Vietnam: How is the salary of teachers calculated from July 1, 2024 when the statutory pay rate is increased to 2.34 million VND?

How will teachers' salaries be calculated from July 1, 2024, when the statutory pay rate increases to 2.34 million VND?

Based on Decree 204/2004/ND-CP of Vietnam's Government , the salary of officials and public employees is calculated as follows:

Salary = Basic Salary x Salary Coefficient

Additionally, according to Circular 07/2024/TT-BNV guiding the calculation of salaries and allowances under Decree 73/2024/ND-CP when the statutory pay rate is increased to 2,340,000 VND/month, the calculation of teachers' salaries from July 1, 2024, is as follows:

Salary = 2,340,000 VND x Salary Coefficient

Unit: VND/month

Where:

- The salary coefficient for preschool teachers is applied according to Article 8 of Circular 01/2021/TT-BGDDT.

- The salary coefficient for primary school teachers is applied according to Article 8 of Circular 02/2021/TT-BGDDT.

- The salary coefficient for middle school teachers is applied according to Article 7 of Circular 03/2021/TT-BGDĐT amended by Clause 8, Article 3 of Circular 08/2023/TT-BGDDT.

- The salary coefficient for high school teachers is applied according to Article 8 of Circular 04/2021/TT-BGDDT.

- The salary coefficient for university lecturers is applied according to Article 10 of Circular 40/2020/TT-BGDDT.

Note: The calculation of teachers' salaries mentioned above is based solely on the salary coefficient and statutory pay rate according to regulations and does not include any allowances (if any).

How will teachers' salaries be calculated from July 1, 2024, when the statutory pay rate increases to 2.34 million VND? (Image from the Internet)

What are the salary coefficients for teachers at different levels?

According to the guidelines in the 04 Circulars of the Ministry of Education and Training, including Circular 01/2021/TT-BGDDT, Circular 02/2021/TT-BGDDT, Circular 03/2021/TT-BGDDT, Circular 04/2021/TT-BGDDT and amended by Circular 08/2023/TT-BGDDT, the current salary coefficients for teachers at different levels are as follows:

Will seniority allowances for teachers be removed from July 1, 2024, when the statutory pay rate increases?

According to Resolution 27-NQ/TW of 2018 after the implementation of salary reform, the removal of general seniority allowance, including the seniority allowance for teachers (except for the military, police, and cipher forces to ensure salary parity with officials), will be enacted.

However, according to sub-item 2.2, Item 2 of Conclusion 83-KL/TW of 2024, the salary policies for officials and public employees are delineated as follows:

(1) Implementation of statutory pay rate adjustment from 1.8 million VND to 2.34 million VND (an increase of 30%) from July 1, 2024.

(2) Implementation of bonus policies from July 1, 2024 (the bonus fund is 10% of the basic salary fund).

The bonus policy regulations are linked to the responsibility of the head of the agency or unit in assessing and classifying the performance levels of salary recipients, promptly motivating, encouraging, and creating incentives for officials and public employees, and the armed forces to improve the quality and efficiency of their work, contributing to the enhancement of the effectiveness of the political system's operations; avoiding overlap with regulations of Law on Emulation and Commendation of 2022.

(3) Completing salary increase policies appropriate to the transition of management and salary payment for officials and public employees and the armed forces.

(4) Clearly stipulating and guiding 5 financial sources to implement the salary policy, including:

- From the increase in local revenue and surplus funds allocated for salary reform in previous years.- From the central government budget.- From a portion of the revenue from service activities.- From a 10% saving on additional recurrent expenditure.- From resources generated by streamlining staff.

(5) Completing the mechanism for managing salaries and incomes: Clearly stipulating and guiding 4 contents, including:

- Authority and responsibility of the head in evaluating and classifying officials and public employees for salary and bonus payments and task performance results.- Authority of the head to use the salary fund and recurrent expenditure funds to hire professionals, scientists, and talented individuals to complete the tasks of the agency or unit and to decide the income payment levels associating with the assigned tasks.- Expanding the pilot application of additional salaries for certain localities when conditions permit, as proposed by Resolution 27-NQ/TW of 2018.- Mechanism for managing salaries and incomes appropriate to the state budget’s funding sources and the revenue of public service providers.

(6) Implementing the salaries and incomes of agencies and units currently applying the specific financial and income mechanisms.

(7) Concerning amendments and supplements to some allowance policies: The Standing Committee of the Party leadership, directs the Government of Vietnam to research and decide on amending and supplementing the policies on allowances and special policies for the armed forces, allowances for officials and public employees in some specialized fields, especially professional allowances that have arisen as unreasonable during implementation.

Simultaneously, the implementation of salary reform according to Resolution 27-NQ/TW of 2018 faces many difficulties, obstacles, and inadequacies; thus, it requires thorough review and research, and comprehensive examination; at the same time, many Party regulations and State laws need to be revised and supplemented to present to the Central Government to consider and adjust several contents of Resolution 27-NQ/TW of 2018 to suit actual conditions.

As a result, the implementation of salary reform according to Resolution 27-NQ/TW of 2018 will be temporarily suspended, and the contents of the salary policies implementation from July 1, 2024, do not mention the removal of professional seniority allowances.

Therefore, from July 1, 2024, teachers will still receive professional seniority allowances.