The Vietnamese government is moving forward with significant reforms to its wage system, which will include the abolition of the current basic salary and salary coefficients. The Ministry of Home Affairs is leading the initiative to develop a new salary policy and social insurance framework, with a report expected to be submitted to the Government Party Committee by November 2026 and to the Political Bureau by February 2027.

The reform aims to create five new salary tables for the public sector, in line with the spirit of Resolution 27-NQ/TW. Currently, the basic salary stands at 2,530,000 VND per month, effective from July 1, 2026, as per Decree No. 161/2026/ND-CP. The new salary structure will eliminate the existing basic salary and salary coefficients, opting instead for a direct monetary amount in the new salary tables.

Furthermore, the reform will standardize labor contracts as per the Labor Code for individuals performing administrative and service tasks, ensuring that the public sector's salary aligns more closely with that of the private sector. The lowest salary for public employees will be set at a level that does not fall below the minimum wage for trained workers in the private sector.

In addition, the management of salaries and income will allow heads of agencies and organizations to utilize their salary funds to hire experts and pay competitive wages based on performance and task completion. The implementation of this reform aims to enhance the efficiency of public service and align salaries with the quality of work and productivity.

This comprehensive approach to wage reform is expected to improve the public sector's financial sustainability and ensure that salaries reflect the responsibilities and performance of employees, ultimately benefiting the overall economy.