Salary increase under new mechanism, no more hard deductions
From July 1, 2025, the salary reform policy will be officially implemented. The mechanism for allocating resources to increase salaries has also changed towards more flexibility.
After the Ministry of Finance issued Circular 17/2025/TT-BTC to abolish all 8 old Circulars regulating the creation of sources for salary reform, the budget allocation for salary increases from 2025 has entered a new phase.
Accordingly, Circular 49/2024/TT-BTC - a document guiding the development of the state budget estimate for 2025 - no longer maintains the mechanism of strict allocation as before (saving 10% of regular expenditures, allocating 50-70% to increase revenue...), but instead determines the source of salary reform in a flexible manner, suitable for the actual revenue - expenditure of each locality, ministry, and sector.
Sources for implementing salary reform from 2025 include:
Regular expenditure savings are within the assigned budget.
The source of increased local budget revenue in 2024 exceeded the estimate.
The salary reform source from previous years has not been fully used.
Minimum 40% of the proceeds are left under the regime (for the health sector, it is a minimum of 35%).
In particular, from July 1, 2025, the salary reform policy will be officially implemented according to the roadmap recommended by the National Assembly in Resolution 103/2023/QH15. This is a step to implement Resolution No. 27-NQ/TW of the Central Committee on salary policy reform, aiming to build a new salary table system, associated with job positions, titles and leadership positions.
With the new mechanism, the units are no longer hardened to the setting rates, but are proactively arranging the source according to the actual budget balance, as long as ensuring the eligibility for policy implementation on time. However, Circular 49 still stipulates that the reform of salary reform into the budget estimate is a mandatory requirement, not neglected in the process of developing a financial plan in 2025.
Recent information from the Government, recommending the National Assembly to consider increasing salaries in 2026, also shows that salary reform will not stop at July 1, 2025. Based on the socio-economic situation in 2025, the Government has proposed that the National Assembly consider continuing to increase public sector salaries, pensions, social insurance benefits, and preferential allowances for meritorious people from 2026, ensuring that they are suitable for budget capacity.
Thus, changes in the mechanism of creating resources in 2025 will not only help remove technical barriers in financial management, but also serve as a premise for implementing further adjustments, in order to gradually improve the lives of salary and allowance recipients from the state budget.
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