What allowances does the teacher payroll include after the 2024 salary reform in Vietnam?
What allowances does the teacher payroll include after the 2024 salary reform in Vietnam?
From July 1, 2024, the comprehensive salary policy reform will be implemented according to Resolution 27-NQ/TW of 2018.
Pursuant to Resolution 27-NQ/TW of 2018, the new salary structure during the 2024 salary reform will be calculated as follows:
Net salary = base pay + allowances (if any) + bonuses (if any)
Where:
Base pay: accounts for approximately 70% of the total salary fund.
Allowances: accounts for approximately 30% of the total salary fund.
Bonuses: the bonus fund is approximately 10% of the total salary fund for the year, excluding allowances.
Therefore, under the new teacher payroll in 2024 during the implementation of the salary reform, Resolution 27-NQ/TW of 2018 has determined that allowances will account for approximately 30% of the total salary fund.
The changes in allowances for the new teacher payroll in 2024 during the salary reform are as follows:
Annulling seniority allowances:
Pursuant to Resolution 27-NQ/TW of 2018, the following allowances will also be annulled:
II- DIRECTIVES, OBJECTIVES, AND CONTENT OF REFORM
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3. Reform content
3.1. For officials, public employees, and armed forces (public sector)
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Rearrange the current allowance system, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund.
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- Annul seniority allowances (except for the military, police, and cipher forces to maintain salary parity with officials); leadership position allowances (as leadership positions in the political system implement position-based salaries); party and political-social organizations allowances; official duty allowances (as they have been included in the base pay); hazardous and dangerous allowances (as they have been incorporated into allowances based on hazardous and dangerous work conditions).
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When implementing the 2024 salary reform according to Resolution 27-NQ/TW of 2018, starting from July 1, 2024, except for the military, police, and cipher forces, all current sectors that receive seniority allowances will have them eliminated. Therefore, teachers at all levels will also officially have their seniority allowances annulled
Supplementing 02 new allowances
Resolution 27-NQ/TW of 2018 stipulates that when implementing the 2024 salary reform, 02 new allowances will be supplemented:
(1) Job position-based allowances, combining job position-based incentives, responsibility allowances, and hazardous and dangerous allowances.
This allowance applies to officials, public employees in professions and jobs that involve higher-than-normal labor conditions and have appropriate preferential policies from the state (such as education and training, healthcare, courts, prosecution, civil enforcement, inspection, auditing, customs, forestry management, market management, etc.).
(2) Allowances for work in extremely difficult areas, combining special allowances, attraction allowances, and long-term work allowances in areas with particularly difficult socio-economic conditions.
Therefore, it can be seen that for teachers in the public sector implementing the 2024 salary reform, 02 new allowances will be introduced: job position-based allowances and allowances for work in extremely difficult areas. However, in essence, these two allowances can be seen as "new in name" because the introduction of these two allowances is based on the consolidation of existing allowances. The detailed implementation of these two new allowances under the salary reform will require specific guidance in the future
What allowances does the teacher payroll include after the 2024 salary reform in Vietnam?
Will the teacher salaries increase or decrease after the new 2024 salary reform in Vietnam?
According to the Government's e-Portal, the Minister of Home Affairs stated that under the salary reform plan, starting from July 1, the average salary for officials and public employees is expected to increase by about 30% (including base pay and allowances).
Another noteworthy point is that from 2025, the Government will continue to adjust the salaries in the payrolls to increase by an average of 7% per year. This means that after implementing the salary reform with new payrolls and higher salaries compared to the current ones, officials and public employees will still receive a 7% salary increase annually.
Therefore, in the implementation of the 2024 salary reform, the average salary for teachers is expected to increase by about 30% (including base pay and allowances). From 2025, the Government will continue to adjust salaries in the payrolls to increase by an average of 7% per year. This means that after implementing the salary reform with new payrolls and higher salaries compared to the current ones, teachers will still receive a 7% salary increase annually.
Additionally, the Minister of Home Affairs also mentioned that a noteworthy point in implementing the salary reform is that the salaries of public employees, especially those in the education and healthcare sectors, will be higher than the general level of other officials and public employees.
Note: The above mentioned salary increase is for teachers in the public sector (teaching at public educational institutions). For teachers in the private sector, their salaries are determined based on employment contracts and are expected to increase according to the latest plan on region-based minimum wage approved by the National Salary Council, starting from July 1, 2024.
Vietnam: Will the teacher payroll for 2024 under the salary reform policy be issued in May 2024?
Based on the government's directives regarding the salary reform in Resolution 01/NQ-CP in 2024 on the tasks and key solutions for implementing the Economic-Social Development Plan and State Budget Estimate for 2024, specifically in Appendix IV issued with Resolution 01/NQ-CP in 2024, the government assigned the Ministry of Home Affairs to take the lead in implementing, and by May 2024, complete the Decree on the new salary regime for officials, public employees, and armed forces.
Therefore, in accordance with the 2024 salary reform policy, teachers at all levels will implement new payrolls. The government has agreed to complete the Decree on the new salary regime for officials, public employees, and armed forces. Therefore, the new teacher payroll for 2024, based on public employees' professional titles under the salary reform policy, may be completed in May 2024. However, the issuance and effectiveness of the new payrolls will depend on further detailed directives from the government
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