How will the new allowances for village and neighborhood officials change after the merger?
According to the new regulations, from July 1, 2025, village heads and neighborhood group leaders will receive an allowance of up to 6.0 times the basic salary, equivalent to VND 14,040,000 per month.
Legal framework and implementation basis
The Social Insurance Law of 2024 was passed by the National Assembly on June 29, 2024, and officially came into effect on July 1, 2025. A particularly important aspect of this law is the provision that part-time workers at the commune, village, and neighborhood levels are subject to mandatory social insurance.
Decree 33/2023/ND-CP on commune-level officials, civil servants, and part-time workers at the commune, village, and residential group levels has created a specific legal framework for implementing this policy. According to the regulations, part-time workers in villages and residential groups holding no more than three positions will receive a monthly allowance.
Detailed allowance rates according to the new regulations.
The allowance system is implemented on a lump-sum basis with two main levels based on the size and specific characteristics of each locality. The central budget will allocate a lump-sum allowance fund to be paid monthly to each village and residential area.
The highest monthly allowance that village heads and neighborhood group leaders can receive is 6.0 times the basic salary, equivalent to VND 14,040,000 per month.
A rate of 6.0 times the basic salary applies to villages with 350 or more households; residential areas with 500 or more households; villages and residential areas belonging to key or complex commune-level administrative units in terms of security and order; or villages and residential areas belonging to commune-level administrative units in border or island areas.
For villages and residential areas not falling under the above categories, the fixed allowance for the Village Head or Residential Area Leader is 10,530,000 VND/month (equivalent to 4.5 times the basic salary).
In cases where a village with 350 or more households is transformed into a residential area due to the establishment of a commune-level urban administrative unit, the allowance fund will still be maintained at 6.0 times the basic salary.
In cases where part-time officials at the commune, village, or neighborhood level concurrently perform the duties of another part-time official, they will receive a concurrent duty allowance equal to 100% of the allowance stipulated for the concurrently held position.
Note: The specific allowance amount 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 neighborhood levels are now enrolled in mandatory social insurance. This provides many important benefits, including sickness, maternity, retirement, death benefits, and occupational accident and disease insurance as stipulated in the Law on Occupational Safety and Health.
Participation in mandatory social insurance not only guarantees current benefits but also provides peace of mind regarding the future for those working at the grassroots level. This is an important step in building a comprehensive social security system.
