The new basic wage is now VND1.21 million (US$54.30) a month, raised from VND1.15 million (US$51.60).
In Vietnam, the minimum monthly pay for civil servants and public employees is calculated by multiplying that basic level with a coefficient that is based on qualifications and experience.
The coefficient for a new subdistrict-level civil servant with a bachelor's degree, for example, is 2.34.
Many in the public sector have for years complained that their wages are too low. They also said that in comparison salaries in the business sector have been increased annually by 10%-15%.
But with nearly 3 million on its payroll, the government has been very careful with increases. The last raise was in 2013.
The government estimated that the new basic salary will increase payment by VND11 trillion (US$493.5 million) a month.