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The principles for calculating salaries remain as currently prescribed; however, the Ministry of Home Affairs proposes updating the base salary used to compute salaries and allowances. The new base salary is expected to be 2,530,000 VND per month, an increase of about 8% from the previous level. The new base salary would apply from July 1, 2026, to calculate salaries, allowances, and many other regimes for civil servants, public employees, the armed forces, and related beneficiaries. Under the draft Circular, the calculation formulas are as follows: Realizable salary from July 1, 2026 = base salary 2,530,000 VND/month x current pay coefficient. For allowances calculated based on the base salary: the allowance amount from July 1, 2026 = base salary 2,530,000 VND/month x current allowance coefficient. For allowances calculated as a percentage of the current salary including leadership allowances and any seniority allowances beyond the cap (if any): Realizable allowance from July 1, 2026 = (Realizable salary from July 1, 2026) + (leadership allowance from July 1, 2026, if any) + (seniority beyond-cap allowance from July 1, 2026, if any) x the percentage rate of the allowance as prescribed. For allowances defined in fixed monetary terms, the amount remains unchanged under current regulations. The formula for the amount associated with the preserved differential coefficient (if any): Realizable amount = base salary 2,530,000 x current preserved differential coefficient. For members of People’s Councils at all levels, the draft specifies that the activity allowance should be calculated based on the activity coefficient for council members as defined by law: Activity allowance from July 1, 2026 = base salary 2,530,000 x activity allowance coefficient. For non-professional, non-executive community workers in hamlets or neighborhoods with government-budgeted allowances, the allowance is set at 2,530,000 per month, with specifics governed by Decree 33/2023/ND-CP. The draft also lists eligible subjects for applying these circulars to determine salary contributions, social insurance benefits, and related salary regimes under the law. The base salary is expected to rise to 2.53 million VND per month from July 1, 2026.
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