A new salary policy for the public sector will be applied from July 1, 2024, according to a report from the Government News.

The policy is part of a larger plan for comprehensive salary reform being drafted by the government in accordance with Resolution No. 27-NQ/TW on reforming the country’s wage policies, adopted at the 7th plenum of the 12th Party Central Committee.

The new salary system was to be implemented in 2021 but was postponed due to Covid-19.

ILO Vietnam Director Chang-Hee Lee was quoted by the Government News as saying that the public sector component of the Resolution represents a major breakthrough not only in the public sector wage system but also in public sector governance.

An outdated wage system in the public sector has been a major bottleneck for social and economic development in the country, he noted.

From July 1, 2023, the monthly base salary for cadres, public servants, and armed forces personnel increased 20.8 per cent to VND1.8 million ($73.7) from VND1.49 million ($60.9).

The base salary is the foundation for calculating the salaries of employees in the State sector, by multiplying it with a corresponding coefficient. For example, a new graduate entering the State sector will get a salary of Level 1 with a coefficient of 2.34, equivalent to a monthly wage of VND3.48 million ($142.33).