How to calculate the teacher allowance in 2024 in Vietnam according to Circular 07/2024/TT-BNV?
How to calculate the teacher allowance in 2024 in Vietnam according to Circular 07/2024/TT-BNV?
On July 5, 2024, the Minister of Home Affairs issued Circular 07/2024/TT-BNV guiding the implementation of the statutory pay rate for individuals receiving salaries and allowances in agencies, organizations, and public service providers of the Communist Party, the State, the Vietnam Fatherland Front, socio-political organizations, and associations.
Firstly, regarding the subjects of adjustment under Article 1 of Circular 07/2024/TT-BNV, teachers are divided into 2 groups: public employee teachers and teachers working under labor contracts. Among them, public employee teachers belong to the group for salary calculation based on salary coefficient and statutory pay rate.
Article 3 of Circular 07/2024/TT-BNV stipulates the method for calculating teacher allowances based on the current salary coefficient and allowances, and the statutory pay rate stipulated in Decree 73/2024/ND-CP to calculate the allowance level using the following 2 methods:
+ For the allowance calculated based on the statutory pay rate:
Allowance from July 1, 2024 = Statutory pay rate of 2.34 million/month x Allowance coefficient
+ For allowances calculated as a percentage of the current salary plus leadership position allowances and seniority allowances exceeding the framework (if any):
Allowance from July 1, 2024 = (Salary from July 1, 2024 + Leadership position allowance from July 1, 2024 (if any) + Seniority allowance exceeding the framework from July 1, 2024) x Percentage of allowance entitled as per regulations
+ For allowances specified by a specific amount, they remain unchanged according to current regulations.
How to calculate the teacher allowance in 2024 in Vietnam according to Circular 07/2024/TT-BNV? (Image from the Internet)
Will the seniority allowances for teachers be suspended due to the suspension of salary reform in Vietnam according to Resolution 27?
Previously, section 3.1 of Section 3 Resolution 27-NQ/TW of 2018 mentioned the content of reforms on allowance policies.
The content of Resolution 27 mentioned that after implementing salary reforms and setting up a new salary table, seniority allowances for professions (except for the military, police, and cipher to ensure salary relations with officials) and 08 other types of allowances would be abolished.
However, in Conclusion 83-KL/TW of 2024 on salary reform; adjustment of pensions, social insurance benefits, preferential allowances for people with meritorious services, and social allowances from July 1, 2024 issued by the Central Committee stated clearly that the implementation of salary reform according to Resolution 27-NQ/TW of 2018 faces many difficulties, obstacles, and inadequacies. Therefore, there is a need for thorough review, comprehensive and meticulous research; concurrently, many regulations of the Communist Party and State law need to be amended and supplemented to present to the Central Committee for consideration and adjust some contents of Resolution 27-NQ/TW of 2018 to fit the actual situation.
Thus, the adjustment of the statutory pay rate from 1.8 million VND to 2.34 million VND starting from July 1, 2024, replaces the implementation of salary reform and the establishment of a new salary table according to Resolution 27-NQ/TW of 2018.
Therefore, from July 1, 2024, until the salary reform is implemented, teachers will continue to receive seniority allowances as before.
What is the current statutory pay rate for calculating teacher allowances in Vietnam?
Based on Article 3 of Decree 73/2024/ND-CP, the statutory pay rate for calculating teacher salaries is as follows:
Statutory Pay Rate
1. The statutory pay rate is used as a basis:
a) To calculate salaries in the salary tables, allowances, and implement other policies as prescribed by law for the subjects specified in Article 2 of this Decree;
b) To calculate operation fees and living expenses as prescribed by law;
c) To calculate contributions and policies based on the statutory pay rate.
2. From July 1, 2024, the statutory pay rate is 2,340,000 VND/month.
3. For agencies and units currently applying special financial and income mechanisms at the central level: Maintain the difference between the salaries and additional incomes of officials and public employees in June 2024 with the salaries from July 1, 2024, after amending or abolishing the special financial and income mechanisms. While these mechanisms are not yet amended or abolished, the monthly salary and additional income calculated according to the statutory pay rate of 2,340,000 VND/month under the special mechanism from July 1, 2024, ensure it does not exceed the salary and additional income received in June 2024 (excluding the additional income from adjusted salary coefficient of rank, step when raising rank, step). If applying this principle results in the salary and additional income from July 1, 2024, under the special mechanism being lower than the salary under general regulations, then the salary policy applies as per general regulations.
4. The Government of Vietnam adjusts the statutory pay rate after reporting to the National Assembly for consideration and decision, in line with the state budget capacity, consumer price index, and the country's economic growth rate.
The statutory pay rate used to calculate teacher salaries is currently 2,340,000 VND. This statutory pay rate serves as the basis to:
- Calculate salaries in the salary tables, allowances, and implement other policies as prescribed by law for the subjects specified in Article 2 of Decree 73/2024/ND-CP;
- Calculate operation fees and living expenses as prescribed by law;
- Calculate contributions and policies based on the statutory pay rate.
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