How to calculate teacher salary based on statutory pay rate and specific amounts after salary reform in Vietnam in 2024?
How to calculate teacher salary based on statutory pay rate and specific amounts after salary reform in Vietnam in 2024?
Pursuant to Resolution 104/2023/QH15, a comprehensive reform of salary policies will be implemented according to Resolution 27-NQ/TW in 2018 from July 1, 2024.
In 2024, specifically from July 1, 2024, the salary reform will be implemented, resulting in differences in the calculation of teacher salary before and after this period, as follows:
Phase 1: From January 1, 2024, to June 30, 2024 (before the salary reform is implemented), teacher salary will still be calculated based on the current regulations, which rely on statutory pay rate.
Phase 2: Starting from July 1, 2024, the salary reform will be implemented, and teacher salary will no longer be calculated based on statutory pay rate but on specific amounts.
Calculation of teacher salary in Phase 1 (January 1, 2024, to June 30, 2024, before the salary reform is implemented):
Currently, the salary of officials and public employees is calculated using the following formula:
Salary = Statutory pay rate x Salary coefficient
Where:
The current statutory pay rate is 1.8 million VND, as regulated in Decree 24/2023/ND-CP.
The salary coefficient for teachers varies based on their teaching positions.
Calculation of teacher salary in Phase 2 (starting from July 1, 2024, after the salary reform is implemented):
Pursuant to Resolution 27-NQ/TW in 2018, starting from July 1, 2024, teacher salary will be specifically structured as follows:
[1] Annul the current statutory pay rate and salary coefficients and establish a base pay using specific amounts in the new payrolls. Specifically, for teacher payroll, professional and vocational aspects will be based on public employees' professional titles, which will be applied uniformly to public employees without leadership positions. Each professional title will have multiple salary levels based on the following principles:
- Equal salary for the same level of job complexity.
- Higher-than-normal labor conditions and profession-based benefits will be implemented through profession-based allowances.
- Rearrange job groups and salary levels within officials' ranks and public employees' professional titles, encouraging officials and public employees to enhance their professional and vocational qualifications.
- Appointments to officials' ranks or public employees' professional titles must be associated with job positions and the structure of officials' ranks and professional titles implemented by the managing authorities.
[2] The new teacher salary will be designed based on the new salary structure using the following provisional formula:
Actual salary received = Base pay + Allowances (if applicable) + Bonuses (if applicable)
Where:
- Base pay accounts for approximately 70% of the total salary fund.
- Allowances account for approximately 30% of the total salary fund.
- Bonuses: The bonus fund is approximately 10% of the total annual salary fund and does not include allowances
How to calculate teacher salary based on statutory pay rate and specific amounts after salary reform in Vietnam in 2024?
What are the 02 new allowances for teachers in the public sector after salary reform in Vietnam in 2024?
Pursuant to Resolution 27-NQ/TW in 2018, when implementing the 2024 salary reform, there are 02 new allowances as follows:
(1) Profession-based allowances based on merging profession-based benefits, profession-based responsibilities, and hazardous allowances.
This allowance applies to officials and public employees in professions and jobs with higher-than-normal labor conditions and appropriate preferential policies of the State (education and training, healthcare, judiciary, prosecution, civil enforcement, inspection, examination, auditing, customs, forestry management, market management, etc.).
(2) Allowance for work in extremely difficult areas based on merging special allowances, attraction allowances, and long-term work allowances in areas with particularly difficult socio-economic conditions.
Therefore, it can be seen that the public area teacher payroll implementing the 2024 salary reform will have two new allowances: profession-based allowances and allowances for work in extremely difficult areas. However, in essence, these two allowances can be considered "new" in terms of their names because their emergence is based on merging existing allowances. The detailed implementation of these two new allowances in the salary reform will require specific guidelines in the future..
Will teacher salary increase after the salary reform in Vietnam in 2024?
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 1st, the average salary for officials and public employees is expected to increase by about 30% (including base pay and allowances).
Another notable point is that from 2025 onwards, the Government will continue to adjust salary levels in the new payrolls to increase by an average of about 7% per year. This means that after implementing the salary reform with new payrolls and higher salaries compared to the current system, officials and public employees will still receive an additional 7% salary increase annually.
Therefore, with the implementation of the 2024 salary reform, the average teacher salary is expected to increase by about 30% (including base pay and allowances). From 2025 onwards, the Government will continue to adjust salary levels in the new payrolls to increase by an average of about 7% per year. This means that even after the salary reform, teachers will still receive a 7% salary increase annually.
Additionally, the Minister of the Ministry of Home Affairs also noted that a significant point of the salary reform is that the salaries of public employees, especially those in the education and healthcare sectors, will be higher compared to 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, training, and healthcare.
Note: The above information pertains to salary increases for public area teachers (teachers teaching at public educational institutions). For teachers in the private sector, their salaries are determined based on labor contracts and are expected to increase according to the latest region-based minimum wage plan approved by the National Wage Council, starting from July 1, 2024
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