Civil servants’ base salary to increase 20.8% next July

The parliament also approved a hike in pensions and social insurance benefits for people who retired before 1995 by 12.5%, and an increase in spending on social security policies that are tied to the base salary by 20.8%

Total expenditure on salary reform, adjustment of pensions, certain allowances and social security policies would amount to VND12.5 trillion (over $504 million).

Salaries are calculated by multiplying a base wage with a coefficient determined by qualification and experience.

Public sector employees have complained for years that their earnings are too low. Local economists said at a recent conference that low wages have and will continue to foster corruption in the public sector.

Data from the General Statistics Office shows that at the end of 2017 there were more than 5.2 million people working in the public sector. The size of Vietnam’s public sector compared to the population is among the biggest in Southeast Asia, according to the World Bank.