1. New Regulations on Base Salary and Bonus Mechanism from July 1, 2026

 - Base salary increased to VND 2,530,000/month: The Government officially adopts a new base salary level replacing the previous one, which serves as the key basis for calculating salaries, allowances, subsistence allowances, and related contribution/deduction regimes. 

(Legal basis: Article 3.1 and 3.2 of Decree No. 161/2026/ND-CP).

- Preservation of income differentials: For agencies and units currently applying special financial or income mechanisms, if the salary and additional income under the new regulations (effective from July 1, 2026) are lower than the current level (as of June 2026), civil servants and public employees shall have this differential preserved to ensure their income entitlements do not decrease. 

(Legal basis: Article 3.3 of Decree No. 161/2026/ND-CP).

- Supplementary bonus mechanism at 10% of total payroll fund: In addition to the general reward fund, agencies shall establish an annual bonus fund equal to 10% of the total payroll fund (excluding allowances) for ad-hoc or periodic bonuses based on performance and work efficiency assessments. 

(Legal basis: Article 4.1 and 4.4 of Decree No. 161/2026/ND-CP).

2. Subjects Covered by the Decree

Pursuant to Article 2.1(a), (b), (c), (d) of Decree No. 161/2026/ND-CP:

"Salary and allowance recipients subject to the base salary level stipulated in Article 1 of this Decree include:

a) Cadres and civil servants from central to commune levels as prescribed in Article 1 of the Law on Cadres and Civil Servants;

b) Public employees in public service units as prescribed in Article 1 of the Law on Public Employees;

c) Persons performing work under labor contract regimes in administrative agencies and public service units...;

d) Persons working within staffing quotas in associations receiving state budget support for operational expenses..."

- Decree No. 161/2026/ND-CP broadly covers cadres and civil servants from central to commune levels; public employees in public service units; persons working under labor contract regimes in administrative agencies and public service units; as well as persons working within staffing quotas in associations receiving state budget support.

- The Decree also comprehensively applies to the armed forces, including officers, professional military personnel, non-commissioned officers, soldiers, workers, public employees, and laborers belonging to the People's Army of Vietnam, the People's Public Security, and cryptographic organizations, along with part-time workers at the commune, village, and residential group levels. However, part-time workers (who receive only allowances and subsistence allowances, not salaries) are not covered by the bonus regime.

"1. ...dd) Officers, professional military personnel, defense workers, defense public employees, defense civil servants, and contracted laborers under the People's Army of Vietnam;

e) Officers, salaried non-commissioned officers, police workers, and contracted laborers under the People's Public Security;

g) Persons working in cryptographic organizations;

h) Non-commissioned officers and soldiers under the People's Army of Vietnam; non-commissioned officers and conscripted soldiers under the People's Public Security;

i) Part-time workers in villages and residential groups.

2. Salary recipients stipulated in points a, b, c, d, dd, e, and g of Clause 1 of this Article (excluding those receiving only allowances and subsistence allowances) shall be subject to the bonus regime."

3. Concluding remarks

 Decree No. 161/2026/ND-CP has officially established a new base salary level of VND 2,530,000/month effective from July 1, 2026, marking a significant step forward in improving income for cadres, civil servants, public employees, and the armed forces. Beyond adjusting the basis for salary calculations and related contributions, this regulation is also groundbreaking in adding an independent bonus fund equivalent to 10% of the basic payroll fund to incentivize work performance. Furthermore, the document ensures a seamless and reassuring transition for employees through the mechanism preserving income differentials for units applying special financial or income mechanisms, thereby safeguarding the living standards of public sector personnel. Enterprises and organizations utilizing contracts or services referenced to the base salary should immediately update their payroll calculations to accurately reflect this new policy