The ministry is seeking feedback on a draft decree regulating the base salary and bonus regime for officials, civil servants, public employees, and the armed forces.

It proposes raising the base salary from the current VND2.34 million per month to VND2.53 million per month, equivalent to an increase of about 8 percent, expected to take effect from July 1, 2026.

According to the ministry, the current base salary is only about 56.12 percent of the average regional minimum wage of the enterprise sector. This leaves incomes of public officials, civil servants, and armed forces personnel relatively low, affecting their living standards and work quality.

The salary increase is necessary to improve incomes, create work motivation, enhance performance, and contribute to strengthening public service ethics and the effectiveness of the political system.

More concern than relief

Le Van Son, a public employee in Hanoi, said that with his current income of about VND15 million per month, the adjustment could increase his monthly earnings by more than VND1 million.

“It sounds like good news, but honestly I don’t know whether to feel happy or worried,” he said.

The reason, according to Son, is that living costs have started to rise even before the policy takes effect. In recent weeks, rising fuel prices have pushed up many other expenses, from breakfast, with a bowl of pho up by VND5,000–10,000, to vegetables, food, and transportation.

“Added together, the extra spending may even exceed the wage increase,” he noted.

Le Thi Nga, an employee at a hospital in Hanoi, said the 8 percent wage increase would give her nearly VND1 million more per month, but it would be hard to keep up with rising expenses.

“When fuel prices go up, everything else follows, from food to transportation and daily expenses. I feel like the wage increase is being eroded by prices before it even reaches me,” she said.

Adjusting pensions and allowances is necessary to improve living standards, especially for low-income and disadvantaged groups. However, in reality, the issue is not just the size of the increase but also the ability to control prices and shorten policy lag. If prices continue to “move ahead,” the effectiveness of income increases will fall short of expectations.

How to prevent wage gains from being eroded?

Experts say that for wage increases to be effective, they must be accompanied by stronger market control measures.

First is to strengthen the monitoring of price declarations and postings, especially in sensitive fields such as transportation, food, and essential services. Those who take advantage of input cost fluctuations to raise prices unreasonably must be strictly handled.

Along with that is the need to improve price regulation tools, especially for essential goods. In the context of a volatile market, using stabilization funds and adjusting taxes and fees can help “cool down” prices.

Another issue is whether the salary increase is enough to compensate for living costs.

Associate Prof Dr Nguyen Thuong Lang, an economist, argued that if wages are adjusted according to the inflation rate, it will help preserve real income. However, market developments are often more complex than the set targets.

“Inflation is a policy target, but actual prices often increase faster. If income increases slower than prices, people's purchasing power still declines,” he said.

When the prices of essential items such as fuel and food increase, monthly spending will rise significantly. If the salary increase does not keep up, laborers essentially become “poorer.”

Furthermore, experts emphasize that the wage increase must be associated with the macroeconomic management, especially inflation control.

To ensure people truly benefit from salary increases, it is first necessary to maintain macroeconomic stability and control inflation at a reasonable level. This is the key factor in protecting the real value of income.

At the same time, according to the expert, it is necessary to promote competition, expand production, and increase the supply of goods to reduce price pressure. Price stabilization programs, promotions, and consumer demand stimulation also need to be pushed forward, especially for essential items.

In the current context, raising wages is necessary, but for the benefit to be fully realized, it is equally important to ensure that prices do not “run ahead.” Only then will the additional income truly improve people’s lives.

Tam An