How will the new allowance level of village and residential group cadres change after the merger?
According to the new regulations, from July 1, 2025, village chiefs and residential group leaders will receive a maximum allowance of 6.0 times the basic salary, equivalent to VND 14,040,000/month.
Legal framework and implementation basis
The Law on Social Insurance 2024 was passed by the National Assembly on June 29, 2024 and officially took effect from July 1, 2025. What is particularly important in this law is the provision that part-time workers at the commune, village and residential group levels are subject to compulsory social insurance.
Decree 33/2023/ND-CP on commune-level cadres, civil servants and part-time workers at commune, village and residential group levels has created a specific legal framework for implementing this policy. According to regulations, part-time workers at village and residential group levels with no more than 3 positions will receive monthly allowances.
Detailed allowance levels according to new regulations
The allowance system is applied according to the principle of allowance allocation with two main levels based on the scale and special characteristics of each locality. The Central budget will allocate an allowance fund to pay monthly to each village and residential group.
The highest monthly allowance that Village Chiefs and Residential Group Heads can receive is 6.0 times the basic salary, equivalent to VND 14,040,000/month.
The level of 6.0 times the basic salary applies to villages with 350 households or more; residential groups with 500 households or more; villages and residential groups belonging to key commune-level administrative units with complicated security and order issues; or villages and residential groups belonging to commune-level administrative units in border and island areas.
For villages and residential groups not in the above cases, the fixed salary for Village Heads and Residential Group Heads is 10,530,000 VND/month (equivalent to 4.5 times the basic salary).
In case a village with 350 or more households is converted into a residential group due to the establishment of a commune-level urban administrative unit, the allowance fund level will still be maintained at 6.0 times the basic salary.
In case a part-time worker at the commune, village or residential group level concurrently performs the duties of another part-time worker, they will receive a concurrent allowance equal to 100% of the allowance prescribed for the concurrent position.
Note: The specific allowance level may vary between provinces and cities depending on the budget and actual conditions of each locality.
Social insurance benefits included
A notable point in the new policy is that part-time workers at the commune, village and residential group levels are eligible to participate in compulsory social insurance. This brings many important benefits including sickness, maternity, retirement, death and occupational accident and disease insurance as prescribed by the Law on Occupational Safety and Hygiene.
Compulsory social insurance participation not only ensures current benefits but also creates peace of mind about the future for those working at the grassroots level. This is an important step in building a comprehensive social security system.
