VI From July 1, 2026, several new regulations on salaries, pensions, and social insurance allowances officially take effect, directly affecting the rights and benefits of employees, employers, and millions of social security beneficiaries. These changes not only improve Vietnam’s salary and social insurance policies but also aim to enhance people’s livelihoods while aligning with the country’s current socio-economic development. Join Pham Consult in exploring the key highlights to ensure compliance with the latest legal requirements.
1. New Regulations on Salaries and Pensions Effective from July 1, 2026
Effective July 1, 2026, a number of new salary and social security policies will be implemented. The two most notable changes are:
- Increase in the statutory base salary to VND 2.53 million per month.
- 8% increase in pensions and social insurance (SI) allowances.
2. Statutory Base Salary Increased to VND 2.53 Million per Month
Pursuant to Article 3 of Decree No. 161/2026/ND-CP, the statutory base salary will increase from VND 2,340,000/month to VND 2,530,000/month effective July 1, 2026.
The statutory base salary serves as the basis for calculating salary scales, allowances, operational allowances, living allowances, and various statutory contributions and benefits as prescribed by law.
For agencies and organizations currently applying special financial and income mechanisms, Decree No. 161/2026/ND-CP also provides for the retention or adjustment of salary and additional income differences to ensure the legitimate rights of public officials and employees during the transition to the new base salary.
The following groups are entitled to salaries and allowances based on the new statutory base salary of VND 2.53 million/month:
a) Cadres and civil servants from the central level to the commune level as prescribed in Article 1 of the Law on Cadres and Civil Servants 2025;
b) Public employees working in public non-business units under Article 1 of the Law on Public Employees 2025;
c) Employees working under labor contracts in administrative agencies and public non-business units as prescribed by Government regulations, where the applicable salary regime or employment contract adopts the salary scale under Decree No. 204/2004/ND-CP;
d) Personnel working within approved staffing quotas of associations receiving state budget support under Decree No. 126/2024/ND-CP;
dd) Officers, professional soldiers, defense workers, defense public employees, defense civil servants, and contracted employees under the Vietnam People’s Army;
e) Officers, non-commissioned officers receiving salaries, police workers, and contracted employees under the People’s Public Security Force;
g) Personnel working in cryptographic organizations;
h) Non-commissioned officers and enlisted soldiers of the Vietnam People’s Army; non-commissioned officers and conscripted soldiers of the People’s Public Security Force;
i) Part-time personnel working in villages and residential groups.
Note: Individuals specified in Points a, b, c, d, dd, e, and g (excluding those receiving only allowances or living allowances) are also entitled to the statutory bonus regime.
3. 8% Increase in Pensions and Social Insurance Allowances
From July 1, 2026, pensions, social insurance allowances, and monthly benefits will be adjusted under Decree No. 162/2026/ND-CP.
Specifically, Article 2 of Decree No. 162/2026/ND-CP provides for an 8% increase in monthly pensions, social insurance allowances, and monthly benefits.
Beneficiaries eligible for the 8% increase include:
a) Cadres, civil servants, workers, public employees, and employees (including participants in voluntary social insurance and retirees previously covered by the Nghe An Farmers’ Social Insurance Fund transferred to the voluntary social insurance scheme under Decision No. 41/2009/QD-TTg); members of the armed forces, the People’s Public Security Force, and cryptographic personnel currently receiving monthly pensions;
b) Commune, ward, and township officials currently receiving monthly pensions or allowances under the relevant regulations, including Decree No. 33/2023/ND-CP, Decree No. 34/2019/ND-CP, Decree No. 92/2009/ND-CP, Decree No. 121/2003/ND-CP, and Decree No. 09/1998/ND-CP;
c) Individuals receiving monthly loss-of-working-capacity allowances under applicable regulations, beneficiaries under Decision No. 91/2000/QD-TTg, Decision No. 613/QD-TTg, and rubber workers receiving monthly allowances under Decision No. 206-CP (1979);
d) Commune, ward, and township officials receiving monthly allowances under Decision No. 130-CP (1975) and Decision No. 111-HDBT (1981);
dd) Military personnel receiving monthly allowances under Decision No. 142/2008/QD-TTg, as amended by Decision No. 38/2010/QD-TTg and Decision No. 22/2025/QD-TTg;
e) People’s Public Security personnel receiving monthly allowances under Decision No. 53/2010/QD-TTg;
g) Military personnel, People’s Public Security personnel, and cryptographic personnel receiving monthly allowances under Decision No. 62/2011/QD-TTg, as amended by Decision No. 22/2025/QD-TTg;
h) Individuals receiving monthly occupational accident or occupational disease allowances;
i) Individuals receiving monthly allowances under Article 23 of the Law on Social Insurance 2024.
Accordingly, the 8% increase applies uniformly to all beneficiaries covered by Decree No. 162/2026/ND-CP.
Additional Adjustment for Certain Pensioners Retired Before January 1, 1995
In addition to the 8% increase, Decree No. 162/2026/ND-CP introduces further adjustments for certain individuals who retired or began receiving monthly social insurance benefits before January 1, 1995.
Specifically, pursuant to Clause 2, Article 2 of Circular No. 14/2026/TT-BNV, after applying the 8% increase, if the monthly benefit remains below VND 3,800,000, additional adjustments will apply as follows:
- Individuals receiving VND 3,500,000/month or less will receive an additional VND 300,000/month.
- Individuals receiving more than VND 3,500,000/month but less than VND 3,800,000/month will have their monthly benefit increased to VND 3,800,000/month.
This policy aims to provide additional support to retirees and beneficiaries who began receiving pensions or monthly social insurance benefits before 1995 and whose current benefits remain relatively low.
The adjusted pension, social insurance allowance, and monthly benefit after these increases will serve as the basis for calculating future pension and allowance adjustments.
