Vietnam’s newly issued Decree 381/2026/ND-CP, signed on October 2, 2026, establishes official-duty allowances for local cadres and civil servants, replacing the outdated Decree 34/2012/ND-CP. The new rules take effect immediately but apply retroactively to July 1, 2026, covering personnel at the commune level across Party, state, and socio-political agencies, including the Vietnam Fatherland Front and its affiliated organizations.
The decree applies specifically to officials working in communes, wards, and special zones, collectively referred to as commune-level officials. It introduces two allowance tiers based on existing salary structures. Those not covered by provincial People’s Councils’ resolutions receive 55% of their base salary, along with any leadership or seniority allowances. Officials already on provincial salary scales get 25% of their base salary, plus the same add-ons. If their provincial salary plus 25% falls below the 55% threshold, they are topped up to meet that minimum. Allowances are paid monthly alongside salaries and do not count toward social insurance contributions.
Certain exclusions apply. Officials on overseas trips earning 40% of their salary, those on unpaid leave, or those receiving social insurance benefits during leave are ineligible. Entitlement to allowances ends the month after an official leaves their post. Funding for these allowances comes from the state budget, integrated into annual salary reform plans for localities. The retroactive application ensures officials who received less than 55% between July and October 2026 will receive back payments to align with the new rates.
For example, a ward secretary earning a base salary of VND 10 million (approximately $400) under a provincial resolution would have received 25% (VND 2.5 million) under the old rules. Under the new decree, they would now receive 55% (VND 5.5 million) if their provincial allowance plus 25% did not already exceed that amount. The retroactive adjustment ensures no one is disadvantaged by the three-month gap between July and October.
The decree is framed as a temporary measure, set to remain in place until the next salary policy reform. The Ministry of Home Affairs will oversee its implementation, with provincial committees responsible for ensuring funds are allocated correctly. A key clarification is that allowances cannot be used to calculate social insurance, which may impact officials’ long-term benefits if they rely on these payments for retirement or healthcare.