Vietnam: What are the 03 incomes of teachers subject to increase when the statutory pay rate is increased to 2.34 million VND?
What are the 03 incomes of teachers subject to increase when the statutory pay rate in Vietnam is increased to 2.34 million VND?
Recently, the Government of Vietnam issued Decree 73/2024/ND-CP increasing the statutory pay rate from 1.8 million VND to 2.34 million VND.
Teachers who are calculating their salary based on the salary coefficient and the statutory pay rate will also be eligible for an increase in their income. To be specific:
(1) Base pay increase: The increase in the statutory pay rate results in an increase in base pay. A teacher's base pay is calculated based on the statutory pay rate of 2.34 million VND/month and the salary coefficient stipulated in Circulars regarding the salary coefficients for teachers at various levels.
Consequently, with a 30% increase in the statutory pay rate from 1.8 million VND/month to 2.34 million VND/month, the salary calculated as the coefficient x statutory pay rate will also increase.
(2) Allowances increase: Besides the salary, allowances are also retained as before. Allowances are calculated in the two ways below, when the statutory pay rate increases, the allowances will correspondingly increase:
- For allowances calculated based on the statutory pay rate:
The allowance from July 1, 2024 = Statutory pay rate of 2,340,000 VND/month x Current allowance coefficient.
- For allowances calculated as a percentage of the current salary plus leader allowances and extra-seniority allowance (if any):
The allowance from July 1, 2024 = (Salary from July 1, 2024 + leader allowance from July 1, 2024 (if any) + extra-seniority allowance from July 1, 2024 (if any)) x Allowance level as per regulations.
No matter how it is calculated, the teachers' allowances will also increase when the statutory pay rate is increased to 2.34 million VND/month.
(3) Additional bonus: According to Sub-section 2.2, Section 2 of Conclusion 83-KL/TW 2024, although the salary reform is temporarily postponed, the Politburo has concluded to apply a bonus equivalent to 10% of the total salary fund, excluding allowances starting from July 1, 2024.
Thus, despite not implementing the salary reform, teachers will still receive an additional bonus of 10% of the total salary fund if they have exceptional achievements in their work and annual performance evaluations, performing tasks for teachers included in the payroll of public educational institutions.
In conclusion, though salary reform has not been conducted, the statutory pay rate was increased to 2.34 million VND/month, equivalent to 30%, and teachers' income has significantly increased.
What are the 03 incomes of teachers subject to increase when the statutory pay rate in Vietnam is increased to 2.34 million VND? (Image from the Internet)
What is the payroll applicable to teachers under the statutory pay rate of 2.34 million in Vietnam?
According to Article 3 of Decree 73/2024/ND-CP, the statutory pay rate applied to teachers who are public employees in public service providers is 2,340,000 VND/month.
Under the four Circulars of the Ministry of Education and Training regulating the salary coefficients for teachers at various levels, 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:
| Teacher | Salary coefficient |
| Preschool teacher | - Grade III Preschool teacher, code V.07.02.26, applies the salary coefficient for public employees category A0, from the salary coefficient 2.10 to 4.89; - Grade II Preschool teacher, code V.07.02.25, applies the salary coefficient for public employees category A1, from the salary coefficient 2.34 to 4.98; - Grade I Preschool teacher, code V.07.02.24, applies the salary coefficient for public employees category A2, group A2.2, from the salary coefficient 4.0 to 6.38. |
| Primary school teacher | - Grade III Primary school teacher, code V.07.03.29, applies the salary coefficient for public employees category A1, from the salary coefficient 2.34 to 4.98; - Grade II Primary school teacher, code V.07.03.28, applies the salary coefficient for public employees category A2, group A2.2, from the salary coefficient 4.00 to 6.38; - Grade I Primary school teacher, code V.07.03.27, applies the salary coefficient for public employees category A2, group A2.1, from the salary coefficient 4.40 to 6.78. |
| Lower secondary school teacher | - Grade III Lower secondary school teacher, code V.07.04.32, applies the salary coefficient for public employees category A1, from the salary coefficient 2.34 to 4.98; - Grade II Lower secondary school teacher, code V.07.04.31, applies the salary coefficient for public employees category A2, group A2.2, from the salary coefficient 4.00 to 6.38; - Grade I Lower secondary school teacher, code V.07.04.30, applies the salary coefficient for public employees category A2, group A2.1, from the salary coefficient 4.4 to 6.78. |
| Upper secondary school teacher | - Grade III Upper secondary school teacher, code V.07.05.15, applies the salary coefficient for public employees category A1, from the salary coefficient 2.34 to 4.98; - Grade II Upper secondary school teacher, code V.07.05.14, applies the salary coefficient for public employees category A2, group A2.2, from the salary coefficient 4.0 to 6.38; - Grade I Upper secondary school teacher, code V.07.05.13, applies the salary coefficient for public employees category A2, group A2.1, from the salary coefficient 4.40 to 6.78. |
According to Article 3 of Circular 07/2024/TT-BNV, the salary of teachers who are public employees is calculated as follows:
Salary = Coefficient x Statutory pay rate
The payroll applicable to teachers at various levels calculated on the statutory pay rate is as follows:
See the entire new payroll applicable to teachers from July 1, 2024 here.
Which emulation title-based bonuses will be subject to increase for teachers in Vietnam after July 1, 2024?
Under Article 54 Decree 98/2023/ND-CP, Article 56 Decree 98/2023/ND-CP, Article 58 Decree 98/2023/ND-CP, the emulation title-based bonuses are calculated by the formula:
Bonus = Coefficient x statutory pay rate.
The emulation title-based bonuses for teachers according to Decree 98/2023/ND-CP include:
| Emulation title | Bonus coefficient |
| Advanced Labor | 0.3 times the statutory pay rate |
| National Emulation Fighter | 4.5 times the statutory pay rate |
| Ministerial, Provincial Emulation Fighter | 3.0 times the statutory pay rate |
| Grassroots-level Emulation Fighter | 1.0 times the statutory pay rate |
| Labor Hero | 15.5 times the statutory pay rate |
| People's Teacher | 12.5 times the statutory pay rate |
| Teacher of Merit | 9.0 times the statutory pay rate |
| Diploma of Merit from the Prime Minister of Vietnam | 3.5 times the statutory pay rate |
| Diploma of Merit from Ministries, departments, provinces | 1.5 times the statutory pay rate |
| Certificate of Merit | 0.3 times the statutory pay rate |
| Certificate of Merit from the Chairman of the District People's Committee | 0.15 times the statutory pay rate |
Thus, when the statutory pay rate is increased from 1.8 million VND to 2.34 million VND according to Article 3 of Decree 73/2024/ND-CP, the bonus for teachers will also be increased accordingly.
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