The proposed new formula for calculating salaries and allowances.
The draft Circular guiding the implementation of the basic salary level for those receiving salaries and allowances in public agencies, organizations, and units of the Party, State, Vietnam Fatherland Front, political -social organizations, and associations stipulates 9 groups of subjects to whom the policy applies.
Draft circular providing detailed guidance on the draft Decree stipulating the basic salary and bonus regime for officials, civil servants, public employees and armed forces personnel (the draft Decree stipulates the basic salary applicable from July 1st is 2,530,000 VND/month, an increase of 190,000 VND compared to the current level).
The above base salary serves as the basis for calculating salaries in salary scales, allowances, and other benefits as prescribed by law. It is also used to calculate operating expenses, living expenses as prescribed, and deductions and benefits based on the base salary.
The draft circular outlines four formulas for calculating salaries, allowances, and other benefits.
Specifically, the formula for calculating salary is:
| Salary levels effective from July 1, 2026 | = | The basic salary is 2,530,000 VND/month. | x | Current salary coefficient |
Formula for calculating allowances based on the base salary:
| The allowance rates will be implemented from July 1, 2026. | = | The basic salary is 2,530,000 VND/month. | x | Current allowance coefficient |
The formula for calculating allowances based on a percentage of the current salary plus leadership position allowance and seniority allowance exceeding the standard rate (if any) is as follows:
| The allowance rates will be implemented from July 1, 2026. | = | Salary levels effective from July 1, 2026 | + | The level of leadership allowance to be implemented from July 1, 2026 (if any) | + | The seniority allowance exceeding the standard rate will be implemented from July 1, 2026 (if any). | x | Percentage of allowances received as per regulations. |
Allowances that are stipulated as specific monetary amounts will remain unchanged according to current regulations.
Formula for calculating the amount of money for the retained differential coefficient (if any):
| The amount of the retained differential coefficient will be implemented from July 1, 2026. | = | The basic salary is 2,530,000 VND/month. | x | Current retained differential coefficient (if any) |
Based on the activity fee coefficient for People's Council representatives at all levels as stipulated by current law, the activity fee is calculated using the following formula:
| The operating fee will be implemented from July 1, 2026. | = | The basic salary is 2,530,000 VND/month. | x | Operating expense ratio as per regulations |
New formula for calculating pensions and benefits.
According to the latest draft Decree on adjusting pensions, social insurance benefits, and monthly allowances, the Ministry of Interior proposes that from July 1st, pensions, social insurance benefits, and monthly allowances will be increased by 8% on the June 2026 levels for all beneficiaries.
Those receiving pensions, social insurance benefits, or monthly allowances that are less than 3,800,000 VND/month after the 8% increase will be divided into two cases.
Firstly, an increase of 300,000 VND/person/month will be applied to those whose benefit level is equal to or lower than 3,500,000 VND/person/month.
Secondly, the allowance will be increased to VND 3,800,000 per person per month for those receiving between VND 3,500,000 per person per month and less than VND 3,800,000 per person per month.
According to this draft decree, pensions, social insurance benefits, and monthly allowances from July onwards will be calculated as follows:
| Pension rates, social insurance benefits, and monthly allowances from July 2027. | = | Pension levels, social insurance benefits, and monthly allowances as of June 2027. | x | 1.08 |
For individuals whose pension, social insurance benefits, or monthly allowances, after adjustment, are equal to or lower than VND 3,500,000/month, they will receive an additional increase of VND 300,000/month.
| Pension rates, social insurance benefits, and monthly allowances from July 2027. | = | Pension amounts, social insurance benefits, and monthly allowances after adjustment according to this circular. | + | 300,000 VND/month |
For individuals whose pension, social insurance benefits, or monthly allowances, after adjustment, are higher than 3,500,000 VND/month but lower than 3,800,000 VND/month, they will be adjusted upwards to 3,800,000 VND/month.
| Pension rates, social insurance benefits, and monthly allowances from July 2027. | = | 3,800,000 VND/month |
With the proposed 8% increase in pensions and benefits for all beneficiaries, the drafting agency estimates that the additional cost compared to 2025 will be 10,773 billion VND, of which the additional cost from the state budget is estimated at 2,013 billion VND; and the additional cost from the Social Insurance Fund is estimated at 8,760 billion VND.
English
Source: https://baohatinh.vn/cong-thuc-tinh-luong-co-so-luong-huu-moi-du-kien-tu-17-post310016.html
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