From July 1, 2024: How much will teacher salaries increase after salary reform in Vietnam under the Resolution 27?
- From July 1, 2024: How much will teacher salaries increase after salary reform in Vietnam under the Resolution 27?
- What are 02 new allowances applicable to teachers after salary reform in Vietnam in 2024?
- Will the 2024 teacher payroll be applied from May, 2024 according to the salary policy reform in Vietnam?
From July 1, 2024: How much will teacher salaries increase after salary reform in Vietnam under the Resolution 27?
The National Assembly has voted to approve the Resolution on the state budget estimate for 2024 on the morning of November 10th. Thus, the Resolution recommends implementing comprehensive salary policy reforms from July 1st, 2024, according to Resolution 27-NQ/TW in 2018.
Resolution 27-NQ/TW in 2018 has agreed to establish a professional and vocational teacher payroll based on professional job titles applicable to public employees, excluding leadership positions. Each professional job title for public employees will have multiple salary levels.
Specifically, the teacher payroll for the salary reform in 2024 is designed according to the following structure:
Salary = Base pay + Allowances (if any) + Bonuses (if any)
Where:
Base pay accounts for approximately 70% of the total salary fund.
Allowances account for approximately 30% of the total salary fund.
Bonuses are calculated based on approximately 10% of the total annual salary fund, excluding allowances.
According to the Government's e-Portal, the Minister of Home Affairs stated that under the salary reform plan, starting from July 1st, it is estimated that the average salary of officials and public employees will increase by about 30% (including both base pay and allowances).
Another notable point is that from 2025, the Government will continue to adjust the salary levels in the payrolls with an additional average increase of about 7% per year. This means that after implementing the salary reform with new payrolls that have higher salaries compared to the current ones, officials and public employees will still receive a 7% annual salary increase.
The 7% salary increase aims to compensate for inflation and improve living standards in line with GDP growth, and will be implemented until the lowest salary level in the public sector is equal to or higher than the minimum salary level in Region 1 of the private sector.
Therefore, with the implementation of the salary reform in 2024, the average salary of teachers is expected to increase by about 30% (including both basic salary and allowances). From 2025, the Government will continue to adjust the salary levels in the payrolls with an additional average increase of about 7% per year. This means that after implementing the salary reform, teachers will still receive a 7% annual salary increase.
Furthermore, the Minister of Home Affairs also mentioned that a notable point in 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. This is because we are implementing salary policy reforms in line with the resolution on comprehensive and fundamental development of education and healthcare. Especially after the recent COVID-19 pandemic, it is evident that we need to pay more attention to improving the lives of teachers and doctors.
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 will be determined based on labor contracts and are expected to follow the region-based minimum wage. It is anticipated that the region-based minimum wage will also increase according to the latest plan approved by the National Salary Council.
From July 1, 2024: How much will teacher salaries increase after salary reform in Vietnam under the Resolution 27? (Image from the Internet)
What are 02 new allowances applicable to teachers after salary reform in Vietnam in 2024?
Pursuant to Resolution 27-NQ/TW in 2018, when implementing the salary reform in 2024, 02 new allowances will be introduced for teachers in the public sector:
(1) Allowance based on profession, which combines profession-based allowances, responsibility allowances, and hazardous allowances. This allowance applies to officials and public employees in professions and jobs with higher labor conditions than normal and appropriate preferential policies of the State (education and training, healthcare, courts, prosecution, civil enforcement, inspection, auditing, customs, forestry management, market management, etc.).
(2) Allowance for working in extremely difficult areas, which combines special allowances, attraction allowances, and long-term working allowances in economically and socially disadvantaged areas.
Therefore, it can be seen that the teacher payroll in the public sector implementing the salary reform in 2024 will include two new allowances: profession-based allowance and allowance for working in extremely difficult areas. However, in essence, these two allowances can be considered "new" in terms of their names, as they are based on the consolidation of existing allowances. The specific implementation of these two new allowances during the salary reform will require detailed guidelines in the future.
Will the 2024 teacher payroll be applied from May, 2024 according to the salary policy reform in Vietnam?
Pursuant to the guidelines from the Government regarding the salary reform in Resolution 01/NQ-CP on the tasks and key solutions for implementing the socio-economic development plan and state budget estimate for 2024, specifically in Appendix IV issued with Resolution 01/NQ-CP, the Ministry of Home Affairs is assigned to lead the implementation and must complete the issuance of a new salary regime for officials, public employees, and armed forces by May 2024.
Therefore, in accordance with the salary reform policy in 2024, teachers at all levels will implement a new payroll. The Government has agreed to complete the issuance of a new salary regime for officials, public employees, and armed forces. Therefore, the new teacher payroll in 2024, based on professional job titles applicable to public employees according to the salary reform policy, may be completed by May 2024. However, the timing of the issuance and effectiveness of the new payroll will depend on further detailed instructions from the Government.
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