What is the summary of new allowances in job position-based payrolls for teachers at all levels after the salary reform in Vietnam?
- What is the summary of new allowances in job position-based payrolls for teachers at all levels after the salary reform in Vietnam?
- From July 1st, 2024: What is the specific increase in teacher salaries under the salary reform in Vietnam according to Resolution 27?
- Vietnam: Will the teacher payrolls according to the salary reform policy be issued in May 2024?
What is the summary of new allowances in job position-based payrolls for teachers at all levels after the salary reform in Vietnam?
The National Assembly conducted a vote to pass the Resolution on the state budget estimate for 2024 on the morning of November 10th. Accordingly, the Resolution resolves to implement comprehensive salary policy reforms starting from July 1st, 2024, in accordance with Resolution 27-NQ/TW of 2018.
Pursuant to Resolution 27-NQ/TW of 2018, the following contents are unified regarding allowances:
II- DIRECTIVES, OBJECTIVES, AND CONTENTS OF REFORM
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3. Reform contents
3.1. For officials, public employees, and armed forces (public sector)
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d) Rearrange the current allowances, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund
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- Merge profession-based allowances, responsibility-based allowances, and hazardous allowances (referred to as profession-based allowances) applicable to officials and public employees in professions and jobs that have higher labor conditions than normal and have appropriate preferential policies of the State (education and training, healthcare, judiciary, prosecution, civil execution, inspection, examination, auditing, customs, forestry inspection, market management, etc.). Merge special allowances, attraction allowances, and long-term service allowances in economically and socially disadvantaged areas into allowances for work in extremely disadvantaged areas.
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It can be seen that when implementing the 2024 salary reform, 02 new allowances will be introduced:
(1) Profession-based allowances based on the merger of profession-based allowances, responsibility-based allowances, and hazardous allowances.
This allowance applies to officials and public employees in professions and jobs that have higher labor conditions than normal and have appropriate preferential policies of the State (education and training, healthcare, judiciary, prosecution, civil execution, inspection, examination, auditing, customs, forestry inspection, market management, etc.).
(2) Allowance for work in extremely disadvantaged areas based on the merger of special allowances, attraction allowances, and long-term service allowances in economically and socially disadvantaged areas.
Therefore, it can be seen that in the public sector, teacher payrolls implementing the salary reform of 2024 will have two new allowances: profession-based allowances and allowances for work in extremely disadvantaged areas. However, in essence, these two allowances can be considered "new" in terms of their names because the introduction of these two allowances is based on the merger of existing allowances. The detailed implementation of these two new allowances in the salary reform will have to wait for specific guiding documents in the future.
What is the summary of new allowances in job position-based payrolls for teachers at all levels after the salary reform in Vietnam?
From July 1st, 2024: What is the specific increase in teacher salaries under the salary reform in Vietnam according to Resolution 27?
Pursuant to Resolution 27-NQ/TW of 2018, it was agreed to construct job position-based payrolls for teachers based on their professional expertise and responsibilities, applicable to public employees who do not hold leadership positions. Each job position for public employees has multiple salary levels.
Specifically, the teacher payrolls implementing the 2024 salary reform are designed based on the following structure:
Salary = Base pay + Allowances (if applicable) + Bonuses (if applicable)
Where:
Base pay accounts for around 70% of the total salary fund.
Allowances account for around 30% of the total salary fund.
Bonuses are a separate fund of approximately 10% of the total annual salary fund, excluding allowances.
According to the Government Portal, the Minister of Home Affairs stated that under the salary reform plan, it is expected that the average salary for officials and public employees, including both base pay and allowances, will increase by around 30% from July 1st.
From 2025, the government will continue to adjust the salary levels in the payrolls, with an annual increase of approximately 7%. This means that even after implementing the salary reform with new payrolls and higher salaries than the current ones, officials and public employees will still receive an additional 7% salary increase each year.
The purpose of the 7% increase is to compensate for inflation and provide a level of improvement corresponding to the GDP growth rate. This adjustment will continue until the minimum salary level in the public sector is equal to or higher than the lowest salary level in Region 1 of the private sector.
Therefore, it is expected that the average salary for teachers will increase by approximately 30% (including base pay and allowances) under the 2024 salary reform. Starting from 2025, the government will continue to adjust the salary levels in the payrolls with an annual increase of around 7%. It is worth noting that the salary for 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 that are linked to the comprehensive development of education, training, and healthcare. This is particularly important, especially after the recent COVID-19 pandemic, which highlighted the need to improve the living standards of teachers and doctors even further.
Note: The mentioned salary increase is applicable to teachers in the public sector (teaching at public educational institutions). For teachers in the private sector who are employed under labor contracts, their salaries are determined based on region-based minimum wages. The latest plan approved by the National Wage Council indicates that the region-based minimum wages are expected to increase from July 1st, 2024.
Vietnam: Will the teacher payrolls according to the salary reform policy be issued in May 2024?
Based on the government's directives regarding salary reform in Resolution 01/NQ-CP on the tasks and key solutions for implementing the Socio-Economic Development Plan and State Budget Estimate for 2024, specifically in Appendix IV issued with Resolution 01/NQ-CP, the Ministry of Home Affairs is assigned to lead the implementation and complete the new salary regime for officials, public employees, and armed forces by May 2024.
Therefore, under the salary reform policy in 2024, teachers at all levels will implement new payrolls. The government has agreed to complete the new salary regime for officials, public employees, and armed forces. Consequently, the new teacher payrolls in 2024 based on job position and profession in accordance with the salary reform policy may be completed in May 2024. However, the issuance and effectiveness of the new payrolls will depend on further detailed directives from the Government.
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