Will the new teacher salary increase by about 30 after the salary reform in Vietnam in 2024 under the Resolution 27?

Will the new teacher salary increase by about 30 after the salary reform in Vietnam in 2024 under the Resolution 27? - asked Mrs. T (Hanoi)

Will the new teacher salary increase by about 30 after the salary reform in Vietnam in 2024 under the Resolution 27?

Pursuant to Resolution 104/2023/QH15, comprehensive salary policy reforms will be implemented according to Resolution 27-NQ/TW in 2018 from July 1, 2024.

Pursuant to Resolution 27-NQ/TW in 2018, starting from July 1, 2024, the new salary under the salary reform in 2024 for teachers at all levels will be specifically constructed as follows:

[1] Annul the statutory pay rate and current salary coefficient, and establish a base pay based on specific amounts in new payrolls, specifically:

Teacher payrolls for professional expertise and duties based on public employees' professional titles applied universally to public employees without leadership positions. Each public employees' professional title has multiple salary levels based on the following principles:

- For the same level of job complexity, the salary is the same.

- For higher than normal labor conditions and occupational benefits, additional allowances will be provided.

- Rearrange ranks and steps within officials' ranks and public employees' professional titles, encouraging officials and public employees to improve their professional expertise and skills.

- Appointments to officials' ranks or public employees' professional titles must be associated with job positions and the structure of officials' ranks and public employees' professional titles implemented by the public employee management agencies.

According to the Vietnamese government's official portal, the Minister of Home Affairs stated that under the salary reform plan, starting from July 1, 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, the government will continue to adjust the salary levels in the payrolls to increase by an average of 7% per year. This means that after implementing the salary reform with higher salaries than the current base pay, teachers will still receive an annual salary increase of 7%.

Therefore, with the implementation of the salary reform in 2024, the average new salary for teachers at all levels is expected to increase by about 30% (including base pay and allowances). From 2025 onwards, the government will continue to adjust the salary levels in the payrolls to increase by an average of 7% per year. This means that teachers will receive an additional 7% salary increase annually after implementing the new base pay salary reform.

Additionally, the Minister of Home Affairs also mentioned that a notable aspect of 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 fundamental and comprehensive development of education, training, and healthcare.

Note: The above-mentioned salary increase is applicable to public sector teachers (teaching in public educational institutions). For teachers in the private sector who are paid based on labor contracts, their salaries will be based on the regional minimum wage, which is expected to increase according to the latest plan approved by the National Salary Council

Will the new teacher salary increase by about 30 after the salary reform in Vietnam in 2024 under the Resolution 27?

What is the salary structure for public sector teachers under the salary reform policy in Vietnam?

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

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

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

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

Thus, the salary structure for public sector teachers after the salary reform includes three components:

- Base pay

- Allowances

- In addition, there is a provision for bonuses.

Furthermore, the teacher payroll based on job positions implemented under the salary reform in 2024 is designed by abolishing the statutory pay rate and current salary coefficient, and establishing a base pay based on specific amounts in the new payrolls.

Therefore, public sector teachers will receive their actual salary based on the following provisional formula:

Actual salary = Base pay + Allowances (if any) + Bonuses (if any).

Vietnam: Will the teacher payroll under the salary reform policy be issued in May 2024?

Pursuant to the directives of the Government regarding the salary reform policy in Resolution 01/NQ-CP on the tasks and key solutions for implementing the Plan for socio-economic development and the state budget estimate for 2024, specifically in Appendix IV issued with Resolution 01/NQ-CP, the Government assigned the Ministry of Home Affairs to lead the implementation and complete the issuance of a new salary regime for officials, public employees, and armed forces personnel in May 2024.

Therefore, following the salary reform policy in 2024, teachers at all levels will implement the new payrolls. The Government has agreed to complete the issuance of a new salary regime for officials, public employees, and armed forces personnel. Therefore, the new teacher payroll for 2024 based on public employees' professional titles under the salary reform policy may be completed in May 2024. However, the exact timing of when the new payrolls will be issued and come into effect will depend on further detailed directives from the Government

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