly affect workers' rights.

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