In a directive issued on 12/6 regarding the 2027 economic development plan and state budget estimates, the Prime Minister emphasized dedicating resources to adjust public sector salaries, pensions, preferential policies for those who rendered meritorious service, and social protection. This involves restructuring state budget expenditures to decrease recurrent spending and increase development investment, prioritizing resources for breakthrough objectives, important political tasks, national target programs, social security, and national defense.

To achieve these adjustments, agencies must implement thorough savings in the coming year, cutting unnecessary expenditures, especially those for conferences, workshops, and overseas assignments. Concurrently, the state budget will gradually reduce direct support for public service units with substantial revenue. Public service units that meet certain conditions and specific businesses will be commissioned to provide essential public services, while competitive public services will be subject to open bidding.

Public servants working at the one-stop shop, Da Nang City Administrative Center, 3/2025. Nguyen Dong

Furthermore, for new policies, regulations, programs, tasks, schemes, and projects currently being submitted to competent authorities, strict principles must be adhered to. These should only be issued after reviewing their necessity and effectiveness, ensuring no duplication, having a clear roadmap, anticipating results, and remaining within the budget resources that have been balanced and approved by financial agencies.

This directive comes amidst ongoing salary reform efforts. Central Committee Resolution 27/2018 initially aimed to implement a new salary regime starting in 2021, but this timeline required adjustment due to the impact of the Covid-19 pandemic. The National Assembly subsequently decided to pay salaries based on job positions from 1/7/2024. However, implementation challenges have prevented the complete abolition of the base salary and salary coefficients.

Consequently, public sector officials, civil servants, and public employees currently continue to receive salaries based on the base salary. This base salary serves as the foundation for calculating the remuneration of officials, civil servants, public employees, and armed forces personnel, using the formula: salary = base salary x salary coefficient. It also forms the basis for determining numerous allowances in the public sector, such as position allowances, regional allowances, seniority allowances, and other policy benefits.

The Government adjusted the base salary from 1,8 million Vietnamese dong to 2,34 million Vietnamese dong per month starting 1/7/2024. From 1/7/2026, this amount will further increase to 2,53 million Vietnamese dong per month, leading to corresponding adjustments in pensions and allowances.

Vu Tuan