Today : Dec 21, 2025
Economy
21 December 2025

Vietnam Weighs Major Pay Hike For Public Officials

New salary and allowance reforms for civil servants aim to address workload increases following government mergers, with a phased approach planned for 2026.

On December 20, 2025, Vietnam’s Ministry of Home Affairs issued a formal response to mounting concerns from voters in Hung Yen province regarding the evolving landscape of salary and allowance policies for officials, civil servants, and public employees in the wake of widespread organizational mergers. The move comes at a pivotal time, as the country continues to reshape its administrative apparatus, intensifying both the workload and the complexity of job requirements for thousands of public sector workers.

According to the Ministry’s official correspondence, which was relayed through the Office of the National Assembly’s Committee for People’s Aspirations and Supervision, the government is actively considering the issuance of new salary and allowance policies. These policies are intended to reflect the increased responsibilities and demands placed upon officials, civil servants, and employees as a direct result of recent structural changes. Voters in Hung Yen, echoing a sentiment shared by many across the country, have called for fairer remuneration and more appropriate allowance regimes to match their growing duties.

“The Ministry of Home Affairs is studying and proposing new salary policies and adjustments to some allowance regimes for officials, civil servants, armed forces, and employees after the reorganization of the two-level local government and apparatus,” the Ministry stated in its written response. This initiative is not occurring in isolation; instead, it is part of a broader set of reforms mandated by a series of high-level directives from the Central Party. Specifically, the Ministry is acting under the guidance of Resolution No. 174-KL/TW dated July 4, 2025, Resolution No. 186-KL/TW dated August 29, 2025, and Resolution No. 206-KL/TW dated November 10, 2025. These resolutions collectively chart a path for modernizing Vietnam’s administrative framework and ensuring that compensation keeps pace with both economic realities and the evolving demands of public service.

One of the most pressing issues highlighted by both voters and government officials is the need for a clear roadmap and phased policy implementation. The Ministry has emphasized that any new policies will be rolled out in stages, carefully tailored to the practical conditions of each period. This measured approach, officials argue, is essential for maintaining fiscal discipline while ensuring that public sector workers are not left behind as the country’s administrative machinery adapts to new realities.

“A roadmap and suitable policies are planned for each subsequent stage according to practical conditions,” the Ministry explained. This commitment to phased reform is designed not only to address immediate concerns but also to lay the groundwork for sustainable, long-term improvements in the compensation and welfare of Vietnam’s vast public sector workforce.

In the short term, the Ministry of Home Affairs is working closely with the Ministry of Finance and other relevant agencies to prepare reports for submission to higher authorities. The central aim is to secure approval for an increase in the base salary for public sector employees in 2026. This proposed adjustment, officials stress, is being calibrated to ensure that it aligns with key economic indicators—most notably, the consumer price index and the country’s overall economic growth rate—while also taking into account the capacity of the state budget.

“The Ministry is coordinating with the Ministry of Finance and related agencies to continue reporting to competent authorities to consider increasing the base salary in 2026 to ensure appropriateness with consumer price index, economic growth, and state budget capacity,” the Ministry said in its official response. This collaborative approach is seen as critical for balancing the legitimate needs of public servants with the broader fiscal health of the nation.

The backdrop to these developments is a sweeping reorganization of Vietnam’s local government structures, which has seen the consolidation of administrative units and a streamlining of bureaucratic processes. While these reforms are intended to boost efficiency and improve the delivery of public services, they have also had the unintended consequence of increasing the workload for many officials and employees. As a result, calls for fairer compensation and better support have grown louder, with public sector workers arguing that their pay and allowances must accurately reflect the new realities on the ground.

For many, the stakes are high. The livelihoods of thousands of families depend on the outcome of these policy deliberations, and the government’s handling of the issue is being closely watched not only by affected workers but also by the broader public. The challenge, as officials readily admit, is to strike a balance between fiscal prudence and social justice—a task made all the more complex by the country’s rapidly changing economic and administrative landscape.

Observers note that the Ministry’s latest response marks a significant step forward in acknowledging the legitimate concerns of public sector workers and signaling a willingness to engage in meaningful reform. However, the path ahead is fraught with challenges. Securing the necessary budgetary allocations, designing policies that are both fair and sustainable, and ensuring effective implementation across a diverse and sprawling administrative apparatus will require careful planning and unwavering political will.

At the same time, the Ministry’s commitment to ongoing research and policy development offers some reassurance that the government is not treating the issue as a one-off exercise. Instead, officials say, the goal is to establish a dynamic and responsive framework that can adapt to future changes and continue to meet the needs of both workers and the state.

“This work is conducted under the tasks assigned by the Central Party’s resolutions,” the Ministry reiterated, underscoring the political significance of the reforms. By rooting its actions in the directives of the Party’s highest bodies, the Ministry is signaling both its accountability and its determination to see the process through to completion.

As the debate over salary and allowance policies continues to unfold, public sector workers across Vietnam are watching closely, hoping that the coming year will bring concrete improvements to their daily lives. For now, the Ministry’s assurances and the ongoing policy review offer a measure of hope—but also a reminder that real change, as ever, will require patience, persistence, and a willingness to grapple with the complexities of reform.

The months ahead promise to be decisive, as the government weighs competing priorities and works to craft solutions that are both equitable and economically viable. For Vietnam’s officials, civil servants, and public employees, the outcome of these deliberations will shape not only their financial well-being but also the future of the country’s public administration itself.