The new salary regime is part of a bigger plan for comprehensive salary reform being drafted by the Government in accordance with the Resolution No. 27-NQ/TW on reforming the country's wage policies adopted at the 7th plenum of the 12th Party Central Committee.

The new salary regime should have been implemented in 2021, however, it has been postponed due to the outbreak of the COVID-19 pandemic.

The public sector component of the Resolution represents a major breakthrough not only in public sector wage system, but also in public sector governance, said ILO Viet Nam Director, Chang-Hee Lee.

Outdated wage system in public sector has been a major bottleneck for social and economic development of Viet Nam, he added.

Since July 1, 2023, base salary for cadres, public servants and armed forces' personnel increased by 20.8 percent to VND1.8 million (US$73.7) a month.

Base salary is a basis for calculating salaries of employees in the State-run sector by multiplying it with their corresponding coefficient. For example, a new graduate entering the State sector will get a salary of level 1 with a coefficient of 2.34, equipvalent to a monthly wage of VND VND3.48 million at present./. VGP