Ministry of Home Affairs Reports on Wage Reform Roadmap
The Ministry of Home Affairs has submitted a report to the government outlining the roadmap for wage reform

The Ministry of Home Affairs in Vietnam will lead efforts to report to relevant authorities regarding adjustments to public sector salaries. This move is intended to ensure that salary levels are consistent with the consumer price index, economic growth rates, and the capabilities of the national budget.
In response to inquiries from constituents in Ho Chi Minh City, the Ministry addressed concerns related to public sector salary policies, benefits for non-professional staff at the local level, and wages for employees in the business sector. The adjustments aim to ensure that public sector salaries are in line with the cost of living.
The Ministry referenced Conclusion No. 76-KL/TW from the third conference of the 14th Central Committee of the Communist Party, which emphasized the importance of salary reform linked to streamlining government operations and enhancing the overall political system. The committee concluded that there should be preferential policies regarding salaries, allowances, housing, working conditions, and appropriate compensation to retain and motivate local officials.
Moving forward, the Ministry of Home Affairs will collaborate with relevant agencies to propose adjustments to public sector salaries, ensuring they match the consumer price index, economic growth, and the national budget's capabilities. This is aimed at improving income levels and encouraging public officials to fulfill their duties effectively.
Regarding special policies for non-professional staff at the grassroots level, the Ministry has submitted a proposal to the government for Decree No. 185/2026, which includes increased allowances from the state budget for non-professional staff in villages and neighborhoods. This aims to enhance their working conditions and ensure they are motivated to meet new challenges.
The current salary system for workers in Vietnam is structured based on market principles as outlined in the Labor Code of 2019. Salaries are formed through agreements between employers and employees, linked to productivity and job quality. The government ensures that businesses have the autonomy to establish salary scales, with no maximum limit for skilled professionals, thereby attracting high-quality talent.
The minimum wage is adjusted based on the minimum living standards of workers and their families, as well as market wage levels, consumer price indices, and economic growth rates. The government decides and announces the minimum wage based on recommendations from the National Wage Council.
The Ministry, as a member of this council, collaborates with other members to assess factors related to minimum wage adjustments to ensure they align with the living standards of workers and their families, considering market price fluctuations. The National Wage Council has submitted a report to the government recommending a minimum wage increase of an average of 7.8% for 2027.
Currently, the Ministry is drafting a government decree that will stipulate the minimum wage applicable to workers under labor contracts. This year has seen several new salary policies come into effect, impacting various groups, from business sector employees to public officials.