Will teachers still receive seniority allowances based on their job positions after the salary reform in Vietnam in 2024 according to Resolution 27?

Will teachers still receive seniority allowances based on their job positions after the salary reform in Vietnam in 2024 according to Resolution 27? - asked Mrs. T (Hanoi)

Will teachers still receive seniority allowances based on their job positions after the salary reform in Vietnam in 2024 according to Resolution 27?

Currently, Article 4 of Decree 77/2021/ND-CP stipulates the eligibility for seniority allowances for teachers as follows:

Seniority allowance
1. Teachers who have participated in teaching and education and have contributed to compulsory social insurance for a minimum of 5 years (60 months) are entitled to a seniority allowance equal to 5% of their current salary plus leadership position allowances and seniority allowances beyond the salary scale (if applicable). From the sixth year onwards, an additional 1% is added for each year (12 months).
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The National Assembly has voted to approve the State budget estimate for 2024 on the morning of November 10th.

Thus, the Resolution resolves that from July 1st, 2024, a comprehensive salary policy reform will be implemented according to Resolution 27-NQ/TW of 2018 on salary policy reform for officials, public employees, armed forces, and workers in state-owned enterprises issued by the Central Executive Committee.

The allowances guided by Resolution 27-NQ/TW of 2018 on salary policy reform for officials, public employees, armed forces, and employees are as follows:

II- DIRECTIVES, OBJECTIVES, AND CONTENT OF REFORM
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3. Reform content
3.1. For officials, public employees, and the armed forces (public sector)
....
Reorganize the existing allowance regimes to ensure that the total allowance fund accounts for a maximum of 30% of the total salary fund
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- Abolish seniority allowances (except for the military, police, and specialized units to ensure salary parity with officials); leadership position allowances (as leadership positions in the political system determine salary levels); party and socio-political organization allowances; official duty allowances (as they have been included in the base pay); hazardous and dangerous allowances (as hazardous and dangerous working conditions have been incorporated into occupation-specific allowances).
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Therefore, under the implementation of salary reform in 2024 according to Resolution 27-NQ/TW of 2018, starting from July 1st, 2024, all current job groups, except for the military, police, and specialized units, will no longer receive seniority allowances. Teachers at all levels will also no longer receive seniority allowances.

Note: The above provisions apply to teachers in the public sector (teaching at public educational institutions). For teachers in the private sector who are remunerated based on labor contracts, the allowances are implemented based on agreements with the employers.

Will teachers still receive seniority allowances based on their job positions after the salary reform in Vietnam in 2024 according to Resolution 27?

What is the new salary structure applicable to teachers in the public sector after salary reform in Vietnam in 2024?

Pursuant to the provisions of Resolution 27-NQ/TW of 2018, the new salary structure for the public sector is as follows:

- Base pay: accounts for about 70% of the total salary fund.

- Allowances: accounts for about 30% of the total salary fund.

- Bonuses: the bonus fund is about 10% of the total annual salary fund, excluding allowances.

Therefore, the salary structure for teachers in the public sector after the salary reform includes 3 components:

- Base pay.

- Allowances.

- Additionally, there is also a bonus component.

Thus, teachers in the public sector will receive their actual salary based on the following provisional calculation:

Actual salary = Base pay + Allowances (if applicable) + Bonuses (if applicable)

What are 02 new allowances for teachers in the public sector after the salary reform in Vietnam in 2024?

Pursuant to Resolution 27-NQ/TW of 2018, when implementing the salary reform in 2024, 02 new types of allowances will be introduced:

(1) Professional allowances based on merging profession-related allowances, responsibilities-based allowances, and hazardous and dangerous allowances.

This allowance applies to officials and public employees in professions and occupations with higher-than-normal labor conditions and appropriate preferential policies from the State (such as education and training, healthcare, courts, prosecution, civil enforcement, inspection, auditing, customs, forestry management, market management, etc.).

(2) Allowances for working in special difficult areas based on merging special allowances, attraction allowances, and long-term service allowances in areas with particularly difficult socio-economic conditions.

Therefore, it can be seen that teacher payrolls in the public sector implementing the salary reform in 2024 will have two new types of allowances: professional allowances and allowances for working in special difficult areas. However, in essence, these two allowances can be seen as "new" in terms of their names, as they are based on merging existing allowances. The detailed implementation of these two new allowances under the salary reform will require specific guidelines to be issued in the future.

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