Will teacher salaries at all levels increase by 7% per year under the salary reform policy in Vietnam in 2024?
- Vietnam: Will teacher salaries at all levels increase by 7% per year under the salary reform policy in 2024?
- How to formulate the salary structure of teachers in the public sector under the salary reform policy in Vietnam?
- Vietnam: What is the management mechanism of the salary and income in the public sector under the Resolution 27?
Vietnam: Will teacher salaries at all levels increase by 7% per year under the salary reform policy in 2024?
The National Assembly has voted to approve the State budget estimate for 2024 on the morning of November 10
The resolution stipulates that, from July 1, 2024, comprehensive salary policy reform will be implemented according to Resolution 27-NQ/TW in 2018.
Pursuant to Resolution 27-NQ/TW in 2018, a unified teacher salary structure based on officials' ranks and public employees' professional titles will be established, applicable to officials and public employees without leadership positions. Each officials' rank and public employees' professional title will have multiple salary levels based on the following principles:
- For the same level of job complexity, the salary will be the same.
- For higher labor conditions and occupational incentives, there will be additional allowances.
- Reorganization of ranks and steps within officials' ranks and public employees' professional titles, encouraging officials and public employees to improve their professional knowledge and skills.
- Appointment to officials' ranks or public employees' professional titles must be linked to job positions and the structure of officials' ranks and public employees' professional titles determined by the managing agencies.
In the Government's report on the results of the socio-economic development plan for 2023, Prime Minister Pham Minh Chinh stated that despite difficulties caused by the COVID-19 pandemic, the Government has made efforts to increase revenue, save costs, and allocate funds for salary reform. So far, approximately 560 trillion VND has been secured to implement the salary reform according to Resolution 27-NQ/TW in 2018 from July 1, 2024, for the period of 2024-2026.
From 2025 onwards, there will continue to be an average annual salary increase of 7% for officials, public employees, and armed forces until the minimum salary is equal to or higher than the region-based minimum wage in Region I of the business sector.
Therefore, starting from 2025, teacher salaries at all levels based on job positions will increase by 7% per year until the minimum salary is equal to or higher than the region-based minimum wage in Region I of the business sector.
Vietnam: Will teacher salaries at all levels increase by 7% per year under the salary reform policy in 2024? (Image from the Internet)
How to formulate the salary structure of teachers in the public sector under the salary reform policy in Vietnam?
Pursuant to the provisions of Resolution 27-NQ/TW in 2018, the new salary structure in the public sector is as follows:
- Base pay: accounting for approximately 70% of the total salary fund.
- Allowances: accounting for approximately 30% of the total salary fund.
- Bonuses: the bonus fund is about 10% of the total salary fund for the year, excluding allowances.
Therefore, the salary structure of teachers in the public sector after salary reform includes three components:
- Base pay.
- Allowances.
- In addition, there is an additional bonus component.
Furthermore, the teacher payroll based on job positions implementing salary reform in 2024 is designed by eliminating the current statutory pay rate and salary coefficients, and constructing the base pay amount based on specific figures in the new payrolls.
Therefore, teachers in the public sector will receive their actual salaries using the following provisional formula:
Actual salary = Base pay + Allowances (if applicable) + Bonuses (if applicable). |
Vietnam: What is the management mechanism of the salary and income in the public sector under the Resolution 27?
The salary and income management mechanism is implemented according to Resolution 27-NQ/TW in 2018 as follows:
- The head of the agency, organization, or unit that uses the salary fund and regular expenditure budget is allocated annually to hire experts, scientists, and individuals with special talents to fulfill the tasks of the agency, organization, or unit and determine the corresponding income payment level.
- The head of the agency, organization, or unit establishes regulations for periodic bonuses for individuals under their management, linked to the results of evaluation and rating of each person's job performance.
- Expanding the pilot mechanism for some centrally governed provinces and cities that have balanced their budgets and ensured sufficient resources for implementing salary reform, the average additional social security policies should not exceed 0.8 times the base pay fund of officials and public employees within the management scope.
- Public service providers that self-finance regular and investment expenditures, or self-finance regular expenditures and state financial funds outside the state budget, implement a self-determined salary mechanism based on their operational results, similar to businesses.
- Public service providers that partly self-finance regular expenditures and public service providers that are fully financed by the state budget apply the salary regime for officials. The actual salary is linked to job positions and public employees' professional titles, which are determined by the head of the public career unit based on revenue sources (from the state budget and the unit's own revenue), labor productivity, job quality, and work efficiency according to the unit's salary payment regulations, not lower than the salary regime prescribed by the State.
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