The Ministry of Finance informs about sources for salary reform in 2026

The Ministry of Finance issued Circular No. 133/2025/TT-BTС ( Circular 133) regulating the organization of the implementation of state budget estimates in 2026.

Article 4 of Circular 133 stipulates the source of salary reform policy implementation in 2026 as follows:

Ministries and central agencies create a source to implement salary reform policies according to the provisions of Resolution 27-NQ/TW, Decree No. 60/2021/ND-CP of the Government amended and supplemented by Decree No. 111/2025/ND-CP, Circular No. 56/2022/TT-BTC of the Ministry of Finance and related legal documents.

In which, the scope and rate of deduction of the retained amount shall be implemented according to the provisions of Point e and Point g, Clause 3 of this Article.

At the same time, when allocating and assigning budget estimates to affiliated agencies and units, it is necessary to determine the additional 10% savings for regular expenditures in 2026 compared to the 2025 estimate (except for salary, allowances, salary contributions, salary- nature items and expenditures for people under the regime) reserved for salary reform.

When allocating and assigning budget estimates to affiliated units and commune-level budgets, localities must determine the savings figure of 10% of the regular expenditure estimate in 2026 (except for salary, allowances, salary contributions, salary- nature items and expenditures to people under the regime) according to regulations for salary reform in 2026.

The savings of 10% of the regular expenditure estimate for 2026 of localities are guaranteed not to be lower than the level assigned by the Prime Minister.

Sources for implementing the 2026 salary reform policy of localities include:

70% of the increase in local budget revenue in 2025 will be implemented compared to the estimate assigned by the Prime Minister (excluding land use fees, lottery fees; equitization and divestment of state-owned enterprises managed by localities and items excluded according to the National Assembly resolution and the Prime Minister's decision).

50% of the increase in local budget revenue estimated for the years 2026 and 2025, 2024 compared to the estimate assigned by the Prime Minister last year (excluding land use fees, lottery; equitization and divestment of state-owned enterprises managed by localities and amounts excluded according to the National Assembly's resolution and the Prime Minister's decision).

Local budget funds save on regular operating support (salary expenditure, operating expenditure according to the provisions of law) due to staff streamlining, reorganization of the apparatus to implement the 02 level local government model.

The remaining resources to implement salary reform by the end of 2025 will be transferred.

10% of the savings estimated for regular expenditures (except for salaries, allowances, salary contributions, salary- nature items and expenses to people under the regime) estimated for 2026 has been assigned by competent authorities, including:

10% of the regular expenditure estimate in 2023, 10% of the regular expenditure estimate in 2024 will increase compared to 2023, 10% of the regular expenditure estimate will increase in 2025 compared to 2024 and 10% of the regular expenditure estimate will increase in 2026 compared to 2025.

For public service units that self-insure a part of regular expenditures and public service units with regular expenditures guaranteed by the state budget:

For fee collection (belonging to the fee list as prescribed by law on fees and charges): use at least 40% of the revenue retained under the regime after deducting expenses directly related to service provision activities, fee collection (including expenses used to implement the basic salary of 2.34 million VND/month) according to the provisions of law on fees and charges (not deducted from expenses directly serving the collection work in cases where the state budget has guaranteed expenses for collection activities).

For the revenue from the provision of medical examination and treatment services, preventive medicine and other health services of public health facilities: use at least 35% of the revenue difference greater than expenditure (after fulfilling obligations to the State according to the prescribed regime).

For service revenue (including tuition collection), joint ventures and other revenues: Use at least 40% of the revenue difference greater than expenditure (after fulfilling obligations to the State according to the prescribed regime).

Public service units self-guarantee investment and regular expenditures; Public service units self-guarantee regular expenditures; agencies licensed by competent authorities to implement financial autonomy mechanisms such as public service units self-guarantee investment and regular expenditures or public service units self-guarantee regular expenditures: Units are allowed to decide on the rate of revenue to be allocated to create a source for salary reform (including the bonus fund) and self-guarantee funding for implementation.

The central budget supports the need to implement salary reform (including bonus funds) for ministries, central agencies and localities after balancing resources but not meeting the needs according to the prescribed regime.

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