Are Teachers Eligible for a 15% Increase in Retirement Salary from July 1, 2024, under the 2024 Salary Reform Implementation?
Are teachers the beneficiaries of a 15% pension increase from July 1, 2024, under the 2024 wage reform?
According to Resolution 104/2023/QH15, a comprehensive salary policy reform will be implemented from July 1, 2024, in accordance with Resolution 27-NQ/TW of 2018.
Under the spirit of Resolution 27-NQ/TW of 2018, when the salary reform is implemented from July 1, 2024, the salaries of officials, public employees, and armed forces will increase, which will also lead to an increase in the average monthly salary on which social insurance is based for this group.
Currently, pensions are calculated based on the number of years of social insurance contributions and the average monthly salary on which social insurance is based. Therefore, if the average monthly salary on which social insurance is based increases, the pensions of officials and public employees eligible for increased salaries will also increase.
However, pensions will not increase for 36 units of some sectors that no longer benefit from specific salary policies. If a horizontal salary scale is adopted, some agencies might see a 50% salary reduction.
According to the spirit of Resolution 27-NQ/TW of 2018, organizations with specific salary scales will be preserved (without further increases) to ensure fairness among salary recipients. Consequently, officials and public employees in 36 units applying specific financial and income mechanisms will not receive salary increases when the wage reform is implemented, potentially resulting in no increase in their pensions.
Speaking at the meet-and-greet session marking the first working day after the Tet holiday on the morning of February 15, the Minister of Labor, Invalids and Social Affairs stated that in 2024, a comprehensive salary policy reform will be implemented per Resolution 27-NQ/TW 2018. Wage reform must go hand in hand with adjusting pension policies to ensure that retirees do not fall into hardship or face greater disadvantages due to the reform.
When the salary reform is implemented, if the general level of salaries for workers nationwide rises and pensions are not adequately adjusted, retirees will suffer.
Therefore, a balanced and harmonious adjustment is necessary. If the salary of officials and public employees increases by 23.5%, pensions must increase by at least 15%.
Thus, from July 1, 2024, when the wage reform is implemented, it is projected that the pensions of public employee teachers will increase by at least 15% if their salaries rise by 23.5%.
Are teachers the beneficiaries of a 15% pension increase from July 1, 2024, under the 2024 wage reform?
What are the two new allowance categories for teachers from July 1, 2024, under Resolution 27?
According to Resolution 27-NQ/TW of 2018, two new allowance categories will appear with the 2024 wage reform:
(1) Professional allowance based on the consolidation of professional preferential allowances, professional responsibility allowances, and hazardous and dangerous allowances.
This allowance applies to officials and public employees in professions and jobs with working conditions significantly higher than usual and appropriate State policies (education and training, healthcare, judiciary, prosecution, civil judgment enforcement, inspection, auditing, customs, forest protection, market management, etc.).
(2) Special hardship allowance based on the consolidation of special allowances, attraction allowances, and long-term work allowances in areas with particularly difficult socio-economic conditions.
Thus, it can be seen that the public sector teacher salary scale under the 2024 wage reform will include two new allowance categories: professional allowance and special hardship allowance. However, essentially these two new allowances are considered new "in name" due to the consolidation of existing allowances. Detailed implementation of these new allowances following the wage reform will require specific guidance documents in the future.
Will the revised teacher salary scale be issued in May 2024?
Based on directives from the Government of Vietnam related to wage reform, as outlined in Resolution 01/NQ-CP on key tasks and solutions to implement the Plan for socio-economic development and State budget estimates for 2024, specifically in Appendix IV issued with Resolution 01/NQ-CP, the Government of Vietnam assigns the Ministry of Home Affairs to take the lead in completing the Decree stipulating new salary policies for officials, public employees, and armed forces by May 2024.
Thus, implementing the 2024 wage reform policy, teachers at all levels will adopt a new salary scale. The Government of Vietnam has agreed to complete the Decree stipulating new salary policies for officials, public employees, and armed forces by May 2024. However, the exact date of issuance and effectiveness of the new salary scale will depend on further detailed directives from the Government of Vietnam.
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