Over the past two months, Mr. N.V.H., a specialist at Hoang Mai District Party Committee, has been receiving an additional 3 million VND [approximately $127] per month thanks to the special mechanism of the 2024 Hanoi Capital Law, which took effect on January 1st. With over a decade of experience and a salary coefficient of 3.33, Mr. H. shared that this policy has provided him and his colleagues with extra financial support to cope with the rising cost of living.
Similarly, Ms. T.T.M., a civil servant in Thanh Tri District, has also experienced an income adjustment, with an increase of 3.8 million VND [approximately $162] per month. This boost has elevated her total income to 14 million VND [approximately $600]—a level that previously took her many years to achieve.
This enhanced income policy applies to officials, civil servants, and public employees working in state agencies, political organizations, the Vietnam Fatherland Front, socio-political organizations, and public non-business units under the regular expenditure budget managed by Hanoi’s administration.
According to Clause 1, Article 35 of the 2024 Hanoi Capital Law, the Hanoi Council has the authority to decide on utilizing the remaining budget for salary reform to implement the policy of increasing income, after ensuring other financial obligations such as salary reform in the budget stabilization period and social security policies issued by the Central Government.
The total expenditure on increased income should not exceed 0.8 times the basic salary fund of officials, civil servants, and public employees under Hanoi’s management. The basic salary fund is calculated using the formula: salary coefficient × 2.34 million VND [approximately $1,000].
The Hanoi People’s Committee has issued Document No. 4405/UBND-SNV to implement the Resolution on increased income for officials, civil servants, and public employees. The Hanoi Council has also passed Resolution No. 46/2024/NQ-HDND to formalize this policy.
With the ever-increasing workload in Hanoi, the enhanced income policy serves as a motivation for the civil servant and public employee workforce. According to reports by the Hanoi People’s Committee, each civil servant in the capital city currently serves an average of 684 people—2.7 times higher than the national average of 246 people per civil servant.
