Vietnam: Shall salaries paid to teachers concluding Contract 111 be subject to increase?

Shall salaries paid to teachers concluding Contract 111 in Vietnam be subject to increase?

Currently, the Vietnamese law does not provide an explanation or definition for the term "Contract 111". However, Contract 111 can be understood as the short name for "employment contract under Decree 111/2022/ND-CP".

Contract 111 concluded by teachers refers to the employment contract concluded by teachers to perform professional tasks as listed in the list of job positions for specialized professional titles and job positions for shared professional titles in public service providers according to Decree 111/2022/ND-CP and subject to the salary grading in accordance with Decree 204/2004/ND-CP.

Under point d, clause 1, Article 2 of Decree 73/2024/ND-CP:

Regulated entities

1. Salary and allowance earners to whom the statutory pay rate applies as prescribed in Article 1 of this Decree include:

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d) Persons who work under employment contracts as prescribed in the Government’s Decree No. 111/2022/ND-CP dated December 30, 2022 on contracts of employment for certain tasks in administrative units and public service provider, and are eligible for, or have agreed under the signed employment contracts on, salary payment according to the Government’s Decree No. 204/2004/ND-CP dated December 14, 2004 on pay policy for officials, public employees and armed forces;

Teachers working under Contract 111 are entitled to an increase in statutory pay rate from 1.8 million VND to 2.34 million VND.

Shall salaries paid to teachers concluding Contract 111 in Vietnam be subject to increase? (Image from the Internet)

What is the payroll applicable to teachers working under Contract 111?

Under point d, clause 1, Article 10 of Decree 111/2022/ND-CP:

Standards, requirements, rights and obligations of parties to employment contracts

1. Individuals concluding employment contracts for holding professional positions must fully satisfy the following standards and requirements and have the following rights:

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d) Working periods under employment contracts (excluding training periods and challenge periods) for employees signing employment contracts for holding professional positions shall be the basis for salary payment based on positions that employees hold if they are recruited to work as officials or public employees. The building of pay grades corresponding to positions that employees are recruited shall comply with regulations of law;

The salary grading for teachers working under Contract 111 is based on job positions, specifically following the payroll for public employees. More specifically, the payroll for public employees under the new statutory pay rate of 2.34 million VND is as follows:

According to four circulars of the Ministry of Education and Training regulating the salary coefficients for teachers at various levels: Circular 01/2021/TT-BGDDT, Circular 02/2021/TT-BGDDT, Circular 03/2021/TT-BGDDT, Circular 04/2021/TT-BGDDT as amended by Circular 08/2023/TT-BGDDT;

Under Article 3 of Circular 07/2024/TT-BNV, the salaries paid to teachers who are public employees  are calculated as follows:

Salary = Coefficient x Statutory pay rate

The payroll applicable to teachers at different levels calculated on the statutory pay rate is as follows:

View the entire new payroll applicable to teachers from July 1, 2024 here.

What are the conditions for concluding Contract 111 for teachers in Vietnam?

Under Clause 2, Article 5 of Decree 111/2022/ND-CP, and Article 10 of Decree 111/2022/ND-CP, the conditions for concluding Contract 111 are determined as follows:

Forms and types of contracts and contract requirements

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2. Contract requirements

a) For administrative bodies and PSPs: it is required to have demands for conclusion of contracts for performance of tasks prescribed in Article 4 of this Decree and fully meet other requirements as prescribed by law;

b) For organizations providing services: it is required to fully meet operating requirements as prescribed by law, ensure employees’ regulations as prescribed by labor law and other relative laws; 

c) For individuals: it is required to fully meet standards and requirements as prescribed in Clause 1 Article 8 if individuals conclude employment contracts for having administrative support positions or Clause 1 Article 10 if individuals conclude employment contracts for professional positions as prescribed in this Decree.

Thus, teachers concluding Contract 111 must meet the following conditions:

- Possess Vietnamese nationality;

- Be of legal working age as prescribed by labor law and specialized law;

- Have adequate health to work;

- Have a background verified by a competent authority;

- Have the capability to meet the requirements of the position;

- Not be under criminal prosecution or serving a prison sentence, not undergoing non-custodial rehabilitation, or not being subjected to educational measures in communal-level towns, not being placed in reformatory schools, compulsory educational institutions, or compulsory rehabilitation centers; not being subject to professional practice prohibition or prohibition from performing related work;

- Meet other standards and conditions as prescribed by specialized law and defined by the hiring authority

- Fully adhere to the specialized and professional standards and conditions as prescribed by specialized law;

- Be responsible for performing specialized and professional tasks as prescribed by law, stipulated in the contract, and as required by the public service provider.