From July 01, 2024: What is the new salary structure for the entire teacher payrolls in Vietnam?
- From July 01, 2024: What is the new salary structure for the entire teacher payrolls in Vietnam?
- From July 01, 2024: How do the new teacher payrolls change in terms of lowest and highest salaries?
- From July 01, 2024: What are 02 new allowances for teachers after salary reform under the Resolution 27
From July 01, 2024: What is the new salary structure for the entire teacher payrolls in Vietnam?
Recently, the Chairperson of the National Assembly signed and issued Resolution 104/2023/QH15 on the State Budget Estimate for 2024.
According to Resolution 104/2023/QH15, comprehensive reforms of salary policies will be implemented in accordance with Resolution 27-NQ/TW in 2018, starting from July 1st, 2024.
Resolution 27-NQ/TW in 2018 introduced reforms in building and issuing a new payroll system for public employees based on job positions, titles, and leadership positions, replacing the current payroll system. It also includes the conversion of old salaries to new ones, ensuring that the new salaries are not lower than the current ones.
Furthermore, the new salary structure for public employees includes the base pay (accounting for approximately 70% of the total salary fund) and allowances (accounting for approximately 30% of the total salary fund). Additional bonuses will be provided (the bonus fund accounts for about 10% of the total salary fund for the year, excluding allowances).
Therefore, starting from July 1st, 2024, when the salary reform is implemented, the entire new teacher payroll will be structured as follows:
Teacher salary = base pay (70%) + Allowances (30%) (if applicable)
Additionally, according to Resolution 27, additional bonuses will be provided (the bonus fund accounts for about 10% of the total salary fund for the year, excluding allowances) (if applicable).
From July 01, 2024: What is the new salary structure for the entire teacher payrolls in Vietnam?
From July 01, 2024: How do the new teacher payrolls change in terms of lowest and highest salaries?
Recently, the Chairperson of the National Assembly signed and issued Resolution 104/2023/QH15 on the State Budget Estimate for 2024.
Pursuant to Resolution 104/2023/QH15, comprehensive reforms of salary policies will be implemented in accordance with Resolution 27-NQ/TW in 2018, starting from July 1st, 2024.
Pursuant to Resolution 27-NQ/TW in 2018, when implementing salary reform, a new payroll system will be built and issued for public employees based on job positions, titles, and leadership positions to replace the current payroll system. The conversion of old salaries to new ones will be carried out, ensuring that the new salaries are not lower than the current ones.
Pursuant to the regulations stated in Article 3 of Circular 10/2023/TT-BNV, the salary level for teachers is calculated as follows:
Teacher salary = Coefficient x statutory pay rate |
The current statutory pay rate is 1.8 million VND/month (according to Clause 2 of Article 3 of Decree 24/2023/ND-CP).
Therefore, the current details of teacher payrolls applicable until June 30th, 2024 are as follows:
(1) Salary for preschool teachers:
(2) Salary for primary school teachers:
(3) Salary for lower secondary school teachers
(4) Salary for upper secondary school teachers
Thus, the highest salary level for teachers currently is 12,204,000 VND/month. The lowest salary level for teachers currently is 3,780,000 VND/month.
Note: The above salary amounts do not include allowances or other subsidies.
(1) The lowest salary level from July 1st, 2024, after the salary reform:
Starting from July 1st, 2024, teachers will no longer have their salary calculated based on (coefficient x statutory pay rate) as it is currently. Instead, it will be replaced by payrolls based on job positions, including a position payroll and a professional payroll.
Teachers will have a new salary structure designed, which includes a base pay and allowances.
In this structure, the base pay accounts for approximately 70% of the total salary fund, while allowances account for about 30%.
Teacher's salary = base pay (70%) + allowances (30%). |
From July 1st, 2024, during the salary reform, the minimum salary level for teachers may be higher than the average region-based minimum wage of the business sector in various regions.
Furthermore, when implementing the salary reform, the new salary for teachers will not be lower than their current salary.
By 2025, the minimum salary level for teachers will be higher than the average region-based minimum wage of the business sector in various regions.
The ultimate goal is that by 2030, the minimum salary level for teachers must be equal to or higher than the lowest salary level in the highest business region.
(2) The highest salary level from July 1st, 2024, during the salary reform:
The Minister of the Ministry of Home Affairs stated that under the upcoming salary reform plan from July 1st, 2024, the average general salary for officials and public employees (including base pay and allowances) is expected to increase by 30%.
From 2025, this salary level will continue to be adjusted with an annual average increase of about 7%.
Although salary reform has not been implemented in the past three years, the statutory pay rate has been adjusted twice, increasing by 29.5%. Therefore, when totaling from 2021 (the expected time to implement the salary reform according to the spirit of Resolution 27-NQ/TW in 2018) to July 1st this year, the salary of officials and public employees has increased significantly on average, about 60%. While this figure may not be outstanding, it is still a considerable increase compared to the average annual increase of 7% before implementing the salary reform.
Therefore, from July 1st, 2024, during the salary reform, the average general salary for officials and public employees (including base pay and allowances) is expected to increase by 30%. Additionally, from 2025, this salary level will continue to be adjusted with an annual average increase of about 7%. As a result, the salary level for teachers from July 1st, 2024, after the salary reform is expected to increase significantly, surpassing the current highest salary level of 12,204,000 VND per month.
*Note: The mentioned salary levels apply to teachers in the public sector during the salary reform. As for teachers working under labor contracts, their minimum regional salary will be adjusted, and they will be paid according to agreements between the school and the teacher based on productivity and work results.
Source: Government Electronic Portal
From July 01, 2024: What are 02 new allowances for teachers after salary reform under the Resolution 27
Pursuant to Resolution 27-NQ/TW in 2018, when implementing the salary reform in 2024, two new allowances will be introduced:
(1) Professional allowances based on combining profession-related allowances, responsibility allowances, and hazardous allowances. This allowance applies to officials and public employees in professions or jobs with higher labor conditions than normal and appropriate preferential policies from the State (such as education and training, healthcare, judiciary, prosecution, civil enforcement, inspection, examination, auditing, customs, forestry management, market management, etc.).
(2) Allowance for work in particularly difficult areas based on combining special allowances, attraction allowances, and long-term service allowances in economically and socially challenging areas.
Therefore, it can be seen that in the public sector's teacher payrolls during the salary reform in 2024, two new allowances will appear, namely professional allowances and allowances for work in particularly difficult areas. However, in essence, these two allowances can be considered "new" only in terms of their names because the introduction of these allowances is based on combining existing allowances. The detailed implementation of these two new allowances during the salary reform will require specific guidelines in the future.
LawNet