What will be the salaries of civil servants and public employees when the basic salary is no longer applied?

One of the issues that many people are concerned about is when using the reference salary instead of the basic salary (2.34 million VND/month), how is the income of civil servants and public employees calculated? Question: Mr. Dinh Viet Thanh (a civil servant working in a state agency) wondered, in the near future the basic salary of 2.34 million VND/month applied to civil servants, public employees and armed forces will be abolished, replaced by the reference salary. So what is the reference salary when applied, is there any change in the payment and enjoyment of social insurance (SI)? Answer: According to the provisions of the Social Insurance Law 2024 effective from July 1, the reference level is the amount of money decided by the Government to calculate the payment and enjoyment of some SI regimes. The reference level is not fixed but is adjusted based on the increase in the consumer price index, economic growth, the capacity of the state budget and the SI fund. The 2024 Social Insurance Law also clearly stipulates that if the basic salary has not been abolished, the reference level is equal to the basic salary. When the basic salary is abolished, the reference level is not lower than that basic salary. Therefore, if the basic salary is abolished, the lowest reference salary will be equal to the basic salary of 2.34 million VND/month. An expert in the field of labor and wages added that keeping or increasing the reference salary will affect the social insurance contribution level. The salary used as the basis for social insurance contribution for employees from 1-7 to the lowest is equal to the reference level and the highest is 20 times the reference level, that is, from 2.34 million VND, the highest is 46.8 million VND.

Báo Tiền Giang•29/03/2025

Pension payments are also adjusted according to the reference rate. Photo: VNN

Workers who are Vietnamese citizens and participated in compulsory social insurance before July 1, 2025, and have contributed to social insurance for 20 years, will receive a minimum monthly pension equal to the reference rate.

For employees who paid mandatory social insurance contributions based on the salary system regulated by the State before January 1, 2016, this salary will be adjusted according to the reference level at the time of receiving retirement benefits.

Besides salary, a number of other employee benefits also change when the benchmark salary changes. These include a benefit of 30% of the benchmark salary for one day of rest and recovery after illness or maternity leave; and a one-time allowance for each child equal to twice the benchmark salary in the month the female employee gives birth, adopts a child through surrogacy, or adopts a child.

Funeral allowance for dependents of employees participating in compulsory social insurance is 10 times the reference rate in the month the person passed away…

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