Vietnam’s government has introduced updated official-duty allowances for local officials and civil servants at the commune level, replacing an outdated policy and adjusting compensation based on salary status. Decree 381/2026/ND-CP, approved on October 2, 2026, applies to employees in Party, state, and socio-political organizations operating in communes, wards, and special zones. The revisions take effect immediately but apply retroactively to July 1, 2026.

Eligibility and Payment Structure

The new rules apply to cadres and civil servants working in agencies of the Party, the State, the Vietnam Fatherland Front, and socio-political organisations attached to the Vietnam Fatherland Front in communes, wards, and special zones. Allowances are divided into two categories:

• Non-salaried staff, those not covered by provincial-level salary resolutions, receive an allowance equal to 55% of their base pay, along with any leadership or seniority-based supplements.
• Salaried staff, those under provincial People’s Council resolutions, earn 25% of their base salary, plus leadership or seniority allowances. If this 25% rate falls below their previous allowance, they receive the difference to ensure they meet the 55% threshold.

The decree specifies that these allowances are not subject to taxation or social/health insurance contributions. Funding comes from the state budget and shall be included in the annual salary reform needs of localities.

Payment Timing and Conditions

Allowances are distributed monthly alongside regular salaries. However, payments cease immediately upon a civil servant’s departure from their commune-level post; they lose eligibility the month after leaving.

Not all work periods qualify for allowances. Exclusions include:

• Overseas assignments where salary drops to 40% of normal pay, as defined by Decree 204/2004/ND-CP.
• Unpaid leave lasting one month or longer.
• Periods during which social insurance benefits are received.
• Temporary work suspensions or detentions.

These restrictions ensure allowances remain tied to active, in-country service at the local level.

Backdated Adjustments for Affected Workers

The decree addresses a previous shortfall by adjusting payments for staff who received allowances below 55% between July 1, 2026, and its October 2 signing. Those impacted will receive retroactive corrections to meet the new standard. This applies only to the two eligible groups, non-salaried staff and salaried staff whose provincial resolutions placed them under the threshold.

The update also repeals Decree 34/2012/ND-CP, the prior regulation governing commune-level allowances. The new decree remains in effect until Vietnam’s broader salary policy reform is finalized, at which point it may be revised or replaced.

The Ministry of Home Affairs shall guide, urge, monitor and inspect the implementation of this Decree. Ministers, heads of ministerial-level agencies, Chairpersons of provincial-level People’s Committees, and related agencies, organisations and individuals shall implement this Decree.