Will the income from teacher salary increase or decrease when implementing the 2024 salary reform and annulling the seniority allowance in Vietnam?
- Will the income from teacher salary increase or decrease when implementing the 2024 salary reform and annulling the seniority allowance in Vietnam?
- What are the 02 new allowances for teachers in the public sector after the salary reform in Vietnam in 2024?
- What is the salary and income management mechanism according to the salary reform policy in Vietnam in 2024?
Will the income from teacher salary increase or decrease when implementing the 2024 salary reform and annulling the seniority allowance in Vietnam?
Pursuant to the Resolution 27-NQ/TW in 2018, starting from July 1, 2024, except for the military, police, and essential sectors, all current sectors that receive seniority allowance will have it annulled. Therefore, teachers in the public sector will also officially lose the seniority allowance.
According to the Government's Electronic Portal, the Minister of the Ministry of Home Affairs stated that under the salary reform plan, starting from July 1, it is expected that the average salary of officials and public employees will increase by approximately 30% (including base pay and allowances).
Another notable point is that from 2025 onwards, the Government will continue to adjust the salary levels in the payrolls with an average additional increase of about 7% per year. This means that after implementing the salary reform and having new payrolls with higher salary levels than the current ones, officials and public employees will still receive an additional annual salary increase of 7%.
The 7% salary increase is to compensate for inflation and improve based on GDP growth and will be implemented until the minimum salary level in the public sector is equal to or higher than the region-based minimum wage in Region 1 of the business sector.
Furthermore, the Minister of the Ministry of Home Affairs also mentioned that a notable point in the salary reform implementation is that the salary of public employees, especially in the education and healthcare sectors, will be higher than the average level of other officials and public employees. This is because we are implementing a salary policy reform linked to the implementation of resolutions on comprehensive development of education, training, and healthcare. Especially during the recent COVID-19 pandemic, it has shown the need to pay more attention to improving the lives of teachers and doctors.
Therefore, with the implementation of the 2024 salary reform, the average income from teacher salary is expected to increase by around 30% (including base pay and allowances). From 2025 onwards, the Government will continue to adjust the salary levels in the payrolls with an average additional increase of about 7% per year. This means that after implementing the salary reform and having new payrolls with higher salary levels than the current ones, teachers will still receive an additional annual salary increase of 7%. Additionally, the teacher salary during the salary reform implementation may be higher than the average level of other officials and public employees.
Source: Government's Electronic Portal
Will the income from teacher salary increase or decrease when implementing the 2024 salary reform and annulling the seniority allowance in Vietnam?
What are the 02 new allowances for teachers in the public sector after the salary reform in Vietnam in 2024?
Pursuant to Resolution 27-NQ/TW in 2018, when implementing the salary reform in 2024, 02 new allowances are as follows:
(1) Allowance based on profession, which combines the existing allowances for professional benefits, professional responsibilities, and hazardous conditions.
This allowance applies to officials and public employees in professions and jobs with higher labor conditions than normal and with appropriate preferential policies from the State (education and training, healthcare, courts, prosecution, civil enforcement, inspection, examination, auditing, customs, forestry management, market management, etc.).
(2) Allowance for working in difficult and special areas, which combines the special allowances, attracting allowances, and long-term work allowances in economically and socially challenging areas.
Therefore, it can be seen that teacher payrolls in the public sector implementing the salary reform in 2024 will have two new allowances: the profession-based allowance and the allowance for work in difficult and special areas. However, in essence, these two allowances can be considered as "new" in terms of their names because their introduction is based on the consolidation of existing allowances. The detailed implementation of these two new allowances in the salary reform will require specific guidelines in the future.
What is the salary and income management mechanism according to the salary reform policy in Vietnam in 2024?
Pursuant to the regulations in Resolution 27-NQ/TW in 2018, the salary and income management mechanism is implemented according to the salary reform policy as follows:
- The head of an agency, organization, or unit that uses the salary fund and regular expenditure budget is allocated annually to hire experts, scientists, and individuals with special talents to carry out the tasks of the agency, organization, or unit, and decide on the corresponding income payment based on the assigned tasks.
- The head of an agency, organization, or unit establishes regulations for periodic rewards for individuals under their management authority, linked to the results of performance evaluation and job completion ratings for each person.
- Expanding the pilot mechanism for some centrally-run provinces and cities that have balanced their budgets and ensured sufficient resources to implement the salary reform, social welfare policies are implemented with an additional average income increase of no more than 0.8 times the base pay fund of officials and public employees under their management scope.
- Public service providers ensure regular expenditure and investment spending on their own, or ensure regular expenditure and use state financial funds outside the state budget, and implement a self-determined salary mechanism based on operational results as enterprises.
- If public service providers ensure part of the regular expenditure, and if public service providers are fully funded by the state budget, the salary regime for officials is applied. The actual salary is linked to the job position and public employees' professional titles determined by the head of the public service provider based on revenue sources (from the state budget and the unit's revenue), labor productivity, job quality, and work efficiency according to the unit's salary payment regulations, not lower than the salary regime stipulated by the State.
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