07:52 | 09/04/2024

Will allowances for working at difficult areas be added to job positions-based payrolls applicable to teachers after the salary reform in Vietnam in 2024?

Will allowances for working at difficult areas be added to job positions-based payrolls applicable to teachers after the salary reform in Vietnam in 2024? - asked Mr. T - Hanoi.

Will allowances for working at difficult areas be added to job positions-based payrolls applicable to teachers after the salary reform in Vietnam in 2024?

The National Assembly has voted to approve the Resolution on the state budget estimate for 2024 on the morning of November 10. Accordingly, the Resolution decides to implement comprehensive salary reform from July 1, 2024, according to Resolution 27-NQ/TW in 2018.

Resolution 27-NQ/TW in 2018 unifies the following contents regarding allowances:

II- DIRECTIVES, OBJECTIVES, AND CONTENTS OF REFORM
...
3. Reform contents
3.1. For officials, public employees, and armed forces (public sector)
...
d) Rearrange the current allowance regimes, ensuring that the total allowance fund accounts for a maximum of 30% of the total salary fund
...
Merge profession-based allowances, responsibility allowances, and hazardous allowances (referred to as profession-based allowances) applicable to officials and public employees in professions and jobs with higher than normal labor conditions and with appropriate preferential policies of the State (education and training, healthcare, courts, procuratorates, civil execution of judgments, inspection, examination, auditing, customs, forestry inspection, market management,...). Merge special allowances, attraction allowances, and long-term duty allowances in areas with special economic and social conditions into allowances for duty in difficult areas.
...

It can be seen that when implementing the salary reform 2024, two new allowances will be introduced:

(1) Job positions-based allowance based on the merger of profession-based allowances, responsibility allowances, and hazardous allowances.

This allowance applies to officials and public employees in professions and jobs with higher than normal labor conditions and with appropriate preferential policies of the State (education and training, healthcare, courts, procuratorates, civil execution of judgments, inspection, examination, auditing, customs, forestry inspection, market management,...).

(2) Allowance for duty in difficult areas based on the merger of special allowances, attraction allowances, and long-term duty allowances in areas with special economic and social conditions.

Therefore, it can be seen that there will be a new allowance for teachers in the public sector implementing the salary reform 2024, which is the allowance for duty in difficult areas. However, in essence, this allowance can be seen as new in terms of "naming" because the introduction of the two new allowances is based on the merger of existing allowances. The detailed implementation of these two new allowances during the salary reform will need to wait for specific guidance documents in the future.

Will allowances for working at difficult areas be added to job positions-based payrolls applicable to teachers after the salary reform in Vietnam in 2024? (Image from the Internet)

How much will teacher salaries specifically increase after the salary reform in Vietnam according to Resolution 27 from July 1, 2024?

The National Assembly voted to approve the state budget estimates for 2024 on the morning of November 10. According to the resolution, starting from July 1, 2024, comprehensive salary policy reform will be implemented based on Resolution 27-NQ/TW in 2018.

Resolution 27-NQ/TW in 2018 establishes a unified teacher payroll structure based on public employees' professional titles, which applies to public employees who do not hold leadership positions. Each public employees' professional title has multiple salary levels.

Specifically, the teacher payroll under the salary reform 2024 is designed as follows:

Net salary = base pay + Allowances (if any) + Bonus (if any)

Where:

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

Allowances account for about 30% of the total salary fund.

Bonus: The bonus fund is about 10% of the total salary fund for the year, excluding allowances.

According to the Government's e-portal, the Minister of Home Affairs stated that under the salary reform plan, starting from July 1, the average salary of officials and public employees is expected to increase by about 30% (including base pay and allowances).

Another notable point is that starting from 2025, the Government will continue to adjust the salary levels in the various 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 than the current ones, teachers will still receive a 7% salary increase annually.

The 7% salary increase is intended to compensate for inflation and contribute to improving living standards based on GDP growth, and it will continue until the lowest salary level in the public sector is equal to or higher than the lowest salary level in Zone 1 of the business sector.

Therefore, under the salary reform 2024, the average salary of teachers is expected to increase by about 30% (including base pay and allowances). Starting from 2025, the Government will continue to adjust the salary levels in the various 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 than the current ones, teachers will still receive a 7% salary increase annually.

Furthermore, the Minister of Home Affairs also mentioned that a notable point 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 officials and other 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. Especially after the recent COVID-19 pandemic, it is necessary to pay more attention to improving the lives of teachers and doctors.

Note: The above-mentioned salary increase is for public sector teachers (teachers teaching at public educational institutions). For teachers in the private sector, their salaries are determined by labor contracts, and it is expected that their minimum wages will also increase according to the latest plan approved by the National Salary Council.

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

Based on the government's directives regarding salary reform in Resolution 01/NQ-CP on the tasks and main solutions for implementing the Plan for socio-economic development and state budget estimates for 2024, specifically in Appendix IV issued with Resolution 01/NQ-CP, the government assigned the Ministry of Home Affairs to take the lead in implementing the new salary regime for officials, public employees, and armed forces, which must be completed in May 2024.

Therefore, under the salary reform policy for 2024, teachers at all levels will implement new payrolls. The government has agreed to complete the issuance of a new salary regime for officials, public employees, and armed forces. Thus, 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 take effect will depend on further detailed directives from the government.

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